Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?

111th Congress                                            Rept. 111-137
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
             AMERICAN CLEAN ENERGY AND SECURITY ACT OF 2009

                                _______
                                

                  June 5, 2009.--Ordered to be printed

                                _______
                                

 Mr. Waxman, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                        [To accompany H.R. 2454]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 2454) to create clean energy jobs, achieve 
energy independence, reduce global warming pollution and 
transition to a clean energy economy, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................   277
Background and Need for Legislation..............................   278
Legislative History..............................................   318
Committee Consideration..........................................   320
Committee Votes..................................................   320
Application of Law to the Legislative Branch.....................   357
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................   357
Statement of General Performance Goals and Objectives............   357
Constitutional Authority Statement...............................   357
Advisory Committee Statement.....................................   357
Federal Mandates Statement.......................................   357
Earmarks and Tax and Tariff Benefits.............................   358
Committee Cost Estimate..........................................   358
New Budget Authority, Entitlement Authority, and Tax Expenditures   358
Congressional Budget Office Cost Estimate........................   358
Section-By-Section...............................................   393
Explanation of Amendments........................................   426
Changes in Existing Law Made by the Bill, as Reported............   435
Minority and Additional Views....................................   725
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``American Clean 
Energy and Security Act of 2009''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. International participation.

                         TITLE I--CLEAN ENERGY

   Subtitle A--Combined Efficiency and Renewable Electricity Standard

Sec. 101. Combined efficiency and renewable electricity standard.
Sec. 102. Clarifying State authority to adopt renewable energy 
incentives.

              Subtitle B--Carbon Capture and Sequestration

Sec. 111. National strategy.
Sec. 112. Regulations for geologic sequestration sites.
        ``Sec. 813. Geologic sequestration sites.
Sec. 113. Studies and reports.
Sec. 114. Carbon capture and sequestration demonstration and early 
deployment program.
Sec. 115. Commercial deployment of carbon capture and sequestration 
technologies.
        ``Sec. 786. Commercial deployment of carbon capture and 
                        sequestration technologies.
Sec. 116. Performance standards for coal-fueled power plants.
        ``Sec. 812. Performance standards for new coal-fired power 
                        plants.

                    Subtitle C--Clean Transportation

Sec. 121. Electric vehicle infrastructure.
Sec. 122. Large-scale vehicle electrification program.
Sec. 123. Plug-in electric drive vehicle manufacturing.
Sec. 124. Investment in clean vehicles.
Sec. 125. Advanced technology vehicle manufacturing incentive loans.
Sec. 126. Amendment to renewable fuels standard.
Sec. 127. Open fuel standard.
Sec. 128. Temporary Vehicle Trade-in Program.
Sec. 129. Diesel emissions reduction.
Sec. 130. Loan guarantees for projects to construct renewable fuel 
pipelines.

     Subtitle D--State Energy and Environment Development Accounts

Sec. 131. Establishment of SEED Accounts.
Sec. 132. Support of State renewable energy and energy efficiency 
programs.

                   Subtitle E--Smart Grid Advancement

Sec. 141. Definitions.
Sec. 142.  Assessment of Smart Grid cost effectiveness in products.
Sec. 143. Inclusions of Smart Grid capability on appliance ENERGY GUIDE 
labels.
Sec. 144. Smart Grid peak demand reduction goals.
Sec. 145.  Reauthorization of energy efficiency public information 
program to include Smart Grid information.
Sec. 146. Inclusion of Smart Grid features in appliance rebate program.

                   Subtitle F--Transmission Planning

Sec. 151. Transmission planning.
Sec. 152. Net metering for Federal agencies.
Sec. 153. Support for qualified advanced electric transmission 
manufacturing plants, qualified high efficiency transmission property, 
and qualified advanced electric transmission property.

            Subtitle G--Technical Corrections to Energy Laws

Sec. 161. Technical corrections to Energy Independence and Security Act 
of 2007.
Sec. 162. Technical corrections to Energy Policy Act of 2005.

               Subtitle H--Energy and Efficiency Centers

Sec. 171. Clean Energy Innovation Centers.
Sec. 172. Building Assessment Centers.
Sec. 173. Centers for Energy and Environmental Knowledge and Outreach.

             Subtitle I--Nuclear and Advanced Technologies

Sec. 181. Revisions to loan guarantee program authority.
Sec. 182. Purpose.
Sec. 183. Definitions.
Sec. 184. Clean Energy Investment Fund.
Sec. 185. Energy technology deployment goals.
Sec. 186. Clean Energy Deployment Administration.
Sec. 187. Direct support.
Sec. 188. Federal credit authority.
Sec. 189. General provisions.

                       Subtitle J--Miscellaneous

Sec. 191. Study of ocean renewable energy and transmission planning and 
siting.
Sec. 192. Clean technology business competition grant program.
Sec. 193. National Bioenergy Partnership.
Sec. 194. Office of Consumer Advocacy.

                      TITLE II--ENERGY EFFICIENCY

            Subtitle A--Building Energy Efficiency Programs

Sec. 201. Greater energy efficiency in building codes.
Sec. 202. Building retrofit program.
Sec. 203. Energy efficient manufactured homes.
Sec. 204. Building energy performance labeling program.
Sec. 205. Tree planting programs.
Sec. 206. Energy efficiency for data center buildings.

     Subtitle B--Lighting and Appliance Energy Efficiency Programs

Sec. 211. Lighting efficiency standards.
Sec. 212. Other appliance efficiency standards.
Sec. 213. Appliance efficiency determinations and procedures.
Sec. 214. Best-in-Class Appliances Deployment Program.
Sec. 215. WaterSense.
Sec. 216. Federal procurement of water efficient products.
Sec. 217. Water efficient product rebate programs.
Sec. 218. Certified stoves program.
Sec. 219. Energy Star standards.

                 Subtitle C--Transportation Efficiency

Sec. 221. Emissions standards.

                        ``Part B--Mobile Sources

        ``Sec. 821. Greenhouse gas emission standards for mobile 
                        sources.
Sec. 222. Greenhouse gas emissions reductions through transportation 
efficiency.

                    ``Part D--Planning Requirements

        ``Sec. 841. Greenhouse gas emissions reductions through 
                        transportation efficiency.
Sec. 223. SmartWay transportation efficiency program.
        ``Sec. 822. SmartWay transportation efficiency program.
Sec. 224. State vehicle fleets.

           Subtitle D--Industrial Energy Efficiency Programs

Sec. 241. Industrial plant energy efficiency standards.
Sec. 242. Electric and thermal waste energy recovery award program.
Sec. 243. Clarifying election of waste heat recovery financial 
incentives.
Sec. 244. Motor market assessment and commercial awareness program.
Sec. 245. Motor efficiency rebate program.

   Subtitle E--Improvements in Energy Savings Performance Contracting

Sec. 251. Energy savings performance contracts.

                    Subtitle F--Public Institutions

Sec. 261. Public institutions.
Sec. 262. Community energy efficiency flexibility.
Sec. 263. Small community joint participation.
Sec. 264. Low income community energy efficiency program.

                       Subtitle G--Miscellaneous

Sec. 271. Energy efficient information and communications technologies.
Sec. 272. National energy efficiency goals.
Sec. 273. Affiliated island energy independence team.
Sec. 274. Product carbon disclosure program.

              TITLE III--REDUCING GLOBAL WARMING POLLUTION

Sec. 301. Short title.

             Subtitle A--Reducing Global Warming Pollution

Sec. 311. Reducing global warming pollution.

        ``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

     ``Part A--Global Warming Pollution Reduction Goals and Targets

        ``Sec. 701. Findings and purpose.
        ``Sec. 702. Economy-wide reduction goals.
        ``Sec. 703. Reduction targets for specified sources.
        ``Sec. 704. Supplemental pollution reductions.
        ``Sec. 705. Review and program recommendations.
        ``Sec. 706. National Academy review.
        ``Sec. 707. Presidential response and recommendations.

       ``Part B--Designation and Registration of Greenhouse Gases

        ``Sec. 711. Designation of greenhouse gases.
        ``Sec. 712. Carbon dioxide equivalent value of greenhouse 
                        gases.
        ``Sec. 713. Greenhouse gas registry.

                        ``Part C--Program Rules

        ``Sec. 721. Emission allowances.
        ``Sec. 722. Prohibition of excess emissions.
        ``Sec. 723. Penalty for noncompliance.
        ``Sec. 724. Trading.
        ``Sec. 725. Banking and borrowing.
        ``Sec. 726. Strategic reserve.
        ``Sec. 727. Permits.
        ``Sec. 728. International emission allowances.

                           ``Part D--Offsets

        ``Sec. 731. Offsets Integrity Advisory Board.
        ``Sec. 732. Establishment of offsets program.
        ``Sec. 733. Eligible project types.
        ``Sec. 734. Requirements for offset projects.
        ``Sec. 735. Approval of offset projects.
        ``Sec. 736. Verification of offset projects.
        ``Sec. 737. Issuance of offset credits.
        ``Sec. 738. Audits.
        ``Sec. 739. Program review and revision.
        ``Sec. 740. Early offset supply.
        ``Sec. 741. Environmental considerations.
        ``Sec. 742. Trading.
        ``Sec. 743. International offset credits.

 ``Part E--Supplemental Emissions Reductions From Reduced Deforestation

        ``Sec. 751. Definitions.
        ``Sec. 752. Findings.
        ``Sec. 753. Supplemental emissions reductions through reduced 
                        deforestation.
        ``Sec. 754. Requirements for international deforestation 
                        reduction program.
        ``Sec. 755. Reports and reviews.
        ``Sec. 756. Legal effect of part.
Sec. 312. Definitions.
        ``Sec. 700. Definitions.

                 Subtitle B--Disposition of Allowances

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

                  ``Part H--Disposition of Allowances

        ``Sec. 781. Allocation of allowances for supplemental 
                        reductions.
        ``Sec. 782. Allocation of emission allowances.
        ``Sec. 783. Electricity consumers.
        ``Sec. 784. Natural gas consumers.
        ``Sec. 785. Home heating oil and propane consumers.
        ``Sec. 787. Allocations to refineries.
        ``Sec. 788. [SECTION RESERVED].
        ``Sec. 789. Climate change consumer refunds.
        ``Sec. 790. Exchange for State-issued allowances.
        ``Sec. 791. Auction procedures.
        ``Sec. 792. Auctioning allowances for other entities.
        ``Sec. 793. Establishment of funds.
        ``Sec. 794. Oversight of allocations.

            Subtitle C--Additional Greenhouse Gas Standards

Sec. 331. Greenhouse gas standards.

           ``TITLE VIII--ADDITIONAL GREENHOUSE GAS STANDARDS

        ``Sec. 801. Definitions.

                 ``Part A--Stationary Source Standards

        ``Sec. 811. Standards of performance.

                ``Part C--Exemptions From Other Programs

        ``Sec. 831. Criteria pollutants.
        ``Sec. 832. International air pollution.
        ``Sec. 833. Hazardous air pollutants.
        ``Sec. 834. New source review.
        ``Sec. 835. Title V permits.
Sec. 332. HFC Regulation.
Sec. 333. Black carbon.

                         ``Part E--Black Carbon

        ``Sec. 851. Black carbon.
Sec. 334. States.
Sec. 335. State programs.

                        ``Part F--Miscellaneous

        ``Sec. 861. State programs.
        ``Sec. 862. Grants for support of air pollution control 
                        programs.
Sec. 336. Enforcement.
Sec. 337. Conforming amendments.
Sec. 338. Davis-Bacon compliance.

                  Subtitle D--Carbon Market Assurance

Sec. 341. Carbon market assurance.

                Subtitle E--Additional Market Assurance

Sec. 351. Regulation of certain transactions in derivatives involving 
energy commodities.
Sec. 352. No effect on authority of the Federal Energy Regulatory 
Commission.
Sec. 353. Inspector General of the Commodity Futures Trading 
Commission.
Sec. 354. Settlement and clearing through registered derivatives 
clearing organizations.
Sec. 355. Limitation on eligibility to purchase a credit default swap.
Sec. 356. Transaction fees.
Sec. 357. No effect on authority of the Federal Trade Commission.
Sec. 358. Regulation of carbon derivatives markets.
Sec. 359. Cease-and-desist authority.

           TITLE IV--TRANSITIONING TO A CLEAN ENERGY ECONOMY

      Subtitle A--Ensuring Real Reductions in Industrial Emissions

Sec. 401. Ensuring real reductions in industrial emissions.

       ``Part F--Ensuring Real Reductions in Industrial Emissions

        ``Sec. 761. Purposes.
        ``Sec. 762. International negotiations.
        ``Sec. 763. Definitions.

             ``subpart 1--emission allowance rebate program

        ``Sec. 764. Eligible industrial sectors.
        ``Sec. 765. Distribution of emission allowance rebates.

          ``subpart 2--international reserve allowance program

        ``Sec. 766. International reserve allowance program.

                ``subpart 3--presidential determination

        ``Sec. 767. Presidential reports and determinations.

              Subtitle B--Green Jobs and Worker Transition

                           Part 1--Green Jobs

Sec. 421. Clean energy curriculum development grants.
Sec. 422. Increased funding for energy worker training program.

          Part 2--Climate Change Worker Adjustment Assistance

Sec. 425. Petitions, eligibility requirements, and determinations.
Sec. 426. Program benefits.
Sec. 427. General provisions.

                    Subtitle C--Consumer Assistance

Sec. 431. Energy tax credit.
Sec. 432. Energy refund program for low-income consumers.

                 Subtitle D--Exporting Clean Technology

Sec. 441. Findings and purposes.
Sec. 442. Definitions.
Sec. 443. Governance.
Sec. 444. Determination of eligible countries.
Sec. 445. Qualifying activities.
Sec. 446. Assistance.

                 Subtitle E--Adapting to Climate Change

                      Part 1--Domestic Adaptation

         subpart a--national climate change adaptation program

Sec. 451. National Climate Change Adaptation Program.
Sec. 452. Climate services.
Sec. 453. State programs to build resilience to climate change impacts.

              subpart b--public health and climate change

Sec. 461. Sense of Congress on public health and climate change.
Sec. 462. Relationship to other laws.
Sec. 463. National strategic action plan.
Sec. 464. Advisory board.
Sec. 465. Reports.
Sec. 466. Definitions.
Sec. 467. Climate Change Health Protection and Promotion Fund.

                 subpart c--natural resource adaptation

Sec. 471. Purposes.
Sec. 472. Natural resources climate change adaptation policy.
Sec. 473. Definitions.
Sec. 474. Council on Environmental Quality.
Sec. 475. Natural Resources Climate Change Adaptation Panel.
Sec. 476. Natural Resources Climate Change Adaptation Strategy.
Sec. 477. Natural resources adaptation science and information.
Sec. 478. Federal natural resource agency adaptation plans.
Sec. 479. State natural resources adaptation plans.
Sec. 480. Natural Resources Climate Change Adaptation Fund.
Sec. 481. National Wildlife Habitat and Corridors Information Program.
Sec. 482. Additional provisions regarding Indian tribes.

        Part 2--International Climate Change Adaptation Program

Sec. 491. Findings and purposes.
Sec. 492. Definitions.
Sec. 493. International Climate Change Adaptation Program.
Sec. 494. Distribution of allowances.
Sec. 495. Bilateral assistance.

SEC. 2. DEFINITIONS.

  For purposes of this Act:
          (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
          (2) State.--The term ``State'' has the meaning given that 
        term in section 302 of the Clean Air Act.

SEC. 3. INTERNATIONAL PARTICIPATION.

  The Administrator, in consultation with the Department of State and 
the United States Trade Representative, shall annually prepare and 
certify a report to the Congress regarding whether China and India have 
adopted greenhouse gas emissions standards at least as strict as those 
standards required under this Act. If the Administrator determines that 
China and India have not adopted greenhouse gas emissions standards at 
least as stringent as those set forth in this Act, the Administrator 
shall notify each Member of Congress of his determination, and shall 
release his determination to the media.

                         TITLE I--CLEAN ENERGY

   Subtitle A--Combined Efficiency and Renewable Electricity Standard

SEC. 101. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.

  (a) In General.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2601 and following) is amended by adding at the 
end the following:

``SEC. 610. COMBINED EFFICIENCY AND RENEWABLE ELECTRICITY STANDARD.

  ``(a) Definitions.--For purposes of this section:
          ``(1) CHP savings.--The term `CHP savings' means--
                  ``(A) CHP system savings from a combined heat and 
                power system that commences operation after the date of 
                enactment of this section; and
                  ``(B) the increase in CHP system savings from, at any 
                time after the date of the enactment of this section, 
                upgrading, replacing, expanding, or increasing the 
                utilization of a combined heat and power system that 
                commenced operation on or before the date of enactment 
                of this section.
          ``(2) CHP system savings.--The term `CHP system savings' 
        means the electric output, and the electricity saved due to the 
        mechanical output, of a combined heat and power system, 
        adjusted to reflect any increase in fuel consumption by that 
        system as compared to the fuel that would have been required to 
        produce an equivalent useful thermal energy output in a 
        separate thermal-only system.
          ``(3) Combined heat and power system.--The term `combined 
        heat and power system' means a system that uses the same energy 
        source both for the generation of electrical or mechanical 
        power and the production of steam or another form of useful 
        thermal energy, provided that--
                  ``(A) the system meets such requirements relating to 
                efficiency and other operating characteristics as the 
                Commission may promulgate by regulation; and
                  ``(B) the net sales of electricity by the facility to 
                customers not consuming the thermal output from that 
                facility will not exceed 50 percent of total annual 
                electric generation by the facility.
          ``(4) Customer facility savings.--The term `customer facility 
        savings' means a reduction in end-use electricity consumption 
        (including recycled energy savings) at a facility of an end-use 
        consumer of electricity served by a retail electric supplier, 
        as compared to--
                  ``(A) in the case of a new facility, consumption at a 
                reference facility of average efficiency;
                  ``(B) in the case of an existing facility, 
                consumption at such facility during a base period, 
                except as provided in subparagraphs (C) and (D);
                  ``(C) in the case of new equipment that replaces 
                existing equipment with remaining useful life, the 
                projected consumption of the existing equipment for the 
                remaining useful life of such equipment, and 
                thereafter, consumption of new equipment of average 
                efficiency of the same equipment type; and
                  ``(D) in the case of new equipment that replaces 
                existing equipment at the end of the useful life of the 
                existing equipment, consumption by new equipment of 
                average efficiency of the same equipment type.
          ``(5) Distributed renewable generation facility.--The term 
        `distributed renewable generation facility' means a facility 
        that--
                  ``(A) generates renewable electricity;
                  ``(B) primarily serves 1 or more electricity 
                consumers at or near the facility site; and
                  ``(C) is no greater than--
                          ``(i) 2 megawatts in capacity; or
                          ``(ii) 4 megawatts in capacity, in the case 
                        of a facility that is placed in service after 
                        the date of enactment of this section and 
                        generates electricity from a renewable energy 
                        resource other than by means of combustion.
          ``(6) Electricity savings.--The term `electricity savings' 
        means reductions in electricity consumption, relative to 
        business-as-usual projections, achieved through measures 
        implemented after the date of enactment of this section, 
        limited to--
                  ``(A) customer facility savings of electricity, 
                adjusted to reflect any associated increase in fuel 
                consumption at the facility;
                  ``(B) reductions in distribution system losses of 
                electricity achieved by a retail electricity 
                distributor, as compared to losses attributable to new 
                or replacement distribution system equipment of average 
                efficiency;
                  ``(C) CHP savings; and
                  ``(D) fuel cell savings.
          ``(7) Federal land.--The term `Federal land' means land owned 
        by the United States, other than land held in trust for an 
        Indian or Indian tribe.
          ``(8) Federal renewable electricity credit.--The term 
        `Federal renewable electricity credit' means a credit, 
        representing one megawatt hour of renewable electricity, issued 
        pursuant to subsection (e).
          ``(9) Fuel cell.--The term `fuel cell' means a device that 
        directly converts the chemical energy of a fuel and an oxidant 
        into electricity by electrochemical processes occurring at 
        separate electrodes in the device.
          ``(10) Fuel cell savings.--The term `fuel cell savings' means 
        the electricity saved by a fuel cell that is installed after 
        the date of enactment of this section, or by upgrading a fuel 
        cell that commenced operation on or before the date of 
        enactment of this section, as a result of the greater 
        efficiency with which the fuel cell transforms fuel into 
        electricity as compared with sources of electricity delivered 
        through the grid, provided that--
                  ``(A) the fuel cell meets such requirements relating 
                to efficiency and other operating characteristics as 
                the Commission may promulgate by regulation; and
                  ``(B) the net sales of electricity from the fuel cell 
                to customers not consuming the thermal output from the 
                fuel cell, if any, do not exceed 50 percent of the 
                total annual electricity generation by the fuel cell.
          ``(11) High conservation priority land.--The term `high 
        conservation priority land' means land that is not Federal land 
        and is--
                  ``(A) globally or State ranked as critically 
                imperiled or imperiled under a State Natural Heritage 
                Program; or
                  ``(B) old-growth or late-successional forest, as 
                identified by the office of the relevant State Forester 
                or relevant State agency with regulatory jurisdiction 
                over forestry activities.
          ``(12) Other qualifying energy resource.--The term `other 
        qualifying energy resource' means any of the following:
                  ``(A) Landfill gas.
                  ``(B) Wastewater treatment gas.
                  ``(C) Coal mine methane used to generate electricity 
                at or near the mine mouth.
                  ``(D) Qualified waste-to-energy.
          ``(13) Qualified hydropower.--The term `qualified hydropower' 
        means--
                  ``(A) energy produced from increased efficiency 
                achieved, or additions of capacity made, on or after 
                January 1, 1992, at a hydroelectric facility that was 
                placed in service before that date and does not include 
                additional energy generated as a result of operational 
                changes not directly associated with efficiency 
                improvements or capacity additions; or
                  ``(B) energy produced from generating capacity added 
                to a dam on or after January 1, 1992, provided that the 
                Commission certifies that--
                          ``(i) the dam was placed in service before 
                        the date of the enactment of this section and 
                        was operated for flood control, navigation, or 
                        water supply purposes and was not producing 
                        hydroelectric power prior to the addition of 
                        such capacity;
                          ``(ii) the hydroelectric project installed on 
                        the dam is licensed (or is exempt from 
                        licensing) by the Commission and is in 
                        compliance with the terms and conditions of the 
                        license or exemption, and with other applicable 
                        legal requirements for the protection of 
                        environmental quality, including applicable 
                        fish passage requirements; and
                          ``(iii) the hydroelectric project installed 
                        on the dam is operated so that the water 
                        surface elevation at any given location and 
                        time that would have occurred in the absence of 
                        the hydroelectric project is maintained, 
                        subject to any license or exemption 
                        requirements that require changes in water 
                        surface elevation for the purpose of improving 
                        the environmental quality of the affected 
                        waterway.
          ``(14) Qualified waste-to-energy.--The term `qualified waste-
        to-energy' means energy from the combustion of municipal solid 
        waste or construction, demolition, or disaster debris, or from 
        the gasification or pyrolization of such waste or debris and 
        the combustion of the resulting gas at the same facility, 
        provided that--
                  ``(A) such term shall include only the energy derived 
                from the non-fossil biogenic portion of such waste or 
                debris;
                  ``(B) the Commission determines, with the concurrence 
                of the Administrator of the Environmental Protection 
                Agency, that the total lifecycle greenhouse gas 
                emissions attributable to the generation of electricity 
                from such waste or debris are lower than those 
                attributable to the likely alternative method of 
                disposing of such waste or debris; and
                  ``(C) the owner or operator of the facility 
                generating electricity from such energy provides to the 
                Commission, on an annual basis--
                          ``(i) a certification that the facility is in 
                        compliance with all applicable State and 
                        Federal environmental permits;
                          ``(ii) in the case of a facility that 
                        commenced operation before the date of 
                        enactment of this section, a certification that 
                        the facility meets emissions standards 
                        promulgated under sections 112 or 129 of the 
                        Clean Air Act (42 U.S.C. 7412 or 7429) that 
                        apply as of the date of enactment of this 
                        section to new facilities within the relevant 
                        source category; and
                          ``(iii) in the case of the combustion, 
                        pyrolization, or gasification of municipal 
                        solid waste, a certification that each local 
                        government unit from which such waste 
                        originates operates, participates in the 
                        operation of, contracts for, or otherwise 
                        provides for, recycling services for its 
                        residents.
          ``(15) Recycled energy savings.--The term `recycled energy 
        savings' means a reduction in electricity consumption that 
        results from a modification of an industrial or commercial 
        system that commenced operation before the date of enactment of 
        this section, in order to recapture electrical, mechanical, or 
        thermal energy that would otherwise be wasted.
          ``(16) Renewable biomass.--The term `renewable biomass' means 
        any of the following:
                  ``(A) Plant material, including waste material, 
                harvested or collected from actively managed 
                agricultural land that was in cultivation, cleared, or 
                fallow and nonforested on January 1, 2009.
                  ``(B) Plant material, including waste material, 
                harvested or collected from pastureland that was 
                nonforested on January 1, 2009.
                  ``(C) Nonhazardous vegetative matter derived from 
                waste, including separated yard waste, landscape right-
                of-way trimmings, construction and demolition debris or 
                food waste (but not municipal solid waste, recyclable 
                waste paper, painted, treated or pressurized wood, or 
                wood contaminated with plastic or metals).
                  ``(D) Animal waste or animal byproducts, including 
                products of animal waste digesters.
                  ``(E) Algae.
                  ``(F) Trees, brush, slash, residues, or any other 
                vegetative matter removed from within 600 feet of any 
                building, campground, or route designated for 
                evacuation by a public official with responsibility for 
                emergency preparedness, or from within 300 feet of a 
                paved road, electric transmission line, utility tower, 
                or water supply line.
                  ``(G) Residues from or byproducts of milled logs.
                  ``(H) Any of the following removed from forested land 
                that is not Federal and is not high conservation 
                priority land:
                          ``(i) Trees, brush, slash, residues, 
                        interplanted energy crops, or any other 
                        vegetative matter removed from an actively 
                        managed tree plantation established--
                                  ``(I) prior to January 1, 2009; or
                                  ``(II) on land that, as of January 1, 
                                2009, was cultivated or fallow and non-
                                forested.
                          ``(ii) Trees, logging residue, thinnings, 
                        cull trees, pulpwood, and brush removed from 
                        naturally-regenerated forests or other non-
                        plantation forests, including for the purposes 
                        of hazardous fuel reduction or preventative 
                        treatment for reducing or containing insect or 
                        disease infestation.
                          ``(iii) Logging residue, thinnings, cull 
                        trees, pulpwood, brush and species that are 
                        non-native and noxious, from stands that were 
                        planted and managed after January 1, 2009, to 
                        restore or maintain native forest types.
                          ``(iv) Dead or severely damaged trees removed 
                        within 5 years of fire, blowdown, or other 
                        natural disaster, and badly infested trees.
                  ``(I) Materials, pre-commercial thinnings, or removed 
                invasive species from National Forest System land and 
                public lands (as defined in section 103 of the Federal 
                Land Policy and Management Act of 1976 (43 U.S.C. 
                1702)), including those that are byproducts of 
                preventive treatments (such as trees, wood, brush, 
                thinnings, chips, and slash), that are removed as part 
                of a federally recognized timber sale, or that are 
                removed to reduce hazardous fuels, to reduce or contain 
                disease or insect infestation, or to restore ecosystem 
                health, and that are--
                          ``(i) not from components of the National 
                        Wilderness Preservation System, Wilderness 
                        Study Areas, Inventoried Roadless Areas, old 
                        growth or mature forest stands, components of 
                        the National Landscape Conservation System, 
                        National Monuments, National Conservation 
                        Areas, Designated Primitive Areas, or Wild and 
                        Scenic Rivers corridors;
                          ``(ii) harvested in environmentally 
                        sustainable quantities, as determined by the 
                        appropriate Federal land manager; and
                          ``(iii) harvested in accordance with Federal 
                        and State law and applicable land management 
                        plans.
          ``(17) Renewable electricity.--The term `renewable 
        electricity' means electricity generated (including by means of 
        a fuel cell) from a renewable energy resource or other 
        qualifying energy resources.
          ``(18) Renewable energy resource.--The term `renewable energy 
        resource' means each of the following:
                  ``(A) Wind energy.
                  ``(B) Solar energy.
                  ``(C) Geothermal energy.
                  ``(D) Renewable biomass.
                  ``(E) Biogas derived exclusively from renewable 
                biomass.
                  ``(F) Biofuels derived exclusively from renewable 
                biomass.
                  ``(G) Qualified hydropower.
                  ``(H) Marine and hydrokinetic renewable energy, as 
                that term is defined in section 632 of the Energy 
                Independence and Security Act of 2007 (42 U.S.C. 
                17211).
          ``(19) Retail electric supplier.--
                  ``(A) In general.--The term `retail electric 
                supplier' means, for any given year, an electric 
                utility that sold not less than 4,000,000 megawatt 
                hours of electric energy to electric consumers for 
                purposes other than resale during the preceding 
                calendar year.
                  ``(B) Inclusions and limitations.--For purposes of 
                determining whether an electric utility qualifies as a 
                retail electric supplier under subparagraph (A)--
                          ``(i) the sales of any affiliate of an 
                        electric utility to electric consumers, other 
                        than sales to the affiliate's lessees or 
                        tenants, for purposes other than resale shall 
                        be considered to be sales of such electric 
                        utility; and
                          ``(ii) sales by any electric utility to an 
                        affiliate, lessee, or tenant of such electric 
                        utility shall not be treated as sales to 
                        electric consumers.
                  ``(C) Affiliate.--For purposes of this paragraph, the 
                term `affiliate' when used in relation to a person, 
                means another person that directly or indirectly owns 
                or controls, is owned or controlled by, or is under 
                common ownership or control with, such person, as 
                determined under regulations promulgated by the 
                Commission.
          ``(20) Retail electric supplier's base amount.--The term 
        `retail electric supplier's base amount' means the total amount 
        of electric energy sold by the retail electric supplier, 
        expressed in megawatt hours, to electric customers for purposes 
        other than resale during the relevant calendar year, 
        excluding--
                  ``(A) electricity generated by a hydroelectric 
                facility that is not qualified hydropower;
                  ``(B) electricity generated by a nuclear generating 
                unit placed in service after the date of enactment of 
                this section; and
                  ``(C) the proportion of electricity generated by a 
                fossil-fueled generating unit that is equal to the 
                proportion of greenhouse gases produced by such unit 
                that are captured and geologically sequestered.
          ``(21) Retire and retirement.--The terms `retire' and 
        `retirement' with respect to a Federal renewable electricity 
        credit, means to disqualify such credit for any subsequent use 
        under this section, regardless of whether the use is a sale, 
        transfer, exchange, or submission in satisfaction of a 
        compliance obligation.
          ``(22) Third-party efficiency provider.--The term `third-
        party efficiency provider' means any retailer, building owner, 
        energy service company, financial institution or other 
        commercial, industrial or nonprofit entity that is capable of 
        providing electricity savings in accordance with the 
        requirements of this section.
          ``(23) Total annual electricity savings.--The term `total 
        annual electricity savings' means electricity savings during a 
        specified calendar year from measures that were placed into 
        service since the date of the enactment of this section, taking 
        into account verified measure lifetimes or verified annual 
        savings attrition rates, as determined in accordance with such 
        regulations as the Commission may promulgate and measured in 
        megawatt hours.
  ``(b) Annual Compliance Obligation.--
          ``(1) In general.--For each of calendar years 2012 through 
        2039, not later than March 31 of the following calendar year, 
        each retail electric supplier shall submit to the Commission an 
        amount of Federal renewable electricity credits and 
        demonstrated total annual electricity savings that, in the 
        aggregate, is equal to such retail electric supplier's annual 
        combined target as set forth in subsection (d), except as 
        otherwise provided in subsection (g).
          ``(2) Demonstration of savings.--For purposes of this 
        subsection, submission of demonstrated total annual electricity 
        savings means submission of a report that demonstrates, in 
        accordance with the requirements of subsection (f), the total 
        annual electricity savings achieved by the retail electric 
        supplier within the relevant compliance year.
          ``(3) Renewable electricity credits portion.--Except as 
        provided in paragraph (4), each retail electric supplier must 
        submit Federal renewable electricity credits equal to at least 
        three quarters of the retail electric supplier's annual 
        combined target.
          ``(4) State petition.--
                  ``(A) In general.--Upon written request from the 
                Governor of any State (including, for purposes of this 
                paragraph, the Mayor of the District of Columbia), the 
                Commission shall increase, to not more than two fifths, 
                the proportion of the annual combined targets of retail 
                electric suppliers located within such State that may 
                be met through submission of demonstrated total annual 
                electricity savings, provided that such increase shall 
                be effective only with regard to the portion of a 
                retail electric supplier's annual combined target that 
                is attributable to electricity sales within such State.
                  ``(B) Contents.--A Governor's request under this 
                paragraph shall include an explanation of the 
                Governor's rationale for determining, after 
                consultation with the relevant State regulatory 
                authority and other retail electricity ratemaking 
                authorities within the State, to make such request. The 
                request shall specify the maximum proportion of annual 
                combined targets (not more than two fifths) that can be 
                met through demonstrated total annual electricity 
                savings, and the period for which such proportion shall 
                be effective.
                  ``(C) Revision.--The Governor of any State may, after 
                consultation with the relevant State regulatory 
                authority and other retail electricity ratemaking 
                authorities within the State, submit a written request 
                for revocation or revision of a previous request 
                submitted under this paragraph. The Commission shall 
                grant such request, provided that--
                          ``(i) any revocation or revision shall not 
                        apply to the combined annual target for any 
                        year that is any earlier than 2 calendar years 
                        after the calendar year in which such request 
                        is submitted, so as to provide retail electric 
                        suppliers with adequate notice of such change; 
                        and
                          ``(ii) any revision shall meet the 
                        requirements of subparagraph (A).
  ``(c) Establishment of Program.--Not later than 1 year after the date 
of enactment of this section, the Commission shall promulgate 
regulations to implement and enforce the requirements of this section. 
In promulgating such regulations, the Commission shall, to the extent 
practicable--
          ``(1) preserve the integrity, and incorporate best practices, 
        of existing State renewable electricity and energy efficiency 
        programs;
          ``(2) rely upon existing and emerging State or regional 
        tracking systems that issue and track non-Federal renewable 
        electricity credits; and
          ``(3) cooperate with the States to facilitate coordination 
        between State and Federal renewable electricity and energy 
        efficiency programs and to minimize administrative burdens and 
        costs to retail electric suppliers.
  ``(d) Annual Compliance Requirement.--
          ``(1) Annual combined targets.--For each of calendar years 
        2012 through 2039, a retail electric supplier's annual combined 
        target shall be the product of--
                  ``(A) the required annual percentage for such year, 
                as set forth in paragraph (2); and
                  ``(B) the retail electric supplier's base amount for 
                such year.
          ``(2) Required annual percentage.--For each of calendar years 
        2012 through 2039, the required annual percentage shall be as 
        follows:



            ``Calendar year                 Required annual percentage

2012...................................  6.0
2013...................................  6.0
2014...................................  9.5
2015...................................  9.5
2016...................................  13.0
2017...................................  13.0
2018...................................  16.5
2019...................................  16.5
2020...................................  20.0
2021 through 2039......................  20.0


  ``(e) Federal Renewable Electricity Credits.--
          ``(1) In general.--The regulations promulgated under this 
        section shall include provisions governing the issuance, 
        tracking, and verification of Federal renewable electricity 
        credits. Except as provided in paragraphs (2), (3), and (4) of 
        this subsection, the Commission shall issue to each generator 
        of renewable electricity, 1 Federal renewable electricity 
        credit for each megawatt hour of renewable electricity 
        generated by such generator after December 31, 2011. The 
        Commission shall assign a unique serial number to each Federal 
        renewable electricity credit.
          ``(2) Generation from certain state renewable electricity 
        programs.--Where renewable electricity is generated with the 
        support of payments from a retail electric supplier pursuant to 
        a State renewable electricity program (whether through State 
        alternative compliance payments or through payments to a State 
        renewable electricity procurement fund or entity), the 
        Commission shall issue Federal renewable electricity credits to 
        such retail electric supplier for the proportion of the 
        relevant renewable electricity generation that is attributable 
        to the retail electric supplier's payments, as determined 
        pursuant to regulations issued by the Commission. For any 
        remaining portion of the relevant renewable electricity 
        generation, the Commission shall issue Federal renewable 
        electricity credits to the generator, as provided in paragraph 
        (1), except that in no event shall more than 1 Federal 
        renewable electricity credit be issued for the same megawatt 
        hour of electricity. In determining how Federal renewable 
        electricity credits will be apportioned among retail electric 
        suppliers and generators in such circumstances, the Commission 
        shall consider information and guidance furnished by the 
        relevant State or States.
          ``(3) Certain power sales contracts.--When a generator has 
        sold renewable electricity to a retail electric supplier under 
        a contract for power from a facility placed in service before 
        the date of enactment of this section, and the contract does 
        not provide for the determination of ownership of the Federal 
        renewable electricity credits associated with such generation, 
        the Commission shall issue such Federal renewable electricity 
        credits to the retail electric supplier for the duration of the 
        contract.
          ``(4) Credit multiplier for distributed renewable 
        generation.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), the Commission shall issue 3 Federal renewable 
                electricity credits for each megawatt hour of renewable 
                electricity generated by a distributed renewable 
                generation facility.
                  ``(B) Adjustment.--Except as provided in subparagraph 
                (C), not later than January 1, 2014, and not less 
                frequently than every 4 years thereafter, the 
                Commission shall review the effect of this paragraph 
                and shall, as necessary, reduce the number of Federal 
                renewable electricity credits per megawatt hour issued 
                under this paragraph for any given energy source or 
                technology, but not below 1, to ensure that such number 
                is no higher than the Commission determines is 
                necessary to make distributed renewable generation 
                facilities using such source or technology cost 
                competitive with other sources of renewable electricity 
                generation.
                  ``(C) Facilities placed in service after enactment.--
                For any distributed renewable generation facility 
                placed in service after the date of enactment of this 
                section, subparagraph (B) shall not apply for the first 
                10 years after the date on which the facility is placed 
                in service. For each year during such 10-year period, 
                the Commission shall issue to the facility the same 
                number of Federal renewable electricity credits per 
                megawatt hour as are issued to that facility in the 
                year in which such facility is placed in service. After 
                such 10-year period, the Commission shall issue Federal 
                renewable electricity credits to the facility in 
                accordance with the current multiplier as determined 
                pursuant to subparagraph (B).
          ``(5) Credits based on qualified hydropower.--For purposes of 
        this subsection, the number of Federal renewable electricity 
        credits issued for qualified hydropower shall be calculated--
                  ``(A) based solely on the increase in average annual 
                generation directly resulting from the efficiency 
                improvements or capacity additions described in 
                subsection (a)(13)(A); and
                  ``(B) using the same water flow information used to 
                determine a historic average annual generation baseline 
                for the hydroelectric facility, as certified by the 
                Commission.
          ``(6) Generation from mixed renewable and nonrenewable 
        resources.--If electricity is generated using both a renewable 
        energy resource or other qualifying energy resource and an 
        energy source that is not a renewable energy resource or other 
        qualifying energy resource (as, for example, in the case of co-
        firing of renewable biomass and fossil fuel), the Commission 
        shall issue Federal renewable electricity credits based on the 
        proportion of the electricity that is attributable to the 
        renewable energy resource or other qualifying energy resource.
          ``(7) Prohibition against double-counting.--Except as 
        provided in paragraph (4) of this subsection, the Commission 
        shall ensure that no more than 1 Federal renewable electricity 
        credit will be issued for any megawatt hour of renewable 
        electricity and that no Federal renewable electricity credit 
        will be used more than once for compliance with this section.
          ``(8) Trading.--The lawful holder of a Federal renewable 
        electricity credit may sell, exchange, transfer, submit for 
        compliance in accordance with subsection (b), or submit such 
        credit for retirement by the Commission.
          ``(9) Banking.--A Federal renewable electricity credit may be 
        submitted in satisfaction of the compliance obligation set 
        forth in subsection (b) for the compliance year in which the 
        credit was issued or for any of the 3 immediately subsequent 
        compliance years. The Commission shall retire any Federal 
        renewable electricity credit that has not been retired by April 
        2 of the calendar year that is 3 years after the calendar year 
        in which the credit was issued.
          ``(10) Retirement.--The Commission shall retire a Federal 
        renewable electricity credit immediately upon submission by the 
        lawful holder of such credit, whether in satisfaction of a 
        compliance obligation under subsection (b) or on some other 
        basis.
  ``(f) Electricity Savings.--
          ``(1) Standards for measurement of savings.--As part of the 
        regulations promulgated under this section, the Commission 
        shall prescribe standards and protocols for defining and 
        measuring electricity savings and total annual electricity 
        savings that can be counted towards the compliance obligation 
        set forth in subsection (b). Such protocols and standards 
        shall, at minimum--
                  ``(A) specify the types of energy efficiency and 
                energy conservation measures that can be counted;
                  ``(B) require that energy consumption estimates for 
                customer facilities or portions of facilities in the 
                applicable base and current years be adjusted, as 
                appropriate, to account for changes in weather, level 
                of production, and building area;
                  ``(C) account for the useful life of measures;
                  ``(D) include deemed savings values for specific, 
                commonly used measures;
                  ``(E) allow for savings from a program to be 
                estimated based on extrapolation from a representative 
                sample of participating customers;
                  ``(F) include procedures for counting CHP savings, 
                recycled energy savings, and fuel cell savings;
                  ``(G) include procedures for counting electricity 
                savings achieved by solar water heating and solar light 
                pipe technology that has the capability to provide 
                measureable data on the amount of megawatt-hours 
                displaced;
                  ``(H) avoid double-counting of savings used for 
                compliance with this section, including savings that 
                are transferred pursuant to paragraph (3);
                  ``(I) ensure that, except as provided in subparagraph 
                (K), the retail electric supplier claiming the savings 
                played a significant role in achieving the savings 
                (including through the activities of a designated agent 
                of the supplier or through the purchase of transferred 
                savings);
                  ``(J) include savings from programs administered by a 
                retail electric supplier (or a retail electricity 
                distributor that is not a retail electric supplier) 
                that are funded by State, Federal, or other sources;
                  ``(K) in any State in which the State regulatory 
                authority has designated 1 or more entities to 
                administer electric ratepayer-funded efficiency 
                programs approved by such State regulatory authority, 
                provide that electricity savings achieved through such 
                programs shall be distributed equitably among retail 
                electric suppliers in accordance with the direction of 
                the relevant State regulatory authority; and
                  ``(L) exclude savings achieved as a result of 
                compliance with mandatory appliance and equipment 
                efficiency standards or building codes.
          ``(2) Standards for third-party verification of savings.--The 
        regulations promulgated under this section shall establish 
        procedures and standards requiring third-party verification of 
        all reported electricity savings, including requirements for 
        accreditation of third-party verifiers to ensure that such 
        verifiers are professionally qualified and have no conflicts of 
        interest.
          ``(3) Transfers of savings.--
                  ``(A) Bilateral contracts for savings transfers.--
                Subject to the limitations of this paragraph, a retail 
                electric supplier may use electricity savings 
                transferred, pursuant to a bilateral contract, from 
                another retail electric supplier, an owner of an 
                electric distribution facility that is not a retail 
                electric supplier, a State, or a third-party efficiency 
                provider to meet the applicable compliance obligation 
                under subsection (b).
                  ``(B) Requirements.--Electricity savings transferred 
                and used for compliance pursuant to this paragraph 
                shall be--
                          ``(i) measured and verified in accordance 
                        with the procedures specified under this 
                        subsection;
                          ``(ii) reported in accordance with paragraph 
                        (4) of this subsection; and
                          ``(iii) achieved within the same State as is 
                        served by the retail electric supplier.
                  ``(C) Regulatory approval.--Nothing in this paragraph 
                shall limit or affect the authority of a State 
                regulatory authority to require a retail electric 
                supplier that is regulated by such authority to obtain 
                such authority's authorization or approval of a 
                contract for transfer of savings under this paragraph.
          ``(4) Reporting savings.--
                  ``(A) Requirements.--The regulations promulgated 
                under this section shall establish requirements 
                governing the submission of reports to demonstrate, in 
                accordance with the protocols and standards for 
                measurement and third-party verification established 
                under this subsection, the total annual electricity 
                savings achieved by a retail electric supplier within 
                the relevant year.
                  ``(B) Review and approval.--The Commission shall 
                review each report submitted to the Commission by a 
                retail electric supplier and shall exclude any 
                electricity savings that have not been adequately 
                demonstrated in accordance with the requirements of 
                this subsection.
          ``(5) State administration.--
                  ``(A) Delegation of authority.--Upon receipt of an 
                application from the Governor of a State (including, 
                for purposes of this subsection, the Mayor of the 
                District of Columbia), the Commission may delegate to 
                the State the authority to review and verify reported 
                electricity savings for purposes of determining 
                demonstrated total annual electricity savings that may 
                be counted towards a retail electric supplier's 
                compliance obligation under subsection (b). The 
                Commission shall make a substantive determination 
                approving or disapproving a State application under 
                this subparagraph, after notice and comment, within 180 
                days of receipt of a complete application.
                  ``(B) Alternative measurement and verification 
                procedures and standards.--As part of an application 
                submitted under subparagraph (A), a State may request 
                to use alternative measurement and verification 
                procedures and standards to those specified in 
                paragraphs (1) and (2), provided the State demonstrates 
                that such alternative procedures and standards provide 
                a level of accuracy of measurement and verification at 
                least equivalent to the Federal procedures and 
                standards promulgated under paragraphs (1) and (2).
                  ``(C) Review of state implementation.--The Commission 
                shall, not less frequently than once every 4 years, 
                review each State's implementation of delegated 
                authority under this paragraph to ensure conformance 
                with the requirements of this section. The Commission 
                may, at any time, revoke the delegation of authority 
                under this section upon a finding that the State is not 
                implementing its delegated responsibilities in 
                conformity with this paragraph. As a condition of 
                maintaining its delegated authority under this 
                paragraph, the Commission may require a State to submit 
                a revised application under subparagraph (A) if the 
                Commission has--
                          ``(i) promulgated new or substantially 
                        revised measurement and verification procedures 
                        and standards under this subsection; or
                          ``(ii) otherwise substantially revised the 
                        program established under this section.
  ``(g) Alternative Compliance Payments.--
          ``(1) In general.--A retail electric supplier may satisfy the 
        requirements of subsection (b) in whole or in part by 
        submitting in accordance with this subsection, in lieu of each 
        Federal renewable electricity credit or megawatt hour of 
        demonstrated total annual electricity savings that would 
        otherwise be due, a payment equal to $25, adjusted for 
        inflation on January 1 of each year following calendar year 
        2009, in accordance with such regulations as the Commission may 
        promulgate.
          ``(2) Payment to state funds.--Except as otherwise provided 
        in this paragraph, payments made under this subsection shall be 
        made directly to the State or States in which the retail 
        electric supplier is located, in proportion to the portion of 
        the retail electric supplier's base amount that is sold within 
        each relevant State, provided that such payments are deposited 
        directly into a fund in the State treasury established for this 
        purpose and that the State uses such funds in accordance with 
        paragraphs (3) and (4). If the Commission determines at any 
        time that a State is in substantial noncompliance with 
        paragraph (3) or (4), the Commission shall direct that any 
        future alternative compliance payments that would otherwise be 
        paid to such State under this subsection shall instead be paid 
        to the Commission and deposited in the United States Treasury.
          ``(3) State use of funds.--As a condition of continued 
        receipt of alternative compliance payments pursuant to this 
        subsection, a State shall use such payments exclusively for the 
        purposes of--
                  ``(A) deploying technologies that generate 
                electricity from renewable energy resources; or
                  ``(B) implementing cost-effective energy efficiency 
                programs to achieve electricity savings.
          ``(4) Reporting.--As a condition of continued receipt of 
        alternative compliance payments pursuant to this subsection, a 
        State shall, within 12 months of receipt of any such payments 
        and at 12-month intervals thereafter until such payments are 
        expended, provide a report to the Commission, in accordance 
        with such regulations as the Commission may prescribe, giving a 
        full accounting of the use of such payments, including a 
        detailed description of the activities funded thereby.
  ``(h) Information Collection.--The Commission may require any retail 
electric supplier, renewable electricity generator, or such other 
entities as the Commission deems appropriate, to provide any 
information the Commission determines appropriate to carry out this 
section. Failure to submit such information or submission of false or 
misleading information under this subsection shall be a violation of 
this section.
  ``(i) Enforcement and Judicial Review.--
          ``(1) Failure to submit credits or demonstrate savings.--If 
        any person fails to comply with the requirements of subsection 
        (b) or (g), such person shall be liable to pay to the 
        Commission a civil penalty equal to the product of--
                  ``(A) double the alternative compliance payment 
                calculated under subsection (g)(1), and
                  ``(B) the aggregate quantity of Federal renewable 
                electricity credits, total annual electricity savings, 
                or equivalent alternative compliance payments that the 
                person failed to submit in violation of the 
                requirements of subsections (b) and (g).
          ``(2) Enforcement.--The Commission shall assess a civil 
        penalty under paragraph (1) in accordance with the procedures 
        described in section 31(d) of the Federal Power Act (16 U.S.C. 
        823b(d)).
          ``(3) Violation of requirement of regulations or orders.--Any 
        person who violates, or fails or refuses to comply with, any 
        requirement of a regulation promulgated or order issued under 
        this section shall be subject to a civil penalty under section 
        316A(b) of the Federal Power Act (16 U.S.C. 825o-1). Such 
        penalty shall be assessed by the Commission in the same manner 
        as in the case of a violation referred to in section 316A(b) of 
        such Act.
  ``(j) Judicial Review.--Any person aggrieved by a final action taken 
by the Commission under this section, other than the assessment of a 
civil penalty under subsection (i), may use the procedures for review 
described in section 313 of the Federal Power Act (16 U.S.C. 825l). For 
purposes of this paragraph, references to an order in section 313 of 
such Act shall be deemed to refer also to all other final actions of 
the Commission under this section other than the assessment of a civil 
penalty under subsection (i).
  ``(k) Savings Provisions.--Nothing in this section shall--
          ``(1) diminish or qualify any authority of a State or 
        political subdivision of a State to--
                  ``(A) adopt or enforce any law or regulation 
                respecting renewable electricity or energy efficiency, 
                including any law or regulation establishing 
                requirements more stringent than those established by 
                this section, provided that no such law or regulation 
                may relieve any person of any requirement otherwise 
                applicable under this section; or
                  ``(B) regulate the acquisition and disposition of 
                Federal renewable electricity credits by retail 
                electric suppliers within the jurisdiction of such 
                State or political subdivision, including the authority 
                to require such retail electric supplier to acquire and 
                submit to the Secretary for retirement Federal 
                renewable electricity credits in excess of those 
                submitted under this section; or
          ``(2) affect the application of, or the responsibility for 
        compliance with, any other provision of law or regulation, 
        including environmental and licensing requirements.
  ``(l) Sunset.--This section expires on December 31, 2040.''.
  (b) Conforming Amendment.--The table of contents set forth in section 
1(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
2601 and following) is amended by inserting after the item relating to 
section 609 the following:

``Sec. 610. Combined efficiency and renewable electricity standard.''.

SEC. 102. CLARIFYING STATE AUTHORITY TO ADOPT RENEWABLE ENERGY 
                    INCENTIVES.

   Section 210 of the Public Utility Regulatory Policies Act of 1978 is 
amended by adding at the end thereof:
  ``(o) Clarification of State Authority to Adopt Renewable Energy 
Incentives.--Notwithstanding any other provision of this Act or the 
Federal Power Act, a State legislature or regulatory authority may set 
the rates for a sale of electric energy by a facility generating 
electric energy from renewable energy sources pursuant to a State-
approved production incentive program under which the facility 
voluntarily sells electric energy. For purposes of this subsection, 
`State-approved production incentive program' means a requirement 
imposed pursuant to State law, or by a State regulatory authority 
acting within its authority under State law, that an electric utility 
purchase renewable energy (as defined in section 609 of this Act) at a 
specified rate.''.

              Subtitle B--Carbon Capture and Sequestration

SEC. 111. NATIONAL STRATEGY.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Administrator, in consultation with the Secretary of 
Energy and the heads of such other relevant Federal agencies as the 
President may designate, shall submit to Congress a report setting 
forth a unified and comprehensive strategy to address the key legal, 
regulatory and other barriers to the commercial-scale deployment of 
carbon capture and sequestration.
  (b) Barriers.-- The report under this section shall--
          (1) identify those regulatory, legal, and other gaps and 
        barriers that could be addressed by a Federal agency using 
        existing statutory authority, those, if any, that require 
        Federal legislation, and those that would be best addressed at 
        the State or regional level;
          (2) identify regulatory implementation challenges, including 
        those related to approval of State programs and delegation of 
        authority for permitting; and
          (3) recommend rulemakings, Federal legislation, or other 
        actions that should be taken to further evaluate and address 
        such barriers.

SEC. 112. REGULATIONS FOR GEOLOGIC SEQUESTRATION SITES.

  (a) Coordinated Certification and Permitting Process.--Title VIII of 
the Clean Air Act, as added by section 331 of this Act, is amended by 
adding after section 812 (as added by section 116 of this Act) the 
following:

``SEC. 813. GEOLOGIC SEQUESTRATION SITES.

  ``(a) Coordinated Process.--The Administrator shall establish a 
coordinated approach to certifying and permitting geologic 
sequestration, taking into consideration all relevant statutory 
authorities. In establishing such approach, the Administrator shall--
          ``(1) take into account, and reduce redundancy with, the 
        requirements of section 1421 of the Safe Drinking Water Act (42 
        U.S.C. 300h), as amended by section 112(b) of the American 
        Clean Energy and Security Act of 2009, including the rulemaking 
        for geologic sequestration wells described at 73 Fed. Reg. 
        43491-541 (July 25, 2008); and
          ``(2) to the extent practicable, reduce the burden on 
        certified entities and implementing authorities.
  ``(b) Regulations.--Not later than 2 years after the date of 
enactment of this title, the Administrator shall promulgate regulations 
to protect human health and the environment by minimizing the risk of 
escape to the atmosphere of carbon dioxide injected for purposes of 
geologic sequestration.
  ``(c) Requirements.--The regulations under subsection (b) shall 
include--
          ``(1) a process to obtain certification for geologic 
        sequestration under this section; and
          ``(2) requirements for--
                  ``(A) monitoring, record keeping, and reporting for 
                emissions associated with injection into, and escape 
                from, geologic sequestration sites, taking into account 
                any requirements or protocols developed under section 
                713;
                  ``(B) public participation in the certification 
                process that maximizes transparency;
                  ``(C) the sharing of data between States, Indian 
                tribes, and the Environmental Protection Agency; and
                  ``(D) other elements or safeguards necessary to 
                achieve the purpose set forth in subsection (b).
  ``(d) Report.--Not later than 2 years after the promulgation of 
regulations under subsection (b), and at 3-year intervals thereafter, 
the Administrator shall deliver to the Committee on Energy and Commerce 
of the House of Representatives and the Committee on Environment and 
Public Works of the Senate a report on geologic sequestration in the 
United States, and, to the extent relevant, other countries in North 
America. Such report shall include--
          ``(1) data regarding injection, emissions to the atmosphere, 
        if any, and performance of active and closed geologic 
        sequestration sites, including those where enhanced hydrocarbon 
        recovery operations occur;
          ``(2) an evaluation of the performance of relevant Federal 
        environmental regulations and programs in ensuring 
        environmentally protective geologic sequestration practices;
          ``(3) recommendations on how such programs and regulations 
        should be improved or made more effective; and
          ``(4) other relevant information.''.
  (b) Safe Drinking Water Act Standards.--Section 1421 of the Safe 
Drinking Water Act (42 U.S.C. 300h) is amended by inserting after 
subsection (d) the following:
  ``(e) Carbon Dioxide Geologic Sequestration Wells.--
          ``(1) In general.--Not later than 1 year after the date of 
        enactment of this subsection, the Administrator shall 
        promulgate regulations under subsection (a) for carbon dioxide 
        geologic sequestration wells.
          ``(2) Financial responsibility.--The regulations referred to 
        in paragraph (1) shall include requirements for maintaining 
        evidence of financial responsibility, including financial 
        responsibility for emergency and remedial response, well 
        plugging, site closure, and post-injection site care. Financial 
        responsibility may be established for carbon dioxide geologic 
        sequestration wells in accordance with regulations promulgated 
        by the Administrator by any one, or any combination, of the 
        following: insurance, guarantee, trust, standby trust, surety 
        bond, letter of credit, qualification as a self-insurer, or any 
        other method satisfactory to the Administrator.''.

SEC. 113. STUDIES AND REPORTS.

  (a) Study of Legal Framework for Geologic Sequestration Sites.--
          (1) Establishment of task force.--As soon as practicable, but 
        not later than 6 months after the date of enactment of this 
        Act, the Administrator shall establish a task force to be 
        composed of an equal number of subject matter experts, 
        nongovernmental organizations with expertise in environmental 
        policy, academic experts with expertise in environmental law, 
        State officials with environmental expertise, representatives 
        of State Attorneys General, and members of the private sector, 
        to conduct a study of--
                  (A) existing Federal environmental statutes, State 
                environmental statutes, and State common law that apply 
                to geologic sequestration sites for carbon dioxide, 
                including the ability of such laws to serve as risk 
                management tools;
                  (B) the existing statutory framework, including 
                Federal and State laws, that apply to harm and damage 
                to the environment or public health at closed sites 
                where carbon dioxide injection has been used for 
                enhanced hydrocarbon recovery;
                  (C) the statutory framework, environmental health and 
                safety considerations, implementation issues, and 
                financial implications of potential models for Federal, 
                State, or private sector assumption of liabilities and 
                financial responsibilities with respect to closed 
                geologic sequestration sites;
                  (D) private sector mechanisms, including insurance 
                and bonding, that may be available to manage 
                environmental, health and safety risk from closed 
                geologic sequestration sites; and
                  (E) the subsurface mineral rights, water rights, or 
                property rights issues associated with geologic 
                sequestration of carbon dioxide.
          (2) Report.--Not later than 18 months after the date of 
        enactment of this Act, the task force established under 
        paragraph (1) shall submit to Congress a report describing the 
        results of the study conducted under that paragraph including 
        any consensus recommendations of the task force.
  (b) Environmental Statutes.--
          (1) Study.--The Administrator shall conduct a study examining 
        how, and under what circumstances, the environmental statutes 
        for which the Environmental Protection Agency has 
        responsibility would apply to carbon dioxide injection and 
        geologic sequestration activities.
          (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall submit to 
        Congress a report describing the results of the study conducted 
        under paragraph (1).

SEC. 114. CARBON CAPTURE AND SEQUESTRATION DEMONSTRATION AND EARLY 
                    DEPLOYMENT PROGRAM.

  (a) Definitions.--For purposes of this section:
          (1) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.
          (2) Distribution utility.--The term ``distribution utility'' 
        means an entity that distributes electricity directly to retail 
        consumers under a legal, regulatory, or contractual obligation 
        to do so.
          (3) Electric utility.--The term ``electric utility'' has the 
        meaning provided by section 3(22) of the Federal Power Act (16 
        U.S.C. 796(22)).
          (4) Fossil fuel-based electricity.--The term ``fossil fuel-
        based electricity'' means electricity that is produced from the 
        combustion of fossil fuels.
          (5) Fossil fuel.--The term ``fossil fuel'' means coal, 
        petroleum, natural gas or any derivative of coal, petroleum, or 
        natural gas.
          (6) Corporation.--The term ``Corporation'' means the Carbon 
        Storage Research Corporation established in accordance with 
        this section.
          (7) Qualified industry organization.--The term ``qualified 
        industry organization'' means the Edison Electric Institute, 
        the American Public Power Association, the National Rural 
        Electric Cooperative Association, a successor organization of 
        such organizations, or a group of owners or operators of 
        distribution utilities delivering fossil fuel-based electricity 
        who collectively represent at least 20 percent of the volume of 
        fossil fuel-based electricity delivered by distribution 
        utilities to consumers in the United States.
          (8) Retail consumer.--The term ``retail consumer'' means an 
        end-user of electricity.
  (b) Carbon Storage Research Corporation.--
          (1) Establishment.--
                  (A) Referendum.--Qualified industry organizations may 
                conduct, at their own expense, a referendum among the 
                owners or operators of distribution utilities 
                delivering fossil fuel-based electricity for the 
                creation of a Carbon Storage Research Corporation. Such 
                referendum shall be conducted by an independent 
                auditing firm agreed to by the qualified industry 
                organizations. Voting rights in such referendum shall 
                be based on the quantity of fossil fuel-based 
                electricity delivered to consumers in the previous 
                calendar year or other representative period as 
                determined by the Secretary pursuant to subsection (f). 
                Upon approval of those persons representing two-thirds 
                of the total quantity of fossil fuel-based electricity 
                delivered to retail consumers, the Corporation shall be 
                established unless opposed by the State regulatory 
                authorities pursuant to subparagraph (B). All 
                distribution utilities voting in the referendum shall 
                certify to the independent auditing firm the quantity 
                of fossil fuel-based electricity represented by their 
                vote.
                  (B) State regulatory authorities.--Upon its own 
                motion or the petition of a qualified industry 
                organization, each State regulatory authority shall 
                consider its support or opposition to the creation of 
                the Corporation under subparagraph (A). State 
                regulatory authorities may notify the independent 
                auditing firm referred to in subparagraph (A) of their 
                views on the creation of the Corporation within 180 
                days after the date of enactment of this Act. If 40 
                percent or more of the State regulatory authorities 
                submit to the independent auditing firm written notices 
                of opposition, the Corporation shall not be established 
                notwithstanding the approval of the qualified industry 
                organizations as provided in subparagraph (A).
          (2) Termination.--The Corporation shall be authorized to 
        collect assessments and conduct operations pursuant to this 
        section for a 10-year period from the date 6 months after the 
        date of enactment of this Act. After such 10-year period, the 
        Corporation is no longer authorized to collect assessments and 
        shall be dissolved on the date 15 years after such date of 
        enactment, unless the period is extended by an Act of Congress.
          (3) Governance.--The Corporation shall operate as a division 
        or affiliate of the Electric Power Research Institute (referred 
        to in this section as ``EPRI'') and be managed by a Board of 
        not more than 15 voting members responsible for its operations, 
        including compliance with this section. EPRI, in consultation 
        with the Edison Electric Institute, the American Public Power 
        Association and the National Rural Electric Cooperative 
        Association shall appoint the Board members under clauses (i), 
        (ii), and (iii) of subparagraph (A) from among candidates 
        recommended by those organizations. At least a majority of the 
        Board members appointed by EPRI shall be representatives of 
        distribution utilities subject to assessments under subsection 
        (d).
                  (A) Members.--The Board shall include at least one 
                representative of each of the following:
                          (i) Investor-owned utilities.
                          (ii) Utilities owned by a State agency or a 
                        municipality.
                          (iii) Rural electric cooperatives.
                          (iv) Fossil fuel producers.
                          (v) Nonprofit environmental organizations.
                          (vi) Independent generators or wholesale 
                        power providers.
                          (vii) Consumer groups.
                  (B) Nonvoting members.--The Board shall also include 
                as additional nonvoting Members the Secretary of Energy 
                or his designee and 2 representatives of State 
                regulatory authorities as defined in section 3(17) of 
                the Public Utility Regulatory Policies Act of 1978 (16 
                U.S.C. 2602(17)), each designated by the National 
                Association of State Regulatory Utility Commissioners 
                from States that are not within the same transmission 
                interconnection.
          (4) Compensation.--Corporation Board members shall receive no 
        compensation for their services, nor shall Corporation Board 
        members be reimbursed for expenses relating to their service.
          (5) Terms.--Corporation Board members shall serve terms of 4 
        years and may serve not more than 2 full consecutive terms. 
        Members filling unexpired terms may serve not more than a total 
        of 8 consecutive years. Former members of the Corporation Board 
        may be reappointed to the Corporation Board if they have not 
        been members for a period of 2 years. Initial appointments to 
        the Corporation Board shall be for terms of 1, 2, 3, and 4 
        years, staggered to provide for the selection of 3 members each 
        year.
          (6) Status of corporation.--The Corporation shall not be 
        considered to be an agency, department, or instrumentality of 
        the United States, and no officer or director or employee of 
        the Corporation shall be considered to be an officer or 
        employee of the United States Government, for purposes of title 
        5 or title 31 of the United States Code, or for any other 
        purpose, and no funds of the Corporation shall be treated as 
        public money for purposes of chapter 33 of title 31, United 
        States Code, or for any other purpose.
  (c) Functions and Administration of the Corporation.--
          (1) In general.--The Corporation shall establish and 
        administer a program to accelerate the commercial availability 
        of carbon dioxide capture and storage technologies and methods, 
        including technologies which capture and store, or capture and 
        convert, carbon dioxide. Under such program competitively 
        awarded grants, contracts, and financial assistance shall be 
        provided and entered into with eligible entities. Except as 
        provided in paragraph (8), the Corporation shall use all funds 
        derived from assessments under subsection (d) to issue grants 
        and contracts to eligible entities.
          (2) Purpose.--The purposes of the grants, contracts, and 
        assistance under this subsection shall be to support 
        commercial-scale demonstrations of carbon capture or storage 
        technology projects capable of advancing the technologies to 
        commercial readiness. Such projects should encompass a range of 
        different coal and other fossil fuel varieties, be 
        geographically diverse, involve diverse storage media, and 
        employ capture or storage, or capture and conversion, 
        technologies potentially suitable either for new or for 
        retrofit applications. The Corporation shall seek, to the 
        extent feasible, to support at least 5 commercial-scale 
        demonstration projects integrating carbon capture and 
        sequestration or conversion technologies.
          (3) Eligible entities.--Entities eligible for grants, 
        contracts or assistance under this subsection may include 
        distribution utilities, electric utilities and other private 
        entities, academic institutions, national laboratories, Federal 
        research agencies, State research agencies, nonprofit 
        organizations, or consortiums of 2 or more entities. Pilot-
        scale and similar small-scale projects are not eligible for 
        support by the Corporation. Owners or developers of projects 
        supported by the Corporation shall, where appropriate, share in 
        the costs of such projects.
          (4) Grants for early movers.--Fifty percent of the funds 
        raised under this section shall be provided in the form of 
        grants to electric utilities that had, prior to the award of 
        any grant under this section, committed resources to deploy a 
        large scale electricity generation unit with integrated carbon 
        capture and sequestration or conversion applied to a 
        substantial portion of the unit's carbon dioxide emissions.   
        Grant funds shall be provided to defray costs incurred by such 
        electricity utilities for at least 5 such electricity 
        generation units.
          (5) Administration.--The members of the Board of Directors of 
        the Corporation shall elect a Chairman and other officers as 
        necessary, may establish committees and subcommittees of the 
        Corporation, and shall adopt rules and bylaws for the conduct 
        of business and the implementation of this section. The Board 
        shall appoint an Executive Director and professional support 
        staff who may be employees of the Electric Power Research 
        Institute (EPRI). After consultation with the Technical 
        Advisory Committee established under subsection (j), the 
        Secretary, and the Director of the National Energy Technology 
        Laboratory to obtain advice and recommendations on plans, 
        programs, and project selection criteria, the Board shall 
        establish priorities for grants, contracts, and assistance; 
        publish requests for proposals for grants, contracts, and 
        assistance; and award grants, contracts, and assistance 
        competitively, on the basis of merit, after the establishment 
        of procedures that provide for scientific peer review by the 
        Technical Advisory Committee. The Board shall give preference 
        to applications that reflect the best overall value and 
        prospect for achieving the purposes of the section, such as 
        those which demonstrate an integrated approach for capture and 
        storage or capture and conversion technologies. The Board 
        members shall not participate in making grants or awards to 
        entities with whom they are affiliated.
          (6) Uses of grants, contracts, and assistance.--A grant, 
        contract, or other assistance provided under this subsection 
        may be used to purchase carbon dioxide when needed to conduct 
        tests of carbon dioxide storage sites, in the case of 
        established projects that are storing carbon dioxide emissions, 
        or for other purposes consistent with the purposes of this 
        section. The Corporation shall make publicly available at no 
        cost information learned as a result of projects which it 
        supports financially.
          (7) Intellectual property.--The Board shall establish 
        policies regarding the ownership of intellectual property 
        developed as a result of Corporation grants and other forms of 
        technology support. Such policies shall encourage individual 
        ingenuity and invention.
          (8) Administrative expenses.--Up to 5 percent of the funds 
        collected in any fiscal year under subsection (d) may be used 
        for the administrative expenses of operating the Corporation 
        (not including costs incurred in the determination and 
        collection of the assessments pursuant to subsection (d)).
          (9) Programs and budget.--Before August 1 each year, the 
        Corporation, after consulting with the Technical Advisory 
        Committee and the Secretary and the Director of the 
        Department's National Energy Technology Laboratory and other 
        interested parties to obtain advice and recommendations, shall 
        publish for public review and comment its proposed plans, 
        programs, project selection criteria, and projects to be funded 
        by the Corporation for the next calendar year. The Corporation 
        shall also publish for public review and comment a budget plan 
        for the next calendar year, including the probable costs of all 
        programs, projects, and contracts and a recommended rate of 
        assessment sufficient to cover such costs. The Secretary may 
        recommend programs and activities the Secretary considers 
        appropriate. The Corporation shall include in the first 
        publication it issues under this paragraph a strategic plan or 
        roadmap for the achievement of the purposes of the Corporation, 
        as set forth in paragraph (2).
          (10) Records; audits.--The Corporation shall keep minutes, 
        books, and records that clearly reflect all of the acts and 
        transactions of the Corporation and make public such 
        information. The books of the Corporation shall be audited by a 
        certified public accountant at least once each fiscal year and 
        at such other times as the Corporation may designate. Copies of 
        each audit shall be provided to the Congress, all Corporation 
        board members, all qualified industry organizations, each State 
        regulatory authority and, upon request, to other members of the 
        industry. If the audit determines that the Corporation's 
        practices fail to meet generally accepted accounting principles 
        the assessment collection authority of the Corporation under 
        subsection (d) shall be suspended until a certified public 
        accountant renders a subsequent opinion that the failure has 
        been corrected. The Corporation shall make its books and 
        records available for review by the Secretary or the 
        Comptroller General of the United States.
          (11) Public access.--The Corporation Board's meetings shall 
        be open to the public and shall occur after at least 30 days 
        advance public notice. Meetings of the Board of Directors may 
        be closed to the public where the agenda of such meetings 
        includes only confidential matters pertaining to project 
        selection, the award of grants or contracts, personnel matters, 
        or the receipt of legal advice. The minutes of all meetings of 
        the Corporation shall be made available to and readily 
        accessible by the public.
          (12) Annual report.--Each year the Corporation shall prepare 
        and make publicly available a report which includes an 
        identification and description of all programs and projects 
        undertaken by the Corporation during the previous year. The 
        report shall also detail the allocation or planned allocation 
        of Corporation resources for each such program and project. The 
        Corporation shall provide its annual report to the Congress, 
        the Secretary, each State regulatory authority, and upon 
        request to the public. The Secretary shall, not less than 60 
        days after receiving such report, provide to the President and 
        Congress a report assessing the progress of the Corporation in 
        meeting the objectives of this section.
  (d) Assessments.--
          (1) Amount.--(A) In all calendar years following its 
        establishment, the Corporation shall collect an assessment on 
        distribution utilities for all fossil fuel-based electricity 
        delivered directly to retail consumers (as determined under 
        subsection (f)). The assessments shall reflect the relative 
        carbon dioxide emission rates of different fossil fuel-based 
        electricity, and initially shall be not less than the following 
        amounts for coal, natural gas, and oil:


Fuel type                               Rate of assessment per kilowatt
                                         hour
  Coal................................  $0.00043
  Natural Gas.........................  $0.00022
  Oil.................................  $0.00032.
 

          (B) The Corporation is authorized to adjust the assessments 
        on fossil fuel-based electricity to reflect changes in the 
        expected quantities of such electricity from different fuel 
        types, such that the assessments generate not less than $1.0 
        billion and not more than $1.1 billion annually. The 
        Corporation is authorized to supplement assessments through 
        additional financial commitments.
          (2) Investment of funds.--Pending disbursement pursuant to a 
        program, plan, or project, the Corporation may invest funds 
        collected through assessments under this subsection, and any 
        other funds received by the Corporation, only in obligations of 
        the United States or any agency thereof, in general obligations 
        of any State or any political subdivision thereof, in any 
        interest-bearing account or certificate of deposit of a bank 
        that is a member of the Federal Reserve System, or in 
        obligations fully guaranteed as to principal and interest by 
        the United States.
          (3) Reversion of unused funds.--If the Corporation does not 
        disburse, dedicate or assign 75 percent or more of the 
        available proceeds of the assessed fees in any calendar year 7 
        or more years following its establishment, due to an absence of 
        qualified projects or similar circumstances, it shall reimburse 
        the remaining undedicated or unassigned balance of such fees, 
        less administrative and other expenses authorized by this 
        section, to the distribution utilities upon which such fees 
        were assessed, in proportion to their collected assessments.
  (e)  ERCOT.--
          (1) Assessment, collection, and remittance.--(A) 
        Notwithstanding any other provision of this section, within 
        ERCOT, the assessment provided for in subsection (d) shall be--
                  (i) levied directly on qualified scheduling entities, 
                or their successor entities;
                  (ii) charged consistent with other charges imposed on 
                qualified scheduling entities as a fee on energy used 
                by the load-serving entities; and
                  (iii) collected and remitted by ERCOT to the 
                Corporation in the amounts and in the same manner as 
                set forth in subsection (d).
          (B) The assessment amounts referred to in subparagraph (A) 
        shall be--
                  (i) determined by the amount and types of fossil 
                fuel-based electricity delivered directly to all retail 
                customers in the prior calendar year beginning with the 
                year ending immediately prior to the period described 
                in subsection (b)(2); and
                  (ii) take into account the number of renewable energy 
                credits retired by the load-serving entities 
                represented by a qualified scheduling entity within the 
                prior calendar year.
          (2) Administration expenses.--Up to 1 percent of the funds 
        collected in any fiscal year by ERCOT under the provisions of 
        this subsection may be used for the administrative expenses 
        incurred in the determination, collection and remittance of the 
        assessments to the Corporation.
          (3) Audit.--ERCOT shall provide a copy of its annual audit 
        pertaining to the administration of the provisions of this 
        subsection to the Corporation.
          (4) Definitions.--For the purposes of this subsection:
                  (A) The term ``ERCOT'' means the Electric Reliability 
                Council of Texas.
                  (B) The term ``load-serving entities'' has the 
                meaning adopted by ERCOT Protocols and in effect on the 
                date of enactment of this Act.
                  (C) The term ``qualified scheduling entities'' has 
                the meaning adopted by ERCOT Protocols and in effect on 
                the date of enactment of this Act.
                  (D) The term ``renewable energy credit'' has the 
                meaning as promulgated and adopted by the Public 
                Utility Commission of Texas pursuant to section 
                39.904(b) of the Public Utility Regulatory Act of 1999, 
                and in effect on the date of enactment of this Act.
  (f) Determination of Fossil Fuel-Based Electricity Deliveries.--
          (1) Findings.--The Congress finds that:
                  (A) The assessments under subsection (d) are to be 
                collected based on the amount of fossil fuel-based 
                electricity delivered by each distribution utility.
                  (B) Since many distribution utilities purchase all or 
                part of their retail consumer's electricity needs from 
                other entities, it may not be practical to determine 
                the precise fuel mix for the power sold by each 
                individual distribution utility.
                  (C) It may be necessary to use average data, often on 
                a regional basis with reference to Regional 
                Transmission Organization (``RTO'') or NERC regions, to 
                make the determinations necessary for making 
                assessments.
          (2) DOE proposed rule.--The Secretary, acting in close 
        consultation with the Energy Information Administration, shall 
        issue for notice and comment a proposed rule to determine the 
        level of fossil fuel electricity delivered to retail customers 
        by each distribution utility in the United States during the 
        most recent calendar year or other period determined to be most 
        appropriate. Such proposed rule shall balance the need to be 
        efficient, reasonably precise, and timely, taking into account 
        the nature and cost of data currently available and the nature 
        of markets and regulation in effect in various regions of the 
        country. Different methodologies may be applied in different 
        regions if appropriate to obtain the best balance of such 
        factors.
          (3) Final rule.--Within 6 months after the date of enactment 
        of this Act, and after opportunity for comment, the Secretary 
        shall issue a final rule under this subsection for determining 
        the level and type of fossil fuel-based electricity delivered 
        to retail customers by each distribution utility in the United 
        States during the appropriate period. In issuing such rule, the 
        Secretary may consider opportunities and costs to develop new 
        data sources in the future and issue recommendations for the 
        Energy Information Administration or other entities to collect 
        such data. After notice and opportunity for comment the 
        Secretary may, by rule, subsequently update and modify the 
        methodology for making such determinations.
          (4) Annual determinations.--Pursuant to the final rule issued 
        under paragraph (3), the Secretary shall make annual 
        determinations of the amounts and types for each such utility 
        and publish such determinations in the Federal Register. Such 
        determinations shall be used to conduct the referendum under 
        subsection (b) and by the Corporation in applying any 
        assessment under this subsection.
          (5) Rehearing and judicial review.--The owner or operator of 
        any distribution utility that believes that the Secretary has 
        misapplied the methodology in the final rule in determining the 
        amount and types of fossil fuel electricity delivered by such 
        distribution utility may seek rehearing of such determination 
        within 30 days of publication of the determination in the 
        Federal Register. The Secretary shall decide such rehearing 
        petitions within 30 days. The Secretary's determinations 
        following rehearing shall be final and subject to judicial 
        review in the United States Court of Appeals for the District 
        of Columbia.
  (g) Compliance With Corporation Assessments.--The Corporation may 
bring an action in the appropriate court of the United States to compel 
compliance with an assessment levied by the Corporation under this 
section. A successful action for compliance under this subsection may 
also require payment by the defendant of the costs incurred by the 
Corporation in bringing such action.
  (h) Midcourse Review.--Not later than 5 years following establishment 
of the Corporation, the Comptroller General of the United States shall 
prepare an analysis, and report to Congress, assessing the 
Corporation's activities, including project selection and methods of 
disbursement of assessed fees, impacts on the prospects for 
commercialization of carbon capture and storage technologies, adequacy 
of funding, and administration of funds. The report shall also make 
such recommendations as may be appropriate in each of these areas. The 
Corporation shall reimburse the Government Accountability Office for 
the costs associated with performing this midcourse review.
  (i) Recovery of Costs.--
          (1) In general.--A distribution utility whose transmission, 
        delivery, or sales of electric energy are subject to any form 
        of rate regulation shall not be denied the opportunity to 
        recover the full amount of the prudently incurred costs 
        associated with complying with this section, consistent with 
        applicable State or Federal law.
          (2) Ratepayer rebates.--Regulatory authorities that approve 
        cost recovery pursuant to paragraph (1) may order rebates to 
        ratepayers to the extent that distribution utilities are 
        reimbursed undedicated or unassigned balances pursuant to 
        subsection (d)(3).
  (j) Technical Advisory Committee.--
          (1) Establishment.--There is established an advisory 
        committee, to be known as the ``Technical Advisory Committee''.
          (2) Membership.--The Technical Advisory Committee shall be 
        comprised of not less than 7 members appointed by the Board 
        from among academic institutions, national laboratories, 
        independent research institutions, and other qualified 
        institutions. No member of the Committee shall be affiliated 
        with EPRI or with any organization having members serving on 
        the Board. At least one member of the Committee shall be 
        appointed from among officers or employees of the Department of 
        Energy recommended to the Board by the Secretary of Energy.
          (3) Chairperson and vice chairperson.--The Board shall 
        designate one member of the Technical Advisory Committee to 
        serve as Chairperson of the Committee and one to serve as Vice 
        Chairperson of the Committee.
          (4) Compensation.--The Board shall provide compensation to 
        members of the Technical Advisory Committee for travel and 
        other incidental expenses and such other compensation as the 
        Board determines to be necessary.
          (5) Purpose.--The Technical Advisory Committee shall provide 
        independent assessments and technical evaluations, as well as 
        make non-binding recommendations to the Board, concerning 
        Corporation activities, including but not limited to the 
        following:
                  (A) Reviewing and evaluating the Corporation's plans 
                and budgets described in subsection (c)(9), as well as 
                any other appropriate areas, which could include 
                approaches to prioritizing technologies, 
                appropriateness of engineering techniques, monitoring 
                and verification technologies for storage, geological 
                site selection, and cost control measures.
                  (B) Making annual non-binding recommendations to the 
                Board concerning any of the matters referred to in 
                subparagraph (A), as well as what types of investments, 
                scientific research, or engineering practices would 
                best further the goals of the Corporation.
          (6) Public availability.--All reports, evaluations, and other 
        materials of the Technical Advisory Committee shall be made 
        available to the public by the Board, without charge, at time 
        of receipt by the Board.
  (k) Lobbying Restrictions.--No funds collected by the Corporation 
shall be used in any manner for influencing legislation or elections, 
except that the Corporation may recommend to the Secretary and the 
Congress changes in this section or other statutes that would further 
the purposes of this section.
  (l) Davis-Bacon Compliance.--The Corporation shall ensure that 
entities receiving grants, contracts, or other financial support from 
the Corporation for the project activities authorized by this section 
are in compliance with the Davis-Bacon Act (40 U.S.C. 276a-276a-5).

SEC. 115. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION 
                    TECHNOLOGIES.

  Part H of title VII of the Clean Air Act (as added by section 321 of 
this Act) is amended by adding the following new section after section 
785:

``SEC. 786. COMMERCIAL DEPLOYMENT OF CARBON CAPTURE AND SEQUESTRATION 
                    TECHNOLOGIES.

  ``(a) Regulations.--Not later than 2 years after the date of 
enactment of this title, the Administrator shall promulgate regulations 
providing for the distribution of emission allowances allocated 
pursuant to section 782(f), pursuant to the requirements of this 
section, to support the commercial deployment of carbon capture and 
sequestration technologies in both electric power generation and 
industrial operations.
  ``(b) Eligibility Criteria.--To be eligible to receive emission 
allowances under this section, the owner or operator of a project 
must--
          ``(1) implement carbon capture and sequestration technology--
                  ``(A) at an electric generating unit that--
                          ``(i) has a nameplate capacity of 200 
                        megawatts or more;
                          ``(ii) in the case of a retrofit application, 
                        applies the carbon capture and sequestration 
                        technology to the flue gas from at least 200 
                        megawatts of the total nameplate generating 
                        capacity of the unit, provided that clause (i) 
                        shall apply without exception;
                          ``(iii) derives at least 50 percent of its 
                        annual fuel input from coal, petroleum coke, or 
                        any combination of these 2 fuels; and
                          ``(iv) upon implementation of capture and 
                        sequestration technology, will achieve an 
                        emission limit that is at least a 50 percent 
                        reduction in emissions of the carbon dioxide 
                        produced by--
                                  ``(I) the unit, measured on an annual 
                                basis, determined in accordance with 
                                section 812(b)(2); or
                                  ``(II) in the case of retrofit 
                                applications under clause (ii), the 
                                treated portion of flue gas from the 
                                unit, measured on an annual basis, 
                                determined in accordance with section 
                                812(b)(2); or
                  ``(B) at an industrial source that--
                          ``(i) absent carbon capture and 
                        sequestration, would emit greater than 50,000 
                        tons per year of carbon dioxide;
                          ``(ii) upon implementation, will achieve an 
                        emission limit that is at least a 50 percent 
                        reduction in emissions of the carbon dioxide 
                        produced by the emission point, measured on an 
                        annual basis, determined in accordance with 
                        section 812(b)(2); and
                          ``(iii) does not produce a liquid 
                        transportation fuel from a solid fossil-based 
                        feedstock;
          ``(2) geologically sequester carbon dioxide at a site that 
        meets all applicable permitting and certification requirements 
        for geologic sequestration, or, pursuant to such requirements 
        as the Administrator may prescribe by regulation, convert 
        captured carbon dioxide to a stable form that will safely and 
        permanently sequester such carbon dioxide;
          ``(3) meet all other applicable State and Federal permitting 
        requirements; and
          ``(4) be located in the United States.
  ``(c) Phase I Distribution to Electric Generating Units.--
          ``(1) Application.--This subsection shall apply only to 
        projects at the first 6 gigawatts of electric generating units, 
        measured in cumulative generating capacity of such units.
          ``(2) Distribution.--The Administrator shall distribute 
        emission allowances allocated under section 782(f) to the owner 
        or operator of each eligible project at an electric generating 
        unit in a quantity equal to the quotient obtained by dividing--
                  ``(A) the product obtained by multiplying--
                          ``(i) the number of metric tons of carbon 
                        dioxide emissions avoided through capture and 
                        sequestration of emissions by the project, as 
                        determined pursuant to such methodology as the 
                        Administrator shall prescribe by regulation; 
                        and
                          ``(ii) a bonus allowance value, pursuant to 
                        paragraph (3); by
                  ``(B) the average fair market value of an emission 
                allowance during the preceding year.
          ``(3) Bonus allowance values.--
                  ``(A) For a generating unit achieving the capture and 
                sequestration of 85 percent or more of the carbon 
                dioxide that otherwise would be emitted by such unit, 
                the bonus allowance value shall be $90.
                  ``(B) The Administrator shall by regulation establish 
                a bonus allowance value for each rate of lower capture 
                and sequestration achieved by a generating unit, from a 
                minimum of $50 per ton for a 50 percent rate and 
                varying directly with increasing rates of capture and 
                sequestration up to $90 per ton for an 85 percent rate.
                  ``(C) For a generating unit that achieves the capture 
                and sequestration of at least 50 percent of the carbon 
                dioxide that otherwise would be emitted by such unit by 
                not later than January 1, 2017, the otherwise 
                applicable bonus allowance value under this paragraph 
                shall be increased by $10, provided that the owner of 
                such unit notifies the Administrator of its intent to 
                achieve such rate of capture and sequestration by not 
                later than January 1, 2012.
                  ``(D) For a carbon capture and sequestration project 
                sequestering in a geological formation for purposes of 
                enhanced hydrocarbon recovery, the Administrator shall, 
                by regulation, reduce the applicable bonus allowance 
                value under this paragraph to reflect the lower net 
                cost of the project when compared to sequestration into 
                geological formations solely for purposes of 
                sequestration.
                  ``(E) All monetary values in this section shall be 
                adjusted annually for inflation.
  ``(d) Phase II Distribution to Electric Generating Units.--
          ``(1) Application.--This subsection shall apply only to the 
        distribution of emission allowances to carbon capture and 
        sequestration projects at electric generating units after the 
        capacity threshold identified in subsection (c)(1) is reached.
          ``(2) Regulations.--Not later than 2 years prior to the date 
        on which the capacity threshold identified in subsection (c)(1) 
        is projected to be reached, the Administrator shall promulgate 
        regulations to govern the distribution of emission allowances 
        to the owners or operators of eligible projects under this 
        subsection.
          ``(3) Reverse auctions.--
                  ``(A) In general.--Except as provided in paragraph 
                (4), the regulations promulgated under paragraph (2) 
                shall provide for the distribution of emission 
                allowances to the owners or operators of eligible 
                projects under this subsection through reverse 
                auctions, which shall be held no less frequently than 
                once each calendar year. The Administrator may 
                establish a separate auction for each of no more than 5 
                different project categories, defined on the basis of 
                coal type, capture technology, geological formation 
                type, new unit versus retrofit application, such other 
                factors as the Administrator may prescribe, or any 
                combination thereof. The Administrator may establish 
                appropriate minimum rates of capture and sequestration 
                in implementing this paragraph.
                  ``(B) Auction process.--At each reverse auction--
                          ``(i) the Administrator shall solicit bids 
                        from eligible projects;
                          ``(ii) eligible projects participating in the 
                        auction shall submit a bid including the 
                        desired level of carbon dioxide sequestration 
                        incentive per ton and the estimated quantity of 
                        carbon dioxide that the project will 
                        permanently sequester over 10 years; and
                          ``(iii) the Administrator shall select bids, 
                        within each auction, for the sequestration 
                        amount submitted, beginning with the eligible 
                        project submitting the bid for the lowest level 
                        of sequestration incentive on a per ton basis 
                        and meeting such other requirements as the 
                        Administrator may specify, until the amount of 
                        funds available for the reverse auction is 
                        committed.
                  ``(C) Form of distribution.--The Administrator shall 
                provide deployment incentives to the owners or 
                operators of eligible projects selected through a 
                reverse auction under this paragraph pursuant to a 
                formula equivalent to that described in subsection 
                (c)(2), except that the incentive level that is bid by 
                the entity shall be substituted for the bonus allowance 
                value.
          ``(4) Alternative distribution method.--
                  ``(A) In general.--If the Administrator determines 
                that reverse auctions would not provide for efficient 
                and cost-effective commercial deployment of carbon 
                capture and sequestration technologies, the 
                Administrator may instead, through regulations 
                promulgated under paragraph (2) or (5), prescribe a 
                schedule for the award of bonus allowances to the 
                owners or operators of eligible projects under this 
                subsection, in accordance with the requirements of this 
                paragraph.
                  ``(B) Multiple tranches.--The Administrator shall 
                divide emission allowances available for distribution 
                to the owners or operators of eligible projects into a 
                series of tranches, each supporting the deployment of a 
                specified quantity of cumulative electric generating 
                capacity utilizing carbon capture and sequestration 
                technology, each of which shall not be greater than 6 
                gigawatts.
                  ``(C) Method of distribution.--The Administrator 
                shall distribute emission allowances within each 
                tranche, on a first-come, first-served basis--
                          ``(i) based on the date of full-scale 
                        operation of capture and sequestration 
                        technology; and
                          ``(ii) pursuant to a formula, similar to that 
                        set forth in subsection (c)(2) (except that the 
                        Administrator shall prescribe bonus allowance 
                        values different than those set forth in 
                        subsection (c)(2)), establishing the number of 
                        allowances to be distributed per ton of carbon 
                        dioxide sequestered by the project.
                  ``(D) Requirements.--For each tranche established 
                pursuant to subparagraph (A), the Administrator shall 
                establish a schedule for distributing emission 
                allowances that--
                          ``(i) is based on a sliding scale that 
                        provides higher bonus allowance values for 
                        projects achieving higher rates of capture and 
                        sequestration;
                          ``(ii) for each capture and sequestration 
                        rate, establishes a bonus allowance value that 
                        is lower than that established for such rate in 
                        the previous tranche (or, in the case of the 
                        first tranche, than that established for such 
                        rate under subsection (c)(3)); and
                          ``(iii) may establish different bonus 
                        allowance levels for no more than 5 different 
                        project categories, defined by coal type, 
                        capture technology, geological formation type, 
                        new unit versus retrofit application, such 
                        other factors as the Administrator may 
                        prescribe, or any combination thereof.
                  ``(E) Criteria for establishing bonus allowance 
                values.--In setting bonus allowance values under this 
                paragraph, the Administrator shall seek to cover no 
                more than the reasonable incremental capital and 
                operating costs of a project that are attributable to 
                implementation of carbon capture, transportation, and 
                sequestration technologies, taking into account--
                          ``(i) the reduced cost of compliance with 
                        section 722 of this Act;
                          ``(ii) the reduced cost associated with 
                        sequestering in a geological formation for 
                        purposes of enhanced hydrocarbon recovery when 
                        compared to sequestration into geological 
                        formations solely for purposes of 
                        sequestration;
                          ``(iii) the relevant factors defining the 
                        project category; and
                          ``(iv) such other factors as the 
                        Administrator determines are appropriate.
          ``(5) Revision of regulations.--The Administrator shall 
        review, and as appropriate revise, the applicable regulations 
        under this subsection no less frequently than every 8 years.
  ``(e) Limits for Certain Electric Generating Units.--
          ``(1) Definitions.--For purposes of this subsection, the 
        terms `covered EGU' and `initially permitted' shall have the 
        meaning given those terms in section 812 of this Act.
          ``(2) Covered egus initially permitted from 2009 through 
        2014.--For a covered EGU that is initially permitted on or 
        after January 1, 2009, and before January 1, 2015, the 
        Administrator shall reduce the quantity of emission allowances 
        that the owner or operator of such covered EGU would otherwise 
        be eligible to receive under this section as follows:
                  ``(A) In the case of a unit commencing operation on 
                or before January 1, 2019, if the date in clause 
                (ii)(I) is earlier than the date in clause (ii)(II), by 
                the product of--
                          ``(i) 20 percent; and
                          ``(ii) the number of years, if any, that have 
                        elapsed between--
                                  ``(I) the earlier of January 1, 2020, 
                                or the date that is 5 years after the 
                                commencement of operation of such 
                                covered EGU; and
                                  ``(II) the first year that such 
                                covered EGU achieves (and thereafter 
                                maintains) an emission limit that is at 
                                least a 50 percent reduction in 
                                emissions of the carbon dioxide 
                                produced by the unit, measured on an 
                                annual basis, as determined in 
                                accordance with section 812(b)(2).
                  ``(B) In the case of a unit commencing operation 
                after January 1, 2019, by the product of--
                          ``(i) 20 percent; and
                          ``(ii) the number of years between--
                                  ``(I) the commencement of operation 
                                of such covered EGU; and
                                  ``(II) the first year that such 
                                covered EGU achieves (and thereafter 
                                maintains) an emission limit that is at 
                                least a 50 percent reduction in 
                                emissions of the carbon dioxide 
                                produced by the unit, measured on an 
                                annual basis, as determined in 
                                accordance with section 812(b)(2).
          ``(3) Covered egus initially permitted from 2015 through 
        2019.--The owner or operator of a covered EGU that is initially 
        permitted on or after January 1, 2015, and before January 1, 
        2020, shall be ineligible to receive emission allowances 
        pursuant to this section if such unit, upon commencement of 
        operations (and thereafter), does not achieve and maintain an 
        emission limit that is at least a 50 percent reduction in 
        emissions of the carbon dioxide produced by the unit, measured 
        on an annual basis, as determined in accordance with section 
        812(b)(2).
  ``(f) Industrial Sources.--
          ``(1) Allowances.--The Administrator may distribute not more 
        than 15 percent of the allowances allocated under section 
        782(a) for any vintage year to the owners or operators of 
        eligible industrial sources to support the commercial-scale 
        deployment of carbon capture and sequestration technologies at 
        such sources.
          ``(2) Distribution.--The Administrator shall, by regulation, 
        prescribe requirements for the distribution of emission 
        allowances to the owners or operators of industrial sources 
        under this subsection, based on a bonus allowance formula that 
        awards allowances to qualifying projects on the basis of tons 
        of carbon dioxide captured and permanently sequestered. The 
        Administrator may provide for the distribution of emission 
        allowances pursuant to--
                  ``(A) a reverse auction method, similar to that 
                described under subsection (d)(3), including the use of 
                separate auctions for different project categories; or
                  ``(B) an incentive schedule, similar to that 
                described under subsection (d)(4), which shall ensure 
                that incentives are set so as to satisfy the 
                requirement described in subsection (d)(4)(E).
          ``(3) Revision of regulations.--The Administrator shall 
        review, and as appropriate revise, the applicable regulations 
        under this subsection no less frequently than every 8 years.
  ``(g) Limitations.--Allowances may be distributed under this section 
only for tons of carbon dioxide emissions that have already been 
captured and sequestered. A qualifying project may receive annual 
emission allowances under this section only for the first 10 years of 
operation. No greater than 72 gigawatts of total cumulative generating 
capacity (including industrial applications, measured by such 
equivalent metric as the Administrator may designate) may receive 
emission allowances under this section. Upon reaching the limit 
described in the preceding sentence, any emission allowances that are 
allocated for carbon capture and sequestration deployment under section 
782(f) and are not yet obligated under this section shall be treated as 
allowances not designated for distribution for purposes of section 
782(r).
  ``(h) Exhaustion of Account and Annual Roll-Over of Surplus 
Allowances.--
          ``(1) In distributing bonus allowances under this subsection, 
        the Administrator shall ensure that qualifying projects 
        receiving allowances receive distributions for 10 years.
          ``(2) If the Administrator determines that the allowances 
        allocated under section 782(f) with a vintage year that matches 
        the year of distribution will be exhausted once the estimated 
        full 10-year distributions will be provided to current eligible 
        participants, the Administrator shall provide to new eligible 
        projects allowances from vintage years after the year of the 
        distribution.
  ``(i) Retrofit Applications.--(1) In calculating bonus allowance 
values for retrofit applications eligible under subsections 
(b)(1)(A)(ii) and (b)(1)(A)(iv)(II), the Administrator shall apply the 
required capture rates with respect to the treated portion of flue gas 
from the unit.
  ``(2) No additional projects shall be eligible for allowances under 
subsections (b)(1)(A)(ii) and (b)(1)(A)(iv)(II) as of such time as the 
Administrator reports, pursuant to section 812(d), that carbon capture 
and sequestration retrofit projects at electric generating units that 
are eligible for allowances under this section have been applied, in 
the aggregate, to the flue gas generated by 1 gigawatt of total 
cumulative generating capacity.
  ``(j) Davis-Bacon Compliance.--All laborers and mechanics employed on 
projects funded directly by or assisted in whole or in part by this 
section through the use of bonus allowances shall be paid wages at 
rates not less than those prevailing on projects of a character similar 
in the locality as determined by the Secretary of Labor in accordance 
with subchapter IV, chapter 31, part A of subtitle II of title 40, 
United States Code. With respect to the labor standards specified in 
this section, the Secretary of Labor shall have the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 (64 
Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States 
Code.''.

SEC. 116. PERFORMANCE STANDARDS FOR COAL-FUELED POWER PLANTS.

  (a) In General.--Title VIII of the Clean Air Act (as added by section 
331 of this Act) is amended by adding the following new section after 
section 811:

``SEC. 812. PERFORMANCE STANDARDS FOR NEW COAL-FIRED POWER PLANTS.

  ``(a) Definitions.--For purposes of this section:
          ``(1) Covered egu.--The term `covered EGU' means a utility 
        unit that is required to have a permit under section 503(a) and 
        is authorized under state or federal law to derive at least 30 
        percent of its annual heat input from coal, petroleum coke, or 
        any combination of these fuels.
          ``(2) Initially permitted.--The term `initially permitted' 
        means that the owner or operator has received a Clean Air Act 
        preconstruction approval or permit, for the covered EGU as a 
        new (not a modified) source, but administrative review or 
        appeal of such approval or permit has not been exhausted. A 
        subsequent modification of any such approval or permits, 
        ongoing administrative or court review, appeals, or challenges, 
        or the existence or tolling of any time to pursue further 
        review, appeals, or challenges shall not affect the date on 
        which a covered EGU is considered to be initially permitted 
        under this paragraph.
  ``(b) Standards.--(1) A covered EGU that is initially permitted on or 
after January 1, 2020, shall achieve an emission limit that is a 65 
percent reduction in emissions of the carbon dioxide  produced by the  
unit, as measured on an annual basis, or meet such more stringent 
standard as the Administrator may establish pursuant to subsection (c).
  ``(2) A covered EGU that is initially permitted after January 1, 
2009, and before January 1, 2020, shall, by the applicable compliance 
date established under this paragraph, achieve an emission limit that 
is a 50 percent reduction in emissions of the carbon dioxide produced 
by the  unit, as measured on an annual basis. Compliance with the 
requirement set forth in this paragraph shall be required by the 
earliest of the following:
          ``(A) Four years after the date the Administrator has 
        published pursuant to subsection (d) a report that there are in 
        commercial operation in the United States electric generating 
        units or other stationary sources equipped with carbon capture 
        and sequestration technology that, in the aggregate--
                  ``(i) have a total of at least 4 gigawatts of 
                nameplate generating capacity of which--
                          ``(I) at least 3 gigawatts must be electric 
                        generating units; and
                          ``(II) up to 1 gigawatt may be industrial 
                        applications, for which capture and 
                        sequestration of 3 million tons of carbon 
                        dioxide per year on an aggregate annualized 
                        basis shall be considered equivalent to 1 
                        gigawatt;
                  ``(ii) include at least 2 electric generating units, 
                each with a nameplate generating capacity of 250 
                megawatts or greater, that capture, inject, and 
                sequester carbon dioxide into geologic formations other 
                than oil and gas fields; and
                  ``(iii) are capturing and sequestering in the 
                aggregate at least 12 million tons of carbon dioxide 
                per year, calculated on an aggregate annualized basis.
          ``(B) January 1, 2025.
  ``(3) If the deadline for compliance with paragraph (2) is January 1, 
2025, the Administrator may extend the deadline for compliance by a 
covered EGU by up to 18 months if the Administrator makes a 
determination, based on a showing by the owner or operator of the unit, 
that it will be technically infeasible for the unit to meet the 
standard by the deadline. The owner or operator must submit a request 
for such an extension by no later than January 1, 2022, and the 
Administrator shall provide for public notice and comment on the 
extension request.
  ``(c) Review and Revision of Standards.--Not later than 2025 and at 
5-year intervals thereafter, the Administrator shall review the 
standards for new covered EGUs under this section and shall, by rule, 
reduce the maximum carbon dioxide emission rate for new covered EGUs to 
a rate which reflects the degree of emission limitation achievable 
through the application of the best system of emission reduction which 
(taking into account the cost of achieving such reduction and any 
nonair quality health and environmental impact and energy requirements) 
the Administrator determines has been adequately demonstrated.
  ``(d)  Reports.--Not later than the date 18 months after the date of 
enactment of this title and semiannually thereafter, the Administrator 
shall publish a report on the nameplate capacity of units (determined 
pursuant to subsection (b)(2)(A)) in commercial operation in the United 
States equipped with carbon capture and sequestration technology, 
including the information described in subsection (b)(2)(A) (including 
the cumulative generating capacity to which carbon capture and 
sequestration retrofit projects meeting the criteria described in 
section 786(b)(1)(A)(ii) and (b)(1)(A)(iv)(II) has been applied and the 
quantities of carbon dioxide captured and sequestered by such 
projects).
  ``(e) Regulations.--Not later than 2 years after the date of 
enactment of this title, the Administrator shall promulgate regulations 
to carry out the requirements of this section.''.

                    Subtitle C--Clean Transportation

SEC. 121. ELECTRIC VEHICLE INFRASTRUCTURE.

  (a) Amendment of PURPA.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
          ``(20) Plug-in electric drive vehicle infrastructure.--
                  ``(A) Utility plan for infrastructure.--Each electric 
                utility shall develop a plan to support the use of 
                plug-in electric drive vehicles, including heavy-duty 
                hybrid electric vehicles. The plan may provide for 
                deployment of electrical charging stations in public or 
                private locations, including street parking, parking 
                garages, parking lots, homes, gas stations, and highway 
                rest stops. Any such plan may also include--
                          ``(i) battery exchange, fast charging 
                        infrastructure and other services;
                          ``(ii) triggers for infrastructure deployment 
                        based upon market penetration of plug-in 
                        electric drive vehicles; and
                          ``(iii) such other elements as the State 
                        determines necessary to support plug-in 
                        electric drive vehicles.
                Each plan under this paragraph shall provide for the 
                deployment of the charging infrastructure or other 
                infrastructure necessary to adequately support the use 
                of plug-in electric drive vehicles.
                  ``(B) Support requirements.--Each State regulatory 
                authority (in the case of each electric utility for 
                which it has ratemaking authority) and each utility (in 
                the case of a nonregulated utility) shall--
                          ``(i) require that charging infrastructure 
                        deployed is interoperable with products of all 
                        auto manufacturers to the extent possible; and
                          ``(ii) consider adopting minimum requirements 
                        for deployment of electrical charging 
                        infrastructure and other appropriate 
                        requirements necessary to support the use of 
                        plug-in electric drive vehicles.
                  ``(C) Cost recovery.--Each State regulatory authority 
                (in the case of each electric utility for which it has 
                ratemaking authority) and each utility (in the case of 
                a nonregulated utility) shall consider whether, and to 
                what extent, to allow cost recovery for plans and 
                implementation of plans.
                  ``(D) Smart grid integration.--The State regulatory 
                authority (in the case of each electric utility for 
                which it has ratemaking authority) and each utility (in 
                the case of a nonregulated utility) shall, in 
                accordance with regulations issued by the Federal 
                Energy Regulatory Commission pursuant to section 
                1305(d) of the Energy Independence and Security Act of 
                2007--
                          ``(i) establish any appropriate protocols and 
                        standards for integrating plug-in electric 
                        drive vehicles into an electrical distribution 
                        system, including Smart Grid systems and 
                        devices as described in title XIII of the 
                        Energy Independence and Security Act of 2007;
                          ``(ii) include, to the extent feasible, the 
                        ability for each plug-in electric drive vehicle 
                        to be identified individually and to be 
                        associated with its owner's electric utility 
                        account, regardless of the location that the 
                        vehicle is plugged in, for purposes of 
                        appropriate billing for any electricity 
                        required to charge the vehicle's batteries as 
                        well as any crediting for electricity provided 
                        to the electric utility from the vehicle's 
                        batteries; and
                          ``(iii) review the determination made in 
                        response to section 1252 of the Energy Policy 
                        Act of 2005 in light of this section, including 
                        whether time-of-use pricing should be employed 
                        to enable the use of plug-in electric drive 
                        vehicles to contribute to meeting peak-load and 
                        ancillary service power needs.''.
  (b) Compliance.--
          (1) Time limitations.--Section 112(b) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 
        by adding the following at the end thereof:
  ``(7)(A) Not later than 3 years after the date of enactment of this 
paragraph, each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority) and each 
nonregulated utility shall commence the consideration referred to in 
section 111, or set a hearing date for consideration, with respect to 
the standard established by paragraph (20) of section 111(d).
  ``(B) Not later than 4 years after the date of enactment of the this 
paragraph, each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority), and each 
nonregulated electric utility, shall complete the consideration, and 
shall make the determination, referred to in section 111 with respect 
to the standard established by paragraph (20) of section 111(d).''.
          (2) Failure to comply.--Section 112(c) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended 
        by adding the following at the end: ``In the case of the 
        standards established by paragraph (20) of section 111(d), the 
        reference contained in this subsection to the date of enactment 
        of this Act shall be deemed to be a reference to the date of 
        enactment of such paragraph.''.
          (3) Prior state actions.--Section 112(d) of the Public 
        Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) is 
        amended by striking ``(19)'' and inserting ``(20)'' before ``of 
        section 111(d)''.

SEC. 122. LARGE-SCALE VEHICLE ELECTRIFICATION PROGRAM.

  (a) Deployment Program.--The Secretary of Energy shall establish a 
program to deploy and integrate plug-in electric drive vehicles into 
the electricity grid in multiple regions. In carrying out the program, 
the Secretary may provide financial assistance described under 
subsection (d), consistent with the goals under subsection (b). The 
Secretary shall select regions based upon applications for assistance 
received pursuant to subsection (c).
  (b) Goals.--The goals of the program established pursuant to 
subsection (a) shall be--
          (1) to demonstrate the viability of a vehicle-based 
        transportation system that is not overly dependent on petroleum 
        as a fuel and contributes to lower carbon emissions than a 
        system based on conventional vehicles;
          (2) to facilitate the integration of advanced vehicle 
        technologies into electricity distribution areas to improve 
        system performance and reliability;
          (3) to demonstrate the potential benefits of coordinated 
        investments in vehicle electrification on personal mobility and 
        a regional grid;
          (4) to demonstrate protocols and standards that facilitate 
        vehicle integration into the grid; and
          (5) to investigate differences in each region and regulatory 
        environment regarding best practices in implementing vehicle 
        electrification.
  (c) Applications.--Any State, Indian tribe, or local government (or 
group of State, Indian tribe, or local governments) may apply to the 
Secretary of Energy for financial assistance in furthering the regional 
deployment and integration into the electricity grid of plug-in 
electric drive vehicles. Such applications may be jointly sponsored by 
electric utilities, automobile manufacturers, technology providers, car 
sharing companies or organizations, or other persons or entities.
  (d) Use of Funds.--Pursuant to applications received under subsection 
(c), the Secretary may make financial assistance available to any 
applicant or joint sponsor of the application to be used for any of the 
following:
          (1) Assisting persons located in the regional deployment 
        area, including fleet owners, in the purchase of new plug-in 
        electric drive vehicles by offsetting in whole or in part the 
        incremental cost of such vehicles above the cost of comparable 
        conventionally fueled vehicles.
          (2) Supporting the use of plug-in electric drive vehicles by 
        funding projects for the deployment of any of the following:
                  (A) Electrical charging infrastructure for plug-in 
                electric drive vehicles, including battery exchange, 
                fast charging infrastructure, and other services, in 
                public or private locations, including street parking, 
                parking garages, parking lots, homes, gas stations, and 
                highway rest stops.
                  (B) Smart Grid equipment and infrastructure, as 
                described in title XIII of the Energy Independence and 
                Security Act of 2007, to facilitate the charging and 
                integration of plug-in electric drive vehicles.
          (3) Such other projects as the Secretary determines 
        appropriate to support the large-scale deployment of plug-in 
        electric drive vehicles in regional deployment areas.
  (e) Program Requirements.--The Secretary, in consultation with the 
Administrator and the Secretary of Transportation, shall determine 
design elements and requirements of the program established pursuant to 
subsection (a), including--
          (1) the type of financial mechanism with which to provide 
        financial assistance;
          (2) criteria for evaluating applications submitted under 
        subsection (c), including the anticipated ability to promote 
        deployment and market penetration of vehicles that are less 
        dependent on petroleum as a fuel source; and
          (3) reporting requirements for entities that receive 
        financial assistance under this section, including a 
        comprehensive set of performance data characterizing the 
        results of the deployment program.
  (f) Information Clearinghouse.--The Secretary shall, as part of the 
program established pursuant to subsection (a), collect and make 
available to the public information regarding the cost, performance, 
and other technical data regarding the deployment and integration of 
plug-in electric drive vehicles.
  (g) Authorization.--There are authorized to be appropriated to carry 
out this section such sums as may be necessary.

SEC. 123. PLUG-IN ELECTRIC DRIVE VEHICLE MANUFACTURING.

  (a) Vehicle Manufacturing Assistance Program.--The Secretary of 
Energy shall establish a program to provide financial assistance to 
automobile manufacturers to facilitate the manufacture of plug-in 
electric drive vehicles, as defined in section 131(a)(5) of the Energy 
Independence and Security Act of 2007, that are developed and produced 
in the United States.
  (b) Financial Assistance.--The Secretary of Energy may provide 
financial assistance to an automobile manufacturer under the program 
established pursuant to subsection (a) for--
          (1) the reconstruction or retooling of facilities for the 
        manufacture of plug-in electric drive vehicles that are 
        developed and produced in the United States; and
          (2) if appropriate, the purchase of domestically produced 
        vehicle batteries to be used in the manufacture of vehicles 
        manufactured pursuant to paragraph (1).
  (c) Coordination With Regional Deployment.--The Secretary may provide 
financial assistance under subsection (b) in conjunction with the award 
of financial assistance under the large scale vehicle electrification 
program established pursuant to section 122 of this Act.
  (d) Program Requirements.--The Secretary shall determine design 
elements and requirements of the program established pursuant to 
subsection (a), including--
          (1) the type of financial mechanism with which to provide 
        financial assistance;
          (2) criteria, in addition to the criteria described under 
        subsection (e), for evaluating applications for financial 
        assistance; and
          (3) reporting requirements for automobile manufacturers that 
        receive financial assistance under this section.
  (e) Criteria.--In selecting recipients of financial assistance from 
among applicant automobile manufacturers, the Secretary shall give 
preference to proposals that--
          (1) are most likely to be successful; and
          (2) are located in local markets that have the greatest need 
        for the facility.
  (f) Reports.--The Secretary shall annually submit to Congress a 
report on the program established pursuant to this section.
  (g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 124. INVESTMENT IN CLEAN VEHICLES.

  (a) Definitions.--In this section:
          (1) Advanced technology vehicles and qualifying components.--
        The terms ``advanced technology vehicles'' and ``qualifying 
        components'' shall have the definition of such terms in section 
        136 of the Energy Independence and Security Act of 2007, except 
        that for purposes of this section, the average base year as 
        described in such section 136(a)(1)(C) shall be the following:
                  (A) In each of the years 2012 through 2016, model 
                year 2009.
                  (B) In 2017, the Administrator shall, notwithstanding 
                such section 136(a)(1)(C), determine an appropriate 
                baseline based on technological and economic 
                feasibility.
          (2) Plug-in electric drive vehicle.--The term ``plug-in 
        electric drive vehicle'' shall have the definition of such term 
        in section 131 of the Energy Independence and Security Act of 
        2007.
  (b) Distribution of Allowances.--The Administrator shall, in 
accordance with this section, distribute emission allowances allocated 
pursuant to section 782(i) of the Clean Air Act not later than 
September 30 of 2012 and each calendar year thereafter through 2025.
  (c) Plug-in Electric Drive Vehicle Manufacturing and Deployment.--
          (1) In general.--The Administrator shall, at the direction of 
        the Secretary of Energy, provide emission allowances allocated 
        pursuant to section 782(i) to applicants, joint sponsors and 
        automobile manufacturers pursuant to sections 122 and 123 of 
        this Act.
          (2) Annual amount.--In each of the years 2012 through 2017, 
        one-quarter of the portion of the emission allowances allocated 
        pursuant to section 782(i) of the Clean Air Act shall be 
        available to carry out paragraph (1) such that--
                  (A) one-eighth of the portion shall be available to 
                carry out section 122; and,
                  (B) one-eighth of the portion shall be available to 
                carry out section 123.
          (3) Preference.--In directing the provision of emission 
        allowances under this subsection to carry out section 122, the 
        Secretary shall give preference to applications under section 
        122(c) that are jointly sponsored by one or more automobile 
        manufacturers.
          (4) Multi-year commitments.--The Administrator shall commit 
        to providing emission allowances to an applicant, joint 
        sponsor, or automobile manufacturer for up to five consecutive 
        years if--
                  (A) an application under section 122 or 123 of this 
                Act requests a multi-year commitment;
                  (B) such application meets the criteria for support 
                established by the Secretary of Energy under sections 
                122 or 123 of this Act;
                  (C) the Administrator confirms to the Secretary that 
                emission allowances will be available for a multi-year 
                commitment;
                  (D) the Secretary of Energy determines that a multi-
                year commitment for such application will advance the 
                goals of section 122 or 123; and
                  (E) the Secretary of Energy directs the Administrator 
                to make a multi-year commitment.
          (5) Insufficient applications.--If, in any year, emission 
        allowances available under paragraph (2) cannot be provided 
        because of insufficient numbers of submitted applications that 
        meet the criteria for support established by the Secretary of 
        Energy under sections 122 or 123 of this Act, the remaining 
        emission allowances shall be distributed according to 
        subsection (d).
  (d) Advanced Technology Vehicles.--
          (1) In general.--The Administrator shall, at the direction of 
        the Secretary of Energy, provide any emission allowances 
        allocated pursuant to section 782(i) of the Clean Air Act that 
        are not provided under subsection (c) to automobile 
        manufacturers and component suppliers to pay not more than 30 
        percent of the cost of--
                  (A) reequipping, expanding, or establishing a 
                manufacturing facility in the United States to 
                produce--
                          (i) qualifying advanced technology vehicles; 
                        or
                          (ii) qualifying components; and
                  (B) engineering integration performed in the United 
                States of qualifying vehicles and qualifying 
                components.
          (2) Preference.--In directing the provision of emission 
        allowances under this subsection during the years 2012 through 
        2017, the Secretary shall give preference to applications for 
        projects that save the maximum number of gallons of fuel.

SEC. 125. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING INCENTIVE LOANS.

  Section 136(d)(1) of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17013(d)(1)) is amended by striking ``$25,000,000,000'' and 
inserting ``$50,000,000,000''.

SEC. 126. AMENDMENT TO RENEWABLE FUELS STANDARD.

  (a) Definition of Renewable Biomass.--Section 211(o)(1)(I) of the 
Clean Air Act (42 U.S.C. 7545(o)) is amended to read as follows:
                  ``(I) Renewable biomass.--The term `renewable 
                biomass' means any of the following:
                          ``(i) Plant material, including waste 
                        material, harvested or collected from actively 
                        managed agricultural land that was in 
                        cultivation, cleared, or fallow and nonforested 
                        on January 1, 2009.
                          ``(ii) Plant material, including waste 
                        material, harvested or collected from 
                        pastureland that was nonforested on January 1, 
                        2009.
                          ``(iii) Nonhazardous vegetative matter 
                        derived from waste, including separated yard 
                        waste, landscape right-of-way trimmings, 
                        construction and demolition debris or food 
                        waste (but not recyclable waste paper, painted, 
                        treated or pressurized wood, or wood 
                        contaminated with plastic or metals).
                          ``(iv) Animal waste or animal byproducts, 
                        including products of animal waste digesters.
                          ``(v) Algae.
                          ``(vi) Trees, brush, slash, residues, or any 
                        other vegetative matter removed from within 600 
                        feet of any building, campground, or route 
                        designated for evacuation by a public official 
                        with responsibility for emergency preparedness, 
                        or from within 300 feet of a paved road, 
                        electric transmission line, utility tower, or 
                        water supply line.
                          ``(vii) Residues from or byproducts of milled 
                        logs.
                          ``(viii) Any of the following removed from 
                        forested land that is not Federal and is not 
                        high conservation priority land:
                                  ``(I) Trees, brush, slash, residues, 
                                interplanted energy crops, or any other 
                                vegetative matter removed from an 
                                actively managed tree plantation 
                                established--
                                          ``(aa) prior to January 1, 
                                        2009; or
                                          ``(bb) on land that, as of 
                                        January 1, 2009, was cultivated 
                                        or fallow and non-forested.
                                  ``(II) Trees, logging residue, 
                                thinnings, cull trees, pulpwood, and 
                                brush removed from naturally-
                                regenerated forests or other non-
                                plantation forests, including for the 
                                purposes of hazardous fuel reduction or 
                                preventative treatment for reducing or 
                                containing insect or disease 
                                infestation.
                                  ``(III) Logging residue, thinnings, 
                                cull trees, pulpwood, brush and species 
                                that are non-native and noxious, from 
                                stands that were planted and managed 
                                after January 1, 2009, to restore or 
                                maintain native forest types.
                                  ``(IV) Dead or severely damaged trees 
                                removed within 5 years of fire, 
                                blowdown, or other natural disaster, 
                                and badly infested trees.
                          ``(ix) Materials, pre-commercial thinnings, 
                        or removed invasive species from National 
                        Forest System land and public lands (as defined 
                        in section 103 of the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 1702)), 
                        including those that are byproducts of 
                        preventive treatments (such as trees, wood, 
                        brush, thinnings, chips, and slash), that are 
                        removed as part of a federally recognized 
                        timber sale, or that are removed to reduce 
                        hazardous fuels, to reduce or contain disease 
                        or insect infestation, or to restore ecosystem 
                        health, and that are--
                                  ``(I) not from components of the 
                                National Wilderness Preservation 
                                System, Wilderness Study Areas, 
                                Inventoried Roadless Areas, old growth 
                                or mature forest stands, components of 
                                the National Landscape Conservation 
                                System, National Monuments, National 
                                Conservation Areas, Designated 
                                Primitive Areas, or Wild and Scenic 
                                Rivers corridors;
                                  ``(II) harvested in environmentally 
                                sustainable quantities, as determined 
                                by the appropriate Federal land 
                                manager; and
                                  ``(III) harvested in accordance with 
                                Federal and State law and applicable 
                                land management plans.''.
  (b) Definition of High Conservation Priority Land.--Section 211(o)(1) 
of the Clean Air Act (42 U.S.C. 7545(o)) is amended by inserting the 
following at the end thereof:
                  ``(M) High conservation priority land.--The term 
                `high conservation priority land' means land that is 
                not Federal land and is--
                          ``(i) globally or State ranked as critically 
                        imperiled or imperiled under a State Natural 
                        Heritage Program; or
                          ``(ii) old-growth or late-successional 
                        forest, as identified by the office of the 
                        State Forester or relevant State agency with 
                        regulatory jurisdiction over forestry 
                        activities.''.

SEC. 127. OPEN FUEL STANDARD.

  (a) Findings.--The Congress finds that--
          (1) the status of oil as a strategic commodity, which derives 
        from its domination of the transportation sector, presents a 
        clear and present danger to the United States;
          (2) in a prior era, when salt was a strategic commodity, salt 
        mines conferred national power and wars were fought over the 
        control of such mines;
          (3) technology, in the form of electricity and refrigeration, 
        decisively ended salt's monopoly of meat preservation and 
        greatly reduced its strategic importance;
          (4) fuel competition and consumer choice would similarly 
        serve to end oil's monopoly in the transportation sector and 
        strip oil of its strategic status;
          (5) the current closed fuel market has allowed a cartel of 
        petroleum exporting countries to inflate fuel prices, 
        effectively imposing a harmful tax on the economy of the United 
        States;
          (6) much of the inflated petroleum revenues the oil cartel 
        earns at the expense of the people of the United States are 
        used for purposes antithetical to the interests of the United 
        States and its allies;
          (7) alcohol fuels, including ethanol and methanol, could 
        potentially provide significant supplies of additional fuels 
        that could be produced in the United States and in many other 
        countries in the Western Hemisphere that are friendly to the 
        United States;
          (8) alcohol fuels can only play a major role in securing the 
        energy independence of the United States if a substantial 
        portion of vehicles in the United States are capable of 
        operating on such fuels;
          (9) it is not in the best interest of United States consumers 
        or the United States Government to be constrained to depend 
        solely upon petroleum resources for vehicle fuels if alcohol 
        fuels are potentially available;
          (10) existing technology, in the form of flexible fuel 
        vehicles, allows internal combustion engine cars and trucks to 
        be produced at little or no additional cost, which are capable 
        of operating on conventional gasoline, alcohol fuels, or any 
        combination of such fuels, as availability or cost advantage 
        dictates, providing a platform on which fuels can compete;
          (11) the necessary distribution system for such alcohol fuels 
        will not be developed in the United States until a substantial 
        fraction of the vehicles in the United States are capable of 
        operating on such fuels;
          (12) the establishment of such a vehicle fleet and 
        distribution system would provide a large market that would 
        mobilize private resources to substantially advance the 
        technology and expand the production of alcohol fuels in the 
        United States and abroad;
          (13) the United States has an urgent national security 
        interest to develop alcohol fuels technology, production, and 
        distribution systems as rapidly as possible;
          (14) new cars sold in the United States that are equipped 
        with an internal combustion engine should allow for fuel 
        competition by being flexible fuel vehicles, and new diesel 
        cars should be capable of operating on biodiesel; and
          (15) such an open fuel standard would help to protect the 
        United States economy from high and volatile oil prices and 
        from the threats caused by global instability, terrorism, and 
        natural disaster.
  (b) Open Fuel Standard for Transportation.--(1) Chapter 329 of title 
49, United States Code, is amended by adding at the end the following:

``Sec. 32920. Open fuel standard for transportation

  ``(a) Definitions.--In this section:
          ``(1) E85.--The term `E85' means a fuel mixture containing 85 
        percent ethanol and 15 percent gasoline by volume.
          ``(2) Flexible fuel automobile.--The term `flexible fuel 
        automobile' means an automobile that has been warranted by its 
        manufacturer to operate on gasoline, E85, and M85.
          ``(3) Fuel choice-enabling automobile.--The term `fuel 
        choice-enabling automobile' means--
                  ``(A) a flexible fuel automobile; or
                  ``(B) an automobile that has been warranted by its 
                manufacturer to operate on biodiesel.
          ``(4) Light-duty automobile.--The term `light-duty 
        automobile' means--
                  ``(A) a passenger automobile; or
                  ``(B) a non-passenger automobile.
          ``(5) Light-duty automobile manufacturer's annual covered 
        inventory.--The term `light-duty automobile manufacturer's 
        annual covered inventory' means the number of light-duty 
        automobiles powered by an internal combustion engine that a 
        manufacturer, during a given calendar year, manufactures in the 
        United States or imports from outside of the United States for 
        sale in the United States.
          ``(6) M85.--The term `M85' means a fuel mixture containing 85 
        percent methanol and 15 percent gasoline by volume.
  ``(b) Open Fuel Standard for Transportation.--
          ``(1) In general.--The Secretary may promulgate regulations 
        to require each light-duty automobile manufacturer's annual 
        covered inventory to be comprised of a minimum percentage of 
        fuel-choice enabling automobiles, with sufficient lead time, if 
        the Secretary, in coordination with the Secretary of Energy and 
        the Administrator of the Environmental Protection Agency, 
        determines such requirement is a cost-effective way to achieve 
        the Nation's energy independence and environmental objectives. 
        The cost-effective determination shall consider the future 
        availability of both alternative fuel supply and infrastructure 
        to deliver the alternative fuel to the fuel-choice enabling 
        vehicles.
          ``(2) Temporary exemption from requirements.--
                  ``(A) Application.--A manufacturer may request an 
                exemption from the requirement described in paragraph 
                (1) by submitting an application to the Secretary, at 
                such time, in such manner, and containing such 
                information as the Secretary may require by regulation. 
                Each such application shall specify the models, lines, 
                and types of automobiles affected.
                  ``(B) Evaluation.--After evaluating an application 
                received from a manufacturer, the Secretary may at any 
                time, under such terms and conditions, and to such 
                extent as the Secretary considers appropriate, 
                temporarily exempt, or renew the exemption of, a light-
                duty automobile from the requirement described in 
                paragraph (1) if the Secretary determines that 
                unavoidable events not under the control of the 
                manufacturer prevent the manufacturer of such 
                automobile from meeting its required production volume 
                of fuel choice-enabling automobiles, including--
                          ``(i) a disruption in the supply of any 
                        component required for compliance with the 
                        regulations;
                          ``(ii) a disruption in the use and 
                        installation by the manufacturer of such 
                        component; or
                          ``(iii) application to plug-in electric drive 
                        vehicles causing such vehicles to fail to meet 
                        State air quality requirements.
                  ``(C) Consolidation.--The Secretary may consolidate 
                applications received from multiple manufacturers under 
                subparagraph (A) if they are of a similar nature.
                  ``(D) Conditions.--Any exemption granted under 
                subparagraph (B) shall be conditioned upon the 
                manufacturer's commitment to recall the exempted 
                automobiles for installation of the omitted components 
                within a reasonable time proposed by the manufacturer 
                and approved by the Secretary after such components 
                become available in sufficient quantities to satisfy 
                both anticipated production and recall volume 
                requirements.
                  ``(E) Notice.--The Secretary shall publish in the 
                Federal Register--
                          ``(i) notice of each application received 
                        from a manufacturer;
                          ``(ii) notice of each decision to grant or 
                        deny a temporary exemption; and
                          ``(iii) the reasons for granting or denying 
                        such exemptions.''.
  (2) The table of contents in chapter 329 of such title is amended 
adding at the end the following:

``32920. Open fuel standard for transportation.''.

SEC. 128. TEMPORARY VEHICLE TRADE-IN PROGRAM.

  (a) Establishment.--There is established in the National Highway 
Traffic Safety Administration a program to be known as the ``Cash for 
Clunkers Temporary Vehicle Trade-in Program'' through which the 
Secretary, in accordance with this section and the regulations 
promulgated under subsection (d), shall--
          (1) authorize the issuance of an electronic voucher, subject 
        to the specifications set forth in subsection (c), to offset 
        the purchase price or lease price for a qualifying lease of a 
        new fuel efficient automobile upon the surrender of an eligible 
        trade-in vehicle to a dealer participating in the Program;
          (2) certify dealers for participation in the Program and 
        require that all certified dealers--
                  (A) accept vouchers as provided in this section as 
                partial payment or down payment for the purchase or 
                qualifying lease of any new fuel efficient automobile 
                offered for sale or lease by that dealer; and
                  (B) in accordance with subsection (c)(2), dispose of 
                each eligible trade-in vehicle surrendered to the 
                dealer under the Program;
          (3) in consultation with the Secretary of the Treasury, make 
        payments to dealers for vouchers accepted by such dealers prior 
        to April 1, 2010, in accordance with the regulations issued 
        under subsection (d);
          (4) in consultation with the Secretary of the Treasury, 
        provide for the payment of rebates to persons who qualify for a 
        rebate under subsection (c)(3); and
          (5) in consultation with the Secretary of the Treasury and 
        the Inspector General of the Department of Transportation, 
        establish and provide for the enforcement of measures to 
        prevent and penalize fraud under the Program.
  (b) Qualifications for and Value of Vouchers.--A voucher issued under 
the Program shall have a value that may be applied to offset the 
purchase price or lease price for a qualifying lease of a new fuel 
efficient automobile as follows:
          (1) $3,500 value.--The voucher may be used to offset the 
        purchase price or lease price of the new fuel efficient 
        automobile by $3,500 if--
                  (A) the new fuel efficient automobile is a passenger 
                automobile and the combined fuel economy value of such 
                automobile is at least 4 miles per gallon higher than 
                the combined fuel economy value of the eligible trade-
                in vehicle;
                  (B) the new fuel efficient automobile is a category 1 
                truck and the combined fuel economy value of such truck 
                is at least 2 miles per gallon higher than the combined 
                fuel economy value of the eligible trade-in vehicle;
                  (C) the new fuel efficient automobile is a category 2 
                truck that has a combined fuel economy value of at 
                least 15 miles per gallon and--
                          (i) the eligible trade-in vehicle is a 
                        category 2 truck and the combined fuel economy 
                        value of the new fuel efficient automobile is 
                        at least 1 mile per gallon higher than the 
                        combined fuel economy value of the eligible 
                        trade-in vehicle; or
                          (ii) the eligible trade-in vehicle is a 
                        category 3 truck of model year 2001 or earlier; 
                        or
                  (D) the new fuel efficient automobile is a category 3 
                truck and the eligible trade-in vehicle is a category 3 
                truck of model year of 2001 or earlier and is of 
                similar size or larger than the new fuel efficient 
                automobile as determined in a manner prescribed by the 
                Secretary.
          (2) $4,500 value.--The voucher may be used to offset the 
        purchase price or lease price of the new fuel efficient 
        automobile by $4,500 if--
                  (A) the new fuel efficient automobile is a passenger 
                automobile and the combined fuel economy value of such 
                automobile is at least 10 miles per gallon higher than 
                the combined fuel economy value of the eligible trade-
                in vehicle;
                  (B) the new fuel efficient automobile is a category 1 
                truck and the combined fuel economy value of such truck 
                is at least 5 miles per gallon higher than the combined 
                fuel economy value of the eligible trade-in vehicle; or
                  (C) the new fuel efficient automobile is a category 2 
                truck that has a combined fuel economy value of at 
                least 15 miles per gallon and the combined fuel economy 
                value of such truck is at least 2 miles per gallon 
                higher than the combined fuel economy value of the 
                eligible trade-in vehicle and the eligible trade-in 
                vehicle is a category 2 truck.
  (c) Program Specifications.--
          (1) Limitations.--
                  (A) General period of eligibility.--A voucher issued 
                under the Program shall be used only for the purchase 
                or qualifying lease of new fuel efficient automobiles 
                that occur between March 30, 2009, and March 31, 2010.
                  (B) Number of vouchers per person and per trade-in 
                vehicle.--Not more than 1 voucher may be issued for a 
                single person and not more than 1 voucher may be issued 
                for the joint registered owners of a single eligible 
                trade-in vehicle.
                  (C) No combination of vouchers.--Only 1 voucher 
                issued under the Program may be applied toward the 
                purchase or qualifying lease of a single new fuel 
                efficient automobile.
                  (D) Cap on funds for category 3 trucks.--Not more 
                than 7.5 percent of the total funds made available for 
                the Program shall be used for vouchers for the purchase 
                or qualifying lease of category 3 trucks.
                  (E) Combination with other incentives permitted.--The 
                availability or use of a Federal, State, or local 
                incentive or a State-issued voucher for the purchase or 
                lease of a new fuel efficient automobile shall not 
                limit the value or issuance of a voucher under the 
                Program to any person otherwise eligible to receive 
                such a voucher.
                  (F) No additional fees.--A dealer participating in 
                the program may not charge a person purchasing or 
                leasing a new fuel efficient automobile any additional 
                fees associated with the use of a voucher under the 
                Program.
                  (G) Number and amount.--The total number and value of 
                vouchers issued under the Program may not exceed the 
                amounts appropriated for such purpose.
          (2) Disposition of eligible trade-in vehicles.--
                  (A) In general.--For each eligible trade-in vehicle, 
                the title of which is transferred to a dealer under the 
                Program, the dealer shall certify to the Secretary, in 
                such manner as the Secretary shall prescribe by rule, 
                that the vehicle, including the engine and drive 
                train--
                          (i) will be crushed or shredded within such 
                        period and in such manner as the Secretary 
                        prescribes, or will be transferred to an entity 
                        that will ensure that the vehicle will be 
                        crushed or shredded within such period and in 
                        such manner as the Secretary prescribes; and
                          (ii) has not been, and will not be, sold, 
                        leased, exchanged, or otherwise disposed of for 
                        use as an automobile in the United States or in 
                        any other country, or has been or will be 
                        transferred, in such manner as the Secretary 
                        prescribes, to an entity that will ensure that 
                        the vehicle has not been, and will not be, 
                        sold, leased, exchanged, or otherwise disposed 
                        of for use as an automobile in the United 
                        States or in any other country.
                  (B) Savings provision.--Nothing in subparagraph (A) 
                may be construed to preclude a person who dismantles or 
                disposes of the vehicle from--
                          (i) selling any parts of the disposed vehicle 
                        other than the engine block and drive train 
                        (unless the engine or drive train has been 
                        crushed or shredded); or
                          (ii) retaining the proceeds from such sale.
                  (C) Coordination.--The Secretary shall coordinate 
                with the Attorney General to ensure that the National 
                Motor Vehicle Title Information System and other 
                publicly accessible and commercially available systems 
                are appropriately updated to reflect the crushing or 
                shredding of vehicles under this section and 
                appropriate re-classification of the vehicles' titles.
          (3) Eligible purchases or leases prior to date of 
        enactment.--A person who purchased or leased a new fuel 
        efficient vehicle after March 30, 2009, and before the date of 
        enactment of this section is eligible for a cash rebate 
        equivalent to the amount described in subsection (b)(1) if the 
        person provides proof satisfactory to the Secretary that--
                  (A) the person was the registered owner of an 
                eligible trade-in vehicle; and
                  (B) such vehicle has been disposed of in accordance 
                with clauses (i) and (ii) of paragraph (2)(A).
  (d) Regulations.--Notwithstanding the requirements of section 553 of 
title 5, United States Code, the Secretary shall promulgate final 
regulations to implement the Program not later than 30 days after the 
date of the enactment of this section. Such regulations shall--
          (1) provide for a means of certifying dealers for 
        participation in the program;
          (2) establish procedures for the reimbursement of dealers 
        participating in the Program to be made through electronic 
        transfer of funds for both the amount of the vouchers and any 
        reasonable administrative costs incurred by the dealer as soon 
        as practicable but no longer than 10 days after the submission 
        of a voucher for the new fuel efficient automobile to the 
        Secretary;
          (3) prohibit a dealer from using the voucher to offset any 
        other rebate or discount offered by that dealer or the 
        manufacturer of the new fuel efficient automobile;
          (4) require dealers to disclose to the person trading in an 
        eligible trade in vehicle the best estimate of the scrappage 
        value of such vehicle and to permit the dealer to retain $50 of 
        any amounts paid to the dealer for scrappage of the automobile 
        as payment for any administrative costs to the dealer 
        associated with participation in the Program;
          (5) establish a process by which persons who qualify for a 
        rebate under subsection (c)(3) may apply for such rebate;
          (6) consistent with subsection (c)(2), establish requirements 
        and procedures for the disposal of eligible trade-in vehicles 
        and provide such information as may be necessary to entities 
        engaged in such disposal to ensure that such vehicles are 
        disposed of in accordance with such requirements and 
        procedures, including--
                  (A) requirements for the removal and appropriate 
                disposition of refrigerants, antifreeze, lead products, 
                mercury switches, and such other toxic or hazardous 
                vehicle components prior to the crushing or shredding 
                of an eligible trade-in vehicle, in accordance with 
                rules established by the Secretary in consultation with 
                the Administrator, and in accordance with other 
                applicable Federal or State requirements; and
                  (B) a mechanism for dealers to certify to the 
                Secretary that eligible trade-in vehicles are disposed 
                of, or transferred to an entity that will ensure that 
                the vehicle is disposed of, in accordance with such 
                requirements and procedures and to submit the vehicle 
                identification numbers of the vehicles disposed of and 
                the new fuel efficient automobile purchased with each 
                voucher;
          (7) consistent with subsection (c)(2), establish requirements 
        and procedures for the disposal of eligible trade-in vehicles 
        and provide such information as may be necessary to entities 
        engaged in such disposal to ensure that such vehicles are 
        disposed of in accordance with such requirements and 
        procedures; and
          (8) provide for the enforcement of the penalties described in 
        subsection (e).
  (e) Anti-Fraud Provisions.--
          (1) Violation.--It shall be unlawful for any person to 
        violate any provision under this section or any regulations 
        issued pursuant to subsection (d).
          (2) Penalties.--Any person who commits a violation described 
        in paragraph (1) shall be liable to the United States 
        Government for a civil penalty of not more than $25,000 for 
        each violation.
  (f) Information to Consumers and Dealers.--Not later than 30 days 
after the date of enactment of this section, and promptly upon the 
update of any relevant information, the Secretary shall make available 
on an Internet website and through other means determined by the 
Secretary information about the Program, including--
          (1) how to determine if a vehicle is an eligible trade-in 
        vehicle;
          (2) how to participate in the Program, including how to 
        determine participating dealers; and
          (3) a comprehensive list, by make and model, of new fuel 
        efficient automobiles meeting the requirements of the Program.
Once such information is available, the Secretary shall conduct a 
public awareness campaign to inform consumers about the Program and 
where to obtain additional information.
  (g) Recordkeeping and Report.--
          (1) Database.--The Secretary shall maintain a database of the 
        vehicle identification numbers of all new fuel efficient 
        vehicles purchased or leased and all eligible trade-in vehicles 
        disposed of under the Program.
          (2) Report.--Not later than June 30, 2010, the Secretary 
        shall submit a report to the Committee on Energy and Commerce 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate describing the 
        efficacy of the Program, including--
                  (A) a description of program results, including--
                          (i) the total number and amount of vouchers 
                        issued for purchase or lease of new fuel 
                        efficient automobiles by manufacturer 
                        (including aggregate information concerning the 
                        make, model, model year) and category of 
                        automobile;
                          (ii) aggregate information regarding the 
                        make, model, model year, and manufacturing 
                        location of vehicles traded in under the 
                        Program; and
                          (iii) the location of sale or lease;
                  (B) an estimate of the overall increase in fuel 
                efficiency in terms of miles per gallon, total annual 
                oil savings, and total annual greenhouse gas 
                reductions, as a result of the Program; and
                  (C) an estimate of the overall economic and 
                employment effects of the Program.
  (h) Definitions.--As used in this section--
          (1) the term ``passenger automobile'' means a passenger 
        automobile, as defined in section 32901(a)(18) of title 49, 
        United States Code, that has a combined fuel economy value of 
        at least 22 miles per gallon;
          (2) the term ``category 1 truck'' means a nonpassenger 
        automobile, as defined in section 32901(a)(17) of title 49, 
        United States Code, that has a combined fuel economy value of 
        at least 18 miles per gallon, except that such term does not 
        include a category 2 truck;
          (3) the term ``category 2 truck'' means a large van or a 
        large pickup, as categorized by the Secretary using the method 
        used by the Environmental Protection Agency and described in 
        the report entitled ``Light-Duty Automotive Technology and Fuel 
        Economy Trends: 1975 through 2008'';
          (4) the term ``category 3 truck'' means a work truck, as 
        defined in section 32901(a)(19) of title 49, United States 
        Code;
          (5) the term ``combined fuel economy value'' means--
                  (A) with respect to a new fuel efficient automobile, 
                the number, expressed in miles per gallon, centered 
                below the words ``Combined Fuel Economy'' on the label 
                required to be affixed or caused to be affixed on a new 
                automobile pursuant to subpart D of part 600 of title 
                40 Code of Federal Regulations;
                  (B) with respect to an eligible trade-in vehicle, the 
                equivalent of the number described in subparagraph (A), 
                and posted under the words ``Estimated New EPA MPG'' 
                and above the word ``Combined'' for vehicles of model 
                year 1984 through 2007, or posted under the words ``New 
                EPA MPG'' and above the word ``Combined'' for vehicles 
                of model year 2008 or later on the fueleconomy.gov 
                website of the Environmental Protection Agency for the 
                make, model, and year of such vehicle; or
                  (C) with respect to an eligible trade-in vehicle 
                manufactured between model years 1978 through 1984, the 
                equivalent of the number described in subparagraph (A) 
                as determined by the Secretary (and posted on the 
                website of the National Highway Traffic Safety 
                Administration) using data maintained by the 
                Environmental Protection Agency for the make, model, 
                and year of such vehicle;
          (6) the term ``dealer'' means a person licensed by a State 
        who engages in the sale of new automobiles to ultimate 
        purchasers;
          (7) the term ``eligible trade-in vehicle'' means an 
        automobile or a work truck (as such terms are defined in 
        section 32901(a) of title 49, United States Code) that, at the 
        time it is presented for trade-in under this section--
                  (A) is in drivable condition;
                  (B) has been continuously insured consistent with the 
                applicable State law and registered to the same owner 
                for a period of not less than 1 year immediately prior 
                to such trade-in; and
                  (C) has a combined fuel economy value of 18 miles per 
                gallon or less;
          (8) the term ``new fuel efficient automobile'' means an 
        automobile described in paragraph (1), (2), (3), or (4)--
                  (A) the equitable or legal title of which has not 
                been transferred to any person other than the ultimate 
                purchaser;
                  (B) that carries a manufacturer's suggested retail 
                price of $45,000 or less;
                  (C) that--
                          (i) for new fuel efficient automobiles 
                        weighing up to 8,500 pounds, is certified to 
                        applicable standards under section 86.1811-04 
                        of title 40, Code of Federal Regulations; or
                          (ii) for category 3 trucks, is certified to 
                        the applicable vehicle or engine standards 
                        under section 86.1816-08, 86-007-11, or 86.008-
                        10 of title 40, Code of Federal Regulations; 
                        and
                  (D) that has the combined fuel economy value of--
                          (i) 22 miles per gallon for a passenger 
                        automobile;
                          (ii) 18 miles per gallon for a category 1 
                        truck; and
                          (iii) 15 miles per gallon for a category 2 
                        truck;
          (9) the term ``Program'' means the Cash for Clunkers 
        Temporary Vehicle Trade-in Program established by this section;
          (10) the term ``qualifying lease'' means a lease of an 
        automobile for a period of not less than 5 years;
          (11) the term ``scrappage value'' means the amount received 
        by the dealer for a vehicle upon transferring title of such 
        vehicle to the person responsible for ensuring the dismantling 
        and destroying the vehicle;
          (12) the term ``Secretary'' means the Secretary of 
        Transportation acting through the National Highway Traffic 
        Safety Administration;
          (13) the term ``ultimate purchaser'' means, with respect to 
        any new automobile, the first person who in good faith 
        purchases such automobile for purposes other than resale; and
          (14) the term ``vehicle identification number'' means the 17 
        character number used by the automobile industry to identify 
        individual automobiles.
  (i) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $4,000,000,000 to carry out this section.

SEC. 129. DIESEL EMISSIONS REDUCTION.

  Subtitle G of title VII of the Energy Policy Act of 2005 (42 U.S.C. 
16131 et seq.) is amended--
          (1) in the matter preceding clause (i) in section 791(3)(B), 
        by inserting ``in any State'' after ``nonprofit organization or 
        institution'';
          (2) in section 791(9), by striking ``The term `State' 
        includes the District of Columbia.'' and inserting ``The term 
        `State' includes the District of Columbia, American Samoa, 
        Guam, the Commonwealth of the Northern Mariana Islands, Puerto 
        Rico, and the Virgin Islands.''; and
          (3) in section 793(c)--
                  (A) in paragraph (2)(A), by striking ``51 States'' 
                and inserting ``56 States'';
                  (B) in paragraph (2)(A), by striking ``1.96 percent'' 
                and inserting ``1.785 percent'';
                  (C) in paragraph (2)(B), by striking ``51 States'' 
                and inserting ``56 States''; and
                  (D) in paragraph (2)(B), by amending clause (ii) to 
                read as follows:
                          ``(ii) the amount of funds remaining after 
                        each State described in paragraph (1) receives 
                        the 1.785-percent allocation under this 
                        paragraph.''.

SEC. 130. LOAN GUARANTEES FOR PROJECTS TO CONSTRUCT RENEWABLE FUEL 
                    PIPELINES.

  (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) Renewable fuel.--The term `renewable fuel' has the 
        meaning given the term in section 211(o)(1) of the Clean Air 
        Act (42 U.S.C. 7545(o)(1)), except that the term shall include 
        all ethanol and biodiesel.
          ``(7) Renewable fuel pipeline.--The term `renewable fuel 
        pipeline' means a common carrier pipeline for transporting 
        renewable fuel.''.
  (b) Renewable Fuel Pipeline Eligibility.--Section 1703(b) the Energy 
Policy Act of 2005 (42 U.S.C. 16513) is amended by adding at the end 
the following:
          ``(11) Renewable fuel pipelines.''.

     Subtitle D--State Energy and Environment Development Accounts

SEC. 131. ESTABLISHMENT OF SEED ACCOUNTS.

  (a) Definitions.--In this section:
          (1) SEED account.--The term ``SEED Account'' means a State 
        Energy and Environment Development Account established pursuant 
        to this section.
          (2) State energy office.--The term ``State Energy Office'' 
        means a State entity eligible for grants under part D of title 
        III of the Energy Policy and Conservation Act (42 U.S.C. 6321 
        et seq.).
  (b) Establishment of Program.--The Administrator shall establish a 
program under which a State, through its State Energy Office or other 
State agency designated by the State, may operate a State Energy and 
Environment Development Account.
  (c) Purpose.--The purpose of each SEED Account is to serve as a 
common State-level repository for managing and accounting for emission 
allowances provided to States designated for renewable energy and 
energy efficiency purposes.
  (d) Regulations.--Not later than one year after the date of enactment 
of this Act, the Administrator shall promulgate regulations to carry 
out this section, including regulations--
          (1) to ensure that each State operates its SEED Account and 
        any subaccounts thereof efficiently and in accordance with this 
        Act and applicable State and Federal laws;
          (2) to prevent waste, fraud, and abuse;
          (3) to indicate the emission allowances that may be deposited 
        in a State's SEED Account pending distribution or use;
          (4) to indicate the programs and objectives authorized by 
        Federal law for which emission allowances in a SEED Account may 
        be distributed or used;
          (5) to identify the forms of financial assistance and 
        incentives that States may provide through distribution or use 
        of SEED Accounts; and
          (6) to prescribe the form and content of reports that the 
        States are required to submit under this section on the use of 
        SEED Accounts.
  (e) Operation.--
          (1) Deposits.--
                  (A) In general.--In the allowance tracking system 
                established pursuant to section 724(d) of the Clean Air 
                Act, the Administrator shall establish a SEED Account 
                for each State and place in it the allowances allocated 
                pursuant to section 782(g) of the Clean Air Act to be 
                distributed to States pursuant to sections 132 and 201 
                of this Act.
                  (B) Financial account.--A State may create a 
                financial account associated with its SEED Account to 
                deposit, retain, and manage any proceeds of any sale of 
                any allowance provided pursuant to this Act pending 
                expenditure or disbursement of those proceeds for 
                purposes permitted under this section. The funds in 
                such an account shall not be commingled with other 
                funds not derived from the sale of allowances provided 
                to the State; however, loans made by the State from 
                such funds pursuant to paragraph (2)(C)(i) may be 
                repaid into such a financial account, including any 
                interest charged.
          (2) Withdrawals.--
                  (A) In general.--All allowances distributed pursuant 
                to sections 132 and 201, including the proceeds of any 
                sale of such allowances, shall support renewable energy 
                and energy efficiency programs authorized or approved 
                by the Federal Government.
                  (B) Dedicated allowances.--Allowances distributed 
                pursuant to sections 132 and 201 that are required by 
                law to be used for specific purposes for a specified 
                period shall be used according to those requirements 
                during that period.
                  (C) Undedicated allowances.--To the extent that 
                allowances distributed pursuant to sections 132 and 201 
                are not required by law to be used for specific 
                purposes for a specified period as described in 
                subparagraph (B), such allowances or the proceeds of 
                their sale may be used for any of the following 
                purposes:
                          (i) Loans.--Loans of allowances, or the 
                        proceeds from the sale of allowances, may be 
                        provided, interest on commercial loans may be 
                        subsidized at an interest rate as low as zero, 
                        and other credit support may be provided to 
                        support programs authorized to use SEED Account 
                        allowance value or any other renewable energy 
                        or energy efficiency purpose authorized or 
                        approved by the Federal Government.
                          (ii) Grants.--Grants of allowances or the 
                        proceeds of their sale may be provided to 
                        support programs authorized to use SEED Account 
                        allowance value or any other renewable energy 
                        or energy efficiency purpose authorized or 
                        approved by the Federal Government.
                          (iii) Other forms of support.--Allowances or 
                        the proceeds of the sale of allowances may be 
                        provided for other forms of support for 
                        programs authorized to use SEED Account 
                        allowance value or any other renewable energy 
                        or energy efficiency purpose authorized or 
                        approved by the Federal Government.
                          (iv) Administrative costs.--Except to the 
                        extent provided in Federal law authorizing or 
                        allocating allowances deposited in a SEED 
                        Account, not more than 5 percent of the 
                        allowance value in a SEED Account in any year 
                        may be used to cover administrative expenses of 
                        the SEED Account.
                  (D) Subaccounts.--A State may request that the 
                Administrator establish accounts for local governments 
                that request such subaccounts to hold allowances 
                distributed to local governments for renewable energy 
                or energy efficiency programs authorized or approved by 
                the Federal Government.
                  (E) Intended use plans.--
                          (i) In general.--After providing for public 
                        review and comment, each State administering a 
                        SEED Account shall annually prepare a plan that 
                        identifies the intended uses of the allowances 
                        or proceeds from the sale of allowances in its 
                        SEED Account.
                          (ii) Contents.--An intended use plan shall 
                        include--
                                  (I) a list of the projects or 
                                programs for which withdrawals from the 
                                SEED Account are intended in the next 
                                fiscal year that begins after the date 
                                of the plan, including a description of 
                                each project;
                                  (II) the relationship of each of the 
                                projects or programs to an identified 
                                Federal purpose authorized by this Act, 
                                or any other Federal statute;
                                  (III) the expected terms of use of 
                                allowance value to provide assistance;
                                  (IV) the criteria and methods 
                                established for the distribution of 
                                allowances or allowance value;
                                  (V) a description of the equivalent 
                                financial value and status of the SEED 
                                Account; and
                                  (VI) a statement of the mid-term and 
                                long-term goals of the State for use of 
                                its SEED Account.
          (3) Accountability and transparency.--
                  (A) Controls and procedures.--Any State that has a 
                SEED Account shall establish fiscal controls and 
                recordkeeping and accounting procedures for the SEED 
                Account sufficient to ensure proper accounting during 
                appropriate accounting periods for distributions into 
                the SEED Account, transfers from the SEED Account, and 
                SEED Account balances, including any related financial 
                accounts. Such controls and procedures shall conform to 
                generally accepted government accounting principles. 
                Any State that has a SEED Account shall retain records 
                for a period of at least 5 years.
                  (B) Audits.--Any State that has a SEED Account shall 
                have an annual audit conducted of the SEED Account by 
                an independent public accountant in accordance with 
                generally accepted auditing standards, and shall 
                transmit the results of that audit to the 
                Administrator.
                  (C) State report.--Each State administering a SEED 
                Account shall make publicly available and submit to the 
                Administrator a report every 2 years on its activities 
                related to its SEED Account.
                  (D) Public information.--Any--
                          (i) controls and procedures established under 
                        subparagraph (A); and
                          (ii) information obtained through audits 
                        conducted under subparagraph (B), except to the 
                        extent that it would be protected from 
                        disclosure, if it were information held by the 
                        Federal Government, under section 552(b) of 
                        title 5, United States Code,
                shall be made publicly available.
                  (E) Other protections.--The Administrator shall 
                require such additional procedures and protections as 
                are necessary to ensure that any State that has a SEED 
                Account will operate the SEED Account in an accountable 
                and transparent manner.
  (f) Requirements for Eligibility.--A State's eligibility to receive 
allowances in its SEED Account shall depend on that State's compliance 
with the requirements of this Act (and the amendments made by this 
Act).
  (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator such sums as may be necessary for 
SEED Account operations.

SEC. 132. SUPPORT OF STATE RENEWABLE ENERGY AND ENERGY EFFICIENCY 
                    PROGRAMS.

  (a) Definitions.--For purposes of this section:
          (1) Cost-effective.--The term ``cost-effective'', with 
        respect to an energy efficiency program, means that the program 
        meets the Total Resource Cost Test, which requires that the net 
        present value of economic benefits over the life of the program 
        or measure, including avoided supply and delivery costs and 
        deferred or avoided investments, is greater than the net 
        present value of the economic costs over the life of the 
        program, including program costs and incremental costs borne by 
        the energy consumer.
          (2) Renewable energy resource.--The term ``renewable energy 
        resource'' shall have the meaning given that term in section 
        610 of the Public Utility Regulatory Policies Act of 1978 (as 
        added by section 101 of this Act).
  (b) Distribution Among States.--For each vintage year from 2012 
through 2050, the Administrator shall, in accordance with this section, 
distribute emission allowances allocated pursuant to section 782(g)(1) 
of the Clean Air Act not later than September 30 of the year preceding 
the vintage year. The Administrator shall distribute the emission 
allowances to States for renewable energy and energy efficiency 
programs to be deposited in and administered through the State Energy 
and Environment Development (SEED) Accounts established pursuant to 
section 131. The Administrator shall distribute allowances among the 
States under this section each year in accordance with the following 
formula:
          (1) One third of the allowances shall be divided equally 
        among the States.
          (2) One third of the allowances shall be distributed ratably 
        among the States based on the population of each State, as 
        contained in the most recent reliable census data available 
        from the Bureau of the Census, Department of Commerce, for all 
        States at the time the Administrator calculates the formula for 
        distribution.
          (3) One third of the allowances for shall be distributed 
        ratably among the States on the basis of the energy consumption 
        of each State as contained in the most recent State Energy Data 
        Report available from the Energy Information Administration (or 
        such alternative reliable source as the Administrator may 
        designate).
  (c) Uses.--The allowances distributed to each State pursuant to this 
section shall be used exclusively for the purposes listed in this 
subsection, as set forth below:
          (1) Not less than 12.5 percent shall be distributed by the 
        State to units of local government within such State to be used 
        exclusively to support the energy efficiency and renewable 
        energy purposes listed in paragraphs (2), (3), and (4).
          (2) Not less than 15 percent shall be used exclusively for 
        the following energy efficiency purposes:
                  (A) Implementation and enforcement of building codes 
                adopted in compliance with section 201.
                  (B) Implementation of the energy efficient 
                manufactured homes program established pursuant to 
                section 203.
                  (C) Implementation of the building energy performance 
                labeling program established pursuant to section 204.
                  (D) Enabling the development of a Smart Grid (as 
                described in section 1301 of the Energy Independence 
                and Security Act of 2007 (42 U.S.C. 17381)) for State, 
                local government, and other public buildings and 
                facilities, including integration of renewable energy 
                resources and distributed generation, demand response, 
                demand side management, and systems analysis.
                  (E) Transportation planning pursuant to section 841 
                of the Clean Air Act.
                  (F) Low-income community energy efficiency programs 
                that are consistent with the grant program established 
                under section 264 of this Act.
                  (G) Other cost-effective energy efficiency programs 
                for end-use consumers of electricity, natural gas, home 
                heating oil, or propane, including, where appropriate, 
                programs or mechanisms administered by local 
                governments and entities other than the State.
          (3) Not less than 5 percent shall be used exclusively for 
        implementation of the Retrofit for Energy and Environmental 
        Performance (REEP) program established pursuant to section 202.
          (4) Not less than 20 percent shall be used exclusively for 
        capital grants, tax credits, production incentives, loans, loan 
        guarantees, forgivable loans, and interest rate buy-downs for--
                  (A) re-equipping, expanding, or establishing a 
                manufacturing facility that receives certification from 
                the Secretary of Energy pursuant to section 1302 of the 
                American Recovery and Reinvestment Act of 2009 for the 
                production of--
                          (i) property designed to be used to produce 
                        energy from renewable energy sources; and
                          (ii) electricity storage systems;
                  (B) deployment of technologies to generate 
                electricity from renewable energy sources; and
                  (C) deployment of facilities or equipment, such as 
                solar panels, to generate electricity or thermal energy 
                from renewable energy resources in and on buildings in 
                an urban environment.
          (5) The remaining 47.5 percent shall be used exclusively for 
        any of the purposes described in subparagraphs (A) through (F) 
        of paragraph (2) and in paragraphs (3) and (4), provided that 
        each State receiving emission allowances under this section 
        shall use not less than 1 percent of such allowances for the 
        purpose described in paragraph (2)(F).
  (d) Reporting.--Each State receiving emission allowances under this 
section shall include in its biennial reports required under section 
131, in accordance with such requirements as the Administrator may 
prescribe--
          (1) a list of entities receiving allowances or allowance 
        value under this section;
          (2) the amount and nature of allowances or allowance value 
        received by each recipient;
          (3) the specific purposes for which such allowances or 
        allowance value was conveyed;
          (4) the amount of energy savings, emission reductions, 
        renewable energy deployment, or new or retooled manufacturing 
        capacity resulting from such allowances or allowance value; and
          (5) an assessment of the cost-effectiveness of any energy 
        efficiency program supported under subsection (c)(2)(F).
  (e) Enforcement.--If the Administrator determines that a State is not 
in compliance with this section, the Administrator may withhold up to 
twice the number of allowances that the State failed to use in 
accordance with the requirements of this section, that such State would 
otherwise be eligible to receive under this section in later years. 
Allowances withheld pursuant to this subsection shall be distributed 
among the remaining States in accordance with the requirements of 
subsection (b).

                   Subtitle E--Smart Grid Advancement

SEC. 141. DEFINITIONS.

  For purposes of this subtitle:
          (1) The term ``applicable baseline'' means the average of the 
        highest three annual peak demands a load-serving entity has 
        experienced during the 5 years immediately prior to the date of 
        enactment of this Act.
          (2) The term ``Commission'' means Federal Energy Regulatory 
        Commission.
          (3) The term ``load-serving entity'' means an entity that 
        provides electricity directly to retail consumers with the 
        responsibility to assure power quality and reliability, 
        including such entities that are investor-owned, publicly 
        owned, owned by rural electric cooperatives, or other entities.
          (4) The term ``peak demand'' means the highest point of 
        electricity demand, net of any distributed electricity 
        generation or storage from sources on the load-serving entity's 
        customers' premises, during any hour on the system of a load 
        serving entity during a calendar year, expressed in Megawatts 
        (MW), or more than one such high point as a function of 
        seasonal demand changes.
          (5) The term ``peak demand reduction'' means the reduction in 
        annual peak demand as compared to a previous baseline year or 
        period, expressed in Megawatts (MW), whether accomplished by 
        diminishing the end-use requirements for electricity or by use 
        of locally stored or generated electricity to meet those 
        requirements from distributed resources on the load-serving 
        entity's customers' premises and without use of high-voltage 
        transmission.
          (6) The term ``peak demand reduction plan'' means a plan 
        developed by or for a load-serving entity that it will 
        implement to meet its peak demand reduction goals.
          (7) The term ``peak period'' means the time period on the 
        system of a load-serving entity relative to peak demand that 
        may warrant special measures or electricity resources to 
        maintain system reliability while meeting peak demand.
          (8) The term ``Secretary'' means the Secretary of Energy.
          (9) The term ``Smart Grid'' has the meaning provided by 
        section 1301 of the Energy Independence and Security Act of 
        2007 (15 U.S.C. 17381).

SEC. 142. ASSESSMENT OF SMART GRID COST EFFECTIVENESS IN PRODUCTS.

  (a) Assessment.--Within one year after the date of enactment of this 
Act, the Secretary and the Administrator shall each assess the 
potential for cost-effective integration of Smart Grid technologies and 
capabilities in all products that are reviewed by the Department of 
Energy and the Environmental Protection Agency, respectively, for 
potential designation as Energy Star products.
  (b) Analysis.--(1) Within 2 years after the date of enactment of this 
Act, the Secretary and the Administrator shall each prepare an analysis 
of the potential energy savings, greenhouse gas emission reductions, 
and electricity cost savings that could accrue for each of the products 
identified by the assessment in subsection (a) in the following optimal 
circumstances:
          (A) The products possessed Smart Grid capability and 
        interoperability that is tested and proven reliable.
          (B) The products were utilized in an electricity utility 
        service area which had Smart Grid capability and offered 
        customers rate or program incentives to use the products.
          (C) The utility's rates reflected national average costs, 
        including average peak and valley seasonal and daily 
        electricity costs.
          (D) Consumers using such products took full advantage of such 
        capability.
          (E) The utility avoided incremental investments and rate 
        increases related to such savings.
  (2) The analysis under paragraph (1) shall be considered the ``best 
case'' Smart Grid analysis. On the basis of such an analysis for each 
product, the Secretary and the Administrator shall determine whether 
the installation of Smart Grid capability for such a product would be 
cost effective. For purposes of this paragraph, the term ``cost 
effective'' means that the cumulative savings from using the product 
under the best case Smart Grid circumstances for a period of one-half 
of the product's expected useful life will be greater than the 
incremental cost of the Smart Grid features included in the product.
  (3) To the extent that including Smart Grid capability in any 
products analyzed under paragraph (2) is found to be cost effective in 
the best case, the Secretary and the Administrator shall, not later 
than 3 years after the date of enactment of this Act take each of the 
following actions:
          (A) Inform the manufacturer of such product of such finding 
        of cost effectiveness.
          (B) Assess the potential contributions the development and 
        use of products with Smart Grid technologies bring to reducing 
        peak demand and promoting grid stability.
          (C) Assess the potential national energy savings and 
        electricity cost savings that could be realized if Smart Grid 
        potential were installed in the relevant products reviewed by 
        the Energy Star program.
          (D) Assess and identify options for providing consumers 
        information on products with Smart Grid capabilities, including 
        the necessary conditions for cost-effective savings.
          (E) Submit a report to Congress summarizing the results of 
        the assessment for each class of products, and presenting the 
        potential energy and greenhouse gas savings that could result 
        if Smart Grid capability were installed and utilized on such 
        products.

SEC. 143. INCLUSIONS OF SMART GRID CAPABILITY ON APPLIANCE ENERGY GUIDE 
                    LABELS.

  Section 324(a)(2) of the Energy Policy and Conservation Act (42 
U.S.C. 6294(a)(2)) is amended by adding the following at the end:
                  ``(J)(i) Not later than 3 years after the date of 
                enactment of this subparagraph, the Federal Trade 
                Commission shall initiate a rulemaking to consider 
                making a special note in a prominent manner on any 
                ENERGY GUIDE label for any product actually including 
                Smart Grid capability that--
                          ``(I) Smart Grid capability is a feature of 
                        that product;
                          ``(II) the use and value of that feature 
                        depended on the Smart Grid capability of the 
                        utility system in which the product was 
                        installed and the active utilization of that 
                        feature by the customer; and
                          ``(III) on a utility system with Smart Grid 
                        capability, the use of the product's Smart Grid 
                        capability could reduce the customer's cost of 
                        the product's annual operation by an estimated 
                        dollar amount range representing the result of 
                        incremental energy and electricity cost savings 
                        that would result from the customer taking full 
                        advantage of such Smart Grid capability.
                  ``(ii) Not later than 3 years after the date of 
                enactment of this subparagraph, the Commission shall 
                complete the rulemaking initiated under clause (i).''.

SEC. 144. SMART GRID PEAK DEMAND REDUCTION GOALS.

  (a) Goals.--Not later than one year after the date of enactment of 
this Act, load-serving entities, or, at their option, States with 
respect to load-serving entities that they regulate, shall determine 
and publish peak demand reduction goals for any load-serving entities 
that have an applicable baseline in excess of 250 megawatts.
  (b) Baselines.--(1) The Commission, in consultation with the 
Secretary and the Administrator, shall develop and publish, after an 
opportunity for public comment, a methodology to provide for 
adjustments or normalization to a load-serving entity's applicable 
baseline over time to reflect changes in the number of customers 
served, weather conditions, general economic conditions, and any other 
appropriate factors external to peak demand management, as determined 
by the Commission.
  (2) The Commission shall support load-serving entities (including any 
load-serving entities with an applicable baseline of less than 250 
megawatts that volunteer to participate in achieving the purposes of 
this section) in determining their applicable baselines, and in 
developing their peak demand reduction goals.
  (3) The Secretary, in consultation with the Commission, the 
Administrator, and the North American Electric Reliability Corporation, 
shall develop a system and rules for measurement and verification of 
demand reductions.
  (c) Peak Demand Reduction Goals.--(1) Peak demand reduction goals may 
be established for an individual load-serving entity, or, at the 
determination of a State or regional entity, by that State or regional 
entity for a larger region that shares a common system peak demand and 
for which peak demand reduction measures would offer regional benefit.
  (2) A State or regional entity establishing peak demand reduction 
goals shall cooperate, as necessary and appropriate, with the 
Commission, the Secretary, State regulatory commissions, State energy 
offices, the North American Electric Reliability Corporation, and other 
relevant authorities.
  (3) In determining the applicable peak demand reduction goals, States 
and other jurisdictional entities may utilize the results of the 2009 
National Demand Response Potential Assessment, as authorized by section 
571 of the National Energy Conservation Policy Act (42 U.S.C. 8279).
  (4) The applicable peak demand reduction goals shall provide that--
          (A) load-serving entities will reduce or mitigate peak demand 
        by a minimum percentage amount from the applicable baseline to 
        a lower peak demand during calendar year 2012;
          (B) load-serving entities will reduce or mitigate peak demand 
        by a minimum percentage greater amount from the applicable 
        baseline to a lower peak demand during calendar year 2015; and
          (C) the minimum percentage reductions established as peak 
        demand reduction goals shall be the maximum reductions that are 
        realistically achievable with an aggressive effort to deploy 
        Smart Grid and peak demand reduction technologies and methods, 
        including but not limited to those listed in subsection (d).
  (d) Plan.--Each load-serving entity shall prepare a peak demand 
reduction plan that demonstrates its ability to meet each applicable 
goal by any or a combination of the following options:
          (1) Direct reduction in megawatts of peak demand through 
        energy efficiency measures (including efficient transmission 
        wire technologies which significantly reduce line loss compared 
        to traditional wire technology) with reliable and continued 
        application during peak demand periods.
          (2) Demonstration that an amount of megawatts equal to a 
        stated portion of the applicable goal is contractually 
        committed to be available for peak reduction through one or 
        more of the following:
                  (A) Megawatts enrolled in demand response programs.
                  (B) Megawatts subject to the ability of a load-
                serving entity to call on demand response programs, 
                smart appliances, smart electricity storage devices, 
                distributed generation resources on the entity's 
                customers' premises, or other measures directly capable 
                of actively, controllably, reliably, and dynamically 
                reducing peak demand (``dynamic peak management 
                control'').
                  (C) Megawatts available from distributed dynamic 
                electricity storage under agreement with the owner of 
                that storage.
                  (D) Megawatts committed from dispatchable distributed 
                generation demonstrated to be reliable under peak 
                period conditions and in compliance with air quality 
                regulations.
                  (E) Megawatts available from smart appliances and 
                equipment with Smart Grid capability available for 
                direct control by the utility through agreement with 
                the customer owning the appliances or equipment.
                  (F) Megawatts from a demonstrated and assured minimum 
                of distributed solar electric generation capacity in 
                instances where peak period and peak demand conditions 
                are directly related to solar radiation and 
                accompanying heat.
          (3) If any of the methods listed in subparagraph (C), (D), or 
        (E) of paragraph (2) are relied upon to meet its peak demand 
        reduction goals, the load-serving entity must demonstrate this 
        capability by operating a test during the applicable calendar 
        year.
          (4) Nothing in this section shall require the publication in 
        peak demand reduction goals or in any peak demand reduction 
        plan of any information that is confidential for competitive or 
        other reasons or that identifies individual customers.
  (e) Existing Authority and Requirements.--Nothing in this section 
diminishes or supersedes any authority of a State or political 
subdivision of a State to adopt or enforce any law or regulation 
respecting peak demand management, demand response, distributed 
storage, use of distributed generation, or the regulation of load-
serving entities. The Commission, in consultation with States having 
such peak management, demand response and distributed storage programs, 
shall to the maximum extent practicable, facilitate coordination 
between the Federal program and such State programs.
  (f) Relief.--The Commission may, for good cause, grant relief to 
load-serving entities from the requirements of this section.
  (g) Other Laws.--Except as provided in subsections (e) and (f), no 
law or regulation shall relieve any person of any requirement otherwise 
applicable under this section.
  (h) Compliance.--(1) The Commission shall within one year after the 
date of enactment of this Act establish a public website where the 
Commission will provide information and data demonstrating compliance 
by States, regional entities, and load-serving entities with this 
section, including the success of load-serving entities in meeting 
applicable peak demand reduction goals.
  (2) The Commission shall, by April 1 of each year beginning in 2012, 
provide a report to Congress on compliance with this section and 
success in meeting applicable peak demand reduction goals and, as 
appropriate, shall make recommendations as to how to increase peak 
demand reduction efforts.
  (3) The Commission shall note in each such report any State, 
political subdivision of a State, or load-serving entity that has 
failed to comply with this section, or is not a part of any region or 
group of load-serving entities serving a region that has complied with 
this section.
  (4) The Commission shall have and exercise the authority to take 
reasonable steps to modify the process of establishing peak demand 
reduction goals and to accept adjustments to them as appropriate when 
sought by load-serving entities.
  (i) Assistance to States and Funding.--
          (1) Assistance to states.--Any costs incurred by States for 
        activities undertaken pursuant to this section shall be 
        supported by the use of emission allowances allocated to the 
        States' SEED Accounts pursuant to section 132 of this Act. To 
        the extent that a State provides allowances to local 
        governments within the State to implement this program, that 
        shall be deemed a distribution of such allowances to units of 
        local government pursuant to subsection (c)(1) of that section.
          (2) Funding.--There are authorized to be appropriated such 
        sums as may be necessary to the Commission, the Secretary, and 
        the Administrator to carry out the provisions of this section.

SEC. 145. REAUTHORIZATION OF ENERGY EFFICIENCY PUBLIC INFORMATION 
                    PROGRAM TO INCLUDE SMART GRID INFORMATION.

  (a) In General.--Section 134 of the Energy Policy Act of 2005 (42 
U.S.C. 15832) is amended as follows:
          (1) By amending the section heading to read as follows: 
        ``ENERGY EFFICIENCY AND SMART GRID PUBLIC INFORMATION 
        INITIATIVE''.
          (2) In paragraph (1) of subsection (a) by striking ``reduce 
        energy consumption during the 4-year period beginning on the 
        date of enactment of this Act'' and inserting ``increase energy 
        efficiency and to adopt Smart Grid technology and practices''.
          (3) In paragraph (2) of subsection (a) by striking ``benefits 
        to consumers of reducing'' and inserting ``economic and 
        environmental benefits to consumers and the United States of 
        optimizing''.
          (4) In subsection (a) by inserting at the beginning of 
        paragraph (3) ``the effect of energy efficiency and Smart Grid 
        capability in reducing energy and electricity prices throughout 
        the economy, together with''.
          (5) In subsection (a)(4) by redesignating subparagraph (D) as 
        (E), by striking ``and'' at the end of subparagraph (C), and by 
        inserting after subparagraph (C) the following:
                  ``(D) purchasing and utilizing equipment that 
                includes Smart Grid features and capability; and''.
          (6) In subsection (c), by striking ``Not later than July 1, 
        2009,'' and inserting, ``For each year when appropriations 
        pursuant to the authorization in this section exceed 
        $10,000,000,''.
          (7) In subsection (d) by striking ``2010'' and inserting 
        ``2020''.
          (8) In subsection (e) by striking ``2010'' and inserting 
        ``2020''.
  (b) Table of Contents.--The item relating to section 134 in the table 
of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 and 
following) is amended to read as follows:

``Sec. 134. Energy efficiency and Smart Grid public information 
initiative.''.

SEC. 146. INCLUSION OF SMART GRID FEATURES IN APPLIANCE REBATE PROGRAM.

  (a) Amendments.--Section 124 of the Energy Policy Act of 2005 (42 
U.S.C. 15821) is amended as follows:
          (1) By amending the section heading to read as follows: 
        ``ENERGY EFFICIENT AND SMART APPLIANCE REBATE PROGRAM.''.
          (2) By redesignating paragraphs (4) and (5) of subsection (a) 
        as paragraphs (5) and (6), respectively, and inserting after 
        paragraph (3) the following:
          ``(4) Smart appliance.--The term `smart appliance' means a 
        product that the Administrator of the Environmental Protection 
        Agency or the Secretary of Energy has determined qualifies for 
        such a designation in the Energy Star program pursuant to 
        section 142 of the American Clean Energy and Security Act of 
        2009, or that the Secretary or the Administrator has separately 
        determined includes the relevant Smart Grid capabilities listed 
        in section 1301 of the Energy Independence and Security Act of 
        2007 (15 U.S.C. 17381).''.
          (3) In subsection (b)(1) by inserting ``and smart'' after 
        ``efficient'' and by inserting after ``products'' the first 
        place it appears ``, including products designated as being 
        smart appliances''.
          (4) In subsection (b)(3), by inserting ``the administration 
        of'' after ``carry out''.
          (5) In subsection (d), by inserting ``the administration of'' 
        after ``carrying out'' and by inserting ``, and up to 100 
        percent of the value of the rebates provided pursuant to this 
        section'' before the period at the end.
          (6) In subsection (e)(3), by inserting ``, with separate 
        consideration as applicable if the product is also a smart 
        appliance,'' after ``Energy Star product'' the first place it 
        appears and by inserting ``or smart appliance'' before the 
        period at the end.
          (7) In subsection (f), by striking ``$50,000,000'' through 
        the period at the end and inserting ``$100,000,000 for each 
        fiscal year from 2010 through 2015.''.
  (b) Table of Contents.--The item relating to section 124 in the table 
of contents for the Energy Policy Act of 2005 (42 U.S.C. 15801 and 
following) is amended to read as follows:

``Sec. 124. Energy efficient and smart appliance rebate program.''.

                   Subtitle F--Transmission Planning

SEC. 151. TRANSMISSION PLANNING.

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

``SEC. 216A. TRANSMISSION PLANNING.

  ``(a) Federal Policy.--
          ``(1) Objectives.--It is the policy of the United States that 
        regional electric grid planning should facilitate the 
        deployment of renewable and other zero-carbon energy sources 
        for generating electricity to reduce greenhouse gas emissions 
        while ensuring reliability, reducing congestion, ensuring 
        cyber-security, and providing for cost-effective electricity 
        services throughout the United States.
          ``(2) Options.--In addition to the policy under paragraph 
        (1), it is the policy of the United States that regional 
        electric grid planning to meet these objectives should take 
        into account all significant demand-side and supply-side 
        options, including energy efficiency, distributed generation, 
        renewable energy and zero-carbon electricity generation 
        technologies, smart-grid technologies and practices, demand 
        response, electricity storage, voltage regulation technologies, 
        high capacity conductors with at least 25 percent greater 
        efficiency than traditional ACSR (aluminum stranded conductors 
        steel reinforced) conductors, superconductor technologies, 
        underground transmission technologies, and new conventional 
        electric transmission capacity and corridors.
  ``(b) Planning.--
          ``(1) Planning principles.--Not later than 1 year after the 
        date of enactment of this section, the Commission shall adopt, 
        after notice and opportunity for comment, national electricity 
        grid planning principles derived from the Federal policy 
        established under subsection (a) to be applied in ongoing and 
        future transmission planning that may implicate interstate 
        transmission of electricity.
          ``(2) Regional planning entities.--Not later than 3 months 
        after the date of adoption by the Commission of national 
        electricity grid planning principles pursuant to paragraph (1), 
        entities that conduct or may conduct transmission planning 
        pursuant to State or Federal law or regulation, including 
        States, entities designated by States, public utility 
        transmission providers, operators and owners, regional 
        organizations, and electric utilities, and that are willing to 
        incorporate the national electricity grid planning principles 
        adopted by the Commission in their electric grid planning, 
        shall identify themselves and the regions for which they 
        propose to develop plans to the Commission.
          ``(3) Coordination of regional planning entities.--The 
        Commission shall encourage regional planning entities described 
        under paragraph (2) to cooperate and coordinate across regions 
        and to harmonize regional electric grid planning with planning 
        in adjacent or overlapping jurisdictions to the maximum extent 
        feasible. The Commission shall work with States, public 
        utilities transmission providers, load-serving entities, 
        transmission operators, and other organizations to resolve any 
        conflict or competition among proposed planning entities in 
        order to build consensus and promote the Federal policy 
        established under subsection (a). The Commission shall seek to 
        ensure that planning that is consistent with the national 
        electricity grid planning principles adopted pursuant to 
        paragraph (1) is conducted in all regions of the United States 
        and the territories.
          ``(4) Relation to existing planning policy.--In implementing 
        the Federal policy established under subsection (a), the 
        Commission shall--
                  ``(A) incorporate any ongoing planning efforts 
                undertaken pursuant to section 217; and
                  ``(B) consult with and invite the participation of 
                the Secretary of Energy in relationship to the 
                Secretary's duties pursuant to section 216.
          ``(5) Assistance.--
                  ``(A) In general.--The Commission shall provide 
                support to and participate in the regional grid 
                planning processes conducted by regional planning 
                entities. The Commission may provide planning resources 
                and assistance as required or as requested by regional 
                planning entities, including system data, cost 
                information, system analysis, technical expertise, 
                modeling support, dispute resolution services, and 
                other assistance to regional planning entities, as 
                appropriate.
                  ``(B) Authorization.--There are authorized to be 
                appropriated such sums as may be necessary to carry out 
                this paragraph.
          ``(6) Conflict resolution.--In the event that regional grid 
        plans conflict, the Commission shall assist the regional 
        planning entities in resolving such conflicts in order to 
        achieve the objectives of the Federal policy established under 
        subsection (a).
          ``(7) Submission of plans.--The Commission shall require 
        regional planning entities to submit initial regional electric 
        grid plans to the Commission not later than 18 months after the 
        date the Commission promulgates national electricity grid 
        planning principles pursuant to paragraph (1). Regional 
        electric grid plans should, in general, be developed from sub-
        regional requirements and plans, including planning input 
        reflecting individual utility service areas. Regional plans may 
        then in turn be combined into larger regional plans, up to 
        interconnection-wide and national plans, as appropriate and 
        necessary as determined by the Commission. The Commission shall 
        review such plans for consistency with the national grid 
        planning principles and may return a plan to one or more 
        planning entities for further consideration, along with the 
        Commission's own recommendations for resolution of any conflict 
        or for improvement. To the extent practicable, all plans 
        submitted to the Commission shall be public documents and 
        available on the Commission's website.
          ``(8) Multi-regional meetings.--As regional grid plans are 
        submitted to the Commission, the Commission may convene multi-
        regional meetings to discuss regional grid plan consistency and 
        integration, including requirements for multi-regional 
        projects, and to resolve any conflicts that emerge from such 
        multi-regional projects. The Commission shall provide its 
        recommendations for eliminating any inter-regional conflicts.
          ``(9) Report to congress.--Not later than 3 years after the 
        date of enactment of this section, the Commission shall provide 
        a report to Congress containing the results of the regional 
        grid planning process, including summaries of the adopted 
        regional plans. The Commission shall provide an electronic 
        version of its report on its website with links to all regional 
        and sub-regional plans taken into account. The Commission shall 
        note and provide its recommended resolution for any conflicts 
        not resolved during the planning process. The Commission shall 
        make any recommendations to Congress on the appropriate Federal 
        role or support required to address the needs of the electric 
        grid, including recommendations for addressing any needs that 
        are beyond the reach of existing State and Federal 
        authority.''.

SEC. 152. NET METERING FOR FEDERAL AGENCIES.

  (a) Standard.--Subsection (b) of section 113 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is amended by adding 
the following new paragraph at the end thereof:
          ``(6) Net metering for federal agencies.--Each electric 
        utility shall offer to arrange (either directly or through a 
        third party) to make interconnection and net metering available 
        to Federal Government agencies, offices, or facilities in 
        accordance with the requirements of section 115(j). The 
        standard under this paragraph shall apply only to electric 
        utilities that sold over 4,000,000 megawatt hours of 
        electricity in the preceding year to the ultimate consumers 
        thereof. In the case of a standard under this paragraph, a 
        period of 1 year after the date of the enactment of this 
        section shall be substituted for the 2-year period referred to 
        in other provisions of this section.''.
  (b) Special Rules.--Section 115 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2625) is amended by adding the 
following new subsection at the end thereof:
  ``(j) Net Metering for Federal Agencies.--(1) The standard under 
paragraph (6) of section 113(b) shall require that rates and charges 
and contract terms and conditions for the sale of electric energy to 
the Federal Government or agency shall be the same as the rates and 
charges and contract terms and conditions that would be applicable if 
the agency did not own or operate a qualified generation unit and use a 
net metering system.
  ``(2)(A) The standard under paragraph (6) of section 113(b) shall 
require that each electric utility shall arrange to provide to the 
Government office or agency that qualifies for net metering an 
electrical energy meter capable of net metering and measuring, to the 
maximum extent practicable, the flow of electricity to or from the 
customer, using a single meter and single register, the cost of which 
shall be recovered from the customer.
  ``(B) In a case in which it is not practicable to provide a meter 
under subparagraph (A), the utility (either directly or through a third 
party) shall, at the expense of the utility install 1 or more of those 
electric energy meters.
  ``(3)(A) The standard under paragraph (6) of section 113(b) shall 
require that each electric utility shall calculate the electric energy 
consumption for the Government office or agency using a net metering 
system that meets the requirements of this subsection and paragraph (6) 
of section 113(b) and shall measure the net electricity produced or 
consumed during the billing period using the metering installed in 
accordance with this paragraph.
  ``(B) If the electricity supplied by the retail electric supplier 
exceeds the electricity generated by the Government office or agency 
during the billing period, the Government office or agency shall be 
billed for the net electric energy supplied by the retail electric 
supplier in accordance with normal billing practices.
  ``(C) If electric energy generated by the Government office or agency 
exceeds the electric energy supplied by the retail electric supplier 
during the billing period, the Government office or agency shall be 
billed for the appropriate customer charges for that billing period and 
credited for the excess electric energy generated during the billing 
period, with the credit appearing as a kilowatt-hour credit on the bill 
for the following billing period.
  ``(D) Any kilowatt-hour credits provided to the Government office or 
agency as provided in this subsection shall be applied to the 
Government office or agency electric energy consumption on the 
following billing period bill (except for a billing period that ends in 
the next calendar year). At the beginning of each calendar year, any 
unused kilowatt-hour credits remaining from the preceding year will 
carry over to the new year.
  ``(4) The standard under paragraph (6) of section 113(b) shall 
require that each electric utility shall offer a meter and retail 
billing arrangement that has time-differentiated rates. The kilowatt-
hour credit shall be based on the ratio representing the difference in 
retail rates for each time-of-use rate, or the credits shall be 
reflected on the bill of the Government office or agency as a monetary 
credit reflecting retail rates at the time of generation of the 
electric energy by the customer-generator.
  ``(5) The standard under paragraph (6) of section 113(b) shall 
require that the qualified generation unit, interconnection standards, 
and net metering system used by the Government office or agency shall 
meet all applicable safety and performance and reliability standards 
established by the National Electrical Code, the Institute of 
Electrical and Electronics Engineers, Underwriters Laboratories, and 
the American National Standards Institute.
  ``(6) The standard under paragraph (6) of section 113(b) shall 
require that electric utilities shall not make additional charges, 
including standby charges, for equipment or services for safety or 
performance that are in addition to those necessary to meet the other 
standards and requirements of this subsection and paragraph (6) of 
section 113(b).
  ``(7) For purposes of this subsection and paragraph (6) of section 
113(b):
          ``(A) The term `Government' means any office, facility, or 
        agency of the Federal Government.
          ``(B) The term `customer-generator' means the owner or 
        operator of a electricity generation unit.
          ``(C) The term `electric generation unit' means any renewable 
        electric generation unit that is owned, operated, or sited on a 
        Federal Government facility.
          ``(D) The term `net metering' means the process of--
                  ``(i) measuring the difference between the 
                electricity supplied to a customer-generator and the 
                electricity generated by the customer-generator that is 
                delivered to a utility at the same point of 
                interconnection during an applicable billing period; 
                and
                  ``(ii) providing an energy credit to the customer-
                generator in the form of a kilowatt-hour credit for 
                each kilowatt-hour of electricity produced by the 
                customer-generator from an electric generation unit.''.
  (c) Savings Provision.--If this section or a portion of this section 
is determined to be invalid or unenforceable, that shall not affect the 
validity or enforceability of any other provision of this Act.

SEC. 153. SUPPORT FOR QUALIFIED ADVANCED ELECTRIC TRANSMISSION 
                    MANUFACTURING PLANTS, QUALIFIED HIGH EFFICIENCY 
                    TRANSMISSION PROPERTY, AND QUALIFIED ADVANCED 
                    ELECTRIC TRANSMISSION PROPERTY.

  (a) Loan Guarantees Prior to September 30, 2011.--Section 1705(a) of 
the Energy Policy Act of 2005 (42 U.S.C. 16515(a)), as added by section 
406 of the American Recovery and Reinvestment Act of 2009 (Public Law 
109-58; 119 Stat. 594) is amended by adding the following new paragraph 
at the end thereof:
          ``(5) The development, construction, acquisition, 
        retrofitting, or engineering integration of a qualified 
        advanced electric transmission manufacturing plant or the 
        construction of a qualified high efficiency transmission 
        property or a qualified advanced electric transmission property 
        (whether by construction of new facilities or the modification 
        of existing facilities). For purposes of this paragraph:
                  ``(A) The term `qualified advanced electric 
                transmission property' means any high voltage electric 
                transmission cable, related substation, converter 
                station, or other integrated facility that--
                          ``(i) utilizes advanced ultra low resistance 
                        superconductive material or other advanced 
                        technology that has been determined by the 
                        Secretary of Energy as--
                                  ``(I) reasonably likely to become 
                                commercially viable within 10 years 
                                after the date of enactment of this 
                                paragraph;
                                  ``(II) capable of reliably 
                                transmitting at least 5 gigawatts of 
                                high-voltage electric energy for 
                                distances greater than 300 miles with 
                                energy losses not exceeding 3 percent 
                                of the total power transported; and
                                  ``(III) not creating an 
                                electromagnetic field;
                          ``(ii) has been determined by an appropriate 
                        energy regulatory body, upon application, to be 
                        in the public interest and thereby eligible for 
                        inclusion in regulated rates; and
                          ``(iii) can be located safely and 
                        economically in a permanent underground right 
                        of way not to exceed 25 feet in width.
                The term `qualified advanced electric transmission 
                property' shall not include any property placed in 
                service after December 31, 2016.
                  ``(B)(i) The term `qualified high efficiency 
                transmission property' means any high voltage overhead 
                electric transmission line, related substation, or 
                other integrated facility that--
                          ``(I) utilizes advanced conductor core 
                        technology that--
                                  ``(aa) has been determined by the 
                                Secretary of Energy as reasonably 
                                likely to become commercially viable 
                                within 10 years after the date of 
                                enactment of this paragraph;
                                  ``(bb) is suitable for use on 
                                transmission lines up to 765kV; and
                                  ``(cc) exhibits power losses at least 
                                30 percent lower than that of 
                                transmission lines using conventional 
                                `ACSR' conductors;
                          ``(II) has been determined by an appropriate 
                        energy regulatory body, upon application, to be 
                        in the public interest and thereby eligible for 
                        inclusion in regulated rates; and
                          ``(III) can be located safely and 
                        economically in a right of way not to exceed 
                        that used by conventional `ACSR' conductors; 
                        and
                  ``(ii) The term `qualified high efficiency 
                transmission property' shall not include any property 
                placed in service after December 31, 2016.
                  ``(C) The term `qualified advanced electric 
                transmission manufacturing plant' means any industrial 
                facility located in the United States which can be 
                equipped, re-equipped, expanded, or established to 
                produce in whole or in part qualified advanced electric 
                transmission property.''.
  (b) Additional Loan Guarantee Authority.--Section 1703 of the Energy 
Policy Act of 2005 (42 U.S.C. 16513) is amended by adding the following 
new paragraph at the end of subsection (b):
          ``(12) The development, construction, acquisition, 
        retrofitting, or engineering integration of a qualified 
        advanced electric transmission manufacturing plant or the 
        construction of a qualified advanced electric transmission 
        property (whether by construction of new facilities or the 
        modification of existing facilities). For purposes of this 
        paragraph, the terms `qualified advanced electric transmission 
        property' and `qualified advanced electric transmission 
        manufacturing plant' have the meanings provided by section 
        1705(a)(5).''.
  (c) Grants.--The Secretary of Energy is authorized to provide grants 
for up to 50 percent of costs incurred in connection with the 
development, construction, acquisition of components for, or 
engineering of a qualified advanced electric transmission property 
defined in paragraph (5) of section 1705(a) of the Energy Policy Act of 
2005 (42 U.S.C. 16515(a)). Such grants may only be made to the first 
project which qualifies under that paragraph. There are authorized to 
be appropriated for purposes of this subsection not more than 
$100,000,000 for fiscal year 2010. The United States shall take no 
equity or other ownership interest in the qualified advanced electric 
transmission manufacturing plant or qualified advanced electric 
transmission property for which funding is provided under this 
subsection.

            Subtitle G--Technical Corrections to Energy Laws

SEC. 161. TECHNICAL CORRECTIONS TO ENERGY INDEPENDENCE AND SECURITY ACT 
                    OF 2007.

  (a) Title III--Energy Savings Through Improved Standards for 
Appliance and Lighting.--(1) Section 325(u) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(u)) (as amended by section 301(c) of 
the Energy Independence and Security Act of 2007 (121 Stat. 1550)) is 
amended--
                  (A) by redesignating paragraph (7) as paragraph (4); 
                and
                  (B) in paragraph (4) (as so redesignated), by 
                striking ``supplies is'' and inserting ``supply is''.
  (2) Section 302 of the Energy Independence and Security Act of 2007 
(121 Stat. 1551)) is amended--
          (A) in subsection (a), by striking ``end of the paragraph'' 
        and inserting ``end of subparagraph (A)''; and
          (B) in subsection (b), by striking ``6313(a)'' and inserting 
        ``6314(a)''.
  (3) Section 343(a)(1) of the Energy Policy and Conservation Act (42 
U.S.C. 6313(a)(1)) (as amended by section 302(b) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1551)) is amended--
          (A) by striking ``Test procedures'' and all that follows 
        through ``At least once'' and inserting ``Test procedures.--At 
        least once''; and
          (B) by redesignating clauses (i) and (ii) as subparagraphs 
        (A) and (B), respectively (and by moving the margins of such 
        subparagraphs 2 ems to the left).
  (4) Section 342(a)(6) of the Energy Policy and Conservation Act (42 
U.S.C. 6313(a)(6)) (as amended by section 305(b)(2) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1554)) is amended--
          (A) in subparagraph (B)--
                  (i) by striking ``If the Secretary'' and inserting 
                the following:
                          ``(i) In general.--If the Secretary'';
                  (ii) by striking ``clause (ii)(II)'' and inserting 
                ``subparagraph (A)(ii)(II)'';
                  (iii) by striking ``clause (i)'' and inserting 
                ``subparagraph (A)(i)''; and
                  (iv) by adding at the end the following:
                          ``(ii) Factors.--In determining whether a 
                        standard is economically justified for the 
                        purposes of subparagraph (A)(ii)(II), the 
                        Secretary shall, after receiving views and 
                        comments furnished with respect to the proposed 
                        standard, determine whether the benefits of the 
                        standard exceed the burden of the proposed 
                        standard by, to the maximum extent practicable, 
                        considering--
                                  ``(I) the economic impact of the 
                                standard on the manufacturers and on 
                                the consumers of the products subject 
                                to the standard;
                                  ``(II) the savings in operating costs 
                                throughout the estimated average life 
                                of the product in the type (or class) 
                                compared to any increase in the price 
                                of, or in the initial charges for, or 
                                maintenance expenses of, the products 
                                that are likely to result from the 
                                imposition of the standard;
                                  ``(III) the total projected quantity 
                                of energy savings likely to result 
                                directly from the imposition of the 
                                standard;
                                  ``(IV) any lessening of the utility 
                                or the performance of the products 
                                likely to result from the imposition of 
                                the standard;
                                  ``(V) the impact of any lessening of 
                                competition, as determined in writing 
                                by the Attorney General, that is likely 
                                to result from the imposition of the 
                                standard;
                                  ``(VI) the need for national energy 
                                conservation; and
                                  ``(VII) other factors the Secretary 
                                considers relevant.
                          ``(iii) Administration.--
                                  ``(I) Energy use and efficiency.--The 
                                Secretary may not prescribe any amended 
                                standard under this paragraph that 
                                increases the maximum allowable energy 
                                use, or decreases the minimum required 
                                energy efficiency, of a covered 
                                product.
                                  ``(II) Unavailability.--
                                          ``(aa) In general.--The 
                                        Secretary may not prescribe an 
                                        amended standard under this 
                                        subparagraph if the Secretary 
                                        finds (and publishes the 
                                        finding) that interested 
                                        persons have established by a 
                                        preponderance of the evidence 
                                        that a standard is likely to 
                                        result in the unavailability in 
                                        the United States in any 
                                        product type (or class) of 
                                        performance characteristics 
                                        (including reliability, 
                                        features, sizes, capacities, 
                                        and volumes) that are 
                                        substantially the same as those 
                                        generally available in the 
                                        United States at the time of 
                                        the finding of the Secretary.
                                          ``(bb) Other types or 
                                        classes.--The failure of some 
                                        types (or classes) to meet the 
                                        criterion established under 
                                        this subclause shall not affect 
                                        the determination of the 
                                        Secretary on whether to 
                                        prescribe a standard for the 
                                        other types or classes.''; and
          (B) in subparagraph (C)(iv), by striking ``An amendment 
        prescribed under this subsection'' and inserting 
        ``Notwithstanding subparagraph (D), an amendment prescribed 
        under this subparagraph''.
  (5) Section 342(a)(6)(B)(iii) of the Energy Policy and Conservation 
Act (as added by section 306(c) of the Energy Independence and Security 
Act of 2007) is transferred and redesignated as clause (vi) of section 
342(a)(6)(C) of the Energy Policy and Conservation Act (as amended by 
section 305(b)(2) of the Energy Independence and Security Act of 2007).
  (6) Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 
6311) (as amended by sections 312(a)(2) and 314(a) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1564, 1569)) is 
amended by redesignating paragraphs (22) and (23) (as added by section 
314(a) of that Act) as paragraphs (23) and (24), respectively.
  (7) Section 345 of the Energy Policy and Conservation Act (42 U.S.C. 
6316) (as amended by section 312(e) of the Energy Independence and 
Security Act of 2007 (121 Stat. 1567)) is amended--
          (A) by striking ``subparagraphs (B) through (G)'' each place 
        it appears and inserting ``subparagraphs (B), (C), (D), (I), 
        (J), and (K)'';
          (B) by striking ``part A'' each place it appears and 
        inserting ``part B''; and
          (C) in subsection (h)(3), by striking ``section 342(f)(3)'' 
        and inserting ``section 342(f)(4)''.
  (8) Section 340(13) of the Energy Policy and Conservation Act (42 
U.S.C. 6311(13)) (as amended by section 313(a) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1568)) is amended--
          (A) by striking subparagraphs (A) and (B) and inserting the 
        following:
                  ``(A) In general.--The term `electric motor' means 
                any motor that is--
                          ``(i) a general purpose T-frame, single-
                        speed, foot-mounting, polyphase squirrel-cage 
                        induction motor of the National Electrical 
                        Manufacturers Association, Design A and B, 
                        continuous rated, operating on 230/460 volts 
                        and constant 60 Hertz line power as defined in 
                        NEMA Standards Publication MG1-1987; or
                          ``(ii) a motor incorporating the design 
                        elements described in clause (i), but is 
                        configured to incorporate one or more of the 
                        following variations--
                                  ``(I) U-frame motor;
                                  ``(II) NEMA Design C motor;
                                  ``(III) close-coupled pump motor;
                                  ``(IV) footless motor;
                                  ``(V) vertical solid shaft normal 
                                thrust motor (as tested in a horizontal 
                                configuration);
                                  ``(VI) 8-pole motor; or
                                  ``(VII) poly-phase motor with a 
                                voltage rating of not more than 600 
                                volts (other than 230 volts or 460 
                                volts, or both, or can be operated on 
                                230 volts or 460 volts, or both).''; 
                                and
          (B) by redesignating subparagraphs (C) through (I) as 
        subparagraphs (B) through (H), respectively.
  (9)(A) Section 342(b) of the Energy Policy and Conservation Act (42 
U.S.C. 6313(b)) is amended--
  (i) in paragraph (1), by striking ``paragraph (2)'' and inserting 
``paragraph (3)'';
  (ii) by redesignating paragraphs (2) and (3) as paragraphs (3) and 
(4);
  (iii) by inserting after paragraph (1) the following:
          ``(2) Standards effective beginning december 19, 2010.--
                  ``(A) In general.--Except for definite purpose 
                motors, special purpose motors, and those motors 
                exempted by the Secretary under paragraph (3) and 
                except as provided for in subparagraphs (B), (C), and 
                (D), each electric motor manufactured with power 
                ratings from 1 to 200 horsepower (alone or as a 
                component of another piece of equipment) on or after 
                December 19, 2010, shall have a nominal full load 
                efficiency of not less than the nominal full load 
                efficiency described in NEMA MG-1 (2006) Table 12-12.
                  ``(B) Fire pump electric motors.--Except for those 
                motors exempted by the Secretary under paragraph (3), 
                each fire pump electric motor manufactured with power 
                ratings from 1 to 200 horsepower (alone or as a 
                component of another piece of equipment) on or after 
                December 19, 2010, shall have a nominal full load 
                efficiency that is not less than the nominal full load 
                efficiency described in NEMA MG-1 (2006) Table 12-11.
                  ``(C) NEMA design b electric motors.--Except for 
                those motors exempted by the Secretary under paragraph 
                (3), each NEMA Design B electric motor with power 
                ratings of more than 200 horsepower, but not greater 
                than 500 horsepower, manufactured (alone or as a 
                component of another piece of equipment) on or after 
                December 19, 2010, shall have a nominal full load 
                efficiency of not less than the nominal full load 
                efficiency described in NEMA MG-1 (2006) Table 12-11.
                  ``(D) Motors incorporating certain design elements.--
                Except for those motors exempted by the Secretary under 
                paragraph (3), each electric motor described in section 
                340(13)(A)(ii) manufactured with power ratings from 1 
                to 200 horsepower (alone or as a component of another 
                piece of equipment) on or after December 19, 2010, 
                shall have a nominal full load efficiency of not less 
                than the nominal full load efficiency described in NEMA 
                MG-1 (2006) Table 12-11.''; and
  (iv) in paragraph (3) (as redesignated by clause (ii)), by striking 
``paragraph (1)'' each place it appears in subparagraphs (A) and (D) 
and inserting ``paragraphs (1) and (2)''.
  (B) Section 313 of the Energy Independence and Security Act of 2007 
(121 Stat. 1568) is repealed.
  (C) The amendments made by--
          (i) subparagraph (A) shall take effect on December 19, 2010; 
        and
          (ii) subparagraph (B) shall take effect on December 19, 2007.
  (10) Section 321(30)(D)(i)(III) of the Energy Policy and Conservation 
Act (42 U.S.C. 6291(30)(D)(i)(III)) (as amended by section 321(a)(1)(A) 
of the Energy Independence and Security Act of 2007 (121 Stat. 1574)) 
is amended by inserting before the semicolon the following: ``or, in 
the case of a modified spectrum lamp, not less than 232 lumens and not 
more than 1,950 lumens''.
  (11) Section 321(30)(T) of the Energy Policy and Conservation Act (42 
U.S.C. 6291(30)(T) (as amended by section 321(a)(1)(B) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1574)) is amended--
          (A) in clause (i)--
                  (i) by striking the comma after ``household 
                appliance'' and inserting ``and''; and
                  (ii) by striking ``and is sold at retail,''; and
          (B) in clause (ii), by inserting ``when sold at retail,'' 
        before ``is designated''.
  (12) Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 
6295) (as amended by sections 321(a)(3)(A) and 322(b) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1577, 1588)) is 
amended by striking subsection (i) and inserting the following:
  ``(i) General Service Fluorescent Lamps, General Service Incandescent 
Lamps, Intermediate Base Incandescent Lamps, Candelabra Base 
Incandescent Lamps, and Incandescent Reflector Lamps.--
          ``(1) Energy efficiency standards.--
                  ``(A) In general.--Each of the following general 
                service fluorescent lamps, general service incandescent 
                lamps, intermediate base incandescent lamps, candelabra 
                base incandescent lamps, and incandescent reflector 
                lamps manufactured after the effective date specified 
                in the tables listed in this subparagraph shall meet or 
                exceed the following lamp efficacy, new maximum 
                wattage, and CRI standards:


                                               ``FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                                  Effective Date
           Lamp Type               Nominal Lamp       Minimum CRI       Minimum Average Lamp        (Period of
                                      Wattage                              Efficacy (LPW)            Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin...........        >35 W              69                    75.0                    36
                                       35 W               45                    75.0                    36
2-foot U-shaped................        >35 W              69                    68.0                    36
                                        35 W              45                    64.0                    36
8-foot slimline................         65 W              69                    80.0                    18
                                       65 W               45                    80.0                    18
8-foot high output.............       >100 W              69                    80.0                    18
                                       100 W              45                    80.0                    18
----------------------------------------------------------------------------------------------------------------


                     ``INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
                                                          Effective Date
     Nominal Lamp Wattage         Minimum Average Lamp      (Period of
                                     Efficacy (LPW)           Months)
------------------------------------------------------------------------
 40-50.......................             10.5                  36
 51-66.......................             11.0                  36
 67-85.......................             12.5                  36
 86-115......................             14.0                  36
116-155......................             14.5                  36
156-205......................             15.0                  36
------------------------------------------------------------------------



                                      ``GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                         Minimum
                       Rated Lumen Ranges                            Maximum Rated        Rated       Effective
                                                                        Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1490-2600                                                                        72     1,000 hrs      1/1/2012
1050-1489                                                                        53     1,000 hrs      1/1/2013
750-1049                                                                         43     1,000 hrs      1/1/2014
310-749                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------



                             ``MODIFIED SPECTRUM GENERAL SERVICE INCANDESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
                                                                                         Minimum
                       Rated Lumen Ranges                            Maximum Rated        Rated       Effective
                                                                        Wattage         Lifetime        Date
----------------------------------------------------------------------------------------------------------------
1118-1950                                                                        72     1,000 hrs      1/1/2012
788-1117                                                                         53     1,000 hrs      1/1/2013
563-787                                                                          43     1,000 hrs      1/1/2014
232-562                                                                          29     1,000 hrs      1/1/2014
----------------------------------------------------------------------------------------------------------------

                  ``(B) Application.--
                          ``(i) Application criteria.--This 
                        subparagraph applies to each lamp that--
                                  ``(I) is intended for a general 
                                service or general illumination 
                                application (whether incandescent or 
                                not);
                                  ``(II) has a medium screw base or any 
                                other screw base not defined in ANSI 
                                C81.61-2006;
                                  ``(III) is capable of being operated 
                                at a voltage at least partially within 
                                the range of 110 to 130 volts; and
                                  ``(IV) is manufactured or imported 
                                after December 31, 2011.
                          ``(ii) Requirement.--For purposes of this 
                        paragraph, each lamp described in clause (i) 
                        shall have a color rendering index that is 
                        greater than or equal to--
                                  ``(I) 80 for nonmodified spectrum 
                                lamps; or
                                  ``(II) 75 for modified spectrum 
                                lamps.
                  ``(C) Candelabra incandescent lamps and intermediate 
                base incandescent lamps.--
                          ``(i) Candelabra base incandescent lamps.--
                        Effective beginning January 1, 2012, a 
                        candelabra base incandescent lamp shall not 
                        exceed 60 rated watts.
                          ``(ii) Intermediate base incandescent 
                        lamps.--Effective beginning January 1, 2012, an 
                        intermediate base incandescent lamp shall not 
                        exceed 40 rated watts.
                  ``(D) Exemptions.--
                          ``(i) Statutory exemptions.--The standards 
                        specified in subparagraph (A) shall not apply 
                        to the following types of incandescent 
                        reflector lamps:
                                  ``(I) Lamps rated at 50 watts or less 
                                that are ER30, BR30, BR40, or ER40 
                                lamps.
                                  ``(II) Lamps rated at 65 watts that 
                                are BR30, BR40, or ER40 lamps.
                                  ``(III) R20 incandescent reflector 
                                lamps rated 45 watts or less.
                          ``(ii) Administrative exemptions.--
                                  ``(I) Petition.--Any person may 
                                petition the Secretary for an exemption 
                                for a type of general service lamp from 
                                the requirements of this subsection.
                                  ``(II) Criteria.--The Secretary may 
                                grant an exemption under subclause (I) 
                                only to the extent that the Secretary 
                                finds, after a hearing and opportunity 
                                for public comment, that it is not 
                                technically feasible to serve a 
                                specialized lighting application (such 
                                as a military, medical, public safety, 
                                or certified historic lighting 
                                application) using a lamp that meets 
                                the requirements of this subsection.
                                  ``(III) Additional criterion.--To 
                                grant an exemption for a product under 
                                this clause, the Secretary shall 
                                include, as an additional criterion, 
                                that the exempted product is unlikely 
                                to be used in a general service 
                                lighting application.
                  ``(E) Extension of coverage.--
                          ``(i) Petition.--Any person may petition the 
                        Secretary to establish standards for lamp 
                        shapes or bases that are excluded from the 
                        definition of general service lamps.
                          ``(ii) Increased sales of exempted lamps.--
                        The petition shall include evidence that the 
                        availability or sales of exempted incandescent 
                        lamps have increased significantly since the 
                        date on which the standards on general service 
                        incandescent lamps were established.
                          ``(iii) Criteria.--The Secretary shall grant 
                        a petition under clause (i) if the Secretary 
                        finds that--
                                  ``(I) the petition presents evidence 
                                that demonstrates that commercial 
                                availability or sales of exempted 
                                incandescent lamp types have increased 
                                significantly since the standards on 
                                general service lamps were established 
                                and likely are being widely used in 
                                general lighting applications; and
                                  ``(II) significant energy savings 
                                could be achieved by covering exempted 
                                products, as determined by the 
                                Secretary based in part on sales data 
                                provided to the Secretary from 
                                manufacturers and importers.
                          ``(iv) No presumption.--The grant of a 
                        petition under this subparagraph shall create 
                        no presumption with respect to the 
                        determination of the Secretary with respect to 
                        any criteria under a rulemaking conducted under 
                        this section.
                          ``(v) Expedited proceeding.--If the Secretary 
                        grants a petition for a lamp shape or base 
                        under this subparagraph, the Secretary shall--
                                  ``(I) conduct a rulemaking to 
                                determine standards for the exempted 
                                lamp shape or base; and
                                  ``(II) complete the rulemaking not 
                                later than 18 months after the date on 
                                which notice is provided granting the 
                                petition.
                  ``(F) Effective dates.--
                          ``(i) In general.--In this paragraph, except 
                        as otherwise provided in a table contained in 
                        subparagraph (A) or in clause (ii), the term 
                        `effective date' means the last day of the 
                        month specified in the table that follows 
                        October 24, 1992.
                          ``(ii) Special effective dates.--
                                  ``(I) ER, br, and bpar lamps.--The 
                                standards specified in subparagraph (A) 
                                shall apply with respect to ER 
                                incandescent reflector lamps, BR 
                                incandescent reflector lamps, BPAR 
                                incandescent reflector lamps, and 
                                similar bulb shapes on and after 
                                January 1, 2008, or the date that is 
                                180 days after the date of enactment of 
                                the Energy Independence and Security 
                                Act of 2007.
                                  ``(II) Lamps between 2.25-2.75 inches 
                                in diameter.--The standards specified 
                                in subparagraph (A) shall apply with 
                                respect to incandescent reflector lamps 
                                with a diameter of more than 2.25 
                                inches, but not more than 2.75 inches, 
                                on and after the later of January 1, 
                                2008, or the date that is 180 days 
                                after the date of enactment of the 
                                Energy Independence and Security Act of 
                                2007.
          ``(2) Compliance with existing law.--Notwithstanding section 
        332(a)(5) and section 332(b), it shall not be unlawful for a 
        manufacturer to sell a lamp that is in compliance with the law 
        at the time the lamp was manufactured.
          ``(3) Rulemaking before october 24, 1995.--
                  ``(A) In general.--Not later than 36 months after 
                October 24, 1992, the Secretary shall initiate a 
                rulemaking procedure and shall publish a final rule not 
                later than the end of the 54-month period beginning on 
                October 24, 1992, to determine whether the standards 
                established under paragraph (1) should be amended.
                  ``(B) Administration.--The rule shall contain the 
                amendment, if any, and provide that the amendment shall 
                apply to products manufactured on or after the 36-month 
                period beginning on the date on which the final rule is 
                published.
          ``(4) Rulemaking before october 24, 2000.--
                  ``(A) In general.--Not later than 8 years after 
                October 24, 1992, the Secretary shall initiate a 
                rulemaking procedure and shall publish a final rule not 
                later than 9 years and 6 months after October 24, 1992, 
                to determine whether the standards in effect for 
                fluorescent lamps and incandescent lamps should be 
                amended.
                  ``(B) Administration.--The rule shall contain the 
                amendment, if any, and provide that the amendment shall 
                apply to products manufactured on or after the 36-month 
                period beginning on the date on which the final rule is 
                published.
          ``(5) Rulemaking for additional general service fluorescent 
        lamps.--
                  ``(A) In general.--Not later than the end of the 24-
                month period beginning on the date labeling 
                requirements under section 324(a)(2)(C) become 
                effective, the Secretary shall--
                          ``(i) initiate a rulemaking procedure to 
                        determine whether the standards in effect for 
                        fluorescent lamps and incandescent lamps should 
                        be amended so that the standards would be 
                        applicable to additional general service 
                        fluorescent lamps; and
                          ``(ii) publish, not later than 18 months 
                        after initiating the rulemaking, a final rule 
                        including the amended standards, if any.
                  ``(B) Administration.--The rule shall provide that 
                the amendment shall apply to products manufactured 
                after a date which is 36 months after the date on which 
                the rule is published.
          ``(6) Standards for general service lamps.--
                  ``(A) Rulemaking before january 1, 2014.--
                          ``(i) In general.--Not later than January 1, 
                        2014, the Secretary shall initiate a rulemaking 
                        procedure to determine whether--
                                  ``(I) standards in effect for general 
                                service lamps should be amended; and
                                  ``(II) the exclusions for certain 
                                incandescent lamps should be maintained 
                                or discontinued based, in part, on 
                                excluded lamp sales collected by the 
                                Secretary from manufacturers.
                          ``(ii) Scope.--The rulemaking--
                                  ``(I) shall not be limited to 
                                incandescent lamp technologies; and
                                  ``(II) shall include consideration of 
                                a minimum standard of 45 lumens per 
                                watt for general service lamps.
                          ``(iii) Amended standards.--If the Secretary 
                        determines that the standards in effect for 
                        general service lamps should be amended, the 
                        Secretary shall publish a final rule not later 
                        than January 1, 2017, with an effective date 
                        that is not earlier than 3 years after the date 
                        on which the final rule is published.
                          ``(iv) Phased-in effective dates.--The 
                        Secretary shall consider phased-in effective 
                        dates under this subparagraph after 
                        considering--
                                  ``(I) the impact of any amendment on 
                                manufacturers, retiring and repurposing 
                                existing equipment, stranded 
                                investments, labor contracts, workers, 
                                and raw materials; and
                                  ``(II) the time needed to work with 
                                retailers and lighting designers to 
                                revise sales and marketing strategies.
                          ``(v) Backstop requirement.--If the Secretary 
                        fails to complete a rulemaking in accordance 
                        with clauses (i) through (iv) or if the final 
                        rule does not produce savings that are greater 
                        than or equal to the savings from a minimum 
                        efficacy standard of 45 lumens per watt, 
                        effective beginning January 1, 2020, the 
                        Secretary shall prohibit the manufacture of any 
                        general service lamp that does not meet a 
                        minimum efficacy standard of 45 lumens per 
                        watt.
                          ``(vi) State preemption.--Neither section 
                        327(c) nor any other provision of law shall 
                        preclude California or Nevada from adopting, 
                        effective beginning on or after January 1, 
                        2018--
                                  ``(I) a final rule adopted by the 
                                Secretary in accordance with clauses 
                                (i) through (iv);
                                  ``(II) if a final rule described in 
                                subclause (I) has not been adopted, the 
                                backstop requirement under clause (v); 
                                or
                                  ``(III) in the case of California, if 
                                a final rule described in subclause (I) 
                                has not been adopted, any California 
                                regulations relating to these covered 
                                products adopted pursuant to State 
                                statute in effect as of the date of 
                                enactment of the Energy Independence 
                                and Security Act of 2007.
                  ``(B) Rulemaking before january 1, 2020.--
                          ``(i) In general.--Not later than January 1, 
                        2020, the Secretary shall initiate a rulemaking 
                        procedure to determine whether--
                                  ``(I) standards in effect for general 
                                service lamps should be amended; and
                                  ``(II) the exclusions for certain 
                                incandescent lamps should be maintained 
                                or discontinued based, in part, on 
                                excluded lamp sales data collected by 
                                the Secretary from manufacturers.
                          ``(ii) Scope.--The rulemaking shall not be 
                        limited to incandescent lamp technologies.
                          ``(iii) Amended standards.--If the Secretary 
                        determines that the standards in effect for 
                        general service lamps should be amended, the 
                        Secretary shall publish a final rule not later 
                        than January 1, 2022, with an effective date 
                        that is not earlier than 3 years after the date 
                        on which the final rule is published.
                          ``(iv) Phased-in effective dates.--The 
                        Secretary shall consider phased-in effective 
                        dates under this subparagraph after 
                        considering--
                                  ``(I) the impact of any amendment on 
                                manufacturers, retiring and repurposing 
                                existing equipment, stranded 
                                investments, labor contracts, workers, 
                                and raw materials; and
                                  ``(II) the time needed to work with 
                                retailers and lighting designers to 
                                revise sales and marketing strategies.
          ``(7) Federal actions.--
                  ``(A) Comments of secretary.--
                          ``(i) In general.--With respect to any lamp 
                        to which standards are applicable under this 
                        subsection or any lamp specified in section 
                        346, the Secretary shall inform any Federal 
                        entity proposing actions that would adversely 
                        impact the energy consumption or energy 
                        efficiency of the lamp of the energy 
                        conservation consequences of the action.
                          ``(ii) Consideration.--The Federal entity 
                        shall carefully consider the comments of the 
                        Secretary.
                  ``(B) Amendment of standards.--Notwithstanding 
                section 325(n)(1), the Secretary shall not be 
                prohibited from amending any standard, by rule, to 
                permit increased energy use or to decrease the minimum 
                required energy efficiency of any lamp to which 
                standards are applicable under this subsection if the 
                action is warranted as a result of other Federal action 
                (including restrictions on materials or processes) that 
                would have the effect of either increasing the energy 
                use or decreasing the energy efficiency of the product.
          ``(8) Compliance.--
                  ``(A) In general.--Not later than the date on which 
                standards established pursuant to this subsection 
                become effective, or, with respect to high-intensity 
                discharge lamps covered under section 346, the 
                effective date of standards established pursuant to 
                that section, each manufacturer of a product to which 
                the standards are applicable shall file with the 
                Secretary a laboratory report certifying compliance 
                with the applicable standard for each lamp type.
                  ``(B) Contents.--The report shall include the lumen 
                output and wattage consumption for each lamp type as an 
                average of measurements taken over the preceding 12-
                month period.
                  ``(C) Other lamp types.--With respect to lamp types 
                that are not manufactured during the 12-month period 
                preceding the date on which the standards become 
                effective, the report shall--
                          ``(i) be filed with the Secretary not later 
                        than the date that is 12 months after the date 
                        on which manufacturing is commenced; and
                          ``(ii) include the lumen output and wattage 
                        consumption for each such lamp type as an 
                        average of measurements taken during the 12-
                        month period.''.
  (13) Section 325(l)(4)(A) of the Energy Policy and Conservation Act 
(42 U.S.C. 6295(l)(4)(A)) (as amended by section 321(a)(3)(B) of the 
Energy Independence and Security Act of 2007 (121 Stat. 1581)) is 
amended by striking ``only''.
  (14) Section 327(b)(1)(B) of the Energy Policy and Conservation Act 
(42 U.S.C. 6297(b)(1)(B)) (as amended by section 321(d)(3) of the 
Energy Independence and Security Act of 2007 (121 Stat. 1585)) is 
amended--
          (A) in clause (i), by inserting ``and'' after the semicolon 
        at the end;
          (B) in clause (ii), by striking ``; and'' and inserting a 
        period; and
          (C) by striking clause (iii).
  (15) Section 321(e) of the Energy Independence and Security Act of 
2007 (121 Stat. 1586) is amended--
          (A) in the matter preceding paragraph (1), by striking ``is 
        amended'' and inserting ``(as amended by section 306(b)) is 
        amended''; and
          (B) by striking paragraphs (1) and (2) and inserting the 
        following:
          ``(1) in paragraph (5), by striking `or' after the semicolon 
        at the end;
          ``(2) in paragraph (6), by striking the period at the end and 
        inserting `; or'; and''.
  (16) Section 332(a) of the Energy Policy and Conservation Act (42 
U.S.C. 6302(a)) (as amended by section 321(e) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1586)) is amended by 
redesignating the second paragraph (6) as paragraph (7).
  (17) Section 321(30)(C)(ii) of the Energy Policy and Conservation Act 
(42 U.S.C. 6291(30)(C)(ii)) (as amended by section 322(a)(1)(B) of the 
Energy Independence and Security Act of 2007 (121 Stat. 1587)) is 
amended by inserting a period after ``40 watts or higher''.
  (18) Section 322(b) of the Energy Independence and Security Act of 
2007 (121 Stat. 1588)) is amended by striking ``6995(i)'' and inserting 
``6295(i)''.
  (19) Section 327(c) of the Energy Policy and Conservation Act (42 
U.S.C. 6297(c)) (as amended by sections 324(f) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1594)) is amended--
          (A) in paragraph (6), by striking ``or'' after the semicolon 
        at the end;
          (B) in paragraph (8)(B), by striking ``and'' after the 
        semicolon at the end;
          (C) in paragraph (9)--
                  (i) by striking ``except that--'' and all that 
                follows through ``if the Secretary fails to issue'' and 
                inserting ``except that if the Secretary fails to 
                issue'';
                  (ii) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively (and by moving 
                the margins of such subparagraphs 2 ems to the left); 
                and
                  (iii) by striking the period at the end and inserting 
                a semicolon; and
          (D) by adding at the end the following:
          ``(10) is a regulation for general service lamps that 
        conforms with Federal standards and effective dates;
          ``(11) is an energy efficiency standard for general service 
        lamps enacted into law by the State of Nevada prior to December 
        19, 2007, if the State has not adopted the Federal standards 
        and effective dates pursuant to subsection (b)(1)(B)(ii); or''.
  (20) Section 325(b) of the Energy Independence and Security Act of 
2007 (121 Stat. 1596)) is amended by striking ``6924(c)'' and inserting 
``6294(c)''.
  (b) Title IV--Energy Savings in Buildings and Industry.--(1) Section 
401 of the Energy Independence and Security Act of 2007 (42 U.S.C. 
17061) is amended--
          (A) in paragraph (2), by striking ``484'' and inserting 
        ``494''; and
          (B) in paragraph (13), by striking ``Agency'' and inserting 
        ``Administration''.
  (2) Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) (as amended by section 411(a) of the Energy Independence 
and Security Act of 2007 (121 Stat. 1600)) is amended by striking 1 of 
the 2 periods at the end of paragraph (5).
  (3) Section 305(a)(3)(D)(i) of the Energy Conservation and Production 
Act (42 U.S.C. 6834(a)(3)(D)(i)) (as amended by section 433(a) of the 
Energy Independence and Security Act of 2007 (121 Stat. 1612)) is 
amended--
          (A) in subclause (I)--
                  (i) by striking ``in fiscal year 2003 (as measured by 
                Commercial Buildings Energy Consumption Survey or 
                Residential Energy Consumption Survey data from the 
                Energy Information Agency'' and inserting ``as measured 
                by the calendar year 2003 Commercial Buildings Energy 
                Consumption Survey or the calendar year 2005 
                Residential Energy Consumption Survey data from the 
                Energy Information Administration''; and
                  (ii) in the table at the end, by striking ``Fiscal 
                Year'' and inserting ``Calendar Year''; and
          (B) in subclause (II)--
                  (i) by striking ``(II) Upon petition'' and inserting 
                the following:
                                  ``(II) Downward adjustment of numeric 
                                requirement.--
                                          ``(aa) In general.--On 
                                        petition''; and
                  (ii) by striking the last sentence and inserting the 
                following:
                                          ``(bb) Exceptions to 
                                        requirement for concurrence of 
                                        secretary.--
                                                  ``(AA) In general.--
                                                The requirement to 
                                                petition and obtain the 
                                                concurrence of the 
                                                Secretary under this 
                                                subclause shall not 
                                                apply to any Federal 
                                                building with respect 
                                                to which the 
                                                Administrator of 
                                                General Services is 
                                                required to transmit a 
                                                prospectus to Congress 
                                                under section 3307 of 
                                                title 40, United States 
                                                Code, or to any other 
                                                Federal building 
                                                designed, constructed, 
                                                or renovated by the 
                                                Administrator if the 
                                                Administrator 
                                                certifies, in writing, 
                                                that meeting the 
                                                applicable numeric 
                                                requirement under 
                                                subclause (I) with 
                                                respect to the Federal 
                                                building would be 
                                                technically 
                                                impracticable in light 
                                                of the specific 
                                                functional needs for 
                                                the building.
                                                  ``(BB) Adjustment.--
                                                In the case of a 
                                                building described in 
                                                subitem (AA), the 
                                                Administrator may 
                                                adjust the applicable 
                                                numeric requirement of 
                                                subclause (I) downward 
                                                with respect to the 
                                                building.''.
  (4) Section 436(c)(3) of the Energy Independence and Security Act of 
2007 (42 U.S.C. 17092(c)(3)) is amended by striking ``474'' and 
inserting ``494''.
  (5) Section 440 of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17096) is amended by striking ``and 482''.
  (6) Section 373(c) of the Energy Policy and Conservation Act (42 
U.S.C. 6343(c)) (as amended by section 451(a) of the Energy 
Independence and Security Act of 2007 (121 Stat. 1628)) is amended by 
striking ``Administrator'' and inserting ``Secretary''.
  (c) Date of Enactment.--Section 1302 of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17382) is amended in the first sentence 
by striking ``enactment'' and inserting ``the date of enactment of this 
Act''.
  (d) Reference.--Section 1306(c)(3) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17386(c)(3)) is amended by striking 
``section 1307 (paragraph (17) of section 111(d) of the Public Utility 
Regulatory Policies Act of 1978)'' and inserting ``paragraph (19) of 
section 111(d) of the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2621(d))''.
  (e) Effective Date.--This section and the amendments made by this 
section take effect as if included in the Energy Independence and 
Security Act of 2007 (Public Law 110-140; 121 Stat. 1492).

SEC. 162. TECHNICAL CORRECTIONS TO ENERGY POLICY ACT OF 2005.

  (a) Title I--Energy Efficiency.--Section 325(g)(8)(C)(ii) of the 
Energy Policy and Conservation Act (42 U.S.C. 6295(g)(8)(C)(ii)) (as 
added by section 135(c)(2)(B) of the Energy Policy Act of 2005) is 
amended by striking ``20 F'' and inserting ``-20 F''.
  (b) Effective Date.--This section and the amendments made by this 
section take effect as if included in the Energy Policy Act of 2005 
(Public Law 109-58; 119 Stat. 594).

               Subtitle H--Energy and Efficiency Centers

SEC. 171. CLEAN ENERGY INNOVATION CENTERS.

  (a) Purpose.--The Secretary shall carry out a program to establish 
Clean Energy Innovation Centers to enhance the Nation's economic, 
environmental, and energy security by promoting commercial deployment 
of clean, indigenous energy alternatives to oil and other fossil fuels, 
reducing greenhouse gas emissions, and ensuring that the United States 
maintains a technological lead in developing and deploying state-of-
the-art energy technologies. To achieve these purposes the program 
shall--
          (1) leverage the expertise and resources of the university 
        and private research communities, industry, venture capital, 
        national laboratories, and other participants in energy 
        innovation to support cross-disciplinary research and 
        development in areas not being served by the private sector in 
        order to develop and transfer innovative clean energy 
        technologies into the marketplace;
          (2) expand the knowledge base and human capital necessary to 
        transition to a low-carbon economy; and
          (3) promote regional economic development by cultivating 
        clusters of clean energy technology firms, private research 
        organizations, suppliers, and other complementary groups and 
        businesses.
  (b) Definitions.--For purposes of this section:
          (1) Allowance.--The term ``allowance'' means an emission 
        allowance established under section 721 of the Clean Air Act.
          (2) Center.--The term ``Center'' means a Clean Energy 
        Innovation Center established in accordance with this section.
          (3) Clean energy technology.--The term ``clean energy 
        technology'' means a technology that--
                  (A) produces energy from solar, wind, geothermal, 
                biomass, tidal, wave, ocean, and other renewable energy 
                resources (as such term is defined in section 610 of 
                the Public Utility Regulatory Policies Act of 1978);
                  (B) more efficiently transmits, distributes, or 
                stores energy;
                  (C) enhances energy efficiency for buildings and 
                industry, including combined heat and power;
                  (D) enables the development of a Smart Grid (as 
                described in section 1301 of the Energy Independence 
                and Security Act of 2007 (42 U.S.C. 17381)), including 
                integration of renewable energy resources and 
                distributed generation, demand response, demand side 
                management, and systems analysis;
                  (E) produces an advanced or sustainable material with 
                energy or energy efficiency applications;
                  (F) enhances water security through improved water 
                management, conservation, distribution, and end use 
                applications; or
                  (G) improves energy efficiency for transportation, 
                including electric vehicles.
          (4) Cluster.--The term ``cluster'' means a concentration of 
        firms directly involved in the research, development, finance, 
        and commercialization of clean energy technologies whose 
        geographic proximity facilitates utilization and sharing of 
        skilled human resources, infrastructure, research facilities, 
        educational and training institutions, venture capital, and 
        input suppliers.
          (5) Project.--The term ``project'' means an activity with 
        respect to which a Center provides support under subsection 
        (e).
          (6) Qualifying entity.--The term ``qualifying entity'' means 
        each of the following:
                  (A) A research university.
                  (B) A State institution with a focus on the 
                advancement of clean energy technologies.
                  (C) A nongovernmental organization with research or 
                commercialization expertise in clean energy technology 
                development.
          (7) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.
          (8) Technology focus.--The term ``technology focus'' means 
        the unique technology area in which a Center will specialize, 
        and may include solar electricity, fuels from solar energy, 
        batteries and energy storage, electricity grid systems and 
        devices, energy efficient building systems and design, advanced 
        materials, modeling and simulation, and other clean energy 
        technology areas designated by the Secretary.
          (9) Translational research.--The term ``translational 
        research'' means clean energy technology research to coordinate 
        basic or applied research with technical and commercial 
        applications to enable promising discoveries or inventions to 
        attract investment sufficient for market penetration and 
        diffusion.
  (c) Role of the Secretary.--The Secretary shall--
          (1) have ultimate responsibility for, and oversight of, all 
        aspects of the program under this section;
          (2) provide for the distribution of allowances to consortia 
        for the establishment of 8 Centers pursuant to this section, 
        with each Center designated a unique technology focus area;
          (3) coordinate the innovation activities of Centers with 
        those occurring through other Department of Energy entities, 
        including the National Laboratories, the Advanced Research 
        Projects Agency--Energy, and Energy Frontier Research Centers, 
        and within industry, and to avoid duplication of research, by 
        annually--
                  (A) issuing guidance regarding national energy 
                research and development priorities and strategic 
                objectives; and
                  (B) convening a conference of staff of the Department 
                of Energy and representatives from such other entities 
                to share research results, program plans, and 
                opportunities for collaboration.
  (d) Consortium.--A consortium shall be eligible to receive allowances 
to support the establishment of a Center under this section if--
          (1) it is composed of--
                  (A) 2 research universities with a combined annual 
                research budget of $500,000,000; and
                  (B) no fewer than 1 additional qualifying entity;
          (2) its members have established a binding agreement that 
        documents--
                  (A) the structure of the partnership agreement;
                  (B) the governance and management structure to enable 
                cost-effective implementation of the program;
                  (C) an intellectual property management policy;
                  (D) a conflicts of interest policy consistent with 
                subsection (e)(4);
                  (E) an accounting structure that meets the 
                requirements of the Department and can be audited under 
                subsection (f)(3); and
                  (F) that it has an Advisory Board consistent with 
                subsection (e)(3);
          (3) it receives financial contributions from States, 
        consortium participants, or other non-Federal sources, to be 
        used pursuant to subsection (e)(2);
          (4) it is part of an existing cluster or demonstrates high 
        potential to develop a new cluster; and
          (5) it operates as a nonprofit organization.
  (e) Clean Energy Innovation Centers.--
          (1) Role.--Centers shall provide support to activities 
        leading to commercial deployment of clean energy technologies 
        pursuant to the purposes of this section through issuance of 
        awards to projects managed by qualifying entities and other 
        entities meeting the Center's project criteria, including 
        national laboratories. Each Center shall--
                  (A) develop and publish for public review and comment 
                proposed plans, programs, and project selection 
                criteria;
                  (B) submit an annual report to the Secretary 
                summarizing the Center's activities, organizational 
                expenditures, and Board members, which shall include a 
                certification of compliance with conflict of interest 
                policies and a description of each project in the 
                research portfolio;
                  (C) establish policies--
                          (i) regarding intellectual property developed 
                        as a result of Center awards and other forms of 
                        technology support that encourage individual 
                        ingenuity and invention while speeding 
                        knowledge transfer and facilitating the 
                        establishment of rapid commercialization 
                        pathways;
                          (ii) to prevent resources provided to the 
                        Center from being used to displace private 
                        sector investment likely to otherwise occur, 
                        including investment from private sector 
                        entities which are members of the consortium;
                          (iii) to facilitate the participation of 
                        private investment firms or other private 
                        entities that invest in clean energy 
                        technologies to perform due diligence on award 
                        proposals, to participate in the award review 
                        process, and to provide guidance to projects 
                        supported by the Center; and
                          (iv) to facilitate the participation of 
                        entrepreneurs with a demonstrated history of 
                        commercializing clean energy technologies;
                  (D) oversee project solicitations, review proposed 
                projects, and select projects for awards; and
                  (E) monitor project implementation.
          (2) Use and distribution of awards by centers.--A Center 
        shall allocate awards and other support for--
                  (A) clean energy technology projects conducting 
                translational research and related activities, at least 
                40 percent of which shall be utilized for projects 
                related to the Center's technology focus; and
                  (B) administrative expenses, which may constitute no 
                more than 10 percent of the award.
          (3) Advisory boards.--
                  (A) In general.--Each Center shall establish an 
                Advisory Board whose members shall have extensive and 
                relevant scientific, technical, industry, financial, or 
                research management expertise. The Advisory Board shall 
                review the Center's proposed plans, programs, project 
                selection criteria, and projects and shall ensure that 
                projects selected for awards meet the conflict of 
                interest policies of the Center. Advisory Board members 
                other than those representing consortium members shall 
                serve for no more than three years and must comply with 
                conflict of interest provisions.
                  (B) Members.--Each Advisory Board shall consist of--
                          (i) 5 members selected by the consortium's 
                        research universities;
                          (ii) 2 members selected by the consortium's 
                        other qualifying entities; and
                          (iii) 2 members selected at large by other 
                        Board members to represent the entrepreneur and 
                        venture capital communities.
                Individuals appointed under clause (iii) shall not be 
                State or Federal employees or affiliated with the 
                consortium's qualified entities.
                  (C) Nonvoting members.--The Board shall also include 
                1 nonvoting member appointed by the Secretary.
                  (D) Compensation.--Members of an Advisory Board may 
                receive reimbursement for travel expenses and a 
                reasonable stipend.
          (4) Conflict of interest.--
                  (A) Procedures.--Centers shall establish procedures 
                to ensure that employees or consortia designees for 
                Center activities who are in decisionmaking capacities 
                shall--
                          (i) disclose any financial interests in, or 
                        financial relationships with, applicants for or 
                        recipients of awards under paragraph (1), 
                        including those of his or her spouse or minor 
                        child, unless such relationships or interests 
                        would be considered to be remote or 
                        inconsequential; and
                          (ii) recuse himself or herself from any 
                        funding decision for projects in which he or 
                        she has a personal financial interest.
                  (B) Disqualification and revocation.--The Secretary 
                may disqualify an application or revoke allowances 
                distributed to the Center or awards provided under 
                paragraph (1), if cognizant officials of the Center 
                fail to comply with procedures required under 
                subparagraph (A).
  (f) Distribution of Allowances to Clean Energy Innovation Centers.--
          (1) Selection and schedule.--Allowances to support the 
        establishment of a Center shall be distributed through a 
        competitive process. Not later than 120 days after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        from eligible consortia to establish Centers, which shall be 
        submitted not later than 180 days after the date of enactment 
        of this Act. The Secretary shall select the program consortia 
        not later than 270 days after the date of enactment of this Act 
        pursuant to subsection (d). The Secretary shall award 3 grants 
        for the establishment of 3 Centers to be located on the campus 
        of 1890 Land Grant Institution (as defined in section 2 of the 
        Agricultural Research, Extension, and Education Reform Act of 
        1998 (7 U.S.C. 7061)).
          (2) Term and use of allowances.--Allowances distributed to 
        Centers shall be used to provide awards pursuant to subsection 
        (e)(1). The amount of allowances distributed to support the 
        establishment of a Center under this section shall not be less 
        than 10 and not more than 30 percent of the allowances 
        allocated under section 782(h) of the Clean Air Act, each year 
        for a 6 year period. Centers shall be eligible to compete for 
        additional allowance distribution after the expiration of the 
        initial period. Centers shall establish award periods for 
        individual awards. The transfer of allowances to a Center shall 
        occur at the start of each calendar year.
          (3) Audit.--Each Center shall conduct an annual audit to 
        determine the extent to which allowances distributed to the 
        Center, and awards under subsection (e) have been utilized in a 
        manner consistent with this section. The auditor shall transmit 
        a report of the results of the audit to the Secretary and to 
        the Government Accountability Office. The Secretary shall 
        include such report in the annual report to Congress, along 
        with a plan to remedy any deficiencies cited in the report. The 
        Government Accountability Office may review such audits as 
        appropriate and shall have full access to the books, records, 
        and personnel of the Center to ensure that allowances 
        distributed to the Center, and awards made under subsection 
        (e), have been utilized in a manner consistent with this 
        section.

SEC. 172. BUILDING ASSESSMENT CENTERS.

  (a) In General.--The Secretary of Energy (in this section referred to 
as the ``Secretary'') shall provide funding to institutions of higher 
education for Building Assessment Centers to--
          (1) identify opportunities for optimizing energy efficiency 
        and environmental performance in existing buildings;
          (2) promote high-efficiency building construction techniques 
        and materials options;
          (3) promote applications of emerging concepts and 
        technologies in commercial and institutional buildings;
          (4) train engineers, architects, building scientists, and 
        building technicians in energy-efficient design and operation;
          (5) assist local community colleges, trade schools, 
        registered apprenticeship programs and other accredited 
        training programs in training building technicians;
          (6) promote research and development for the use of 
        alternative energy sources to supply heat and power, for 
        buildings, particularly energy-intensive buildings; and
          (7) coordinate with and assist State-accredited technical 
        training centers and community colleges, while ensuring 
        appropriate services to all regions of the United States.
  (b) Coordination With Regional Centers for Energy and Environmental 
Knowledge and Outreach.--A Building Assessment Center may serve as a 
Center for Energy and Environmental Knowledge and Outreach established 
pursuant to section 173.
  (c) Coordination and Duplication.--The Secretary shall coordinate 
efforts under this section with other programs of the Department of 
Energy and other Federal agencies to avoid duplication of effort.
  (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $50,000,000 for 
fiscal year 2010 and each fiscal year thereafter.

SEC. 173. CENTERS FOR ENERGY AND ENVIRONMENTAL KNOWLEDGE AND OUTREACH.

  (a) Regional Centers for Energy and Environmental Knowledge and 
Outreach.--
          (1) Establishment.--The Secretary shall establish not more 
        than 10 regional Centers for Energy and Environmental Knowledge 
        and Outreach at institutions of higher education to coordinate 
        with and advise industrial research and assessment centers, 
        Building Assessment Centers, and Clean Energy Application 
        Centers located in the region of such Center for Energy and 
        Environmental Knowledge and Outreach.
          (2) Technical assistance programs.--Each Center for Energy 
        and Environmental Knowledge and Outreach shall consist of at 
        least one, new or existing, high performing, of the following:
                  (A) An industrial research and assessment center.
                  (B) A Clean Energy Application Center.
                  (C) A Building Assessment Center.
          (3) Selection criteria.--The Secretary shall select Centers 
        for Energy and Environmental Knowledge and Outreach through a 
        competitive process, based on the following:
                  (A) Identification of the highest performing 
                industrial research and assessment centers, Clean 
                Energy Application Centers, and Building Assessment 
                Centers.
                  (B) The degree to which an institution of higher 
                education maintains credibility among regional private 
                sector organizations such as trade associations, 
                engineering associations, and environmental 
                organizations.
                  (C) The degree to which an institution of higher 
                education is providing or has provided technical 
                assistance, academic leadership, and market leadership 
                in the energy arena in a manner that is consistent with 
                the areas of focus of industrial research and 
                assessment centers, Clean Energy Application Centers, 
                and Building Assessment Centers.
                  (D) The presence of an additional industrial research 
                and assessment center, Clean Energy Application Center, 
                or Building Assessment Center at the institution of 
                higher education.
          (4) Geographic diversity.--In selecting Centers for Energy 
        and Environmental Knowledge and Outreach under this subsection, 
        the Secretary shall ensure such Centers are distributed 
        geographically in a relatively uniform manner to ensure all 
        regions of the Nation are represented.
          (5) Regional leadership.--Each Center for Energy and 
        Environmental Knowledge and Outreach shall, to the extent 
        possible, provide leadership to all other industrial research 
        and assessment centers, Clean Energy Application Centers, and 
        Building Assessment Centers located in the Center's geographic 
        region, as determined by the Secretary. Such leadership shall 
        include--
                  (A) developing regional goals specific to the purview 
                of the industrial research and assessment centers, 
                Clean Energy Application Centers, and Building 
                Assessment Centers programs;
                  (B) developing regionally specific technical 
                resources; and
                  (C) outreach to interested parties in the region to 
                inform them of the information, resources, and services 
                available through the associated industrial research 
                and assessment centers, Clean Energy Application 
                Centers, and Building Assessment Centers.
          (6) Further coordination.--To increase the value and 
        capabilities of the regionally associated industrial research 
        and assessment centers, Clean Energy Application Centers, and 
        Building Assessment Centers programs, Centers for Energy and 
        Environmental Knowledge and Outreach shall--
                  (A) coordinate with Manufacturing Extension 
                Partnership Centers of the National Institute of 
                Science and Technology;
                  (B) coordinate with the relevant programs in the 
                Department of Energy, including the Building Technology 
                Program and Industrial Technologies Program;
                  (C) increase partnerships with the National 
                Laboratories of the Department of Energy to leverage 
                the expertise and technologies of the National 
                Laboratories to achieve the goals of the industrial 
                research and assessment centers, Clean Energy 
                Application Centers, and Building Assessment Centers;
                  (D) work with relevant municipal, county, and State 
                economic development entities to leverage relevant 
                financial incentives for capital investment and other 
                policy tools for the protection and growth of local 
                business and industry;
                  (E) partner with local professional and private trade 
                associations and business development interests to 
                leverage existing knowledge of local business 
                challenges and opportunities;
                  (F) work with energy utilities and other 
                administrators of publicly funded energy programs to 
                leverage existing energy efficiency and clean energy 
                programs;
                  (G) identify opportunities for reducing greenhouse 
                gas emissions; and
                  (H) promote sustainable business practices for those 
                served by the industrial research and assessment 
                centers, Clean Energy Application Centers, and Building 
                Assessment Centers.
          (7) Workforce training.--
                  (A) In general.--The Secretary shall require each 
                Center for Energy and Environmental Knowledge and 
                Outreach to establish or maintain an internship program 
                for the region of such Center, designed to encourage 
                students who perform energy assessments to continue 
                working with a particular company, building, or 
                facility to help implement the recommendations 
                contained in any such assessment provided to such 
                company, building, or facility. Each Center for Energy 
                and Environmental Knowledge and Outreach shall act as 
                internship coordinator to help match students to 
                available opportunities.
                  (B) Federal share.--The Federal share of the cost of 
                carrying out internship programs described under 
                subparagraph (A) shall be 50 percent.
                  (C) Funding.--Subject to the availability of 
                appropriations, of the funds made available to carry 
                out this subsection, the Secretary shall use to carry 
                out this paragraph not less than $5,000,000 for fiscal 
                year 2010 and each fiscal year thereafter.
          (8) Small business loans.--The Administrator of the Small 
        Business Administration shall, to the maximum practicable, 
        expedite consideration of applications from eligible small 
        business concerns for loans under the Small Business Act (15 
        U.S.C. 631 et seq.) for loans to implement recommendations of 
        any industrial research and assessment center, Clean Energy 
        Application Center, or Building Assessment Center.
          (9) Definitions.--In this subsection:
                  (A) Industrial research and assessment center.--The 
                term ``industrial research and assessment center'' 
                means a center established or maintained pursuant to 
                section 452(e) of the Energy Independence and Security 
                Act of 2007 (42 U.S.C. 17111(e)).
                  (B) Clean energy application center.--The term 
                ``Clean Energy Application Center'' means a center 
                redesignated and described section under section 375 of 
                the Energy Policy and Conservation Act (42 U.S.C. 
                6345).
                  (C) Building assessment center.--The term ``Building 
                Assessment Center'' means an institution of higher 
                education-based center established pursuant to section 
                172.
                  (D) Secretary.--The term ``Secretary'' means the 
                Secretary of Energy.
          (10) Funding.--There are authorized to be appropriated to the 
        Secretary to carry out this subsection $10,000,000 for fiscal 
        year 2010 and each fiscal year thereafter. Subject to the 
        availability of appropriations, of the funds made available to 
        carry out this subsection, the Secretary shall provide to each 
        Center for Energy and Environmental Knowledge and Outreach not 
        less than $500,000 for fiscal year 2010 and each fiscal year 
        thereafter.
  (b) Integration of Other Technical Assistance Programs.--
          (1) Clean energy application centers.--Section 375 of the 
        Energy Policy and Conservation Act (42 U.S.C. 6345) is 
        amended--
                  (A) by redesignating subsection (f) as subsection 
                (g); and
                  (B) by adding after subsection (e) the following new 
                subsection:
  ``(f) Coordination With Centers for Energy and Environmental 
Knowledge and Outreach.--A Clean Energy Application Center may serve as 
a Center for Energy and Environmental Knowledge and Outreach 
established pursuant to section 173 of the American Clean Energy and 
Security Act of 2009.''.
          (2) 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 striking ``The Secretary'' and all that 
                follows through ``shall be--'' and inserting the 
                following:
          ``(1) In general.--The Secretary shall provide funding to 
        institution of higher education-based industrial research and 
        assessment centers, whose purposes shall be--'';
                  (B) by redesignating paragraphs (1) through (5) as 
                subparagraphs (A) through (E), respectively (and by 
                moving the margins of such subparagraphs 2 ems to the 
                right); and
                  (C) by adding at the end the following new paragraph:
          ``(2) Coordination with centers for energy and environmental 
        knowledge and outreach.--An industrial research and assessment 
        center may serve as a Center for Energy and Environmental 
        Knowledge and Outreach established pursuant to section 173 of 
        the American Clean Energy and Security Act of 2009.''.
  (c) Additional Funding for Clean Energy Application Centers.--
Subsection (g) of section 375 of the Energy Policy and Conservation Act 
(42 U.S.C. 6345(f)), as redesignated by subsection (b)(1) of this 
section, is amended by striking ``$10,000,000 for each of fiscal years 
2008 through 2012'' and inserting ``$30,000,000 for fiscal year 2010 
and each fiscal year thereafter''.

             Subtitle I--Nuclear and Advanced Technologies

SEC. 181. REVISIONS TO LOAN GUARANTEE PROGRAM AUTHORITY.

  (a) Definition of Conditional Commitment.--Section 1701 of the Energy 
Policy Act of 2005 (42 U.S.C. 16511), as amended by section 130(a) of 
this Act, is amended by adding after paragraph (7) the following:
          ``(8) Conditional commitment.--The term `conditional 
        commitment' means a final term sheet negotiated between the 
        Secretary and a project sponsor or sponsors, which term sheet 
        shall be binding on both parties and become a final loan 
        guarantee agreement if all conditions precedent established in 
        the term sheet, which shall include the acquisition of all 
        necessary permits and licenses, are satisfied.''.
  (b) Specific Appropriation or Contribution.--Section 1702 of the 
Energy Policy Act of 2005 (42 U.S.C. 16512) is amended by striking 
subsection (b) and inserting the following:
  ``(b) Specific Appropriation or Contribution.--
          ``(1) In general.--No guarantee shall be made unless--
                  ``(A) an appropriation for the cost has been made;
                  ``(B) the Secretary has received from the borrower a 
                payment in full for the cost of the obligation and 
                deposited the payment into the Treasury; or
                  ``(C) a combination of appropriations or payments 
                from the borrower has been made sufficient to cover the 
                cost of the obligation.
          ``(2) Limitation.--The source of payments received from a 
        borrower under paragraph (1)(B) shall not be a loan or other 
        debt obligation that is made or guaranteed by the Federal 
        Government.''.
  (c) Fees.--Section 1702(h) of the Energy Policy Act of 2005 (42 
U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the 
following:
          ``(2) Availability.--Fees collected under this subsection 
        shall--
                  ``(A) be deposited by the Secretary into a special 
                fund in the Treasury to be known as the `Incentives For 
                Innovative Technologies Fund'; and
                  ``(B) remain available to the Secretary for 
                expenditure, without further appropriation or fiscal 
                year limitation, for administrative expenses incurred 
                in carrying out this title.''.
  (d) Wage Rate Requirements.--Section 1702 of the Energy Policy Act of 
2005 (42 U.S.C. 16512) is amended by adding at the end the following 
new subsection:
  ``(k) Wage Rate Requirements.--No loan guarantee shall be made under 
this title unless the borrower has provided to the Secretary reasonable 
assurances that all laborers and mechanics employed by contractors and 
subcontractors in the performance of construction work financed in 
whole or in part by the guaranteed loan will be paid wages at rates not 
less than those prevailing on projects of a character similar to the 
contract work in the civil subdivision of the State in which the 
contract work is to be performed as determined by the Secretary of 
Labor in accordance with subchapter IV of chapter 31 of part A of 
subtitle II of title 40, United States Code. With respect to the labor 
standards specified in this subsection, the Secretary of Labor shall 
have the authority and functions set forth in Reorganization Plan 
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of 
title 40, United States Code.''.

SEC. 182. PURPOSE.

  The purpose of sections 183 through 189 of this subtitle is to 
promote the domestic development and deployment of clean energy 
technologies required for the 21st century through the establishment of 
a self-sustaining Clean Energy Deployment Administration that will 
provide for an attractive investment environment through partnership 
with and support of the private capital market in order to promote 
access to affordable financing for accelerated and widespread 
deployment of--
          (1) clean energy technologies;
          (2) advanced or enabling energy infrastructure technologies;
          (3) energy efficiency technologies in residential, 
        commercial, and industrial applications, including end-use 
        efficiency in buildings; and
          (4) manufacturing technologies for any of the technologies or 
        applications described in this section.

SEC. 183. DEFINITIONS.

  In this subtitle:
          (1) Administration.--The term ``Administration'' means the 
        Clean Energy Deployment Administration established by section 
        186.
          (2) Advisory council.--The term ``Advisory Council'' means 
        the Energy Technology Advisory Council of the Administration.
          (3) Breakthrough technology.--The term ``breakthrough 
        technology'' means a clean energy technology that--
                  (A) presents a significant opportunity to advance the 
                goals developed under section 185, as assessed under 
                the methodology established by the Advisory Council; 
                but
                  (B) has generally not been considered a commercially 
                ready technology as a result of high perceived 
                technology risk or other similar factors.
          (4) Clean energy technology.--The term ``clean energy 
        technology'' means a technology related to the production, use, 
        transmission, storage, control, or conservation of energy--
                  (A) that will contribute to a stabilization of 
                atmospheric greenhouse gas concentrations thorough 
                reduction, avoidance, or sequestration of energy-
                related emissions and--
                          (i) reduce the need for additional energy 
                        supplies by using existing energy supplies with 
                        greater efficiency or by transmitting, 
                        distributing, or transporting energy with 
                        greater effectiveness through the 
                        infrastructure of the United States; or
                          (ii) diversify the sources of energy supply 
                        of the United States to strengthen energy 
                        security and to increase supplies with a 
                        favorable balance of environmental effects if 
                        the entire technology system is considered; and
                  (B) for which, as determined by the Administrator, 
                insufficient commercial lending is available to allow 
                for widespread deployment.
          (5) Cost.--The term ``cost'' has the meaning given the term 
        in section 502 of the Federal Credit Reform Act of 1990 (2 
        U.S.C. 661a).
          (6) Direct loan.--The term ``direct loan'' has the meaning 
        given the term in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a).
          (7) Fund.--The term ``Fund'' means the Clean Energy 
        Investment Fund established by section 184(a).
          (8) Loan guarantee.--The term ``loan guarantee'' has the 
        meaning given the term in section 502 of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661a).
          (9) 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).
          (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
          (11) State.--The term ``State'' means--
                  (A) a State;
                  (B) the District of Columbia;
                  (C) the Commonwealth of Puerto Rico; and
                  (D) any other territory or possession of the United 
                States.
          (12) Technology risk.--The term ``technology risk'' means the 
        risks during construction or operation associated with the 
        design, development, and deployment of clean energy 
        technologies (including the cost, schedule, performance, 
        reliability and maintenance, and accounting for the perceived 
        risk), from the perspective of commercial lenders, that may be 
        increased as a result of the absence of adequate historical 
        construction, operating, or performance data from commercial 
        applications of the technology.

SEC. 184. CLEAN ENERGY INVESTMENT FUND.

  (a) Establishment.--There is established in the Treasury of the 
United States a revolving fund, to be known as the ``Clean Energy 
Investment Fund'', consisting of--
          (1) such amounts as are deposited in the Fund under this 
        subtitle; and
          (2) such sums as may be appropriated to supplement the Fund.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Fund such sums as are necessary to carry out this 
subtitle.
  (c) Expenditures From Fund.--
          (1) In general.--Amounts in the Fund shall be available to 
        the Administrator of the Administration for obligation without 
        fiscal year limitation, to remain available until expended.
          (2) Administrative expenses.--
                  (A) Fees.--Fees collected for administrative expenses 
                shall be available without limitation to cover 
                applicable expenses.
                  (B) Fund.--To the extent that administrative expenses 
                are not reimbursed through fees, an amount not to 
                exceed 1.5 percent of the amounts in the Fund as of the 
                beginning of each fiscal year shall be available to pay 
                the administrative expenses for the fiscal year 
                necessary to carry out this subtitle.
  (d) Transfers of Amounts.--
          (1) In general.--The amounts required to be transferred to 
        the Fund under this section shall be transferred at least 
        monthly from the general fund of the Treasury to the Fund on 
        the basis of estimates made by the Secretary of the Treasury.
          (2) Adjustments.--Proper adjustment shall be made in amounts 
        subsequently transferred to the extent prior estimates were in 
        excess of or less than the amounts required to be transferred.

SEC. 185. ENERGY TECHNOLOGY DEPLOYMENT GOALS.

  (a) Goals.--Not later than 1 year after the date of enactment of this 
Act, the Secretary, after consultation with the Advisory Council, shall 
develop and publish for review and comment in the Federal Register 
near-, medium-, and long-term goals (including numerical performance 
targets at appropriate intervals to measure progress toward those 
goals) for the deployment of clean energy technologies through the 
credit support programs established by section 187 to promote--
          (1) sufficient electric generating capacity using clean 
        energy technologies to meet the energy needs of the United 
        States;
          (2) clean energy technologies in vehicles and fuels that will 
        substantially reduce the reliance of the United States on 
        foreign sources of energy and insulate consumers from the 
        volatility of world energy markets;
          (3) a domestic commercialization and manufacturing capacity 
        that will establish the United States as a world leader in 
        clean energy technologies across multiple sectors;
          (4) installation of sufficient infrastructure to allow for 
        the cost-effective deployment of clean energy technologies 
        appropriate to each region of the United States;
          (5) the transformation of the building stock of the United 
        States to zero net energy consumption;
          (6) the recovery, use, and prevention of waste energy;
          (7) domestic manufacturing of clean energy technologies on a 
        scale that is sufficient to achieve price parity with 
        conventional energy sources;
          (8) domestic production of commodities and materials (such as 
        steel, chemicals, polymers, and cement) using clean energy 
        technologies so that the United States will become a world 
        leader in environmentally sustainable production of the 
        commodities and materials;
          (9) a robust, efficient, and interactive electricity 
        transmission grid that will allow for the incorporation of 
        clean energy technologies, distributed generation, and demand-
        response in each regional electric grid;
          (10) sufficient availability of financial products to allow 
        owners and users of residential, retail, commercial, and 
        industrial buildings to make energy efficiency and distributed 
        generation technology investments with reasonable payback 
        periods; and
          (11) such other goals as the Secretary, in consultation with 
        the Advisory Council, determines to be consistent with the 
        purpose stated in section 182.
  (b) Revisions.--The Secretary shall revise the goals established 
under subsection (a), from time to time as appropriate, to account for 
advances in technology and changes in energy policy.

SEC. 186. CLEAN ENERGY DEPLOYMENT ADMINISTRATION.

  (a) Establishment.--
          (1) In general.--There is established in the Department of 
        Energy an administration to be known as the Clean Energy 
        Deployment Administration, under the direction of the 
        Administrator of the Administration and the Board of Directors.
          (2) Status.--
                  (A) In general.--The Administration (including 
                officers, employees, and agents of the Administration) 
                shall not be responsible to, or subject to the 
                authority, direction, or control of, any other officer, 
                employee, or agent of the Department of Energy other 
                than the Secretary, acting through the Administrator of 
                the Administration.
                  (B) Exemption from reorganization.--The 
                Administration shall be exempt from the reorganization 
                authority provided under section 643 of the Department 
                of Energy Reorganization Act (42 U.S.C. 7253).
                  (C) Inspector general.--Section 12 of the Inspector 
                General Act of 1978 (5 U.S.C. App.) is amended--
                          (i) in paragraph (1), by inserting ``the 
                        Administrator of the Clean Energy Deployment 
                        Administration;'' after ``Export-Import 
                        Bank;''; and
                          (ii) in paragraph (2), by inserting ``the 
                        Clean Energy Deployment Administration,'' after 
                        ``Export-Import Bank,''.
          (3) Offices.--
                  (A) Principal office.--The Administration shall--
                          (i) maintain the principal office of the 
                        Administration in the District of Columbia; and
                          (ii) for purposes of venue in civil actions, 
                        be considered to be a resident of the District 
                        of Columbia.
                  (B) Other offices.--The Administration may establish 
                other offices in such other places as the 
                Administration considers necessary or appropriate for 
                the conduct of the business of the Administration.
  (b) Administrator.--
          (1) In general.--The Administrator of the Administration 
        shall be--
                  (A) appointed by the President, with the advice and 
                consent of the Senate, for a 5-year term; and
                  (B) compensated at the annual rate of basic pay 
                prescribed for level II of the Executive Schedule under 
                section 5313 of title 5, United States Code.
          (2) Duties.--The Administrator of the Administration shall--
                  (A) serve as the Chief Executive Officer of the 
                Administration and Chairman of the Board;
                  (B) ensure that--
                          (i) the Administration operates in a safe and 
                        sound manner, including maintenance of adequate 
                        capital and internal controls (consistent with 
                        section 404 of the Sarbanes-Oxley Act of 2002 
                        (15 U.S.C. 7262));
                          (ii) the operations and activities of the 
                        Administration foster liquid, efficient, 
                        competitive, and resilient energy and energy 
                        efficiency finance markets;
                          (iii) the Administration carries out the 
                        purpose stated in section 182 only through 
                        activities that are authorized under and 
                        consistent with sections 182 through 189; and
                          (iv) the activities of the Administration and 
                        the manner in which the Administration is 
                        operated are consistent with the public 
                        interest;
                  (C) develop policies and procedures for the 
                Administration that will--
                          (i) promote a self-sustaining portfolio of 
                        investments that will maximize the value of 
                        investments to effectively promote clean energy 
                        technologies;
                          (ii) promote transparency and openness in 
                        Administration operations;
                          (iii) afford the Administration with 
                        sufficient flexibility to meet the purpose 
                        stated in section 182; and
                          (iv) provide for the efficient processing of 
                        applications; and
                  (D) with the concurrence of the Board, set expected 
                loss reserves for the support provided by the 
                Administration consistent with section 187(c).
  (c) Board of Directors.--
          (1) In general.--The Board of Directors of the Administration 
        shall consist of--
                  (A) the Secretary or the designee of the Secretary, 
                who shall serve as an ex-officio voting member of the 
                Board of Directors;
                  (B) the Administrator of the Administration, who 
                shall serve as the Chairman of the Board of Directors; 
                and
                  (C) 7 additional members who shall--
                          (i) be appointed by the President, with the 
                        advice and consent of the Senate, for staggered 
                        5-year terms; and
                          (ii) have experience in banking, financial 
                        services, technology assessment, energy 
                        regulation, or risk management, including 
                        individuals with substantial experience in the 
                        development of energy projects, the electricity 
                        generation sector, the transportation sector, 
                        the manufacturing sector, and the energy 
                        efficiency sector.
          (2) Duties.--The Board of Directors shall--
                  (A) oversee the operations of the Administration and 
                ensure industry best practices are followed in all 
                financial transactions involving the Administration;
                  (B) consult with the Administrator of the 
                Administration on the general policies and procedures 
                of the Administration to ensure the interests of the 
                taxpayers are protected;
                  (C) ensure the portfolio of investments are 
                consistent with purpose stated in section 182 and with 
                the long-term financial stability of the 
                Administration;
                  (D) ensure that the operations and activities of the 
                Administration are consistent with the development of a 
                robust private sector that can provide commercial loans 
                or financing products; and
                  (E) not serve on a full-time basis, except that the 
                Board of Directors shall meet at least quarterly to 
                review, as appropriate, applications for credit support 
                and set policies and procedures as necessary.
        No member of the Board shall take part in any review or 
        decision of any project as to which that member or member's 
        immediate family has a financial or other interest.
          (3) Removal.--An appointed member of the Board of Directors 
        may be removed from office by the President for good cause.
          (4) Vacancies.--An appointed seat on the Board of Directors 
        that becomes vacant shall be filled by appointment by the 
        President, but only for the unexpired portion of the term of 
        the vacating member.
          (5) Compensation of members.--An appointed member of the 
        Board of Directors shall be compensated at a rate equal to the 
        daily equivalent of the annual rate of basic pay prescribed for 
        level III of the Executive Schedule under section 5314 of title 
        5, United States Code, for each day (including travel time) 
        during which the member is engaged in the performance of the 
        duties of the Board of Directors.
  (d) Energy Technology Advisory Council.--
          (1) In general.--The Administration shall have an Energy 
        Technology Advisory Council consisting of--
                  (A) 5 members selected by the Secretary; and
                  (B) 3 members selected by the Board of Directors of 
                the Administration.
          (2) Qualifications.--The members of the Advisory Council 
        shall--
                  (A) have relevant scientific expertise; and
                  (B) in the case of the members selected by the 
                Secretary under paragraph (1)(A), include 
                representatives of--
                          (i) the academic community;
                          (ii) the private research community;
                          (iii) National Laboratories;
                          (iv) the technology or project development 
                        community; and
                          (v) the commercial energy financing and 
                        operations sector.
          (3) Duties.--The Advisory Council shall--
                  (A) develop and publish for comment in the Federal 
                Register a methodology for assessment of clean energy 
                technologies that will allow the Administration to 
                evaluate projects based on the progress likely to be 
                achieved per-dollar invested in maximizing the 
                attributes of the definition of clean energy 
                technology, taking into account the extent to which 
                support for a clean energy technology is likely to 
                accrue subsequent benefits that are attributable to a 
                commercial scale deployment taking place earlier than 
                that which otherwise would have occurred without the 
                support; and
                  (B) advise on the technological approaches that 
                should be supported by the Administration to meet the 
                technology deployment goals established by the 
                Secretary pursuant to section 185.
          (4) Term.--
                  (A) In general.--Members of the Advisory Council 
                shall have 5-year staggered terms, as determined by the 
                Secretary and the Administrator of the Administration.
                  (B) Reappointment.--A member of the Advisory Council 
                may be reappointed.
          (5) Compensation.--A member of the Advisory Council, who is 
        not otherwise compensated as a Federal employee, shall be 
        compensated at a rate equal to the daily equivalent of the 
        annual rate of basic pay prescribed for level IV of the 
        Executive Schedule under section 5315 of title 5, United States 
        Code, for each day (including travel time) during which the 
        member is engaged in the performance of the duties of the 
        Advisory Council.
  (e) Staff.--
          (1) In general.--The Administrator of the Administration, in 
        consultation with the Board of Directors, may--
                  (A) appoint and terminate such officers, attorneys, 
                employees, and agents as are necessary to carry out 
                this subtitle; and
                  (B) vest those personnel with such powers and duties 
                as the Administrator of the Administration may 
                determine.
          (2) Direct hire authority.--
                  (A) In general.--Notwithstanding section 3304 and 
                sections 3309 through 3318 of title 5, United States 
                Code, the Administrator of the Administration may, on a 
                determination that there is a severe shortage of 
                candidates or a critical hiring need for particular 
                positions, recruit and directly appoint highly 
                qualified critical personnel with specialized knowledge 
                important to the function of the Administration into 
                the competitive service.
                  (B) Exception.--The authority granted under 
                subparagraph (A) shall not apply to positions in the 
                excepted service or the Senior Executive Service.
                  (C) Requirements.--In exercising the authority 
                granted under subparagraph (A), the Administrator of 
                the Administration shall ensure that any action taken 
                by the Administrator of the Administration--
                          (i) is consistent with the merit principles 
                        of section 2301 of title 5, United States Code; 
                        and
                          (ii) complies with the public notice 
                        requirements of section 3327 of title 5, United 
                        States Code.
                  (D) Termination of effectiveness.--The authority 
                provided by this paragraph terminates effective on the 
                date that is 2 years after the date of enactment of 
                this Act.
          (3) Critical pay authority.--
                  (A) In general.--Notwithstanding section 5377 of 
                title 5, United States Code, and without regard to the 
                provisions of that title governing appointments in the 
                competitive service or the Senior Executive Service and 
                chapters 51 and 53 of that title (relating to 
                classification and pay rates), the Administrator of the 
                Administration may establish, fix the compensation of, 
                and appoint individuals to critical positions needed to 
                carry out the functions of the Administration, if the 
                Administrator of the Administration certifies that--
                          (i) the positions require expertise of an 
                        extremely high level in a financial, technical, 
                        or scientific field;
                          (ii) the Administration would not 
                        successfully accomplish an important mission 
                        without such an individual; and
                          (iii) exercise of the authority is necessary 
                        to recruit an individual who is exceptionally 
                        well qualified for the position.
                  (B) Limitations.--The authority granted under 
                subparagraph (A) shall be subject to the following 
                conditions:
                          (i) The number of critical positions 
                        authorized by subparagraph (A) may not exceed 
                        20 at any 1 time in the Administration.
                          (ii) The term of an appointment under 
                        subparagraph (A) may not exceed 4 years.
                          (iii) An individual appointed under 
                        subparagraph (A) may not have been an 
                        Administration employee at any time during the 
                        2-year period preceding the date of 
                        appointment.
                          (iv) Total annual compensation for any 
                        individual appointed under subparagraph (A) may 
                        not exceed the highest total annual 
                        compensation payable at the rate determined 
                        under section 104 of title 3, United States 
                        Code.
                          (v) An individual appointed under 
                        subparagraph (A) may not be considered to be an 
                        employee for purposes of subchapter II of 
                        chapter 75 of title 5, United States Code.
                  (C) Notification.--Each year, the Administrator of 
                the Administration shall submit to Congress a 
                notification that lists each individual appointed under 
                this paragraph.

SEC. 187. DIRECT SUPPORT.

  (a) In General.--The Administration may issue direct loans, letters 
of credit, and loan guarantees to deploy clean energy technologies if 
the Administrator of the Administration has determined that deployment 
of the technologies would benefit or be accelerated by the support.
  (b) Eligibility Criteria.--In carrying out this section and awarding 
credit support to projects, the Administrator of the Administration 
shall account for--
          (1) how the technology rates based on an evaluation 
        methodology established by the Advisory Council;
          (2) how the project fits with the goals established under 
        section 185; and
          (3) the potential for the applicant to successfully complete 
        the project.
  (c) Risk.--
          (1) Expected loan loss reserve.--The Administrator of the 
        Administration shall establish an expected loan loss reserve to 
        account for estimated losses attributable to activities under 
        this section that is consistent with the purposes of--
                  (A) developing breakthrough technologies to the point 
                at which technology risk is largely mitigated;
                  (B) achieving widespread deployment and advancing the 
                commercial viability of clean energy technologies; and
                  (C) advancing the goals established under section 
                185.
          (2) Initial expected loan loss reserve.--Until such time as 
        the Administrator of the Administration determines sufficient 
        data exist to establish an expected loan loss reserve that is 
        appropriate, the Administrator of the Administration shall 
        consider establishing an initial rate of 10 percent for the 
        portfolio of investments under this subtitle.
          (3) Portfolio investment approach.--The Administration 
        shall--
                  (A) use a portfolio investment approach to mitigate 
                risk and diversify investments across technologies and 
                ensure that no particular technology is provided more 
                than 30 percent of the financial support available;
                  (B) to the maximum extent practicable and consistent 
                with long-term self-sufficiency, weigh the portfolio of 
                investments in projects to advance the goals 
                established under section 185;
                  (C) consistent with the expected loan loss reserve 
                established under this subsection, the purpose stated 
                in section 182, and section 186(b)(2)(B), provide the 
                maximum practicable percentage of support to promote 
                breakthrough technologies; and
                  (D) give the highest priority to investments that 
                promote technologies that will achieve the maximum 
                greenhouse gas emission reductions within a reasonable 
                period of time per dollar invested and the earliest 
                reductions in greenhouse gas emissions.
          (4) Loss rate review.--
                  (A) In general.--The Board of Directors shall review 
                on an annual basis the loss rates of the portfolio to 
                determine the adequacy of the reserves.
                  (B) Report.--Not later than 90 days after the date of 
                the initiation of the review, the Administrator of the 
                Administration shall submit to the Committee on Energy 
                and Natural Resources of the Senate and the Committee 
                on Energy and Commerce of the House of Representatives 
                a report describing the results of the review and any 
                recommended policy changes.
          (5) Federal cost share.--A loan guarantee by the 
        Administration shall not exceed an amount equal to 80 percent 
        of the project cost of the facility that is the subject of the 
        guarantee, as estimated at the time at which the guarantee is 
        issued.
  (d) Application Review.--
          (1) In general.--To the maximum extent practicable and 
        consistent with sound business practices, the Administration 
        shall seek to consolidate reviews of applications for credit 
        support under this subtitle such that final decisions on 
        applications can generally be issued not later than 180 days 
        after the date of submission of a completed application.
          (2) Environmental review.--In carrying out this subtitle, the 
        Administration shall, to the maximum extent practicable--
                  (A) avoid duplicating efforts that have already been 
                undertaken by other agencies (including State agencies 
                acting under Federal programs); and
                  (B) with the advice of the Council on Environmental 
                Quality and any other applicable agencies, use the 
                administrative records of similar reviews conducted 
                throughout the executive branch to develop the most 
                expeditious review process practicable.
  (e) Wage Rate Requirements.--
          (1) In general.--No credit support shall be issued under this 
        section unless the borrower has provided to the Administrator 
        of the Administration reasonable assurances that all laborers 
        and mechanics employed by contractors and subcontractors in the 
        performance of construction work financed in whole or in part 
        by the Administration will be paid wages at rates not less than 
        those prevailing on projects of a character similar to the 
        contract work in the civil subdivision of the State in which 
        the contract work is to be performed as determined by the 
        Secretary of Labor in accordance with subchapter IV of chapter 
        31 of part A of subtitle II of title 40, United States Code.
          (2) Labor standards.--With respect to the labor standards 
        specified in this subsection, the Secretary of Labor shall have 
        the authority and functions set forth in Reorganization Plan 
        Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 
        3145 of title 40, United States Code.

SEC. 188. FEDERAL CREDIT AUTHORITY.

  (a) Payments of Liabilities.--
          (1) In general.--Any payment made to discharge liabilities 
        arising from agreements under this subtitle shall be paid out 
        of the Fund or the associated credit account, as appropriate.
          (2) Security.--The full faith and credit of the United States 
        is pledged to the payment of all obligations entered into by 
        the Administration pursuant to this subtitle.
  (b) Fees.--
          (1) In general.--Consistent with achieving the purpose stated 
        in section 182, the Administrator of the Administration shall 
        charge fees or collect compensation generally in accordance 
        with commercial rates.
          (2) Availability of fees.--All fees collected by the 
        Administration may be retained by the Administration and placed 
        in the Fund and may remain available to the Administration, 
        without further appropriation or fiscal year limitation, for 
        use in carrying out the purpose stated in section 182.
          (3) Breakthrough technologies.--The Administration shall 
        charge the minimum amount in fees or compensation practicable 
        for breakthrough technologies, consistent with the long-term 
        viability of the Administration, unless the Administration 
        first determines that a higher charge will not impede the 
        development of the technology.
          (4) Alternative fee arrangements.--The Administration may use 
        such alternative arrangements (such as profit participation, 
        contingent fees, and other valuable contingent interests) as 
        the Administration considers appropriate to compensate the 
        Administration for the expenses of the Administration and the 
        risk inherent in the support of the Administration.
  (c) Cost Transfer Authority.--Amounts collected by the Administration 
for the cost of a loan or loan guarantee shall be transferred by the 
Administration to the respective credit accounts.

SEC. 189. GENERAL PROVISIONS.

  (a) Immunity From Impairment, Limitation, or Restriction.--
          (1) In general.--All rights and remedies of the 
        Administration (including any rights and remedies of the 
        Administration on, under, or with respect to any mortgage or 
        any obligation secured by a mortgage) shall be immune from 
        impairment, limitation, or restriction by or under--
                  (A) any law (other than a law enacted by Congress 
                expressly in limitation of this paragraph) that becomes 
                effective after the acquisition by the Administration 
                of the subject or property on, under, or with respect 
                to which the right or remedy arises or exists or would 
                so arise or exist in the absence of the law; or
                  (B) any administrative or other action that becomes 
                effective after the acquisition.
          (2) State law.--The Administrator of the Administration may 
        conduct the business of the Administration without regard to 
        any qualification or law of any State relating to 
        incorporation.
  (b) Use of Other Agencies.--With the consent of a department, 
establishment, or instrumentality (including any field office), the 
Administration may--
          (1) use and act through any department, establishment, or 
        instrumentality; and
          (2) use, and pay compensation for, information, services, 
        facilities, and personnel of the department, establishment, or 
        instrumentality.
  (c) Procurement.--The Administrator of the Administration shall be 
the senior procurement officer for the Administration for purposes of 
section 16(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 414(a)).
  (d) Financial Matters.--
          (1) Investments.--Funds of the Administration may be invested 
        in such investments as the Board of Directors may prescribe.
          (2) Fiscal agents.--Any Federal Reserve bank or any bank as 
        to which at the time of the designation of the bank by the 
        Administrator of the Administration there is outstanding a 
        designation by the Secretary of the Treasury as a general or 
        other depository of public money, may be designated by the 
        Administrator of the Administration as a depositary or 
        custodian or as a fiscal or other agent of the Administration.
  (e) Jurisdiction.--Notwithstanding section 1349 of title 28, United 
States Code, or any other provision of law--
          (1) the Administration shall be considered a corporation 
        covered by sections 1345 and 1442 of title 28, United States 
        Code;
          (2) all civil actions to which the Administration is a party 
        shall be considered to arise under the laws of the United 
        States, and the district courts of the United States shall have 
        original jurisdiction of all such actions, without regard to 
        amount or value; and
          (3) any civil or other action, case or controversy in a court 
        of a State, or in any court other than a district court of the 
        United States, to which the Administration is a party may at 
        any time before trial be removed by the Administration, without 
        the giving of any bond or security and by following any 
        procedure for removal of causes in effect at the time of the 
        removal--
                  (A) to the district court of the United States for 
                the district and division embracing the place in which 
                the same is pending; or
                  (B) if there is no such district court, to the 
                district court of the United States for the district in 
                which the principal office of the Administration is 
                located.
  (f) Periodic Reports.--Not later than 1 year after commencement of 
operation of the Administration and at least biannually thereafter, the 
Administrator of the Administration shall submit to the Committee on 
Energy and Natural Resources of the Senate and the Committee on Energy 
and Commerce of the House of Representatives a report that includes a 
description of--
          (1) the technologies supported by activities of the 
        Administration and how the activities advance the purpose 
        stated in section 182; and
          (2) the performance of the Administration on meeting the 
        goals established under section 185.
  (g) Audits by the Comptroller General.--
          (1) In general.--The programs, activities, receipts, 
        expenditures, and financial transactions of the Administration 
        shall be subject to audit by the Comptroller General of the 
        United States under such rules and regulations as may be 
        prescribed by the Comptroller General.
          (2) Access.--The representatives of the Government 
        Accountability Office shall--
                  (A) have access to the personnel and to all books, 
                accounts, documents, records (including electronic 
                records), reports, files, and all other papers, 
                automated data, things, or property belonging to, under 
                the control of, or in use by the Administration, or any 
                agent, representative, attorney, advisor, or consultant 
                retained by the Administration, and necessary to 
                facilitate the audit;
                  (B) be afforded full facilities for verifying 
                transactions with the balances or securities held by 
                depositories, fiscal agents, and custodians;
                  (C) be authorized to obtain and duplicate any such 
                books, accounts, documents, records, working papers, 
                automated data and files, or other information relevant 
                to the audit without cost to the Comptroller General; 
                and
                  (D) have the right of access of the Comptroller 
                General to such information pursuant to section 716(c) 
                of title 31, United States Code.
          (3) Assistance and cost.--
                  (A) In general.--For the purpose of conducting an 
                audit under this subsection, the Comptroller General 
                may, in the discretion of the Comptroller General, 
                employ by contract, without regard to section 3709 of 
                the Revised Statutes (41 U.S.C. 5), professional 
                services of firms and organizations of certified public 
                accountants for temporary periods or for special 
                purposes.
                  (B) Reimbursement.--
                          (i) In general.--On the request of the 
                        Comptroller General, the Administration shall 
                        reimburse the Government Accountability Office 
                        for the full cost of any audit conducted by the 
                        Comptroller General under this subsection.
                          (ii) Crediting.--Such reimbursements shall--
                                  (I) be credited to the appropriation 
                                account entitled ``Salaries and 
                                Expenses, Government Accountability 
                                Office'' at the time at which the 
                                payment is received; and
                                  (II) remain available until expended.
  (h) Annual Independent Audits.--
          (1) In general.--The Administrator of the Administration 
        shall--
                  (A) have an annual independent audit made of the 
                financial statements of the Administration by an 
                independent public accountant in accordance with 
                generally accepted auditing standards; and
                  (B) submit to the Secretary the results of the audit.
          (2) Content.--In conducting an audit under this subsection, 
        the independent public accountant shall determine and report on 
        whether the financial statements of the Administration--
                  (A) are presented fairly in accordance with generally 
                accepted accounting principles; and
                  (B) comply with any disclosure requirements imposed 
                under this subtitle.
  (i) Financial Reports.--
          (1) In general.--The Administrator of the Administration 
        shall submit to the Secretary annual and quarterly reports of 
        the financial condition and operations of the Administration, 
        which shall be in such form, contain such information, and be 
        submitted on such dates as the Secretary shall require.
          (2) Contents of annual reports.--Each annual report shall 
        include--
                  (A) financial statements prepared in accordance with 
                generally accepted accounting principles;
                  (B) any supplemental information or alternative 
                presentation that the Secretary may require; and
                  (C) an assessment (as of the end of the most recent 
                fiscal year of the Administration), signed by the chief 
                executive officer and chief accounting or financial 
                officer of the Administration, of--
                          (i) the effectiveness of the internal control 
                        structure and procedures of the Administration; 
                        and
                          (ii) the compliance of the Administration 
                        with applicable safety and soundness laws.
          (3) Special reports.--The Secretary may require the 
        Administrator of the Administration to submit other reports on 
        the condition (including financial condition), management, 
        activities, or operations of the Administration, as the 
        Secretary considers appropriate.
          (4) Accuracy.--Each report of financial condition shall 
        contain a declaration by the Administrator of the 
        Administration or any other officer designated by the Board of 
        Directors of the Administration to make the declaration, that 
        the report is true and correct to the best of the knowledge and 
        belief of the officer.
          (5) Availability of reports.--Reports required under this 
        section shall be published and made publicly available as soon 
        as is practicable after receipt by the Secretary.
  (j) Scope and Termination of Authority.--
          (1) New obligations.--The Administrator of the Administration 
        shall not initiate any new obligations under this subtitle on 
        or after January 1, 2029.
          (2) Reversion to secretary.--The authorities and obligations 
        of the Administration shall revert to the Secretary on January 
        1, 2029.

                       Subtitle J--Miscellaneous

SEC. 191. STUDY OF OCEAN RENEWABLE ENERGY AND TRANSMISSION PLANNING AND 
                    SITING.

  (a) Definitions.--In this section:
          (1) Marine spatial plan.--The term ``marine spatial plan'' 
        means the analysis and allocation of ocean space for various 
        uses to achieve ecological, economic, and social objectives, 
        based on the principle of ecosystem-based management.
          (2) Marine spatial planning.--The term ``marine spatial 
        planning'' means the process of developing a marine spatial 
        plan.
          (3) Ecosystem-based management.--The term ``ecosystem-based 
        management'' means a management approach that ensures the 
        future ecological and economic sustainability of natural 
        resources by--
                  (A) accounting for all ecosystem interactions and 
                direct, indirect, and cumulative impacts of human 
                activities on the ecosystem;
                  (B) emphasizing protection of ecosystem structure, 
                functions, patterns, and processes; and
                  (C) maintaining ecosystems in a healthy and resilient 
                condition.
          (4) Offshore renewable energy.--The term ``offshore renewable 
        energy'' means energy generated from offshore wind or offshore 
        hydrokinetic (wave, tidal, ocean current, and tidal-current) 
        energy technologies.
          (5) Offshore renewable energy facility.--The term ``offshore 
        renewable energy facility'' means a facility that generates 
        offshore renewable energy or any offshore transmission line 
        associated with such facility.
  (b) Study.--
          (1) In general.--As soon as practicable after the date of 
        enactment of this section, the Federal Energy Regulatory 
        Commission, the Secretary of the Interior, and the National 
        Oceanic and Atmospheric Administration, in consultation with 
        the Council on Environmental Quality and, as appropriate, 
        coastal States, regional organizations of coastal States, and 
        relevant nongovernmental organizations, shall jointly conduct a 
        study of the potential for marine spatial planning to 
        facilitate the development of offshore renewable energy 
        facilities in a manner that protects and maintains coastal and 
        marine ecosystem health.
          (2) Requirements.--The study under paragraph (1) shall 
        include--
                  (A) identification of the steps involved in regional 
                marine spatial planning for the siting of offshore 
                renewable energy facilities;
                  (B) a recommended approach for the development of 
                regional marine spatial plans for the siting of 
                offshore renewable energy facilities that provides 
                for--
                          (i) the participation of relevant Federal 
                        agencies and State governments;
                          (ii) coordination, to the maximum extent 
                        practicable, with any marine spatial planning 
                        undertaken by States;
                          (iii) public input; and
                          (iv) the periodic revision of such plans as 
                        necessary to account for significant new 
                        information and ensure achievement of plan 
                        objectives;
                  (C) identification of required elements of such 
                regional marine spatial plans, including rules that 
                Federal agencies shall apply to applications for any 
                authorizations required under existing Federal law to 
                construct or operate offshore renewable energy 
                facilities within areas covered by such plans;
                  (D) an assessment of the adequacy of existing data, 
                including baseline environmental data, to support such 
                marine spatial planning and identification of gaps in 
                such data and the studies needed to fill such gaps;
                  (E) an assessment of the resources required to carry 
                out such marine spatial planning;
                  (F) recommended mechanisms for the formal adoption 
                and implementation of regional marine spatial plans for 
                the development of offshore renewable energy facilities 
                by relevant Federal agencies;
                  (G) identification of any additional authority 
                relevant Federal agencies would need to adopt and 
                implement regional marine spatial plans for the 
                development of offshore renewable energy facilities; 
                and
                  (H) such other recommendations as appropriate.
          (3) Report.--Not later than 6 months after the date of 
        enactment of this section, the Federal Energy Regulatory 
        Commission, the Secretary of the Interior, and the National 
        Oceanic and Atmospheric Administration shall jointly publish 
        the findings and recommendations of the study conducted 
        pursuant to this subsection and shall accept public comment for 
        at least 30 days after such publication. Following 
        consideration of any public comments, and not later than 8 
        months after the date of enactment of this section, the Federal 
        Energy Regulatory Commission, the Secretary of the Interior, 
        and the National Oceanic and Atmospheric Administration shall 
        jointly submit to Congress and the Council on Environmental 
        Quality the findings and recommendations of the study conducted 
        pursuant to this subsection.
  (c) Assessment of Report.--
          (1) In general.--Not later than 4 months after the date of 
        submission of the report required under subsection (b)(3), the 
        Council on Environmental Quality shall assess the 
        recommendations of such report, issue a written determination 
        as to whether the recommended approach to marine spatial 
        planning should be implemented, and transmit such written 
        determination to the relevant Federal agencies and Congress.
          (2) Coordination for recommended approach.--If the Council on 
        Environmental Quality determines that the recommended approach 
        to marine spatial planning should be implemented, the relevant 
        Federal agencies shall implement such approach and complete the 
        development of marine spatial plans pursuant to that approach 
        no later than 18 months after the written determination 
        required by paragraph (1), and the Council on Environmental 
        Quality shall coordinate such implementation. At the time of 
        the written determination required by paragraph (1), the 
        Council on Environmental Quality shall notify Congress if the 
        relevant Federal agencies lack authority to carry out any 
        aspect of the recommended approach.
          (3) Alternative approach.--If the Council on Environmental 
        Quality determines that the recommended approach to marine 
        spatial planning should not be implemented, the Council on 
        Environmental Quality shall formulate an alternative approach 
        and submit such alternative approach to the relevant Federal 
        agencies and Congress at the time of the written determination 
        required by paragraph (1).
  (d) Relationship to Existing Law.--Nothing in this section shall 
affect or be construed to affect any law, regulation, or memoranda of 
understanding governing the development of offshore renewable energy 
facilities in effect prior to the implementation of the recommended or 
alternative approach pursuant to subsection (c).
  (e) Authorization.--There are authorized to be appropriated such sums 
as may be necessary to carry out this section.

SEC. 192. CLEAN TECHNOLOGY BUSINESS COMPETITION GRANT PROGRAM.

  (a) In General.--The Secretary of Energy is authorized to provide 
grants to organizations to conduct business competitions that provide 
incentives, training, and mentorship to entrepreneurs and early stage 
start-up companies throughout the United States to meet high priority 
economic, environmental, and energy security goals in areas to include 
energy efficiency, renewable energy, air quality, water quality and 
conservation, transportation, smart grid, green building, and waste 
management. Such competitions shall have the purpose of accelerating 
the development and deployment of clean technology businesses and green 
jobs; stimulating green economic development; providing business 
training and mentoring to early stage clean technology companies; and 
strengthening the competitiveness of United States clean technology 
industry in world trade markets. Priority shall be given to business 
competitions that are private sector led, encourage regional and 
interregional cooperation, and can demonstrate market-driven practices 
and show the creation of cost-effective green jobs through an annual 
publication of competition activities and directory of companies.
  (b) Eligibility.--An organization eligible for a grant under 
subsection (a) is--
          (1) any organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 and exempt from tax under section 
        501(a) of such Code; and
          (2) any sponsored entity of an organization described in 
        paragraph (1) that is operated as a nonprofit entity.
  (c) Priority.--In making grants under this section, the Secretary 
shall give priority to those organizations that can demonstrate broad 
funding support from private and other non-Federal funding sources to 
leverage Federal investment.
  (d) Authorization of Appropriations.--For the purpose of carrying out 
this section, there are authorized to be appropriated $20,000,000.

SEC. 193. NATIONAL BIOENERGY PARTNERSHIP.

  (a) In General.--The Secretary of Energy shall establish a National 
Bioenergy Partnership to provide coordination among programs of State 
governments, the Federal Government, and the private sector that 
support the institutional and physical infrastructure necessary to 
promote the deployment of sustainable biomass fuels and bioenergy 
technologies for the United States.
  (b) Program.--The National Bioenergy Partnership shall consist of 
five regions, to be administered by the CONEG Policy Research Center, 
the Council of Great Lakes Governors, the Southern States Energy Board, 
the Western Governors Association, and the Pacific Regional Biomass 
Energy Partnership led by the Washington State University Energy 
Program.
  (c) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2010 through 2014 to carry out 
this section--
          (1) $5,000,000, to be allocated among the 5 regions described 
        in subsection (b) on the basis of the number of States in each 
        region, for distribution among the member States of that region 
        based on procedures developed by the member States of the 
        region; and
          (2) $2,500,000, to be allocated equally among the 5 regions 
        described in subsection (b) for region-wide activities, 
        including technical assistance and regional studies and 
        coordination.

SEC. 194. OFFICE OF CONSUMER ADVOCACY.

  (a) Office.--
          (1) Establishment.--There is an Office of Consumer Advocacy 
        established within the Commission to serve as an advocate for 
        the public interest.
          (2) Director.--The Office shall be headed by a Director to be 
        appointed by the President, who is admitted to the Federal Bar, 
        with experience in public utility proceedings, and by and with 
        the advice and consent of the Senate.
          (3) Duties.--The Office may--
                  (A) represent, and appeal on behalf of, energy 
                customers on matters concerning rates or service of 
                public utilities and natural gas companies under the 
                jurisdiction of the Commission--
                          (i) at hearings of the Commission;
                          (ii) in judicial proceedings in the courts of 
                        the United States; and
                          (iii) at hearings or proceedings of other 
                        Federal regulatory agencies and commissions;
                  (B) monitor and review energy customer complaints and 
                grievances on matters concerning rates or service of 
                public utilities and natural gas companies under the 
                jurisdiction of the Commission;
                  (C) investigate independently, or within the context 
                of formal proceedings, the services provided by, the 
                rates charged by, and the valuation of the properties 
                of, public utilities and natural gas companies under 
                the jurisdiction of the Commission;
                  (D) develop means, such as public dissemination of 
                information, consultative services, and technical 
                assistance, to ensure, to the maximum extent 
                practicable, that the interests of energy consumers are 
                adequately represented in the course of any hearing or 
                proceeding described in subparagraph (A);
                  (E) collect data concerning rates or service of 
                public utilities and natural gas companies under the 
                jurisdiction of the Commission; and
                  (F) prepare and issue reports and recommendations.
          (4) Compensation and powers.--The Director may--
                  (A) employ and fix the compensation of such staff 
                personnel as is deemed necessary; and
                  (B) procure temporary and intermittent services as 
                needed.
          (5) Access to information.--Each department, agency, and 
        instrumentality of the Federal Government is authorized and 
        directed to furnish to the Director such reports and other 
        information as he deems necessary to carry out his functions 
        under this section.
  (b) Consumer Advocacy Advisory Committee.--
          (1) Establishment.--The Director shall establish an advisory 
        committee to be known as Consumer Advocacy Advisory Committee 
        (in this section referred to as the ``Advisory Committee'') to 
        review rates, services, and disputes and to make 
        recommendations to the Director.
          (2) Composition.--The Director shall appoint 5 members to the 
        Advisory Committee including--
                  (A) 2 individuals representing State Utility Consumer 
                Advocates; and
                  (B) 1 individual, from a nongovernmental 
                organization, representing consumers.
          (3) Meetings.--The Advisory Committee shall meet at such 
        frequency as may be required to carry out its duties.
          (4) Reports.--The Director shall provide for publication of 
        recommendations of the Advisory Committee on the public website 
        established for the Office.
          (5) Duration.--Notwithstanding any other provision of law, 
        the Advisory Committee shall continue in operation during the 
        period in which the Office exists.
          (6) Application of faca.--Except as otherwise specifically 
        provided, the Advisory Committee shall be subject to the 
        Federal Advisory Committee Act.
  (c) Definitions.--
          (1) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
          (2) Energy customer.--The term ``energy customer'' means a 
        residential customer or a small commercial customer that 
        receives products or services from a public utility or natural 
        gas company under the jurisdiction of the Commission.
          (3) Natural gas company.--The term ``natural gas company'' 
        has the meaning given the term in section 2 of the Natural Gas 
        Act (15 U.S.C. 717a), as modified by section 601(a) of the 
        Natural Gas Policy Act of 1978 (15 U.S.C. 3431(a)).
          (4) Office.--The term ``Office'' means the Office of Consumer 
        Advocacy established by subsection (a)(1).
          (5) Public utility.--The term ``public utility'' has the 
        meaning given the term in section 201(e) of the Federal Power 
        Act (16 U.S.C. 824(e)).
          (6) Small commercial customer.--The term ``small commercial 
        customer'' means a commercial customer that has a peak demand 
        of not more than 1,000 kilowatts per hour.
  (d) Authorization of Appropriations.--There are authorized such sums 
as necessary to carry out this section.
  (e) Savings Clause.--Nothing in this section affects the rights or 
obligations of State Utility Consumer Advocates.

                      TITLE II--ENERGY EFFICIENCY

            Subtitle A--Building Energy Efficiency Programs

SEC. 201. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

  Section 304 of the Energy Conservation and Production Act (42 U.S.C. 
6833) is amended to read as follows:

``SEC. 304. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

  ``(a) Energy Efficiency Targets.--
          ``(1) In general.--Except as provided in paragraph (2) or 
        (3), the national building code energy efficiency target for 
        the national average percentage improvement of a building's 
        energy performance when built to a code meeting the target 
        shall be--
                  ``(A) effective on the date of enactment of the 
                American Clean Energy and Security Act of 2009, 30 
                percent reduction in energy use relative to a 
                comparable building constructed in compliance with the 
                baseline code;
                  ``(B) effective January 1, 2014, for residential 
                buildings, and January 1, 2015, for commercial 
                buildings, 50 percent reduction in energy use relative 
                to the baseline code; and
                  ``(C) effective January 1, 2017, for residential 
                buildings, and January 1, 2018, for commercial 
                buildings, and every 3 years thereafter, respectively, 
                through January 1, 2029, and January 1, 2030, 5 percent 
                additional reduction in energy use relative to the 
                baseline code.
          ``(2) Consensus-based codes.--If on any effective date 
        specified in paragraph (1)(A), (B), or (C) a successor code to 
        the baseline codes provides for greater reduction in energy use 
        than is required under paragraph (1), the overall percentage 
        reduction in energy use provided by that successor code shall 
        be the national building code energy efficiency target.
          ``(3) Targets established by secretary.--The Secretary may by 
        rule establish a national building code energy efficiency 
        target for residential or commercial buildings achieving 
        greater reductions in energy use than the targets prescribed in 
        paragraph (1) or (2) if the Secretary determines that such 
        greater reductions in energy use can be achieved with a code 
        that is life cycle cost-justified and technically feasible. The 
        Secretary may by rule establish a national building code energy 
        efficiency target for residential or commercial buildings 
        achieving a reduction in energy use that is greater than zero 
        but less than the targets prescribed in paragraph (1) or (2) if 
        the Secretary determines that such lesser target is the maximum 
        reduction in energy use that can be achieved through a code 
        that is life cycle cost-justified and technically feasible.
          ``(4) Additional reductions in energy use.--Effective on 
        January 1, 2033, and once every 3 years thereafter, the 
        Secretary shall determine, after notice and opportunity for 
        comment, whether further energy efficiency building code 
        improvements for residential or commercial buildings, 
        respectively, are life cycle cost-justified and technically 
        feasible, and shall establish updated national building code 
        energy efficiency targets that meet such criteria.
          ``(5) Zero-net-energy buildings.--In setting targets under 
        this subsection, the Secretary shall consider ways to support 
        the deployment of distributed renewable energy technology, and 
        shall seek to achieve the goal of zero-net-energy commercial 
        buildings established in section 422 of the Energy Independence 
        and Security Act of 2007 (42 U.S.C. 17082).
          ``(6) Baseline code.--For purposes of this section, the term 
        `baseline code' means--
                  ``(A) for residential buildings, the 2006 
                International Energy Conservation Code (IECC) published 
                by the International Code Council; and
                  ``(B) for commercial buildings, the code published in 
                ASHRAE Standard 90.1-2004.
          ``(7) Consultation.--In establishing the targets required by 
        this section, the Secretary shall consult with the Director of 
        the National Institute of Standards and Technology.
  ``(b) National Energy Efficiency Building Codes.--
          ``(1) Requirement.--
                  ``(A) In general.--There shall be established 
                national energy efficiency building codes under this 
                subsection, for residential and commercial buildings, 
                sufficient to meet each of the national building code 
                energy efficiency targets established under subsection 
                (a), not later than the date that is one year after the 
                deadline for establishment of each such target.
                  ``(B) Existing code.--If the Secretary finds prior to 
                the date one year after the deadline for establishing a 
                target that one or more energy efficiency building 
                codes published by a recognized consensus-based code 
                development organization meet or exceed the established 
                target, the Secretary shall select the code that meets 
                the target with the highest efficiency in the most 
                cost-effective manner, and such code shall be the 
                national energy efficiency building code.
                  ``(C) Requirement to establish code.--If the 
                Secretary does not make a finding under subparagraph 
                (B), the national energy efficiency building code shall 
                be established by rule by the Secretary under paragraph 
                (2).
          ``(2) Establishment by secretary.--
                  ``(A) Procedure.--In order to establish a national 
                energy efficiency building code as required under 
                paragraph (1)(C), the Secretary shall--
                          ``(i) not later than six months prior to the 
                        effective date for each target, review existing 
                        and proposed codes published or under review by 
                        recognized consensus-based code development 
                        organizations;
                          ``(ii) determine the percentage of energy 
                        efficiency improvements that are or would be 
                        achieved in such published or proposed code 
                        versions relative to the target;
                          ``(iii) propose improvements to such 
                        published or proposed code versions sufficient 
                        to meet or exceed the target; and
                          ``(iv) unless a finding is made under 
                        paragraph (1)(B) with respect to a code 
                        published by a recognized consensus-based code 
                        development organization, adopt a code that 
                        meets or exceeds the relevant national building 
                        code energy efficiency target by not later than 
                        one year after the effective date of such 
                        target.
                  ``(B) Calculations.--Each code established by the 
                Secretary under this paragraph shall be set at the 
                maximum level the Secretary determines is life cycle 
                cost-justified and technically feasible, in accordance 
                with the following:
                          ``(i) Savings calculations.--Calculations of 
                        energy savings shall take into account the 
                        typical lifetimes of different products, 
                        measures, and system configurations.
                          ``(ii) Cost-effectiveness calculations.--
                        Calculations of life cycle cost-effectiveness 
                        shall be based on life cycle cost methods and 
                        procedures under section 544 of the National 
                        Energy Conservation Policy Act (42 U.S.C. 
                        8254), but shall incorporate to the extent 
                        feasible externalities such as impacts on 
                        climate change and on peak energy demand that 
                        are not already incorporated in assumed energy 
                        costs.
                  ``(C) Considerations.--In developing a national 
                energy efficiency building code under this paragraph, 
                the Secretary shall consider--
                          ``(i) for residential codes--
                                  ``(I) residential building standards 
                                published or proposed by ASHRAE;
                                  ``(II) residential building codes 
                                published or proposed in the 
                                International Energy Conservation Code 
                                (IECC);
                                  ``(III) data from the Residential 
                                Energy Services Network (RESNET) on 
                                compliance measures utilized by 
                                consumers to qualify for the 
                                residential energy efficiency tax 
                                credits established under the Energy 
                                Policy Act of 2005;
                                  ``(IV) data and information from the 
                                Department of Energy's Building America 
                                Program;
                                  ``(V) data and information from the 
                                Energy Star New Homes program;
                                  ``(VI) data and information from the 
                                New Building Institute and similar 
                                organizations; and
                                  ``(VII) standards for practices and 
                                materials to achieve cool roofs in 
                                residential buildings, taking into 
                                consideration reduced air conditioning 
                                energy use as a function of cool roofs, 
                                the potential reduction in global 
                                warming from increased solar 
                                reflectance from buildings, and cool 
                                roofs criteria in State and local 
                                building codes and in national and 
                                local voluntary programs; and
                          ``(ii) for commercial codes--
                                  ``(I) commercial building standards 
                                proposed by ASHRAE;
                                  ``(II) commercial building codes 
                                proposed in the International Energy 
                                Conservation Code (IECC);
                                  ``(III) the Core Performance Criteria 
                                published by the New Buildings 
                                Institute;
                                  ``(IV) data and information developed 
                                by the Director of the Commercial High-
                                Performance Green Building Office of 
                                the Department of Energy and any 
                                public-private partnerships established 
                                under that Office;
                                  ``(V) data and information from the 
                                Energy Star for Buildings program;
                                  ``(VI) data and information from the 
                                New Building Institute, RESNET, and 
                                similar organizations; and
                                  ``(VII) standards for practices and 
                                materials to achieve cool roofs in 
                                commercial buildings, taking into 
                                consideration reduced air conditioning 
                                energy use as a function of cool roofs, 
                                the potential reduction in global 
                                warming from increased solar 
                                reflectance from buildings, and cool 
                                roofs criteria in State and local 
                                building codes and in national and 
                                local voluntary programs.
                  ``(D) Consultation.--In establishing any national 
                energy efficiency building code required by this 
                section, the Secretary shall consult with the Director 
                of the National Institute of Standards and Technology.
          ``(3) Consensus standard assistance.--(A) To support the 
        development of consensus standards that may provide the basis 
        for national energy efficiency building codes, minimize 
        duplication of effort, encourage progress through consensus, 
        and facilitate the development of greater building efficiency, 
        the Secretary shall provide assistance to recognized consensus-
        based code development organizations to develop, and where the 
        relevant code has been adopted as the national code, 
        disseminate consensus based energy efficiency building codes as 
        provided in this paragraph.
          ``(B) Upon a finding by the Secretary that a code developed 
        by such an organization meets a target established under 
        subsection (a), the Secretary shall--
                  ``(i) send notice of the Secretary's finding to all 
                duly authorized or appointed State and local code 
                agencies; and
                  ``(ii) provide sufficient support to such an 
                organization to make the code available on the 
                Internet, or to accomplish distribution of such code to 
                all such State and local code agencies at no cost to 
                the State and local code agencies.
          ``(C) The Secretary may contract with such an organization 
        and with other organizations with expertise on codes to provide 
        training for State and local code officials and building 
        inspectors in the implementation and enforcement of such code.
          ``(D) The Secretary may provide grants and other support to 
        such an organization to--
                  ``(i) develop appropriate refinements to such code; 
                and
                  ``(ii) support analysis of options for improvements 
                in the code to meet the next scheduled target.
          ``(4) Code developed by secretary.--If the Secretary 
        establishes a national energy efficiency building code under 
        paragraph (2), the Secretary shall--
                  ``(A) to the extent that such code is based on a 
                prior code developed by a recognized consensus-based 
                code development organization, negotiate and provide 
                appropriate compensation to such organization for the 
                use of the code materials that remain in the code 
                established by the Secretary; and
                  ``(B) disseminate the national energy efficiency 
                building codes to State and local code officials, and 
                support training and provide guidance and technical 
                assistance to such officials as appropriate.
  ``(c) State Adoption of Energy Efficiency Building Codes.--
          ``(1) Requirement.--Not later than 1 year after a national 
        energy efficiency building code for residential or commercial 
        buildings is established or revised under subsection (b), each 
        State--
                  ``(A) shall--
                          ``(i) review and update the provisions of its 
                        building code regarding energy efficiency to 
                        meet or exceed the target met in the new 
                        national code, to achieve equivalent or greater 
                        energy savings;
                          ``(ii) document, where local governments 
                        establish building codes, that local 
                        governments representing not less than 80 
                        percent of the State's urban population have 
                        adopted the new national code, or have adopted 
                        local codes that meet or exceed the target met 
                        in the new national code to achieve equivalent 
                        or greater energy savings; or
                          ``(iii) adopt the new national code; and
                  ``(B) shall provide a certification to the Secretary 
                demonstrating that energy efficiency building code 
                provisions that apply throughout the State meet or 
                exceed the target met by the new national code, to 
                achieve equivalent or greater energy savings.
          ``(2) Confirmation.--
                  ``(A) Requirement.--Not later than 90 days after a 
                State certification is provided under paragraph (1)(B), 
                the Secretary shall determine whether the State's 
                energy efficiency building code provisions meet the 
                requirements of this subsection.
                  ``(B) Acceptance by secretary.--If the Secretary 
                determines under subparagraph (A) that the State's 
                energy efficiency building code or codes meet the 
                requirements of this subsection, the Secretary shall 
                accept the certification.
                  ``(C) Deficiency notice.--If the Secretary determines 
                under subparagraph (A) that the State's building code 
                or codes do not meet the requirements of this 
                subsection, the Secretary shall identify the deficiency 
                in meeting the national building code energy efficiency 
                target, and, to the extent possible, indicate areas 
                where further improvement in the State's code 
                provisions would allow the deficiency to be eliminated.
                  ``(D) Revision of code and recertification.--A State 
                may revise its code or codes and submit a 
                recertification under paragraph (1)(B) to the Secretary 
                at any time.
          ``(3) Compliant code.--For the purposes of meeting the target 
        described in subsection (a)(1)(A) for residential buildings, a 
        State that adopts the code represented in California's Title 
        24-2009 by the date two years after the date of enactment of 
        the American Clean Energy and Security Act of 2009 shall be 
        considered to have met the requirements of this subsection for 
        the applicable period.
  ``(d) Application of National Code to State and Local 
Jurisdictions.--
          ``(1) In general.--Upon the expiration of 1 year after a 
        national energy efficiency building code is established under 
        subsection (b), in any jurisdiction where the State has not had 
        a certification relating to that code accepted by the Secretary 
        under subsection (c)(2)(B), and the local government has not 
        had a certification relating to that code accepted by the 
        Secretary under subsection (e)(6)(B), the national code shall 
        become the applicable energy efficiency building code for such 
        jurisdiction.
          ``(2) State legislative adoption.--In a State in which the 
        relevant building energy code is adopted legislatively, the 
        deadline in paragraph (1) shall not be earlier than 1 year 
        after the first day that the legislature meets following 
        establishment of a national energy efficiency building code.
          ``(3) Violations.--Violations of this section shall be 
        defined as follows:
                  ``(A) If the building is subject to the requirements 
                of a State energy efficiency building code with respect 
                to which a certification has been accepted by the 
                Secretary under subsection (c)(2)(B) or a local energy 
                efficiency building code with respect to which a 
                certification has been accepted by the Secretary 
                pursuant to subsection (e)(6)(B), a violation shall be 
                determined pursuant to the relevant provisions of the 
                State or local code.
                  ``(B) If the building is subject to the requirements 
                of a national energy efficiency building code adopted 
                under subsection (c)(1)(A)(i) or made applicable under 
                paragraph (1) of this subsection, a violation shall be 
                defined by the Secretary pursuant to subsection (g).
  ``(e) State Enforcement of Energy Efficiency Building Codes.--
          ``(1) In general.--Each State, or where applicable under 
        State law each local government, shall implement and enforce 
        applicable State or local codes with respect to which a 
        certification was accepted by the Secretary under subsection 
        (c)(2)(B) or paragraph (6)(B) of this subsection, or the 
        national energy efficiency building codes, as provided in this 
        subsection.
          ``(2) State certification.--Not later than 2 years after the 
        date of a certification under subsection (c)(1) or the 
        establishment of a national energy efficiency building code 
        under subsection (b), each State shall certify that it has--
                  ``(A) achieved compliance with--
                          ``(i) State codes, or, as provided under 
                        State law, local codes, with respect to which a 
                        certification was accepted by the Secretary 
                        under subsection (c)(2)(B); or
                          ``(ii) the national energy efficiency 
                        building code, as applicable; or
                  ``(B) for any certification submitted within 7 years 
                after the date of enactment of the American Clean 
                Energy and Security Act of 2009, made significant 
                progress toward achieving such compliance.
          ``(3) Achieving compliance.--A State shall be considered to 
        achieve compliance with a code described in paragraph (2)(A) if 
        at least 90 percent of new and substantially renovated building 
        space in that State in the preceding year upon inspection meets 
        the requirements of the code. A certification under paragraph 
        (2) shall include documentation of the rate of compliance based 
        on--
                  ``(A) independent inspections of a random sample of 
                the new and substantially renovated buildings covered 
                by the code in the preceding year; or
                  ``(B) an alternative method that yields an accurate 
                measure of compliance as determined by the Secretary.
          ``(4) Significant progress.--A State shall be considered to 
        have made significant progress toward achieving compliance with 
        a code described in paragraph (2)(A) if--
                  ``(A) the State has developed a plan, including for 
                hiring enforcement staff, providing training, providing 
                manuals and checklists, and instituting enforcement 
                programs, designed to achieve full compliance within 5 
                years after the date of the adoption of the code;
                  ``(B) the State is taking significant, timely, and 
                measurable action to implement that plan;
                  ``(C) the State has not reduced its expenditures for 
                code enforcement; and
                  ``(D) at least 50 percent of new and substantially 
                renovated building space in the State in the preceding 
                year upon inspection meets the requirements of the 
                code.
          ``(5) Secretary's determination.--Not later than 90 days 
        after a State certification under paragraph (2), the Secretary 
        shall determine whether the State has demonstrated that it has 
        complied with the requirements of this subsection, including 
        accurate measurement of compliance, or that it has made 
        significant progress toward compliance. If such determination 
        is positive, the Secretary shall accept the certification. If 
        the determination is negative, the Secretary shall identify the 
        areas of deficiency.
          ``(6) Out of compliance.--
                  ``(A) In general.--Any State for which the Secretary 
                has not accepted a certification under paragraph (5) by 
                a deadline established under this subsection is out of 
                compliance with this section.
                  ``(B) Local compliance.--In any State that is out of 
                compliance with this section as provided in 
                subparagraph (A), a local government may be in 
                compliance with this section by meeting all 
                certification requirements applicable to the State.
                  ``(C) Noncompliance.--Any State that is not in 
                compliance with this section, as provided in 
                subparagraph (A), shall, until the State regains such 
                compliance, be ineligible to receive--
                          ``(i) emission allowances pursuant to 
                        subsection (h)(1);
                          ``(ii) Federal funding in excess of that 
                        State's share (calculated according to the 
                        allocation formula in section 363 of the Energy 
                        Policy and Conservation Act (42 U.S.C. 6323)) 
                        of $125,000,000 each year; and
                          ``(iii) for--
                                  ``(I) the first year for which the 
                                State is out of compliance, 25 percent 
                                of any additional funding or other 
                                items of monetary value otherwise 
                                provided under the American Clean 
                                Energy and Security Act of 2009;
                                  ``(II) the second year for which the 
                                State is out of compliance, 50 percent 
                                of any additional funding or other 
                                items of monetary value otherwise 
                                provided under the American Clean 
                                Energy and Security Act of 2009;
                                  ``(III) the third year for which the 
                                State is out of compliance, 75 percent 
                                of any additional funding or other 
                                items of monetary value otherwise 
                                provided under the American Clean 
                                Energy and Security Act of 2009; and
                                  ``(IV) the fourth and subsequent 
                                years for which the State is out of 
                                compliance, 100 percent of any 
                                additional funding or other items of 
                                monetary value otherwise provided under 
                                the American Clean Energy and Security 
                                Act of 2009.
  ``(f) Federal Enforcement.--Where a State fails and local governments 
in that State also fail to enforce the applicable State or national 
energy efficiency building codes, the Secretary shall enforce such 
codes, as follows:
          ``(1) The Secretary shall establish, by rule, within 2 years 
        after the date of enactment of the American Clean Energy and 
        Security Act of 2009, an energy efficiency building code 
        enforcement capability.
          ``(2) Such enforcement capability shall be designed to 
        achieve 90 percent compliance with such code in any State 
        within 1 year after the date of the Secretary's determination 
        that such State is out of compliance with this section.
          ``(3) The Secretary may set and collect reasonable inspection 
        fees to cover the costs of inspections required for such 
        enforcement. Revenue from fees collected shall be available to 
        the Secretary to carry out the requirements of this section 
        upon appropriation.
  ``(g) Enforcement Procedures.--The Secretary shall propose and, not 
later than three years after the date of enactment of the American 
Clean Energy and Security Act of 2009, shall determine and adopt by 
rule what shall constitute violations of the energy efficiency building 
codes to be enforced pursuant to this section, and the penalties that 
shall apply to violators. To the extent that the Secretary determines 
that the authority to adopt and impose such violations and penalties by 
rule requires further statutory authority, the Secretary shall report 
such determination to Congress as soon as such determination is made, 
but not later than one year after the enactment of the American Clean 
Energy and Security Act of 2009.
  ``(h) Federal Support.--
          ``(1) Allowance allocation for state compliance.--For each 
        vintage year from 2012 through 2050, the Administrator shall 
        distribute allowances allocated pursuant to section 782(g)(2) 
        of the Clean Air Act to the SEED Account for each State that 
        the Secretary identifies as a State from which he has accepted 
        the State's certification under subsection (e)(5) for 
        compliance with the then current national energy efficiency 
        building codes. Such allowances shall be distributed according 
        to a formula established by the Secretary as follows:
                  ``(A) One-fifth in an equal amount to each of the 50 
                States and United States territories.
                  ``(B) Two-fifths as a function of the relative energy 
                use in all buildings in each State in the most recent 
                year for which data is available.
                  ``(C) Two-fifths based on the number of building 
                construction starts recorded in each State, the number 
                of new building permits applied for in each State, or 
                other relevant available data indicating building 
                activity in each State, in the judgment of the 
                Secretary, for the year prior to the year of the 
                distribution.
          ``(2) Allowance allocation to local governments.--In the 
        instance that the Secretary certifies that one or more local 
        governments are in compliance with this section pursuant to 
        subsection (e)(6)(B), the Administrator shall provide to each 
        such local government the portion of the emission allowances 
        that would have been provided to that State as a function of 
        the population of that locality as a proportion of the 
        population of that State as a whole.
          ``(3) Unallocated allowances.--To the extent that allowances 
        are not provided to State or local governments for lack of 
        certification in any year, those allowances shall be added to 
        the amount provided to those States and local governments that 
        are certified as eligible in that year.
          ``(4) Use of allowances.--Each State or each local government 
        shall use such emission allowances as it receives pursuant to 
        this section exclusively for the purposes of this section, 
        including covering a reasonable portion of the costs of the 
        development, adoption, implementation, and enforcement of a 
        State or local energy efficiency building code with respect to 
        which a certification is accepted by the Secretary under 
        subsection (c)(2)(B) or subsection (e)(6)(B), or the national 
        energy efficiency building code. In a State where local 
        governments provide building code enforcement, a minimum of 50 
        percent of the allowance value received pursuant to this 
        section shall be distributed to local governments as a function 
        of the relative populations of such localities.
  ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy $100,000,000 for each of fiscal 
years 2010 through 2020 and such sums thereafter as may be necessary to 
support the purposes of this section.
  ``(j) Annual Reports by Secretary.--The Secretary shall annually 
submit to Congress, and publish in the Federal Register, a report on--
          ``(1) the status of national building energy efficiency 
        codes;
          ``(2) the status of energy efficiency building code adoption 
        and compliance in the States;
          ``(3) the implementation of this section; and
          ``(4) impacts of past action under this section, and 
        potential impacts of further action, on lifetime energy use by 
        buildings, including resulting energy and cost savings.''.

SEC. 202. BUILDING RETROFIT PROGRAM.

  (a) Definitions.--For purposes of this section:
          (1) Nonresidential building.--The term ``nonresidential 
        building'' means a building with a primary use or purpose other 
        than residential housing, including commercial offices, 
        schools, academic and other public and private institutions, 
        nonprofit organizations, hospitals, hotels, and houses of 
        worship. Such buildings shall include mixed-use properties used 
        for both residential and nonresidential purposes in which more 
        than half of building floor space is nonresidential.
          (2) Performance-based building retrofit program.--The term 
        ``performance-based building retrofit program'' means a program 
        that determines building energy efficiency success based on 
        actual measured savings after a retrofit is complete, as 
        evidenced by energy invoices or evaluation protocols.
          (3) Prescriptive building retrofit program.--The term 
        ``prescriptive building retrofit program'' means a program that 
        projects building retrofit energy efficiency success based on 
        the known effectiveness of measures prescribed to be included 
        in a retrofit.
          (4) Recommissioning; retrocommissioning.--The terms 
        ``recommissioning'' and ``retrocommissioning'' have the meaning 
        given those terms in section 543(f)(1) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8253(f)(1)).
          (5) Residential building.--The term ``residential building'' 
        means a building whose primary use is residential. Such 
        buildings shall include single-family homes (both attached and 
        detached), owner-occupied units in larger buildings with their 
        own dedicated space-conditioning systems, and buildings used 
        for both residential and nonresidential purposes in which more 
        than half of building floor space is residential.
          (6) State energy program.--The term ``State Energy Program'' 
        means the program under part D of title III of the Energy 
        Policy and Conservation Act (42 U.S.C. 6321 et seq.).
  (b) Establishment.--The Administrator shall develop and implement, in 
consultation with the Secretary of Energy, standards for a national 
energy and environmental building retrofit policy for single-family and 
multifamily residences. The Administrator shall develop and implement, 
in consultation with the Secretary of Energy and the Director of 
Commercial High-Performance Green Buildings, standards for a national 
energy and environmental building retrofit policy for nonresidential 
buildings. The programs to implement the residential and nonresidential 
policies based on the standards developed under this section shall 
together be known as the Retrofit for Energy and Environmental 
Performance (REEP) program.
  (c) Purpose.--The purpose of the REEP program is to facilitate the 
retrofitting of existing buildings across the United States to achieve 
maximum cost-effective energy efficiency improvements and significant 
improvements in water use and other environmental attributes.
  (d) Federal Administration.--
          (1) Existing programs.-- In creating and operating the REEP 
        program--
                  (A) the Administrator shall make appropriate use of 
                existing programs, including the Energy Star program 
                and in particular the Environmental Protection Agency 
                Energy Star for Buildings program; and
                  (B) the Secretary of Energy shall make appropriate 
                use of existing programs, including delegating 
                authority to the Director of Commercial High-
                Performance Green Buildings appointed under section 421 
                of the Energy Independence and Security Act of 2007 (42 
                U.S.C. 17081), who shall designate and provide funding 
                to support a high-performance green building 
                partnership consortium pursuant to subsection (f) of 
                such section to support efforts under this section.
          (2) Consultation and coordination.--The Administrator and the 
        Secretary of Energy shall consult with and coordinate with the 
        Secretary of Housing and Urban Development in carrying out the 
        REEP program.
          (3) Assistance.--The Administrator and the Secretary of 
        Energy shall provide consultation and assistance to State and 
        local agencies for the establishment of revolving loan funds, 
        loan guarantees, or other forms of financial assistance under 
        this section.
  (e) State and Local Administration.--
          (1) Designation and delegation.--A State may designate one or 
        more agencies or entities, including those regulated by the 
        State, to carry out the purposes of this section, but shall 
        designate one entity or individual as the principal point of 
        contact for the Administrator regarding the REEP Program. The 
        designated State agency, agencies, or entities may delegate 
        performance of appropriate elements of the REEP program, upon 
        their request and subject to State law, to counties, 
        municipalities, appropriate public agencies, and other 
        divisions of local government, as well as to entities regulated 
        by the State. In making any such designation or delegation, a 
        State shall give priority to entities that administer existing 
        comprehensive retrofit programs, including those under the 
        supervision of State utility regulators. States shall maintain 
        responsibility for meeting the standards and requirements of 
        the REEP program. In any State that elects not to administer 
        the REEP program, a unit of local government may propose to do 
        so within its jurisdiction, and if the Administrator finds that 
        such local government is capable of administering the program, 
        the Administrator may provide allowances to that local 
        government, prorated according to the population of the local 
        jurisdiction relative to the population of the State, for 
        purposes of the REEP program.
          (2) Employment.--States and local government entities may 
        administer a REEP program in a manner that authorizes public or 
        regulated investor-owned utilities, building auditors and 
        inspectors, contractors, nonprofit organizations, for-profit 
        companies, and other entities to perform audits and retrofit 
        services under this section. A State may provide incentives for 
        retrofits without direct participation by the State or its 
        agents, so long as the resulting savings are measured and 
        verified. A State or local administrator of a REEP program 
        shall seek to ensure that sufficient qualified entities are 
        available to support retrofit activities so that building 
        owners have a competitive choice among qualified auditors, 
        raters, contractors, and providers of services related to 
        retrofits. Nothing in this section is intended to preclude or 
        preempt the right of a building owner to choose the specific 
        providers of retrofit services to engage for a retrofit project 
        in that owner's building.
          (3) Equal incentives for equal improvement.--In general, the 
        States should strive to offer the same levels of incentives for 
        retrofits that meet the same efficiency improvement goals, 
        regardless of whether the State, its agency or entity, or the 
        building owner has conducted the retrofit achieving the 
        improvement, provided the improvement is measured and verified.
  (f) Elements of REEP Program.--The Administrator, in consultation 
with the Secretary of Energy, shall establish goals, guidelines, 
practices, and standards for accomplishing the purpose stated in 
subsection (c), and shall annually review and, as appropriate, revise 
such goals, guidelines, practices, and standards. The program under 
this section shall include the following:
          (1) Residential Energy Services Network (RESNET) or Building 
        Performance Institute (BPI) analyst certification of 
        residential building energy and environment auditors, 
        inspectors, and raters, or an equivalent certification system 
        as determined by the Administrator.
          (2) BPI certification or licensing by States of residential 
        building energy and environmental retrofit contractors, or an 
        equivalent certification or licensing system as determined by 
        the Administrator.
          (3) Provision of BPI, RESNET, or other appropriate 
        information on equipment and procedures, as determined by the 
        Administrator, that contractors can use to test the energy and 
        environmental efficiency of buildings effectively (such as 
        infrared photography and pressurized testing, and tests for 
        water use and indoor air quality).
          (4) Provision of clear and effective materials to describe 
        the testing and retrofit processes for typical buildings.
          (5) Guidelines for offering and managing prescriptive 
        building retrofit programs and performance-based building 
        retrofit programs for residential and nonresidential buildings.
          (6) Guidelines for applying recommissioning and 
        retrocommissioning principles to improve a building's 
        operations and maintenance procedures.
          (7) A requirement that building retrofits conducted pursuant 
        to a REEP program utilize, especially in all air-conditioned 
        buildings, roofing materials with high solar energy 
        reflectance, unless inappropriate due to green roof management, 
        solar energy production, or for other reasons identified by the 
        Administrator, in order to reduce energy consumption within the 
        building, increase the albedo of the building's roof, and 
        decrease the heat island effect in the area of the building.
          (8) Determination of energy savings in a performance-based 
        building retrofit program through--
                  (A) for residential buildings, comparison of before 
                and after retrofit scores on the Home Energy Rating 
                System (HERS) Index, where the final score is produced 
                by an objective third party;
                  (B) for nonresidential buildings, Environmental 
                Protection Agency Portfolio Manager benchmarks; or
                  (C) for either residential or nonresidential 
                buildings, use of an Administrator-approved simulation 
                program by a contractor with the appropriate 
                certification, subject to appropriate software 
                standards and verification of at least 15 percent of 
                all work done, or such other percentage as the 
                Administrator may determine.
          (9) Guidelines for utilizing the Energy Star Portfolio 
        Manager, the Home Energy Rating System (HERS) rating system, 
        Home Performance with Energy Star program approvals, and any 
        other tools associated with the retrofit program.
          (10) Requirements and guidelines for post-retrofit inspection 
        and confirmation of work and energy savings.
          (11) Detailed descriptions of funding options for the benefit 
        of State and local governments, along with model forms, 
        accounting aids, agreements, and guides to best practices.
          (12) Guidance on opportunities for--
                  (A) rating or certifying retrofitted buildings as 
                Energy Star buildings, or as green buildings under a 
                recognized green building rating system;
                  (B) assigning Home Energy Rating System (HERS) or 
                similar ratings; and
                  (C) completing any applicable building performance 
                labels.
          (13) Sample materials for publicizing the program to building 
        owners, including public service announcements and 
        advertisements.
          (14) Processes for tracking the numbers and locations of 
        buildings retrofitted under the REEP program, with information 
        on projected and actual savings of energy and its value over 
        time.
  (g) Requirements.--As a condition of receiving allowances for the 
REEP program pursuant to this Act, a State or qualifying local 
government shall--
          (1) adopt the standards for training, certification of 
        contractors, certification of buildings, and post-retrofit 
        inspection as developed by the Administrator for residential 
        and nonresidential buildings, respectively, except as necessary 
        to match local conditions, needs, efficiency opportunities, or 
        other local factors, or to accord with State laws or 
        regulations, and then only after the Administrator approves 
        such a variance; and
          (2) establish fiscal controls and accounting procedures 
        (which conform to generally accepted government accounting 
        principles) sufficient to ensure proper accounting during 
        appropriate accounting periods for payments received and 
        disbursements, and for fund balances.
The Administrator shall conduct or require each State to have such 
independent financial audits of REEP-related funding as the 
Administrator considers necessary or appropriate to carry out the 
purposes of this section.
  (h) Options to Support REEP Program.--The emission allowances 
provided pursuant to this Act to the States' SEED Accounts shall 
support the implementation through State REEP programs of alternate 
means of creating incentives for, or reducing financial barriers to, 
improved energy and environmental performance in buildings, consistent 
with this section, including--
          (1) implementing prescriptive building retrofit programs and 
        performance-based building retrofit programs;
          (2) providing credit enhancement, interest rate subsidies, 
        loan guarantees, or other credit support;
          (3) providing initial capital for public revolving fund 
        financing of retrofits, with repayments by beneficiary building 
        owners over time through their tax payments, calibrated to 
        create net positive cash flow to the building owner;
          (4) providing funds to support utility-operated retrofit 
        programs with repayments over time through utility rates, 
        calibrated to create net positive cash flow to the building 
        owner, and transferable from one building owner to the next 
        with the building's utility services;
          (5) providing funds to local government programs to provide 
        REEP services and financial assistance; and
          (6) other means proposed by State and local agencies, subject 
        to the approval of the Administrator.
  (i) Support for Program.--
          (1) Use of allowances.--Direct Federal support for the REEP 
        program is provided through the emission allowances allocated 
        to the States' SEED Accounts pursuant to section 132 of this 
        Act. To the extent that a State provides allowances to local 
        governments within the State to implement elements of the REEP 
        Program, that shall be deemed a distribution of such allowances 
        to units of local government pursuant to subsection (c)(1) of 
        that section.
          (2) Initial award limits.--Except as provided in paragraph 
        (3), State and local REEP programs may make per-building direct 
        expenditures for retrofit improvements, or their equivalent in 
        indirect or other forms of financial support, from funds 
        derived from the sale of allowances received directly from the 
        Administrator in amounts not to exceed the following:
                  (A) Residential building program.--
                          (i) Awards.--For residential buildings--
                                  (I) support for a free or low-cost 
                                detailed building energy audit that 
                                prescribes, as part of a energy-
                                reducing measures sufficient to achieve 
                                at least a 20 percent reduction in 
                                energy use, by providing an incentive 
                                equal to the documented cost of such 
                                audit, but not more than $200, in 
                                addition to any earned by achieving a 
                                20 percent or greater efficiency 
                                improvement;
                                  (II) a total of $1,000 for a 
                                combination of measures, prescribed in 
                                an audit conducted under subclause (I), 
                                designed to reduce energy consumption 
                                by more than 10 percent, and $2,000 for 
                                a combination of measures prescribed in 
                                such an audit, designed to reduce 
                                energy consumption by more than 20 
                                percent;
                                  (III) $3,000 for demonstrated savings 
                                of 20 percent, pursuant to a 
                                performance-based building retrofit 
                                program; and
                                  (IV) $1,000 for each additional 5 
                                percentage points of energy savings 
                                achieved beyond savings for which 
                                funding is provided under subclause 
                                (II) or (III).
                        Funding shall not be provided under clauses 
                        (II) and (III) for the same energy savings.
                          (ii) Maximum percentage.--Awards under clause 
                        (i) shall not exceed 50 percent of retrofit 
                        costs for each building. For buildings with 
                        multiple residential units, awards under clause 
                        (i) shall not be greater than 50 percent of the 
                        total cost of retrofitting the building, 
                        prorated among individual residential units on 
                        the basis of relative costs of the retrofit.
                          (iii) Additional awards.--Additional awards 
                        may be provided for purposes of increasing 
                        energy efficiency, for buildings achieving at 
                        least 20 percent energy savings using funding 
                        provided under clause (i), in the form of 
                        grants of not more than $600 for measures 
                        projected or measured (using an appropriate 
                        method approved by the Administrator) to 
                        achieve at least 35 percent potable water 
                        savings through equipment or systems with an 
                        estimated service life of not less than seven 
                        years, and not more than an additional $20 may 
                        be provided for each additional one percent of 
                        such savings, up to a maximum total grant of 
                        $1,200.
                  (B) Nonresidential building program.--
                          (i) Awards.--For nonresidential buildings--
                                  (I) support for a free or low-cost 
                                detailed building energy audit that 
                                prescribes, as part of a energy-
                                reducing measures sufficient to achieve 
                                at least a 20 percent reduction in 
                                energy use, by providing an incentive 
                                equal to the documented cost of such 
                                audit, but not more than $500, in 
                                addition to any award earned by 
                                achieving a 20 percent or greater 
                                efficiency improvement;
                                  (II) $0.15 per square foot of 
                                retrofit area for demonstrated energy 
                                use reductions from 20 percent to 30 
                                percent;
                                  (III) $0.75 per square foot for 
                                demonstrated energy use reductions from 
                                30 percent to 40 percent;
                                  (IV) $1.60 per square foot for 
                                demonstrated energy use reductions from 
                                40 percent to 50 percent; and
                                  (V) $2.50 per square foot for 
                                demonstrated energy use reductions 
                                exceeding 50 percent.
                          (ii) Maximum percentage.--Amounts provided 
                        under subclauses (II) through (V) of clause (i) 
                        combined shall not exceed 50 percent of the 
                        total retrofit cost of a building. In 
                        nonresidential buildings with multiple units, 
                        such awards shall be prorated among individual 
                        units on the basis of relative costs of the 
                        retrofit.
                          (iii) Additional awards.--Additional awards 
                        may be provided, for buildings achieving at 
                        least 20 percent energy savings using funding 
                        provided under clause (i), as follows:
                                  (I) Water.--For purposes of 
                                increasing energy efficiency, grants 
                                may be made for whole building potable 
                                water use reduction (using an 
                                appropriate method approved by the 
                                Secretary of Energy) for up to 50 
                                percent of the total retrofit cost, 
                                including amounts up to--
                                          (aa) $24.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 40 percent or 
                                        more;
                                          (bb) $27.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 50 percent or 
                                        more; and
                                          (cc) $30.00 per thousand 
                                        gallons per year of potable 
                                        water savings of 60 percent or 
                                        more.
                                  (II) Environmental improvements.--
                                Additional awards of up to $1,000 may 
                                be granted for the inclusion of other 
                                environmental attributes that the 
                                Secretary, in consultation with the 
                                Administrator, identifies as 
                                contributing to energy efficiency. Such 
                                attributes may include, but are not 
                                limited to waste diversion and the use 
                                of environmentally preferable materials 
                                (including salvaged, renewable, or 
                                recycled materials, and materials with 
                                no or low-VOC content). The 
                                Administrator may recommend that States 
                                develop such standards as are necessary 
                                to account for local or regional 
                                conditions that may affect the 
                                feasibility or availability of 
                                identified resources and attributes.
                          (iv) Indoor air quality minimum.--
                        Nonresidential buildings receiving incentives 
                        under this section must satisfy at a minimum 
                        the most recent version of ASHRAE Standard 62.1 
                        for ventilation, or the equivalent as 
                        determined by the Administrator. A State may 
                        issue a waiver from this requirement to a 
                        building project on a showing that such 
                        compliance is infeasible due to the physical 
                        constraints of the building's existing 
                        ventilation system, or such other limitations 
                        as may be specified by the Administrator.
                  (C) Historic buildings.--Notwithstanding 
                subparagraphs (A) and (B), a building in or eligible 
                for the National Register of Historic Places shall be 
                eligible for awards under this paragraph in amounts up 
                to 120 percent of the amounts set forth in 
                subparagraphs (A) and (B).
                  (D) Supplemental support.--State and local 
                governments may supplement the per-building 
                expenditures under this paragraph with funding from 
                other sources.
          (3) Adjustment.--The Administrator may adjust the specific 
        dollar limits funded by the sale of allowances pursuant to 
        paragraph (2) in years subsequent to the second year after the 
        date of enactment of this Act, and every 2 years thereafter, as 
        the Administrator determines necessary to achieve optimum cost-
        effectiveness and to maximize incentives to achieve energy 
        efficiency within the total building award amounts provided in 
        that paragraph, and shall publish and hold constant such 
        revised limits for at least 2 years.
  (j) Report to Congress.--The Administrator shall conduct an annual 
assessment of the achievements of the REEP program in each State, shall 
prepare an annual report of such achievements and any recommendations 
for program modifications, and shall provide such report to Congress at 
the end of each fiscal year during which funding or other resources 
were made available to the States for the REEP Program.
  (k) Other Sources of Federal Support.--
          (1) Additional state energy program funds.--Any Federal 
        funding provided to a State Energy Program that is not required 
        to be expended for a different federally designated purpose may 
        be used to support a REEP program.
          (2) Program administration.--State Energy Offices or 
        designated State agencies may expend up to 10 percent of 
        available allowance value provided under this section for 
        program administration.
          (3) Authorization of appropriations.--There are authorized to 
        be appropriated for the purposes of this section, for each of 
        fiscal years 2010, 2011, 2012, and 2013--
                  (A) $50,000,000 to the Administrator for program 
                administration costs; and
                  (B) $20,000,000 to the Secretary of Energy for 
                program administration costs.

SEC. 203. ENERGY EFFICIENT MANUFACTURED HOMES.

  (a) Definitions.--In this section:
          (1) Manufactured home.--The term ``manufactured home'' has 
        the meaning given such term in section 603 of the National 
        Manufactured Housing Construction and Safety Standards Act of 
        1974 (42 U.S.C. 5402).
          (2) Energy star qualified manufactured home.--The term 
        ``Energy Star qualified manufactured home'' means a 
        manufactured home that has been designed, produced, and 
        installed in accordance with Energy Star's guidelines by an 
        Energy Star certified plant.
  (b) Purpose.--The purpose of this section is to assist low-income 
households residing in manufactured homes constructed prior to 1976 to 
save energy and energy expenditures by providing support toward the 
purchase of new Energy Star qualified manufactured homes.
  (c) State Implementation of Program.--
          (1) Manufactured home replacement program.--Any State may 
        provide to the owner of a manufactured home constructed prior 
        to 1976 a rebate to use toward the purchase of a new Energy 
        Star qualified manufactured home pursuant to this section.
          (2) Use of allowances.--Direct Federal support for the 
        program established in this section is provided through the 
        emission allowances allocated to the States' SEED Accounts 
        pursuant to section 132 of this Act. To the extent that a State 
        provides allowances to local governments within the State to 
        implement this program, that shall be deemed a distribution of 
        such allowances to units of local government pursuant to 
        subsection (c)(1) of that section.
          (3) Rebates.--
                  (A) Primary residence requirement.--A rebate 
                described under paragraph (1) may only be made to an 
                owner of a manufactured home constructed prior to 1976 
                that is used on a year-round basis as a primary 
                residence.
                  (B) Dismantling and replacement.--A rebate described 
                under paragraph (1) may be made only if the 
                manufactured home constructed prior to 1976 will be--
                          (i) rendered unusable for human habitation 
                        (including appropriate recycling); and
                          (ii) replaced, in the same general location, 
                        as determined by the applicable State agency, 
                        with an Energy Star qualified manufactured 
                        home.
                  (C) Single rebate.--A rebate described under 
                paragraph (1) may not be provided to any owner of a 
                manufactured home constructed prior to 1976 that was or 
                is a member of a household for which any other member 
                of the household was provided a rebate pursuant to this 
                section.
                  (D) Eligible households.--To be eligible to receive a 
                rebate described under paragraph (1), an owner of a 
                manufactured home constructed prior to 1976 shall 
                demonstrate to the applicable State agency that the 
                total income of all members the owner's household does 
                not exceed 200 percent of the Federal poverty level for 
                income in the applicable area.
                  (E) Advance availability.--A rebate may be provided 
                under this section in a manner to facilitate the 
                purchase of a new Energy Star qualified manufactured 
                home.
          (4) Rebate limitation.--Rebates provided by States under this 
        section shall not exceed $7,500 per manufactured home from any 
        value derived from the use of emission allowances provided to 
        the State pursuant to section 132.
          (5) Use of state funds.--A State providing rebates under this 
        section may supplement the amount of such rebates under 
        paragraph (4) by any additional amount is from State funds and 
        other sources, including private donations or grants from 
        charitable organizations.
          (6) Coordination with similar programs.--
                  (A) State programs.--A State conducting an existing 
                program that has the purpose of replacing manufactured 
                homes constructed prior to 1976 with Energy Star 
                qualified manufactured homes, may use allowance value 
                provided under section 782 of the Clean Air Act to 
                support such a program, provided such funding does not 
                exceed the rebate limitation amount under paragraph 
                (4).
                  (B) Federal programs.--The Secretary of Energy shall 
                coordinate with and seek to achieve the purpose of this 
                section through similar Federal programs including--
                          (i) the Weatherization Assistance Program 
                        under part A of title IV of the Energy 
                        Conservation and Production Act (42 U.S.C. 6861 
                        et seq.); and
                          (ii) the program under part D of title III of 
                        the Energy Policy and Conservation Act (42 
                        U.S.C. 6321 et seq.).
                  (C) Coordination with other state agencies.--A State 
                agency using allowance value to administer the program 
                under this section may coordinate its efforts, and 
                share funds for administration, with other State 
                agencies involved in low-income housing programs.
          (7) Administrative expenses.--A State using allowance value 
        under this section may expend not more than 10 percent of such 
        value for administrative expenses related to this program.

SEC. 204. BUILDING ENERGY PERFORMANCE LABELING PROGRAM.

  (a) Establishment.--
          (1) Purpose.--The Administrator shall establish a building 
        energy performance labeling program with broad applicability to 
        the residential and commercial markets to enable and encourage 
        knowledge about building energy performance by owners and 
        occupants and to inform efforts to reduce energy consumption 
        nationwide.
          (2) Components.--In developing such program, the 
        Administrator shall--
                  (A) consider existing programs, such as Environmental 
                Protection Agency's Energy Star program, the Home 
                Energy Rating System (HERS) Index, and programs at the 
                Department of Energy;
                  (B) support the development of model performance 
                labels for residential and commercial buildings; and
                  (C) utilize incentives and other means to spur use of 
                energy performance labeling of public and private 
                sector buildings nationwide.
  (b) Data Assessment for Building Energy Performance.--
          (1) Initial report.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator shall provide to 
        Congress, as well as to the Secretary of Energy and the Office 
        of Management and Budget, a report identifying--
                  (A) all principal building types for which 
                statistically significant energy performance data 
                exists to serve as the basis of measurement protocols 
                and labeling requirements for achieved building energy 
                performance; and
                  (B) those building types for which additional data 
                are required to enable the development of such 
                protocols and requirements.
          (2) Additional reports.--Additional updated reports shall be 
        provided under this subsection as often as The Administrator 
        considers practicable, but not less than every 2 years.
  (c) Building Data Acquisition.--
          (1) Resource requirements.--For all principal building types 
        identified under subsection (b), the Secretary of Energy, not 
        later than 90 days after a report by the Administrator under 
        subsection (b), shall provide to Congress, the Administrator, 
        and the Office of Management and Budget a statement of 
        additional resources needed, if any, to fully develop the 
        relevant data, as well as the anticipated timeline for data 
        development.
          (2) Consultation.--The Secretary of Energy shall consult with 
        the Administrator concerning the Administrator's ability to use 
        data series for these additional building types to support the 
        achieved performance component in the labeling program.
          (3) Improvements to building energy consumption databases.--
                  (A) Commercial database.--The Secretary of Energy 
                shall support improvements to the Commercial Buildings 
                Energy Consumption Survey (CBECS) as authorized by 
                section 205(k) of the Department of Energy Organization 
                Act (42 U.S.C. 7135(k))--
                          (i) to enable complete and robust data for 
                        the actual energy performance of principal 
                        building types currently covered by survey;
                          (ii) to cover additional building types as 
                        identified by the Administrator under 
                        subsection (b)(1)(B), to enable the development 
                        of achieved performance measurement protocols 
                        are developed for at least 90 percent of all 
                        major commercial building types within 5 years 
                        after the date of enactment of this Act; and
                          (iii) to include third-party audits of random 
                        data samplings to ensure the quality and 
                        accuracy of survey information.
                  (B) Residential databases.--The Administrator, in 
                consultation with the Energy Information Administration 
                and the Secretary of Energy, shall support improvements 
                to the Residential Energy Consumption Survey (RECS) as 
                authorized by section 205(k) of the Department of 
                Energy Organization Act (42 U.S.C. 7135(k)), or such 
                other residential energy performance databases as the 
                Administrator considers appropriate, to aid the 
                development of achieved performance measurement 
                protocols for residential building energy use for at 
                least 90 percent of the residential market within 5 
                years after the date of enactment of this Act.
                  (C) Consultation.--The Secretary of Energy and the 
                Administrator shall consult with public, private, and 
                nonprofit sector representatives from the building 
                industry and real estate industry to assist in the 
                evaluation and improvement of building energy 
                performance databases and labeling programs.
  (d) Identification of Measurement Protocols for Achieved 
Performance.--
          (1) Proposed protocols and requirements.--At the earliest 
        practicable date, but not later than 1 year after identifying a 
        building type under subsection (b)(1)(A), the Administrator 
        shall propose a measurement protocol for that building type and 
        a requirement detailing how to use that protocol in completing 
        applicable commercial or residential performance labels created 
        pursuant to this section.
          (2) Final rule.--After providing for notice and comment, the 
        Administrator shall publish a final rule containing a 
        measurement protocol and the corresponding requirements for 
        applying that protocol. Such a rule--
                  (A) shall define the minimum period for measurement 
                of energy use by buildings of that type and other 
                details for determining achieved performance, to 
                include leased buildings or parts thereof;
                  (B) shall identify necessary data collection and 
                record retention requirements; and
                  (C) may specify transition rules and exemptions for 
                classes of buildings within the building type.
  (e) Procedures for Evaluating Designed Performance.--The 
Administrator shall develop protocols for evaluating the designed 
performance of individual building types. The Administrator may conduct 
such feasibility studies and demonstration projects as are necessary to 
evaluate the sufficiency of proposed protocols for designed 
performance.
  (f) Creation of Building Energy Performance Labeling Program.--
          (1) Model label.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall propose a model 
        building energy label that provides a format--
                  (A) to display achieved performance and designed 
                performance data;
                  (B) that may be tailored for residential and 
                commercial buildings, and for single-occupancy and 
                multitenanted buildings; and
                  (C) to display other appropriate elements identified 
                during the development of measurement protocols under 
                subsections (d) and (e).
          (2) Inclusions.--Nothing in this section shall require the 
        inclusion on such a label of designed performance data where 
        impracticable or not cost effective, or to preclude the display 
        of both achieved performance and designed performance data for 
        a particular building where both such measures are available, 
        practicable, and cost effective.
          (3) Existing programs.--In developing the model label, the 
        Administrator shall consider existing programs, including--
                  (A) the Environmental Protection Agency's Energy Star 
                Portfolio Manager program and the California HERS II 
                Program Custom Approach for the achieved performance 
                component of the label;
                  (B) the Home Energy Rating System (HERS) Index system 
                for the designed performance component of the label; 
                and
                  (C) other Federal and State programs, including the 
                Department of Energy's related programs on building 
                technologies and those of the Federal Energy Management 
                Program.
          (4) Final rule.--After providing for notice and comment, the 
        Administrator shall publish a final rule containing the label 
        applicable to covered building types.
  (g) Demonstration Projects for Labeling Program.--
          (1) In general.--The Administrator shall conduct building 
        energy performance labeling demonstration projects for 
        different building types--
                  (A) to ensure the sufficiency of the current 
                Commercial Buildings Energy Consumption Survey and 
                other data to serve as the basis for new measurement 
                protocols for the achieved performance component of the 
                building energy performance labeling program;
                  (B) to inform the development of measurement 
                protocols for building types not currently covered by 
                the Commercial Buildings Energy Consumption Survey; and
                  (C) to identify any additional information that needs 
                to be developed to ensure effective use of the model 
                label.
          (2) Participation.--Such demonstration projects shall include 
        participation of--
                  (A) buildings from diverse geographical and climate 
                regions;
                  (B) buildings in both urban and rural areas;
                  (C) single-family residential buildings;
                  (D) multihousing residential buildings with more than 
                50 units, including at least one project that provides 
                affordable housing to individuals of diverse incomes;
                  (E) single-occupant commercial buildings larger than 
                30,000 square feet;
                  (F) multitenanted commercial buildings larger than 
                50,000 square feet; and
                  (G) buildings from both the public and private 
                sectors.
          (3) Priority.--Priority in the selection of demonstration 
        projects shall be given to projects that facilitate large-scale 
        implementation of the labeling program for samples of buildings 
        across neighborhoods, geographic regions, cities, or States.
          (4) Findings.--The Administrator shall report any findings 
        from demonstration projects under this subsection, including an 
        identification of any areas of needed data improvement, to the 
        Department of Energy's Energy Information Administration and 
        Building Technologies Program.
          (5) Coordination.--The Administrator and the Secretary of 
        Energy shall coordinate demonstration projects undertaken 
        pursuant to this subsection with those undertaken as part of 
        the Zero-Net-Energy Commercial Buildings Initiative adopted 
        under section 422 of the Energy Independence and Security Act 
        of 2007 (42 U.S.C. 17082).
  (h) Implementation of Labeling Program.--
          (1) In general.--The Administrator, in consultation with the 
        Secretary of Energy, shall work with all State Energy Offices 
        established pursuant to part D of title III of the Energy 
        Policy and Conservation Act (42 U.S.C. 6321 et seq.) or other 
        State authorities as necessary for the purpose of implementing 
        the labeling program established under this section for 
        commercial and residential buildings.
          (2) Outreach to local authorities.--The Administrator shall, 
        acting in consultation and coordination with the respective 
        States, encourage use of the labeling program by counties and 
        other localities to broaden access to information about 
        building energy use, for example, through disclosure of 
        building label contents in tax, title, and other records those 
        localities maintain. For this purpose, the Administrator shall 
        develop an electronic version of the label and information that 
        can be readily transmitted and read in widely-available 
        computer programs but is protected from unauthorized 
        manipulation.
          (3) Means of implementation.--In adopting the model labeling 
        program established under this section, a State shall seek to 
        ensure that labeled information be made accessible to the 
        public in a manner so that owners, lenders, tenants, occupants, 
        or other relevant parties can utilize it. Such accessibility 
        may be accomplished through--
                  (A) preparation, and public disclosure of the label 
                through filing with tax and title records at the time 
                of--
                          (i) a building audit conducted with support 
                        from Federal or State funds;
                          (ii) a building energy-efficiency retrofit 
                        conducted in response to such an audit;
                          (iii) a final inspection of major renovations 
                        or additions made to a building in accordance 
                        with a building permit issued by a local 
                        government entity;
                          (iv) a sale that is recorded for title and 
                        tax purposes consistent with paragraph (8);
                          (v) a new lien recorded on the property for 
                        more than a set percentage of the assessed 
                        value of the property, if that lien reflects 
                        public financial assistance for energy-related 
                        improvements to that building; or
                          (vi) a change in ownership or operation of 
                        the building for purposes of utility billing; 
                        or
                  (B) other appropriate means.
          (4) State implementation of program.--
                  (A) Eligibility.--A State may become eligible to 
                utilize allowance value to implement this program by--
                          (i) adopting by statute or regulation a 
                        requirement that buildings be assessed and 
                        labeled, consistent with the labeling 
                        requirements of the program established under 
                        this section; or
                          (ii) adopting a plan to implement a model 
                        labeling program consistent with this section 
                        within one year of enactment of this Act, 
                        including the establishment of that program 
                        within 3 years after the date of enactment of 
                        this Act, and demonstrating continuous progress 
                        under that plan.
                  (B) Use of allowances.--Direct Federal support for 
                the program established in this section is provided 
                through the emission allowances allocated to the 
                States' SEED Accounts pursuant to section 132 of this 
                Act. To the extent that a State provides allowances to 
                local governments within the State to implement this 
                program, that shall be deemed a distribution of such 
                allowances to units of local government pursuant to 
                subsection (c)(1) of that section.
          (5) Guidance.--The Administrator may create or identify model 
        programs and resources to provide guidance to offer to States 
        and localities for creating labeling programs consistent with 
        the model program established under this section.
          (6) Progress report.--The Administrator, in consultation with 
        the Secretary of Energy, shall provide a progress report to 
        Congress not later than 3 years after the date of enactment of 
        this Act that--
                  (A) evaluates the effectiveness of efforts to advance 
                use of the model labeling program by States and 
                localities;
                  (B) recommends any legislative changes necessary to 
                broaden the use of the model labeling program; and
                  (C) identifies any changes to broaden the use of the 
                model labeling program that the Administrator has made 
                or intends to make that do not require additional 
                legislative authority.
          (7) State information.--The Administrator may require States 
        to report to the Administrator information that the 
        Administrator requires to provide the report required under 
        paragraph (6).
          (8) Prevention of disruption of sales transactions.--No State 
        shall implement a new labeling program pursuant to this section 
        in a manner that requires the labeling of a building to occur 
        after a contract has been executed for the sale of that 
        building and before the sales transaction is completed.
  (i) Implementation of Labeling Program in Federal Buildings.--
          (1) Use of labeling program.--The Secretary of Energy and the 
        Administrator shall use the labeling program established under 
        this section to evaluate energy performance in the facilities 
        of the Department of Energy and the Environmental Protection 
        Agency, respectively, to the extent practicable, and shall 
        encourage and support implementation efforts in other Federal 
        agencies.
          (2) Annual progress report.--The Secretary of Energy and 
        Administrator shall provide an annual progress report to 
        Congress and the Office of Management and Budget detailing 
        efforts to implement this subsection, as well as any best 
        practices or needed resources identified as a result of such 
        efforts.
  (j) Public Outreach.--The Secretary of Energy and the Administrator, 
in consultation with nonprofit and industry stakeholders with 
specialized expertise, and in conjunction with other energy efficiency 
public awareness efforts, shall establish a business and consumer 
education program to increase awareness about the importance of 
building energy efficiency and to facilitate widespread use of the 
labeling program established under this section.
  (k) Definitions.--In this section:
          (1) Building type.--The term ``building type'' means a 
        grouping of buildings as identified by their principal building 
        activities, or as grouped by their use, including office 
        buildings, laboratories, libraries, data centers, retail 
        establishments, hotels, warehouses, and educational buildings.
          (2) Measurement protocol.--The term ``measurement protocol'' 
        means the methodology, prescribed by the Administrator, for 
        defining a benchmark for building energy performance for a 
        specific building type and for measuring that performance 
        against the benchmark.
          (3) Achieved performance.--The term ``achieved performance'' 
        means the actual energy consumption of a building as compared 
        to a baseline building of the same type and size, determined by 
        actual consumption data normalized for appropriate variables.
          (4) Designed performance.--The term ``designed performance'' 
        means the energy consumption performance a building would 
        achieve if operated consistent with its design intent for 
        building energy use, utilizing a standardized set of 
        operational conditions informed by data collected or confirmed 
        during an energy audit.
  (l) Authorization of Appropriations.--There are authorized to be 
appropriated--
          (1) to the Administrator $50,000,000 for implementation of 
        this section for each fiscal year from 2010 through 2020; and
          (2) to the Secretary of Energy $20,000,000 for implementation 
        of this section for fiscal year 2010 and $10,000,000 for fiscal 
        years 2011 through 2020.

SEC. 205. TREE PLANTING PROGRAMS.

  (a) Findings.--The Congress finds that--
          (1) the utility sector is the largest single source of 
        greenhouse gas emissions in the United States today, producing 
        approximately one-third of the country's emissions;
          (2) heating and cooling homes accounts for nearly 60 percent 
        of residential electricity usage in the United States;
          (3) shade trees planted in strategic locations can reduce 
        residential cooling costs by as much as 30 percent;
          (4) shade trees have significant clean-air benefits 
        associated with them;
          (5) every 100 healthy large trees removes about 300 pounds of 
        air pollution (including particulate matter and ozone) and 
        about 15 tons of carbon dioxide from the air each year;
          (6) tree cover on private property and on newly-developed 
        land has declined since the 1970s, even while emissions from 
        transportation and industry have been rising; and
          (7) in over a dozen test cities across the United States, 
        increasing urban tree cover has generated between two and five 
        dollars in savings for every dollar invested in such tree 
        planting.
  (b) Definitions.--As used in this section:
          (1) The term ``Secretary'' refers to the Secretary of Energy.
          (2) The term ``retail power provider'' means any entity 
        authorized under applicable State or Federal law to generate, 
        distribute, or provide retail electricity, natural gas, or fuel 
        oil service.
          (3) The term ``tree-planting organization'' means any 
        nonprofit or not-for-profit group which exists, in whole or in 
        part, to--
                  (A) expand urban and residential tree cover;
                  (B) distribute trees for planting;
                  (C) increase awareness of the environmental and 
                energy-related benefits of trees;
                  (D) educate the public about proper tree planting, 
                care, and maintenance strategies; or
                  (E) carry out any combination of the foregoing 
                activities.
          (4) The term ``tree-siting guidelines'' means a comprehensive 
        list of science-based measurements outlining the species and 
        minimum distance required between trees planted pursuant to 
        this section, in addition to the minimum required distance to 
        be maintained between such trees and--
                  (A) building foundations;
                  (B) air conditioning units;
                  (C) driveways and walkways;
                  (D) property fences;
                  (E) preexisting utility infrastructure;
                  (F) septic systems;
                  (G) swimming pools; and
                  (H) other infrastructure as deemed appropriate.
          (5) The terms ``small office'', ``small office buildings'', 
        and ``small office settings'' means nonresidential buildings or 
        structures zoned for business purposes that are 20,000 square 
        feet or less in total area.
  (c) Purposes.--The purpose of this section is to establish a grant 
program to assist retail power providers with the establishment and 
operation of targeted tree-planting programs in residential and small 
office settings, for the following purposes:
          (1) Reducing the peak-load demand for electricity from 
        residences and small office buildings during the summer months 
        through direct shading of buildings provided by strategically 
        planted trees.
          (2) Reducing wintertime demand for energy from residences and 
        small office buildings by blocking cold winds from reaching 
        such structures, which lowers interior temperatures and drives 
        heating demand.
          (3) Protecting public health by removing harmful pollution 
        from the air.
          (4) Utilizing the natural photosynthetic and transpiration 
        process of trees to lower ambient temperatures and absorb 
        carbon dioxide, thus mitigating the effects of climate change.
          (5) Lowering electric bills for residential and small office 
        ratepayers by limiting electricity consumption without reducing 
        benefits.
          (6) Relieving financial and demand pressure on retail power 
        providers that stems from large peak-load energy demand.
          (7) Protecting water quality and public health by reducing 
        stormwater runoff and keeping harmful pollutants from entering 
        waterways.
          (8) Ensuring that trees are planted in locations that limit 
        the amount of public money needed to maintain public and 
        electric infrastructure.
  (d) General Authority.--
          (1) Assistance.--The Secretary is authorized to provide 
        financial, technical, and related assistance to retail power 
        providers to assist with the establishment of new, or continued 
        operation of existing, targeted tree-planting programs for 
        residences and small office buildings.
          (2) Public recognition initiative.--In carrying out the 
        authority provided under this section, the Secretary shall also 
        create a national public recognition initiative to encourage 
        participation in tree-planting programs by retail power 
        providers.
          (3) Eligibility.--Only those programs which utilize targeted, 
        strategic tree-siting guidelines to plant trees in relation to 
        building location, sunlight, and prevailing wind direction 
        shall be eligible for assistance under this section.
          (4) Requirements.--In order to qualify for assistance under 
        this section, a tree-planting program shall meet each of the 
        following requirements:
                  (A) The program shall provide free or discounted 
                shade-providing or wind-reducing trees to residential 
                and small office consumers interested in lowering their 
                home energy costs.
                  (B) The program shall optimize the electricity-
                consumption reduction benefit of each tree by planting 
                in strategic locations around a given residence or 
                small office.
                  (C) The program shall either--
                          (i) provide maximum amounts of shade during 
                        summer intervals when residences and small 
                        offices are exposed to the most sun intensity; 
                        or
                          (ii) provide maximum amounts of wind 
                        protection during fall and winter intervals 
                        when residences and small offices are exposed 
                        to the most wind intensity.
                  (D) The program shall use the best available science 
                to create tree siting guidelines which dictate where 
                the optimum tree species are best planted in locations 
                that achieve maximum reductions in consumer energy 
                demand while causing the least disruption to public 
                infrastructure, considering overhead and underground 
                facilities.
                  (E) The program shall receive certification from the 
                Secretary that it is designed to achieve the goals set 
                forth in subparagraphs (A) through (D). In designating 
                criteria for such certification, the Secretary shall 
                collaborate with the United States Forest Service's 
                Urban and Community Forestry Program to ensure that 
                certification requirements are consistent with such 
                above goals.
          (5) New program funding share.--The Secretary shall ensure 
        that no less than 30 percent of the funds made available under 
        this section are distributed to retail power providers which--
                  (A) have not previously established or operated 
                qualified tree-planting programs; or
                  (B) are operating qualified tree-planting programs 
                which were established no more than three years prior 
                to the date of enactment of this section.
  (e) Agreements Between Electricity Providers and Tree-Planting 
Organizations.--
          (1) Grant authorization.--In providing assistance under this 
        section, the Secretary is authorized to award grants only to 
        retail power providers that have entered into binding legal 
        agreements with nonprofit tree-planting organizations.
          (2) Conditions of agreement.--Those agreements between retail 
        power providers and tree-planting organizations shall set forth 
        conditions under which nonprofit tree-planting organizations 
        shall provide targeted tree-planting programs which may require 
        these organizations to--
                  (A) participate in local technical advisory 
                committees responsible for drafting general tree-siting 
                guidelines and choosing the most effective species of 
                trees to plant in given locations;
                  (B) coordinate volunteer recruitment to assist with 
                the physical act of planting trees in residential 
                locations;
                  (C) undertake public awareness campaigns to educate 
                local residents about the benefits, cost savings, and 
                availability of free shade trees;
                  (D) establish education and information campaigns to 
                encourage recipients to maintain their shade trees over 
                the long term;
                  (E) serve as the point of contact for existing and 
                potential residential participants who have questions 
                or concerns regarding the tree-planting program;
                  (F) require tree recipients to sign agreements 
                committing to voluntary stewardship and care of 
                provided trees;
                  (G) monitor and report on the survival, growth, 
                overall health, and estimated energy savings of 
                provided trees up until the end of their establishment 
                period which shall be no less than five years; and
                  (H) ensure that trees planted near existing power 
                lines will not interfere with energized electricity 
                distribution lines when mature, and that no new trees 
                will be planted under or adjacent to high-voltage 
                electric transmission lines without prior consultation 
                with the applicable retail power provider receiving 
                assistance under this section.
          (3) Lack of nonprofit organization.--If qualified nonprofit 
        or not-for-profit tree planting organizations do not exist or 
        operate within areas served by retail power providers applying 
        for assistance under this section, the requirements of this 
        section shall apply to binding legal agreements entered into by 
        such retail power providers and one of the following entities:
                  (A) Local municipal governments with jurisdiction 
                over the urban or suburban forest.
                  (B) The State Forester for the State in which the 
                tree planting program will operate.
                  (C) The United States Forest Service's Urban and 
                Community Forestry representative for the State in 
                which the tree-planting program will operate.
                  (D) A landscaping services company that is--
                          (i) identified in consultation with a 
                        national or State nonprofit or not-for-profit 
                        tree-planting organization;
                          (ii) licensed to operate in the State in 
                        which the tree-planting program will operate; 
                        and
                          (iii) a business as defined by the United 
                        States Census Bureau's 2007 North American 
                        Industry Classification System Code 561730.
  (f) Technical Advisory Committees.--
          (1) Description.--In order to qualify for assistance under 
        this section, the retail power provider shall establish and 
        consult with a local technical advisory committee which shall 
        provide advice and consultation to the program, and may--
                  (A) design and adopt an approved plant list that 
                emphasizes the use of hardy, noninvasive tree species 
                and, where geographically appropriate, the use of 
                native, or site-adapted, or low water-use shade trees;
                  (B) design and adopt planting, installation, and 
                maintenance specifications and create a process for 
                inspection and quality control;
                  (C) ensure that tree recipients are educated to care 
                for and maintain their trees over the long term;
                  (D) help the public become more engaged and educated 
                in the planting and care of shade trees;
                  (E) prioritize which sites receive trees, giving 
                preference to locations with the most potential for 
                energy conservation and secondary preference to areas 
                where the average annual income is below the regional 
                median; and
                  (F) assist with monitoring and collection of data on 
                tree health, tree survival, and energy conservation 
                benefits generated under this section.
          (2) Compensation.--Individuals serving on local technical 
        advisory committees shall not receive compensation for their 
        service.
          (3) Composition.--Local technical advisory committees shall 
        be composed of representatives from public, private, and 
        nongovernmental agencies with expertise in demand-side energy 
        efficiency management, urban forestry, or arboriculture, and 
        shall be composed of the following:
                  (A) Up to 4 persons, but no less than one person, 
                representing the retail power provider receiving 
                assistance under this section.
                  (B) Up to 4 persons, but no less than one person, 
                representing the local tree-planting organization which 
                will partner with the retail power provider to carry 
                out this section.
                  (C) Up to 3 persons representing local nonprofit 
                conservation or environmental organizations. Preference 
                shall be given to those entities which are organized 
                under section 501(c)(3) of the Internal Revenue Code of 
                1986, and which have demonstrated expertise engaging 
                the public in energy conservation, energy efficiency, 
                or green building practices or a combination thereof, 
                such that no single organization is represented by more 
                than one individual under this paragraph.
                  (D) Up to 2 persons representing a local affordable 
                housing agency, affordable housing builder, or 
                community development corporation.
                  (E) Up to 3, but no less than one, persons 
                representing local city or county government for each 
                municipality where a shade tree-planting program will 
                take place; at least one of these representatives shall 
                be the city or county forester, city or county 
                arborist, or functional equivalent.
                  (F) Up to one person representing the local 
                government agency responsible for management of roads, 
                sewers, and infrastructure, including but not limited 
                to public works departments, transportation agencies, 
                or equivalents.
                  (G) Up to 3 persons representing the nursery and 
                landscaping industry.
                  (H) Up to 3 persons representing the research 
                community or academia with expertise in natural 
                resources or energy management issues.
          (4) Chairperson.--Each local technical advisory committee 
        shall elect a chairperson to preside over Committee meetings, 
        act as a liaison to governmental and other outside entities, 
        and direct the general operation of the committee; only 
        committee representatives from paragraph (3)(A) or paragraph 
        (3)(B) of this subsection shall be eligible to act as local 
        technical advisory committee chairpersons.
          (5) Credentials.--At least one of the members of each local 
        technical advisory committee shall be certified with one or 
        more of the following credentials: International Society of 
        Arboriculture; Certified Arborist, ISA; Certified Arborist 
        Municipal Specialist, ISA; Certified Arborist Utility 
        Specialist, ISA; Board Certified Master Arborist; or Registered 
        Landscape Architect recommended by the American Society of 
        Landscape Architects.
  (g) Cost-Share Program.--
          (1) Federal share.--The Federal share of support for projects 
        funded under this section shall not exceed 50 percent of the 
        cost of such project and shall be provided on a matching basis.
          (2) Non-federal share.--The non-Federal share of such costs 
        may be paid or contributed by any governmental or 
        nongovernmental entity other than from funds derived directly 
        or indirectly from an agency or instrumentality of the United 
        States.
  (h) Rulemaking.--
          (1) Rulemaking period.--The Secretary shall be authorized to 
        solicit comments and initiate a rulemaking period that shall 
        last no more than 6 months after the date of enactment of this 
        section.
          (2) Competitive grant rule.--At the conclusion of the 
        rulemaking period under paragraph (1), the Secretary shall 
        promulgate a rule governing a public, competitive grants 
        process through which retail power providers may apply for 
        Federal support under this section.
  (i) Nonduplicity.--Nothing in this section shall be construed to 
supersede, duplicate, cancel, or negate the programs or authorities 
provided under section 9 of the Cooperative Forestry Assistance Act of 
1978 (92 Stat. 369; Public Law 95-313; 16 U.S.C. 2105).
  (j) Authorization of Appropriations.--There are hereby authorized to 
be appropriated such sums as may be necessary for the implementation of 
this section.

SEC. 206. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

  Section 453(c)(1) of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17112(c)(1)) is amended by inserting ``but not later than 2 
years after the date of enactment of this Act'' after ``described in 
subsection (b)''.

     Subtitle B--Lighting and Appliance Energy Efficiency Programs

SEC. 211. LIGHTING EFFICIENCY STANDARDS.

  (a) Outdoor Lighting.--
          (1) Definitions.--
                  (A) Section 340(1) of the Energy Policy and 
                Conservation Act (42 U.S.C. 6311(1)) is amended by 
                striking subparagraph (L) and inserting the following:
                  ``(L) Outdoor luminaires.
                  ``(M) Outdoor high light output lamps.
                  ``(N) Any other type of industrial equipment which 
                the Secretary classifies as covered equipment under 
                section 341(b).''.
                  (B) Section 340 of the Energy Policy and Conservation 
                Act (42 U.S.C. 6311) is amended as adding at the end 
                the following:
          ``(25) The term `luminaire' means a complete lighting unit 
        consisting of one or more light sources and ballast(s), 
        together with parts designed to distribute the light, to 
        position and protect such lamps, and to connect such light 
        sources to the power supply.
          ``(26) The term `outdoor luminaire' means a luminaire that is 
        listed as suitable for wet locations pursuant to Underwriters 
        Laboratories Inc. standard UL 1598 and is labeled as `Suitable 
        for Wet Locations' consistent with section 410.4(A) of the 
        National Electrical Code 2005, or is designed for roadway 
        illumination and meets the requirements of Addendum A for IESNA 
        TM-15-07: Backlight, Uplight, and Glare (BUG) Ratings, except 
        for--
                  ``(A) luminaires designed for outdoor video display 
                images that cannot be used in general lighting 
                applications;
                  ``(B) portable luminaires designed for use at 
                construction sites;
                  ``(C) luminaires designed for continuous immersion in 
                swimming pools and other water features;
                  ``(D) seasonal luminaires incorporating solely 
                individual lamps rated at 10 watts or less;
                  ``(E) luminaires designed to be used in emergency 
                conditions that incorporate a means of charging a 
                battery and a device to switch the power supply to 
                emergency lighting loads automatically upon failure of 
                the normal power supply;
                  ``(F) components used for repair of installed 
                luminaries and that meet the requirements of section 
                342(h);
                  ``(G) a luminaire utilizing an electrode-less 
                fluorescent lamp as the light source;
                  ``(H) decorative gas lighting systems;
                  ``(I) luminaires designed explicitly for lighting for 
                theatrical purposes, including performance, stage, film 
                production, and video production;
                  ``(J) luminaires designed as theme elements in theme/
                amusement parks and that cannot be used in most general 
                lighting applications;
                  ``(K) luminaires designed explicitly for vehicular 
                roadway tunnels designed to comply with ANSI/IESNA RP-
                22-05;
                  ``(L) luminaires designed explicitly for hazardous 
                locations meeting UL Standard 844;
                  ``(M) searchlights;
                  ``(N) luminaires that are designed to be recessed 
                into a building, and that cannot be used in most 
                general lighting applications;
                  ``(O) a luminaire rated only for residential 
                applications utilizing a light source or sources 
                regulated under the amendments made by section 321 of 
                the Energy Independence and Security Act of 2007 and 
                with a light output no greater than 2,600 lumens;
                  ``(P) a residential pole-mounted luminaire that is 
                not rated for commercial use utilizing a light source 
                or sources meeting the efficiency requirements of 
                section 231 of the Energy Independence and Security Act 
                of 2007 and mounted on a post or pole not taller than 
                10.5 feet above ground and with a light output not 
                greater than 2,600 lumens;
                  ``(Q) a residential fixture with E12 (Candelabra) 
                bases that is rated for not more than 300 watts total; 
                or
                  ``(R) a residential fixture with medium screw bases 
                that is rated for not more than 145 watts.
          ``(27) The term `outdoor high light outputlamp' means a lamp 
        that--
                  ``(A) has a rated lumen output not less than 2601 
                lumens;
                  ``(B) is capable of being operated at a voltage not 
                less than 110 volts and not greater than 300 volts, or 
                driven at a constant current of 6.6 amperes;
                  ``(C) is not a Parabolic Aluminized Reflector lamp; 
                and
                  ``(D) is not a J-type double-ended (T-3) halogen 
                quartz lamp, utilizing R-7S bases, that is manufactured 
                before January 1, 2015.
          ``(28) The term `outdoor lighting control' means a device 
        incorporated in a luminaire that receives a signal, from either 
        a sensor (such as an occupancy sensor, motion sensor, or 
        daylight sensor) or an input signal (including analog or 
        digital signals communicated through wired or wireless 
        technology), and can adjust the light level according to the 
        signal.''.
          (2) Standards.-- Section 342 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6313) is amended by adding at the 
        end the following:
  ``(g) Outdoor Luminaires.--
          ``(1) Each outdoor luminaire manufactured on or after January 
        1, 2011, shall--
                  ``(A) have an initial luminaire efficacy of at least 
                50 lumens per watt; and
                  ``(B) be designed to use a light source with a lumen 
                maintenance, calculated as mean rated lumens divided by 
                initial lumens, of at least 0.6.
          ``(2) Each outdoor luminaire manufactured on or after January 
        1, 2013, shall--
                  ``(A) have an initial luminaire efficacy of at least 
                70 lumens per watt; and
                  ``(B) be designed to use a light source with a lumen 
                maintenance, calculated as mean rated lumens divided by 
                initial lumens, of at least 0.6.
          ``(3) Each outdoor luminaire manufactured on or after January 
        1, 2015, shall--
                  ``(A) have an initial luminaire efficacy of at least 
                80 lumens per watt; and
                  ``(B) be designed to use a light source with a lumen 
                maintenance, calculated as mean rated lumens divided by 
                initial lumens, of at least 0.65.
          ``(4) In addition to the requirements of paragraphs (1) 
        through (3), each outdoor luminaire manufactured on or after 
        January 1, 2011, shall have the capability of producing at 
        least two different light levels, including 100 percent and 60 
        percent of full lamp output as tested with the maximum rated 
        lamp per UL1598 or the manufacturer's maximum specified for the 
        luminaire under test.
          ``(5)(A) Not later than January 1, 2017, the Secretary shall 
        issue a final rule amending the applicable standards 
        established in paragraphs (3) and (4) if technologically 
        feasible and economically justified.
          ``(B) A final rule issued under subparagraph (A) shall 
        establish efficiency standards at the maximum level that is 
        technically feasible and economically justified, as provided in 
        subsections (o) and (p) of section 325. The Secretary may also, 
        in such rulemaking, amend or discontinue the product exclusions 
        listed in section 340(26)(A) through (P), or amend the lumen 
        maintenance requirements in paragraph (3) if the Secretary 
        determines that such amendments are consistent with the 
        purposes of this Act.
          ``(C) If the Secretary issues a final rule under subparagraph 
        (A) establishing amended standards, the final rule shall 
        provide that the amended standards apply to products 
        manufactured on or after January 1, 2020, or one year after the 
        date on which the final amended standard is published, 
        whichever is later.
  ``(h) Outdoor High Light Output Lamps.--Each outdoor high light 
output lamp manufactured on or after January 1, 2012, shall have a 
lighting efficiency of at least 45 lumens per watt.''.
          (3) Test procedures.-- Section 343(a) of the Energy Policy 
        and Conservation Act (42 U.S.C. 6314(a)) is amended by adding 
        at the end the following:
          ``(10) Outdoor lighting.--
                  ``(A) With respect to outdoor luminaires and outdoor 
                high light output lamps, the test procedures shall be 
                based upon the test procedures specified in 
                illuminating engineering society procedures LM-79 as of 
                March 1, 2009, and LM-31, and/or other appropriate 
                consensus test procedures developed by the Illuminating 
                Engineering Society or other appropriate consensus 
                standards bodies.
                  ``(B) If illuminating engineering society procedure 
                LM--79 is amended, the Secretary shall amend the test 
                procedures established in subparagraph (A) as necessary 
                to be consistent with the amended LM-79 test procedure, 
                unless the Secretary determines, by rule, published in 
                the Federal Register and supported by clear and 
                convincing evidence, that to do so would not meet the 
                requirements for test procedures under paragraph (2).
                  ``(C) The Secretary may revise the test procedures 
                for outdoor luminaires or outdoor high light output 
                lamps by rule consistent with paragraph (2), and may 
                incorporate as appropriate consensus test procedures 
                developed by the Illuminating Engineering Society or 
                other appropriate consensus standards bodies.''.
          (4) Preemption.-- Section 345 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6316) is amended by adding at the 
        end the following:
  ``(i)(1) Except as provided in paragraph (2), section 327 shall apply 
to outdoor luminaires to the same extent and in the same manner as the 
section applies under part B.
  ``(2) Any State standard that is adopted on or before January 1, 
2015, pursuant to a statutory requirement to adopt efficiency standards 
for reducing outdoor lighting energy use enacted prior to January 31, 
2008, shall not be preempted.''.
          (5) Energy efficiency standards for certain luminaires.--Not 
        later than 1 year after the date of enactment of this Act, the 
        Secretary of Energy shall, in consultation with the National 
        Electrical Manufacturers Association, collect data for United 
        States sales of luminaires described in section 340(26)(H) and 
        (M) of the Energy Policy and Conservation Act, to determine the 
        historical growth rate. If the Secretary finds that the growth 
        in market share of such luminaires exceeds twice the year to 
        year rate of the average of the previous three years, then the 
        Secretary shall within 12 months initiate a rulemaking to 
        determine if such exclusion should be eliminated, if substitute 
        products exist that perform more efficiently and fulfill the 
        performance functions of these luminaires.
  (b) Portable Lighting.--
          (1) Portable light fixtures.--
                  (A) Definitions.--Section 321 of the Energy Policy 
                and Conservation Act (42 U.S.C. 6291) is amended by 
                adding at the end the following:
          ``(67) Art work light fixture.--The term `art work light 
        fixture' means a light fixture designed only to be mounted 
        directly to an art work and for the purpose of illuminating 
        that art work.
          ``(68) LED light engine.--The term `LED light engine' or `LED 
        light engine with integral heat sink' means a subsystem of an 
        LED light fixture that--
                  ``(A) includes 1 or more LED components, including--
                          ``(i) an LED driver power source with 
                        electrical and mechanical interfaces; and
                          ``(ii) an integral heat sink to provide 
                        thermal dissipation; and
                  ``(B) may be designed to accept additional components 
                that provide aesthetic, optical, and environmental 
                control.
          ``(69) LED light fixture.--The term `LED light fixture' means 
        a complete lighting unit consisting of--
                  ``(A) an LED light source with 1 or more LED lamps or 
                LED light engines; and
                  ``(B) parts--
                          ``(i) to distribute the light;
                          ``(ii) to position and protect the light 
                        source; and
                          ``(iii) to connect the light source to 
                        electrical power.
          ``(70) Light fixture.--The term `light fixture' means a 
        product designed to provide light that includes--
                  ``(A) at least 1 lamp socket; and
                  ``(B) parts--
                          ``(i) to distribute the light;
                          ``(ii) position and protect 1 or more lamps; 
                        and
                          ``(iii) to connect 1 or more lamps to a power 
                        supply.
          ``(71) Portable light fixture.--
                  ``(A) In general.--The term `portable light fixture' 
                means a light fixture that has a flexible cord and an 
                attachment plug for connection to a nominal 120-volt 
                circuit that--
                          ``(i) allows the user to relocate the product 
                        without any rewiring; and
                          ``(ii) typically can be controlled with a 
                        switch located on the product or the power cord 
                        of the product.
                  ``(B) Exclusions.--The term `portable light fixture' 
                does not include--
                          ``(i) direct plug-in night lights, sun or 
                        heat lamps, medical or dental lights, portable 
                        electric hand lamps, signs or commercial 
                        advertising displays, photographic lamps, 
                        germicidal lamps, or light fixtures for marine 
                        use or for use in hazardous locations (as those 
                        terms are defined in ANSI/NFPA 70 of the 
                        National Electrical Code); or
                          ``(ii) decorative lighting strings, 
                        decorative lighting outfits, or electric 
                        candles or candelabra without lamp shades that 
                        are covered by Underwriter Laboratories (UL) 
                        standard 588, `Seasonal and Holiday Decorative 
                        Products'.''.
                  (B) Coverage.--
                          (i) In general.--Section 322(a) of the Energy 
                        Policy and Conservation Act (42 U.S.C. 6292(a)) 
                        is amended--
                                  (I) by redesignating paragraph (20) 
                                as paragraph (24); and
                                  (II) by inserting after paragraph 
                                (19) the following:
          ``(20) Portable light fixtures.''.
                          (ii) Conforming amendments.--Section 325(l) 
                        of the Energy Policy and Conservation Act (42 
                        U.S.C. 6295(l)) is amended by striking 
                        ``paragraph (19)'' each place it appears in 
                        paragraphs (1) and (2) and inserting 
                        ``paragraph (24)''.
                  (C) Test procedures.--Section 323(b) of the Energy 
                Policy and Conservation Act (42 U.S.C. 6293(b)) is 
                amended by adding at the end the following:
          ``(19) LED fixtures and led light engines.--Test procedures 
        for LED fixtures and LED light engines shall be based on 
        Illuminating Engineering Society of North America (IESNA) test 
        procedure LM-79, Approved Method for Electrical and Photometric 
        Testing of Solid-State Lighting Devices, and IESNA-approved 
        test procedure for testing LED light engines.''.
                  (D) Standards.--Section 325 of the Energy Policy and 
                Conservation Act (42 U.S.C. 6295) is amended--
                          (i) by redesignating subsection (ii) as 
                        subsection (oo);
                          (ii) in subsection (oo)(2), as redesignated 
                        in clause (i) of this subparagraph, by striking 
                        ``(hh)'' each place it appears and inserting 
                        ``(mm)''; and
                          (iii) by inserting after subsection (hh) the 
                        following:
  ``(ii) Portable Light Fixtures.--
          ``(1) In general.--Subject to paragraphs (2) and (3), 
        portable light fixtures manufactured on or after January 1, 
        2012, shall meet 1 or more of the following requirements:
                  ``(A) Be a fluorescent light fixture that meets the 
                requirements of the Energy Star Program for Residential 
                Light Fixtures, Version 4.2.
                  ``(B) Be equipped with only 1 or more GU-24 line-
                voltage sockets, not be rated for use with incandescent 
                lamps of any type (as defined in ANSI standards), and 
                meet the requirements of version 4.2 of the Energy Star 
                program for residential light fixtures.
                  ``(C) Be an LED light fixture or a light fixture with 
                an LED light engine and comply with the following 
                minimum requirements:
                          ``(i) Minimum light output: 200 lumens 
                        (initial).
                          ``(ii) Minimum LED light engine efficacy: 40 
                        lumens/watt installed in fixtures that meet the 
                        minimum light fixture efficacy of 29 lumens/
                        watt or, alternatively, a minimum LED light 
                        engine efficacy of 60 lumens/watt for fixtures 
                        that do not meet the minimum light fixture 
                        efficacy of 29 lumens/watt.
                          ``(iii) All portable fixtures shall have a 
                        minimum LED light fixture efficacy of 29 
                        lumens/watt and a minimum LED light engine 
                        efficacy of 60 lumens/watt by January 1, 2016.
                          ``(iv) Color Correlated Temperature (CCT): 
                        2700K through 4000K.
                          ``(v) Minimum Color Rendering Index (CRI): 
                        75.
                          ``(vi) Power factor equal to or greater than 
                        0.70.
                          ``(vii) Portable luminaries that have 
                        internal power supplies shall have zero standby 
                        power when the luminaire is turned off.
                          ``(viii) LED light sources shall deliver at 
                        least 70 percent of initial lumens for at least 
                        25,000 hours.
                  ``(D)(i) Be equipped with an ANSI-designated E12, 
                E17, or E26 screw-based socket and be prepackaged and 
                sold together with 1 screw-based compact fluorescent 
                lamp or screw-based LED lamp for each screw-based 
                socket on the portable light fixture.
                  ``(ii) The compact fluorescent or LED lamps 
                prepackaged with the light fixture shall be fully 
                compatible with any light fixture controls incorporated 
                into the light fixture (for example, light fixtures 
                with dimmers shall be packed with dimmable lamps).
                  ``(iii) Compact fluorescent lamps prepackaged with 
                light fixtures shall meet the requirements of the 
                Energy Star Program for CFLs Version 4.0.
                  ``(iv) Screw-based LED lamps shall comply with the 
                minimum requirements described in subparagraph (C).
                  ``(E) Be equipped with 1 or more single-ended, non-
                screw based halogen lamp sockets (line or low voltage), 
                a dimmer control or high-low control, and be rated for 
                a maximum of 100 watts.
          ``(2) Review.--
                  ``(A) Review.--The Secretary shall review the 
                criteria and standards established under paragraph (1) 
                to determine if revised standards are technologically 
                feasible and economically justified.
                  ``(B) Components.--The review shall include 
                consideration of--
                          ``(i) whether a separate compliance procedure 
                        is still needed for halogen fixtures described 
                        in subparagraph (E) and, if necessary, what an 
                        appropriate standard for halogen fixtures shall 
                        be;
                          ``(ii) whether the specific technical 
                        criteria described in subparagraphs (A), (C), 
                        and (D)(iii) should be modified; and
                          ``(iii) which fixtures should be exempted 
                        from the light fixture efficacy standard as of 
                        January 1, 2016, because the fixtures are 
                        primarily decorative in nature (as defined by 
                        the Secretary) and, even if exempted, are 
                        likely to be sold in limited quantities.
                  ``(C) Timing.--
                          ``(i) Determination.--Not later than January 
                        1, 2014, the Secretary shall publish amended 
                        standards, or a determination that no amended 
                        standards are justified, under this subsection.
                          ``(ii) Standards.--Any standards under this 
                        paragraph shall take effect on January 1, 2016.
          ``(3) Art work light fixtures.--Art work light fixtures 
        manufactured on or after January 1, 2012, shall--
                  ``(A) comply with paragraph (1); or
                  ``(B)(i) contain only ANSI-designated E12 screw-based 
                line-voltage sockets;
                  ``(ii) have not more than 3 sockets;
                  ``(iii) be controlled with an integral high/low 
                switch;
                  ``(iv) be rated for not more than 25 watts if fitted 
                with 1 socket; and
                  ``(v) be rated for not more than 15 watts per socket 
                if fitted with 2 or 3 sockets.
          ``(4) Exception from preemption.--Notwithstanding section 
        327, Federal preemption shall not apply to a regulation 
        concerning portable light fixtures adopted by the California 
        Energy Commission on or before January 1, 2014.''.
          (2) GU-24 base lamps.--
                  (A) Definitions.--Section 321 of the Energy Policy 
                and Conservation Act (42 U.S.C. 6291) (as amended by 
                paragraph (1)(A)) is amended by adding at the end the 
                following:
          ``(72) GU-24.--The term `GU-24' means the designation of a 
        lamp socket, based on a coding system by the International 
        Electrotechnical Commission, under which--
                  ``(A) `G' indicates a holder and socket type with 2 
                or more projecting contacts, such as pins or posts;
                  ``(B) `U' distinguishes between lamp and holder 
                designs of similar type that are not interchangeable 
                due to electrical or mechanical requirements; and
                  ``(C) 24 indicates the distance in millimeters 
                between the electrical contact posts.
          ``(73) GU-24 adaptor.--
                  ``(A) In general.--The term `GU-24 Adaptor' means a 
                1-piece device, pig-tail, wiring harness, or other such 
                socket or base attachment that--
                          ``(i) connects to a GU-24 socket on 1 end and 
                        provides a different type of socket or 
                        connection on the other end; and
                          ``(ii) does not alter the voltage.
                  ``(B) Exclusion.--The term `GU-24 Adaptor' does not 
                include a fluorescent ballast with a GU-24 base.
          ``(74) GU-24 base lamp.--`GU-24 base lamp' means a light bulb 
        designed to fit in a GU-24 socket.''.
                  (B) Standards.--Section 325 of the Energy Policy and 
                Conservation Act (42 U.S.C. 6295) (as amended by 
                paragraph (1)(D)) is amended by inserting after 
                subsection (ii) the following:
  ``(jj) GU-24 Base Lamps.--
          ``(1) In general.--A GU-24 base lamp shall not be an 
        incandescent lamp as defined by ANSI.
          ``(2) GU-24 adaptors.--GU-24 adaptors shall not adapt a GU-24 
        socket to any other line voltage socket.''.
          (3) Standards for certain incandescent reflector lamps.--
        Section 325(i) of the Energy Policy and Conservation Act (42 
        U.S.C. 6295(i)), as amended by section 161(a)(12) of this Act, 
        is amended by adding at the end the following:
          ``(9) Certain incandescent reflector lamps.--(A) No later 
        than 12 months after enactment of this paragraph, the Secretary 
        shall publish a final rule establishing standards for 
        incandescent reflector lamp types described in paragraph 
        (1)(D). Such standards shall be effective on July 1, 2013.
          ``(B) Any rulemaking for incandescent reflector lamps 
        completed after enactment of this section shall consider 
        standards for all incandescent reflector lamps, inclusive of 
        those specified in paragraph (1)(C).
          ``(10) Reflector lamps.--No later than January 1, 2015, the 
        Secretary shall publish a final rule establishing and amending 
        standards for reflector lamps, including incandescent reflector 
        lamps. Such standards shall be effective no sooner than three 
        years after publication of the final rule. Such rulemaking 
        shall consider incandescent and nonincandescent technologies. 
        Such rulemaking shall consider a new metric other than lumens-
        per-watt based on the photometric distribution of light from 
        such lamps.''.

SEC. 212. OTHER APPLIANCE EFFICIENCY STANDARDS.

  (a) Standards for Water Dispensers, Hot Food Holding Cabinets, and 
Portable Electric Spas.--
          (1) Definitions.--Section 321 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6291), as amended by section 211 of 
        this Act, is further amended by adding at the end the 
        following:
          ``(75) The term `water dispenser' means a factory-made 
        assembly that mechanically cools and heats potable water and 
        that dispenses the cooled or heated water by integral or remote 
        means.
          ``(76) The term `bottle-type water dispenser' means a 
        drinking water dispenser designed for dispensing both hot and 
        cold water that uses a removable bottle or container as the 
        source of potable water.
          ``(77) The term `commercial hot food holding cabinet' means a 
        heated, fully-enclosed compartment with one or more solid or 
        glass doors that is designed to maintain the temperature of hot 
        food that has been cooked in a separate appliance. Such term 
        does not include heated glass merchandizing cabinets, drawer 
        warmers, commercial hot food holding cabinets with interior 
        volumes of less than 8 cubic feet, or cook-and-hold appliances.
          ``(78) The term `portable electric spa' means a factory-built 
        electric spa or hot tub, supplied with equipment for heating 
        and circulating water.''.
          (2) Coverage.--Section 322(a) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6292(a)), as amended by section 
        211(b)(1)(B) of this Act, is further amended by inserting after 
        paragraph (20) the following new paragraphs:
          ``(21) Bottle type water dispensers.
          ``(22) Commercial hot food holding cabinets.
          ``(23) Portable electric spas.''.
          (3) Test procedures.--Section 323(b) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6293(b)), as amended by section 
        211(b)(1)(C) of this Act, is further amended by adding at the 
        end the following:
          ``(20) Bottle type water dispensers.--Test procedures for 
        bottle type water dispensers shall be based on `Energy Star 
        Program Requirements for Bottled Water Coolers version 1.1' 
        published by the Environmental Protection Agency. Units with an 
        integral, automatic timer shall not be tested using section 4D, 
        `Timer Usage,' of the test criteria.
          ``(21) Commercial hot food holding cabinets.--Test procedures 
        for commercial hot food holding cabinets shall be based on the 
        test procedures described in ANSI/ASTM F2140-01 (Test for idle 
        energy rate-dry test). Interior volume shall be based on the 
        method shown in the Environmental Protection Agency's `Energy 
        Star Program Requirements for Commercial Hot Food Holding 
        Cabinets' as in effect on August 15, 2003.
          ``(22) Portable electric spas.--Test procedures for portable 
        electric spas shall be based on the test method for portable 
        electric spas contained in section 1604, title 20, California 
        Code of Regulations as amended on December 3, 2008. When the 
        American National Standards Institute publishes a test 
        procedure for portable electric spas, the Secretary shall 
        revise the Department of Energy's procedure.''.
          (4) Standards.--Section 325 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6295), as amended by section 211 of 
        this Act, is further amended by adding after subsection (jj) 
        the following:
  ``(kk) Bottle Type Water Dispensers.--Effective January 1, 2012, 
bottle-type water dispensers designed for dispensing both hot and cold 
water shall not have standby energy consumption greater than 1.2 
kilowatt-hours per day.
  ``(ll) Commercial Hot Food Holding Cabinets.--Effective January 1, 
2012, commercial hot food holding cabinets with interior volumes of 8 
cubic feet or greater shall have a maximum idle energy rate of 40 watts 
per cubic foot of interior volume.
  ``(mm) Portable Electric Spas.--Effective January 1, 2012, portable 
electric spas shall not have a normalized standby power greater than 
5(V\2/3\) Watts where V=the fill volume in gallons.
  ``(nn) Revisions.--The Secretary of Energy shall consider revisions 
to the standards in subsections (kk), (ll), and (mm) in accordance with 
subsection (o) and publish a final rule no later than January 1, 2013 
establishing such revised standards, or make a finding that no 
revisions are technically feasible and economically justified. Any such 
revised standards shall take effect January 1, 2016.''.
  (b) Commercial Furnace Efficiency Standards.--Section 342(a) of the 
Energy Policy and Conservation Act (42 U.S.C. 6312(a)) is amended by 
inserting after paragraph (10) the following new paragraph:
          ``(11) Warm air furnaces.--Each warm air furnace with an 
        input rating of 225,000 Btu per hour or more and manufactured 
        after January 1, 2011, shall meet the following standard 
        levels:
                  ``(A) Gas-fired units.--
                          ``(i) Minimum thermal efficiency of 80 
                        percent.
                          ``(ii) Include an interrupted or intermittent 
                        ignition device.
                          ``(iii) Have jacket losses not exceeding 0.75 
                        percent of the input rating.
                          ``(iv) Have either power venting or a flue 
                        damper.
                  ``(B) Oil-fired units.--
                          ``(i) Minimum thermal efficiency of 81 
                        percent.
                          ``(ii) Have jacket losses not exceeding 0.75 
                        percent of the input rating.
                          ``(iii) Have either power venting or a flue 
                        damper.''.

SEC. 213. APPLIANCE EFFICIENCY DETERMINATIONS AND PROCEDURES.

  (a) Definition of Energy Conservation Standard.--Section 321(6) of 
the Energy Policy and Conservation Act (42 U.S.C. 6291(6)) is amended 
to read as follows:
          ``(6) Energy conservation standard.--
                  ``(A) In general.--The term `energy conservation 
                standard' means 1 or more performance standards that--
                          ``(i) for covered products (excluding clothes 
                        washers, dishwashers, showerheads, faucets, 
                        water closets, and urinals), prescribe a 
                        minimum level of energy efficiency or a maximum 
                        quantity of energy use, determined in 
                        accordance with test procedures prescribed 
                        under section 323;
                          ``(ii) for showerheads, faucets, water 
                        closets, and urinals, prescribe a minimum level 
                        of water efficiency or a maximum quantity of 
                        water use, determined in accordance with test 
                        procedures prescribed under section 323; and
                          ``(iii) for clothes washers and dishwashers--
                                  ``(I) prescribe a minimum level of 
                                energy efficiency or a maximum quantity 
                                of energy use, determined in accordance 
                                with test procedures prescribed under 
                                section 323; and
                                  ``(II) may include a minimum level of 
                                water efficiency or a maximum quantity 
                                of water use, determined in accordance 
                                with those test procedures.
                  ``(B) Inclusions.--The term `energy conservation 
                standard' includes--
                          ``(i) 1 or more design requirements, if the 
                        requirements were established--
                                  ``(I) on or before the date of 
                                enactment of this subclause;
                                  ``(II) as part of a direct final rule 
                                under section 325(p)(4); or
                                  ``(III) as part of a final rule 
                                published on or after January 1, 2012, 
                                and
                          ``(ii) any other requirements that the 
                        Secretary may prescribe under section 325(r).
                  ``(C) Exclusion.--The term `energy conservation 
                standard' does not include a performance standard for a 
                component of a finished covered product, unless 
                regulation of the component is specifically authorized 
                or established pursuant to this title.''.
  (b) Adopting Consensus Test Procedures and Test Procedures in Use 
Elsewhere.--Section 323(b) of the Energy Policy and Conservation Act 
(42 U.S.C. 6293(b)), as amended by sections 211 and 212 of this Act, is 
further amended by adding the following new paragraph after paragraph 
(22):
          ``(23) Consensus and alternate test procedures.--
                  ``(A) Receipt of joint recommendation or alternate 
                testing procedure.--On receipt of--
                          ``(i) a statement that is submitted jointly 
                        by interested persons that are fairly 
                        representative of relevant points of view 
                        (including representatives of manufacturers of 
                        covered products, States, and efficiency 
                        advocates), as determined by the Secretary, and 
                        contains recommendations with respect to the 
                        testing procedure for a covered product; or
                          ``(ii) a submission of a testing procedure 
                        currently in use for a covered product by a 
                        State, nation, or group of nations--
                                  ``(I) if the Secretary determines 
                                that the recommended testing procedure 
                                contained in the statement or 
                                submission is in accordance with 
                                subsection (b)(3), the Secretary may 
                                issue a final rule that establishes an 
                                energy or water conservation testing 
                                procedure that is published 
                                simultaneously with a notice of 
                                proposed rulemaking that proposes a new 
                                or amended energy or water conservation 
                                testing procedure that is identical to 
                                the testing procedure established in 
                                the final rule to establish the 
                                recommended testing procedure (referred 
                                to in this paragraph as a `direct final 
                                rule'); or
                                  ``(II) if the Secretary determines 
                                that a direct final rule cannot be 
                                issued based on the statement or 
                                submission, the Secretary shall publish 
                                a notice of the determination, together 
                                with an explanation of the reasons for 
                                the determination.
                  ``(B) Public comment.--The Secretary shall solicit 
                public comment for a period of at least 110 days with 
                respect to each direct final rule issued by the 
                Secretary under subparagraph (A)(ii)(I).
                  ``(C) Withdrawal of direct final rules.--
                          ``(i) In general.--Not later than 120 days 
                        after the date on which a direct final rule 
                        issued under subparagraph (A)(ii)(I) is 
                        published in the Federal Register, the 
                        Secretary shall withdraw the direct final rule 
                        if--
                                  ``(I) the Secretary receives 1 or 
                                more adverse public comments relating 
                                to the direct final rule under 
                                subparagraph (B)or any alternative 
                                joint recommendation; and
                                  ``(II) based on the rulemaking record 
                                relating to the direct final rule, the 
                                Secretary determines that such adverse 
                                public comments or alternative joint 
                                recommendation may provide a reasonable 
                                basis for withdrawing the direct final 
                                rule under paragraph (3) or any other 
                                applicable law.
                          ``(ii) Action on withdrawal.--On withdrawal 
                        of a direct final rule under clause (i), the 
                        Secretary shall--
                                  ``(I) proceed with the notice of 
                                proposed rulemaking published 
                                simultaneously with the direct final 
                                rule as described in subparagraph 
                                (A)(ii)(I); and
                                  ``(II) publish in the Federal 
                                Register the reasons why the direct 
                                final rule was withdrawn.
                          ``(iii) Treatment of withdrawn direct final 
                        rules.--A direct final rule that is withdrawn 
                        under clause (i) shall not be considered to be 
                        a final rule for purposes of subsection (b).
                  ``(D) Effect of paragraph.--Nothing in this paragraph 
                authorizes the Secretary to issue a direct final rule 
                based solely on receipt of more than 1 statement 
                containing recommended test procedures relating to the 
                direct final rule.''.
  (c) Updating Television Test Methods.--Section 323(b) of the Energy 
Policy and Conservation Act (42 U.S.C. 6293(b)), as amended by sections 
211 and 212 of this Act, and subsection (b) of this section, is further 
amended by adding at the end the following new paragraph:
          ``(24) Televisions.--(A) On the date of enactment of this 
        paragraph, Appendix H to Subpart B of Part 430 of the United 
        States Code of Federal Regulations, `Uniform Test Method for 
        Measuring the Energy Consumption of Television Sets', is 
        repealed.
          ``(B) No later than 12 months after the date of enactment of 
        this paragraph the Secretary shall publish in the Federal 
        Register a final rule prescribing a new test method for 
        televisions.''.
  (d) Criteria for Prescribing New or Amended Standards.--(1) Section 
325(o)(2)(B)(i) of the Energy Policy and Conservation Act (42 U.S.C. 
6295(o)(2)(B)(i)) is amended as follows:
          (A) By striking ``and'' at the end of subclause (VI).
          (B) By redesignating subclause (VII) as subclause (XI).
          (C) By inserting the following new subclauses after subclause 
        (VI):
          ``(VII) the estimated value of the carbon dioxide and other 
        emission reductions that will be achieved by virtue of the 
        higher energy efficiency of the covered products resulting from 
        the imposition of the standard;
          ``(VIII) the estimated impact of standards for a particular 
        product on average consumer energy prices;
          ``(IX) the increased energy efficiency that may be 
        attributable to the installation of Smart Grid technologies or 
        capabilities in the covered products, if applicable in the 
        determination of the Secretary;
          ``(X) the availability in the United States or in other 
        nations of examples or prototypes of covered products that 
        achieve significantly higher efficiency standards for energy or 
        for water; and''.
  (2) Section 325(o)(2)(B)(iii) of such Act is amended as follows:
          (A) By striking ``three'' and inserting ``5''.
          (B) By inserting after the first sentence the following ``For 
        products with an average expected useful life of less than 5 
        years, such rebuttable presumption shall be determined 
        utilizing 75 percent of the product's average expected useful 
        life as a multiplier instead of 5.''.
          (C) By striking the last sentence and inserting the 
        following: ``Such a presumption may be rebutted only if the 
        Secretary finds, based on clear, convincing, and reliable 
        evidence, that--
          ``(I) such standard level would cause serious and unavoidable 
        hardship to the average consumer of the product, or to 
        manufacturers supplying a significant portion of the market for 
        the product, that substantially outweighs the standard level's 
        benefits;
          ``(II) the standard and implementing regulations cannot be 
        designed to avoid or mitigate the hardship identified under 
        subclause (I), through the adoption of regional standards 
        consistent with paragraph (6) of this subsection, or other 
        reasonable means consistent with this part;
          ``(III) the same or substantially similar hardship would not 
        occur under a standard adopted in the absence of the 
        presumption, but that otherwise meets the requirements of this 
        section; and
          ``(IV) the hardship cannot be avoided or mitigated pursuant 
        the procedures specified in section 504 of the Department of 
        Energy Organization Act (42 U.S.C. 7194).
A determination by the Secretary that the criteria triggering such 
presumption are not met, or that the criterion for rebutting the 
presumption are met shall not be taken into consideration in the 
Secretary's determination of whether a standard is economically 
justified.''.
  (e) Obtaining Appliance Information From Manufacturers.--Section 
326(d) of the Energy Policy and Conservation Act (42 U.S.C. 6295(d)) is 
amended to read as follows:
  ``(d) Information Requirements.--(1) For purposes of carrying out 
this part, the Secretary shall publish proposed regulations not later 
than one year after the date of enactment of the American Clean Energy 
and Security Act of 2009, and after receiving public comment, final 
regulations not later than 18 months from such date of enactment under 
this part or other provision of law administered by the Secretary, 
which shall require each manufacturer of a covered product to submit 
information or reports to the Secretary on an annual basis in a form 
adopted by the Secretary. Such reports shall include information or 
data with respect to--
          ``(A) the manufacturers' compliance with all requirements 
        applicable pursuant to this part;
          ``(B) the economic impact of any proposed energy conservation 
        standard;
          ``(C) the manufacturers' annual shipments of each class or 
        category of covered products, organized, to the maximum extent 
        practicable, by--
                  ``(i) energy efficiency, energy use, and, if 
                applicable, water use;
                  ``(ii) the presence or absence of such efficiency 
                related or energy consuming operational characteristics 
                or components as the Secretary determines are relevant 
                for the purposes of carrying out this part; and
                  ``(iii) the State or regional location of sale, for 
                covered products for which the Secretary may adopt 
                regional standards; and
          ``(D) such other categories of information as the Secretary 
        deems relevant to carry out this part, including such other 
        information as may be necessary to establish and revise test 
        procedures, labeling rules, and energy conservation standards 
        and to insure compliance with the requirements of this part.
  ``(2) In adopting regulations under this subsection, the Secretary 
shall consider existing public sources of information, including 
nationally recognized certification programs of trade associations.
  ``(3) The Secretary shall exercise authority under this section in a 
manner designed to minimize unnecessary burdens on manufacturers of 
covered products.
  ``(4) To the extent that they do not conflict with the duties of the 
Secretary in carrying out this part, the provisions of section 11(d) of 
the Energy Supply and Environmental Coordination Act of 1974 (15 U.S.C. 
796(d)) shall apply with respect to information obtained under this 
subsection to the same extent and in the same manner as they apply with 
respect to other energy information obtained under such section.''.
  (f) State Waiver.--Section 327(c) of the Energy Policy and 
Conservation Act (42 U.S.C. 6297(c)), as amended by section 161(a)(19) 
of this Act, is further amended by adding at the end the following:
          ``(12) is a regulation concerning standards for hot food 
        holding cabinets, drinking water dispensers and portable 
        electric spas adopted by the California Energy Commission on or 
        before January 1, 2013.''.
  (g) Waiver of Federal Preemption.--Paragraph (1) of section 327(d) of 
the Energy Policy and Conservation Act (42 U.S.C. 6297(d)) is amended 
as follows:
          (1) In subparagraph (A) by striking ``State regulation'' each 
        place it appears and inserting ``State statute or regulation''.
          (2) In subparagraph (B) by adding at the end the following 
        new sentence: ``In making such a finding, the Secretary may not 
        reject a petition for failure of the petitioning State or river 
        basin commission to produce confidential information maintained 
        by any manufacturer or distributor, or group or association of 
        manufacturers or distributors, and which the petitioning party 
        does not have the legal right to obtain.''.
          (3) In clause (ii) of subparagraph (C) by striking ``costs'' 
        each place it appears and inserting ``estimated costs''.
          (4) In subparagraph (C) by striking ``within the context of 
        the State's energy plan and forecast, and,''.
  (h) Inclusion of Carbon Output on Appliance ``Energyguide'' Labels.--
(1) Section 324(a)(2) of the Energy Policy and Conservation Act (42 
U.S.C. 6294(a)(2)) is amended by adding the following at the end:
  ``(I)(i) Not later than 90 days after the date of enactment of this 
subparagraph, the Commission shall initiate a rulemaking to implement 
the additional labeling requirements specified in subsection (c)(1)(C) 
of this section with an effective date for the revised labeling 
requirement not later than 12 months from issuance of the final rule.
  ``(ii) Not later than 24 months after the date of enactment of this 
subparagraph, the Commission shall complete the rulemaking initiated 
under clause (i).
  ``(iii) Not later than 90 days after issuance of the final rule as 
provided in this subparagraph, the Secretary shall issue calculation 
methods required to effectuate the labeling requirements specified in 
subsection (c)(1)(C) of this section.''.
  (2) Section 324(c)(1) of the Energy Policy and Conservation Act (42 
U.S.C. 6294(c)(1)) is amended--
          (A) by striking ``and'' at the end of subparagraph (A);
          (B) by striking the period at the end of subparagraph (B) and 
        inserting a semicolon; and
          (C) by adding at the end the following new subparagraphs:
          ``(C) for products or groups of products providing a 
        comparable function (including the group of products comprising 
        the heating function of heat pumps and furnaces) among covered 
        products listed in paragraphs (3), (4), (5), (8), (9), (10), 
        and (11) of section 322(a) of this part, and others designated 
        by the Secretary, the estimated total annual atmospheric carbon 
        dioxide emissions (or their equivalent in other greenhouse 
        gases) associated with, or caused by, the product, calculated 
        utilizing--
                  ``(i) national average energy use for the product 
                including energy consumed at the point of end use based 
                on test procedures developed under section 323 of this 
                part;
                  ``(ii) national average energy consumed or lost in 
                the production, generation, transportation, storage, 
                and distribution of energy to the point of end use; and
                  ``(iii) any direct emissions of greenhouse gases from 
                the product during normal use;
                  ``(D) in determining the national average energy 
                consumption and total annual atmospheric carbon dioxide 
                emissions, the Secretary shall utilize Federal 
                Government sources, including the Energy Information 
                Administration Annual Energy Review, the Environmental 
                Protection Agency eGRID data base, Environmental 
                Protection Agency AP-42 Emission Factors as amended, 
                and other sources determined to be appropriate by the 
                Secretary; and
                  ``(E) information presenting, for each product (or 
                group of products providing the comparable function) 
                identified in section (c)(1)(C) of this section, the 
                estimated annual carbon dioxide emissions calculated 
                within the range of emissions calculated for all models 
                of the product or group according to its function, 
                including those models consuming fuels and those models 
                not consuming fuels.''.
  (i) Permitting States to Seek Injunctive Enforcement.--(1) Section 
334 of the Energy Policy and Conservation Act (42 U.S.C. 6304) is 
amended to read as follows:

``SEC. 334. JURISDICTION AND VENUE.

  ``(a) Jurisdiction.--The United States district courts shall have 
jurisdiction to restrain--
          ``(1) any violation of section 332; and
          ``(2) any person from distributing in commerce any covered 
        product which does not comply with an applicable rule under 
        section 324 or 325.
  ``(b) Authority.--Any action referred to in subsection (a) shall be 
brought by the Commission or by the attorney general of a State in the 
name of the State, except that--
          ``(1) any such action to restrain any violation of section 
        332(a)(3) which relates to requirements prescribed by the 
        Secretary or any violation of section 332(a)(4) which relates 
        to request of the Secretary under section 326(b)(2) shall be 
        brought by the Secretary; and
          ``(2) any violation of section 332(a)(5) or 332(a)(7) shall 
        be brought by the Secretary or by the attorney general of a 
        State in the name of the State.
  ``(c) Venue and Service of Process.--Any such action may be brought 
in the United States district court for a district wherein any act, 
omission, or transaction constituting the violation occurred, or in 
such court of the district wherein the defendant is found or transacts 
business. In any action under this section, process may be served on a 
defendant in any other district in which the defendant resides or may 
be found.''.
  (2) The item relating to section 334 in the table of contents for 
such Act is amended to read as follows:
``Sec. 334. Jurisdiction and venue.''.
  (j) Treatment of Appliances Within Building Codes.--(1) Section 
327(f)(3) of the Energy Policy and Conservation Act (42 U.S.C. 
6297(f)(3)) is amended by striking subparagraphs (B) through (G) and 
inserting the following:
          ``(B) The code meets at least one of the following 
        requirements:
                  ``(i) The code does not require that the covered 
                product have an energy efficiency exceeding--
                          ``(I) the applicable energy conservation 
                        standard established in or prescribed under 
                        section 325;
                          ``(II) the level required by a regulation of 
                        that State for which the Secretary has issued a 
                        rule granting a waiver under subsection (d) of 
                        this section; or
                          ``(III) the required level established in the 
                        International Energy Conservation Code or in a 
                        standard of the American Society of Heating, 
                        Refrigerating and Air-Conditioning Engineers, 
                        or by the Secretary pursuant to section 304 of 
                        the Energy Conservation and Production Act.
                  ``(ii) If the code uses one or more baseline building 
                designs against which all submitted building designs 
                are to be evaluated and such baseline building designs 
                contain a covered product subject to an energy 
                conservation standard established in or prescribed 
                under section 325, the baseline building designs are 
                based on an efficiency level for such covered product 
                which meets but does not exceed one of the levels 
                specified in clause (i).
                  ``(iii) If the code sets forth one or more optional 
                combinations of items which meet the energy consumption 
                or conservation objective, in at least one combination 
                that the State has found to be reasonably achievable 
                using commercially available technologies the 
                efficiency of the covered product meets but does not 
                exceed one of the levels specified in clause (i).
          ``(C) The credit to the energy consumption or conservation 
        objective allowed by the code for installing covered products 
        having energy efficiencies exceeding one of the levels 
        specified in subparagraph (B)(i) is on a one-for-one equivalent 
        energy use or equivalent energy cost basis, taking into account 
        the typical lifetime of the product.
          ``(D) The energy consumption or conservation objective is 
        specified in terms of an estimated total consumption of energy 
        (which may be calculated from energy loss- or gain-based codes) 
        utilizing an equivalent amount of energy (which may be 
        specified in units of energy or its equivalent cost) and 
        equivalent lifetimes.
          ``(E) The estimated energy use of any covered product 
        permitted or required in the code, or used in calculating the 
        objective, is determined using the applicable test procedures 
        prescribed under section 323, except that the State may permit 
        the estimated energy use calculation to be adjusted to reflect 
        the conditions of the areas where the code is being applied if 
        such adjustment is based on the use of the applicable test 
        procedures prescribed under section 323 or other technically 
        accurate documented procedure.''.
          (2) Section 327(f)(4)(B) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6297(f)(4)(B)) is amended to read 
        as follows:
  ``(B) If a building code requires the installation of covered 
products with efficiencies exceeding the levels and requirements 
specified in paragraph (3)(B), such requirement of the building code 
shall not be applicable unless the Secretary has granted a waiver for 
such requirement under subsection (d) of this section.''.

SEC. 214. BEST-IN-CLASS APPLIANCES DEPLOYMENT PROGRAM.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Energy, in consultation with the 
Administrator, shall establish a program to be known as the ``Best-in-
Class Appliances Deployment Program'' to--
          (1) provide bonus payments to retailers or distributors under 
        subsection (c) for sales of best-in-class high-efficiency 
        household appliance models, high-efficiency installed building 
        equipment, and high-efficiency consumer electronics, with the 
        goal of reducing life-cycle costs for consumers, encouraging 
        innovation, and maximizing energy savings and public benefit;
          (2) provide bounties under subsection (d) to retailers for 
        the replacement, retirement, and recycling of old, inefficient, 
        and environmentally harmful products; and
          (3) provide premium awards under subsection (e) to 
        manufacturers for developing and producing new Superefficient 
        Best-in-Class Products.
  (b) Designation of Best-in-Class Product Models.--
          (1) In general.--The Secretary of Energy shall designate 
        product models of appliances, equipment, or electronics as 
        Best-in-Class Product models. The Secretary shall publicly 
        announce the Best-in-Class Product models designated under this 
        subsection. The Secretary shall define product classes broadly 
        and, except as provided in paragraph (2), shall designate as 
        Best-in-Class Product models no more than the most efficient 10 
        percent of the commercially available product models in a class 
        that demonstrate, as a group, a distinctly greater energy 
        efficiency than the average energy efficiency of that class of 
        appliances, equipment, or electronics. In designating models, 
        the Secretary shall--
                  (A) identify commercially available models in the 
                relevant class of products;
                  (B) identify the subgroup of those models that share 
                the distinctly higher energy-efficiency characteristics 
                that warrant designation as best-in-class; and
                  (C) add other models in that class to the list of 
                Best-in-Class Product models as they demonstrate their 
                ability to meet the higher-efficiency characteristics 
                on which the designation was made.
          (2) Percentage exception.--If there are fewer than 10 product 
        models in a class of products, the Secretary may designate one 
        or more of such models as Best-in-Class Products.
          (3) Review of best-in-class standards.--The Secretary shall 
        review annually the product-specific criteria for designating, 
        and the product models that qualify as, Best-in-Class Products 
        and, after notice and a 30-day comment period, make upwards 
        adjustments in the efficiency criteria as necessary to maintain 
        an appropriate ratio of such product models to the total number 
        of product models in the product class.
  (c) Bonuses for Sales of Best-in-Class Products.--
          (1) In general.--The Secretary of Energy shall make bonus 
        payments to retailers or, as provided in paragraph (5)(B), 
        distributors for the sale of Best-in-Class Products.
          (2) Bonus program.--The Secretary shall--
                  (A) publicly announce the availability and amount of 
                the bonus to be paid for each sale of a Best-in-Class 
                Product of a model designated under subsection (b); and
                  (B) make bonus payments in at least that amount for 
                each Best-in-Class Product of that model sold during 
                the 3-year period beginning on the date the model is 
                designated under subsection (b).
          (3) Upgrade of best-in-class product eligibility.--In 
        conducting a review under subsection (b)(3), the Secretary 
        shall--
                  (A) consider designating as a Best-in-Class Product 
                model a Superefficient Best-in-Class Product model that 
                has been designated pursuant to subsection (e);
                  (B) announce any change in the bonus payment as 
                necessary to increase the market share of Best-in-Class 
                Product models;
                  (C) list models that will be eligible for bonuses in 
                the new amount; and
                  (D) continue paying bonus payments at the original 
                level, for the sale of any models that previously 
                qualified as Best-in-Class Products but do not qualify 
                at the new level, for the remainder of the 3-year 
                period announced with the original designation.
          (4) Size of individual bonus payments.--(A) The size of each 
        bonus payment under this subsection shall be the product of--
                          (i) an amount determined by the Secretary; 
                        and
                          (ii) the difference in energy consumption 
                        between the Best-in-Class Product and the 
                        average product in the product class.
          (B) The Secretary shall determine the amount under 
        subparagraph (A)(i) for each product type, in consultation with 
        State and utility efficiency program administrators as well as 
        the Administrator, based on estimates of the amount of bonus 
        payment that would provide significant incentive to increase 
        the market share of Best-in-Class Products.
          (5) Eligible bonus recipient.--(A) The Secretary shall ensure 
        that not more than 1 bonus payment is provided under this 
        subsection for each Best-in-Class Product.
          (B) The Secretary may make distributors eligible to receive 
        bonus payments under this subsection for sales that are not to 
        the final end-user, to the extent that the Secretary determines 
        that for a particular product category distributors are well 
        situated to increase sales of Best-in-Class Products.
  (d) Bounties for Replacement, Retirement, and Recycling of Existing 
Low-Efficiency Products.--
          (1) In general.--The Secretary of Energy shall make bounty 
        payments to retailers for the replacement, retirement, and 
        recycling of older operating low-efficiency products that might 
        otherwise continue in operation.
          (2) Bounties.--Bounties shall be payable upon documentation 
        that the sale of a Best-in-Class Product was accompanied by the 
        replacement, retirement, and recycling of--
                  (A) an inefficient but still-functioning product; or
                  (B) a nonfunctioning product containing a 
                refrigerant,
        by the consumer to whom the Best-in-Class Product was sold.
          (3) Amount.--
                  (A) Functioning products.--The bounty payment payable 
                under this subsection for a product described in 
                paragraph (2)(A) shall be based on the difference 
                between the estimated energy use of the product 
                replaced and the energy use of an average new product 
                in the product class, over the estimated remaining 
                lifetime of the product that was replaced.
                  (B) Nonfunctioning products containing 
                refrigerants.--The bounty payment payable under this 
                subsection for a product described in paragraph (2)(B) 
                shall be in the amount that the Secretary of Energy, in 
                consultation with the Administrator, determines is 
                sufficient to promote the recycling of such products, 
                up to the amount of bounty for a comparable product 
                described in paragraph (2)(A).
          (4) Retirement.--The Secretary shall ensure that no product 
        for which a bounty is paid under this subsection is returned to 
        active service, but that it is instead destroyed, and recycled 
        to the extent feasible.
          (5) Recycling appliances containing refrigerants.--
        Exclusively for the purpose of implementing the bounty payment 
        program for products containing a refrigerant under this 
        section, the Administrator shall establish standards for 
        environmentally responsible methods of recycling and disposal 
        of refrigerant-containing appliances that, at a minimum, meet 
        the requirements set by the Responsible Appliance Disposal 
        (RAD) Program for refrigerant disposal. The Secretary shall 
        ensure that such standards are met before a bounty payment is 
        made under this subsection for a product containing a 
        refrigerant. Nothing in this section shall be interpreted to 
        alter the requirements of section 608 of the Clean Air Act or 
        to relieve any person from complying with those requirements.
  (e) Premium Awards for Development and Production of Superefficient 
Best-in-Class Products.--
          (1) In general.--(A) The Secretary of Energy shall provide 
        premium awards to manufacturers for the development and 
        production of Superefficient Best-in-Class Products. The 
        Secretary shall set and periodically revise standards for 
        eligibility of products for designation as a Superefficient 
        Best-in-Class Product.
          (B) The Secretary may establish a standard for a 
        Superefficient Best-in-Class Product even if no product meeting 
        that standard exists, if the Secretary has reasonable grounds 
        to conclude that a mass-producible product could be made to 
        meet that standard.
          (C) The Secretary may also establish a Superefficient Best-
        in-Class Product standard that is met by one or more existing 
        Best-in-Class Product models, if those product models have 
        distinct energy efficiency attributes and performance 
        characteristics that make them significantly better than other 
        product models qualifying as best-in-class. The Secretary may 
        not designate as Superefficient Best-in-Class Products under 
        this subparagraph models that represent more than 10 percent of 
        the currently qualifying Best-in-Class Product models.
          (2) Premium awards.--(A) The premium award payment provided 
        to a manufacturer under this subsection shall be in addition to 
        any bonus payments made under subsection (c).
          (B) The amount of the premium award paid per unit of 
        Superefficient Best-in-Class Products sold to retailers or 
        distributors shall be the product of--
                  (i) an amount determined by the Secretary; and
                  (ii) the difference in energy consumption between the 
                Superefficient Best-in-Class Product and the average 
                product in the product class.
          (C) The Secretary shall determine the amount under 
        subparagraph (B)(i) for each product type, in consultation with 
        State and utility efficiency program administrators as well as 
        the Administrator, based on consideration of the present value 
        to the Nation of the energy (and water or other resources or 
        inputs) saved over the useful life of the product. The 
        Secretary may also take into consideration the methods used to 
        increase sales of qualifying products in determining such 
        amount.
          (D) The Secretary may adjust the value described in 
        subparagraph (C) upward or downward as appropriate, including 
        based on the effect of the premium awards on the sales of 
        products in different classes that may be affected by the 
        program under this subsection.
          (E) Premium award payments shall be applied to sales of any 
        Superefficient Best-in-Class Product for the first 3 years 
        after designation as a Superefficient Best-in-Class Product.
          (3) Coordination of incentives.--No product for which Federal 
        tax credit is received under section 45M of the Internal 
        Revenue Code of 1986 shall be eligible to receive premium award 
        payments pursuant to this subsection.
  (f) Reporting.--The Secretary of Energy shall require, as a condition 
of receiving a bonus, bounty, or premium award under this section, that 
a report containing the following documentation be provided:
          (1) For retailers and distributors, the number of units sold 
        within each product type, and model-specific wholesale purchase 
        prices and retail sale prices, on a monthly basis.
          (2) For manufacturers, model-specific energy consumption 
        data.
          (3) For manufacturers, on an immediate basis, information 
        concerning any product design or function changes that affect 
        the energy consumption of the unit.
          (4) The methods used to increase the sales of qualifying 
        products.
  (g) Monitoring and Verification Protocols.--The Secretary of Energy 
shall establish monitoring and verification protocols for energy 
consumption tests for each product model and for sales of energy-
efficient models.
  (h) Disclosure.--The Secretary of Energy may require that retailers 
and distributors disclose publicly and to consumers their participation 
in the program under this section.
  (i) Cost-Effectiveness Requirement.--
          (1) Requirement.--The Secretary of Energy shall make cost-
        effectiveness a top priority in designing the program under, 
        and administering, this section, except that the cost-
        effectiveness of providing premium awards to manufacturers 
        under subsection (e), in aggregate, may be lower by this 
        measure than that of the bonuses and bounties to retailers and 
        distributors under subsections (c) and (d).
          (2) Definitions.--In this subsection:
                  (A) Cost-effectiveness.--The term ``cost-
                effectiveness'' means a measure of aggregate savings in 
                the cost of energy over the lifetime of a product in 
                relation to the cost to the Secretary of the bonuses, 
                bounties, and premium awards provided under this 
                section for a product.
                  (B) Savings.--The term ``savings'' means the 
                cumulative megawatt-hours of electricity or million 
                British thermal units of other fuels saved by a product 
                during the projected useful life of the product, in 
                comparison to projected energy consumption of the 
                average product in the same class, taking into 
                consideration the impact of any documented measures to 
                replace, retire, and recycle low-efficiency products at 
                the time of purchase of highly-efficient substitutes.
  (j) Definitions.--In this section--
          (1) the term ``distributor'' mean an individual, 
        organization, or company that sells products in multiple lots 
        and not directly to end-users;
          (2) the term ``retailer'' means an individual, organization, 
        or company that sells products directly to end-users; and
          (3) the term ``Superefficient Best-in-Class Product'' means a 
        product that--
                  (A) can be mass produced; and
                  (B) achieves the highest level of efficiency that the 
                Secretary of Energy finds can, given the current state 
                of technology, be produced and sold commercially to 
                mass-market consumers.
  (k) Authorization of Appropriations.--There are authorized to be 
appropriated $300,000,000 for each of the fiscal years 2010 through 
2014 to the Secretary of Energy for purposes of this section, of which 
not more than 10 percent for any fiscal year may be expended on program 
administration.

SEC. 215. WATERSENSE.

  (a) In General.--There is established within the Environmental 
Protection Agency a WaterSense program to identify and promote water 
efficient products, buildings and landscapes, and services in order--
          (1) to reduce water use;
          (2) to reduce the strain on water, wastewater, and stormwater 
        infrastructure;
          (3) to conserve energy used to pump, heat, transport, and 
        treat water; and
          (4) to preserve water resources for future generations,
through voluntary labeling of, or other forms of communications about, 
products, buildings and landscapes, and services that meet the highest 
water efficiency and performance standards.
  (b) Duties.--The Administrator shall--
          (1) promote WaterSense labeled products, buildings and 
        landscapes, and services in the market place as the preferred 
        technologies and services for--
                  (A) reducing water use; and
                  (B) ensuring product and service performance;
          (2) work to enhance public awareness of the WaterSense label 
        through public outreach, education, and other means;
          (3) establish and maintain performance standards so that 
        products, buildings and landscapes, and services labeled with 
        the WaterSense label perform as well or better than their less 
        efficient counterparts;
          (4) publicize the need for proper installation and 
        maintenance of WaterSense products by a licensed, and where 
        certification guidelines exist, WaterSense-certified 
        professional to ensure optimal performance;
          (5) preserve the integrity of the WaterSense label;
          (6) regularly review and, when appropriate, update WaterSense 
        criteria for categories of products, buildings and landscapes, 
        and services, at least once every four years;
          (7) to the extent practical, regularly estimate and make 
        available to the public the production and relative market 
        shares of WaterSense labeled products, buildings and 
        landscapes, and services, at least annually;
          (8) to the extent practical, regularly estimate and make 
        available to the public the water and energy savings 
        attributable to the use of WaterSense labeled products, 
        buildings and landscapes, and services, at least annually;
          (9) solicit comments from interested parties and the public 
        prior to establishing or revising a WaterSense category, 
        specification, installation criterion, or other criterion (or 
        prior to effective dates for any such category, specification, 
        installation criterion, or other criterion);
          (10) provide reasonable notice to interested parties and the 
        public of any changes (including effective dates), on the 
        adoption of a new or revised category, specification, 
        installation criterion, or other criterion, along with--
                  (A) an explanation of changes; and
                  (B) as appropriate, responses to comments submitted 
                by interested parties;
          (11) provide appropriate lead time (as determined by the 
        Administrator) prior to the applicable effective date for a new 
        or significant revision to a category, specification, 
        installation criterion, or other criterion, taking into account 
        the timing requirements of the manufacturing, marketing, 
        training, and distribution process for the specific product, 
        building and landscape, or service category addressed; and
          (12) identify and, where appropriate, implement other 
        voluntary approaches in commercial, institutional, residential, 
        municipal, and industrial sectors to encourage reuse and 
        recycling technologies, improve water efficiency, or lower 
        water use while meeting, where applicable, the performance 
        standards established under paragraph (3).
  (c) Authorization of Appropriations.--There are authorized to be 
appropriated $7,500,000 for fiscal year 2010, $10,000,000 for fiscal 
year 2011, $20,000,000 for fiscal year 2012, and $50,000,000 for fiscal 
year 2013 and each year thereafter, adjusted for inflation, to carry 
out this section.

SEC. 216. FEDERAL PROCUREMENT OF WATER EFFICIENT PRODUCTS.

  (a) Definitions.--In this section:
          (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 7902(a) of title 5, United States Code.
          (2) Watersense product or service.--The term ``WaterSense 
        product or service'' means a product or service that is rated 
        for water efficiency under the WaterSense program.
          (3) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 215 of this Act.
          (4) FEMP designated product.--The term ``FEMP designated 
        product'' means a product that is designated under the Federal 
        Energy Management Program of the Department of Energy as being 
        among the highest 25 percent of equivalent products for 
        efficiency.
          (5) Product and service.--The terms ``product'' and 
        ``service'' do not include any water consuming product or 
        service designed or procured for combat or combat-related 
        missions. The terms also exclude products or services already 
        covered by the Federal procurement regulations established 
        under section 553 of the National Energy Conservation Policy 
        Act (42 U.S.C. 8259b).
  (b) Procurement of Water Efficient Products.--
          (1) Requirement.--To meet the requirements of an agency for a 
        water consuming product or service, the head of the agency 
        shall, except as provided in paragraph (2), procure--
                  (A) a WaterSense product or service; or
                  (B) a FEMP designated product.
        A WaterSense plumbing product should preferably, when possible, 
        be installed by a licensed and, when WaterSense certification 
        guidelines exist, WaterSense-certified plumber or mechanical 
        contractor, and a WaterSense irrigation system should 
        preferably, when possible, be installed, maintained, and 
        audited by a WaterSense-certified irrigation professional to 
        ensure optimal performance.
          (2) Exceptions.--The head of an agency is not required to 
        procure a WaterSense product or service or FEMP designated 
        product under paragraph (1) if the head of the agency finds in 
        writing that--
                  (A) a WaterSense product or service or FEMP 
                designated product is not cost-effective over the life 
                of the product, taking energy and water cost savings 
                into account; or
                  (B) no WaterSense product or service or FEMP 
                designated product is reasonably available that meets 
                the functional requirements of the agency.
          (3) Procurement planning.--The head of an agency shall 
        incorporate into the specifications for all procurements 
        involving water consuming products and systems, including guide 
        specifications, project specifications, and construction, 
        renovation, and services contracts that include provision of 
        water consuming products and systems, and into the factors for 
        the evaluation of offers received for the procurement, criteria 
        used for rating WaterSense products and services and FEMP 
        designated products. The head of an agency shall consider, to 
        the maximum extent practicable, additional measures for 
        reducing agency water consumption, including water reuse 
        technologies, leak detection and repair, and use of waterless 
        products that perform similar functions to existing water-
        consuming products.
  (c) Regulations.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Energy, working in coordination with the 
Administrator, shall issue guidelines to carry out this section.

SEC. 217. WATER EFFICIENT PRODUCT REBATE PROGRAMS.

  (a) Definitions.--In this section:
          (1) Eligible state.--The term ``eligible State'' means a 
        State that meets the requirements of subsection (b).
          (2) Residential water efficient product or service.--The term 
        ``residential water efficient product or service'' means a 
        product or service for a residence or its landscape that is 
        rated for water efficiency and performance--
                  (A) by the WaterSense program, where a WaterSense 
                specification does not exist; or
                  (B) by a State program and approved by the 
                Administrator.
        Categories of water efficient products and services may include 
        faucets, irrigation technologies and services, point-of-use 
        water treatment devices, reuse and recycling technologies, 
        toilets, and showerheads.
          (3) State program.--The term ``State program'' means a State 
        program for administering rebates or vouchers for consumer 
        purchase of water efficient products and services as described 
        in subsection (b)(1).
          (4) Watersense program.--The term ``WaterSense program'' 
        means the program established by section 215 of this Act.
  (b) Eligible States.--A State shall be eligible to receive an 
allocation under subsection (c) if the State--
          (1) establishes (or has established) a State program to 
        provide rebates or vouchers to residential consumers for the 
        purchase of residential water efficient products or services to 
        replace used products of the same type;
          (2) submits an application for the allocation at such time, 
        in such form, and containing such information as the 
        Administrator may require; and
          (3) provides assurances satisfactory to the Administrator 
        that the State will use the allocation to supplement, but not 
        supplant, funds made available to carry out the State program.
  (c) Amount of Allocations.--
          (1) In general.--Subject to paragraph (2), for each fiscal 
        year, the Administrator shall allocate to each eligible State 
        to carry out subsection (d) an amount equal to the product 
        obtained by multiplying the amount made available under 
        subsection (g) for the fiscal year by the ratio that the 
        population of the State in the most recent calendar year for 
        which data are available bears to the total population of all 
        eligible States in that calendar year.
          (2) Minimum allocations.--For each fiscal year, the amounts 
        allocated under this subsection shall be adjusted 
        proportionately so that no eligible State is allocated a sum 
        that is less than an amount determined by the Administrator.
  (d) Use of Allocated Funds.--Funds allocated to a State under 
subsection (c) may be used to pay up to 50 percent of the cost of 
establishing and carrying out a State program.
  (e) Fixture Recycling.--States are encouraged to promote or implement 
fixture recycling programs to manage the disposal of older fixtures 
replaced due to the rebate program under this section.
  (f) Issuance of Rebates.--Rebates or vouchers may be provided to 
residential consumers that meet the requirements of the State program. 
The State may issue all rebates or vouchers directly to residential 
consumers or, with approval of the Administrator, delegate some or all 
rebate and voucher administration to other organizations including, but 
not limited to, local governments, municipal water authorities, and 
water utilities. The amount of a rebate or voucher shall be determined 
by the State, taking into consideration--
          (1) the amount of the allocation to the State under 
        subsection (c);
          (2) the amount of any Federal or State tax incentive 
        available for the purchase of the residential water efficient 
        product or service;
          (3) the amount necessary to change consumer behavior to 
        purchase water efficient products and services; and
          (4) the consumer expenditures for onsite preparation, 
        assembly, and original installation of the product.
  (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section $50,000,000 
for each of the fiscal years 2010 and 2011, $75,000,000 for fiscal year 
2012, $100,000,000 for fiscal year 2013, and $150,000,000 for fiscal 
year 2014 and each year thereafter, adjusted for inflation.

SEC. 218. CERTIFIED STOVES PROGRAM.

  (a) Definitions.--In this section:
          (1) Agency.--The term ``Agency'' means the Environmental 
        Protection Agency.
          (2) Wood stove or pellet stove.--The term ``wood stove or 
        pellet stove'' means a wood stove, pellet stove, or fireplace 
        insert that uses wood or pellets for fuel.
          (3) Certified stove.--The term ``certified stove'' means a 
        wood stove or pellet stove that meets the standards of 
        performance for new residential wood heaters under subpart AAA 
        of part 60 of subchapter C of chapter I of title 40, Code of 
        Federal Regulations (or successor regulations), as certified by 
        the Administrator. Pellet stoves and fireplace inserts using 
        pellets for fuel that are exempt from testing by the 
        Administrator but meet the same standards of performance as 
        wood stoves are considered certified for the purposes of this 
        section.
          (4) Eligible entity.--The term ``eligible entity'' means--
                  (A) a State, a local government, or a federally 
                recognized Indian tribe;
                  (B) Alaskan Native villages or regional or village 
                corporations (as defined in, or established under, the 
                Alaskan Native Claims Settlement Act (43 U.S.C. 1601 et 
                seq.)); and
                  (C) a nonprofit organization or institution that--
                          (i) represents or provides pollution 
                        reduction or educational services relating to 
                        wood smoke minimization to persons, 
                        organizations, or communities; or
                          (ii) has, as its principal purpose, the 
                        promotion of air quality or energy efficiency.
  (b) Establishment.--The Administrator shall establish and carry out a 
program to assist in the replacement of wood stoves or pellet stoves 
that do not meet the standards of performance referred to in subsection 
(a)(4) by--
          (1) requiring that each wood stove or pellet stove sold in 
        the United States on and after the date of enactment of this 
        Act meet the standards of performance referred to in subsection 
        (a)(4);
          (2) requiring that no wood stove or pellet stove replaced 
        under this program is sold or returned to active service, but 
        that it is instead destroyed and recycled to the maximum extent 
        feasible;
          (3) providing funds to an eligible entity to replace a wood 
        stove or pellet stove that does not meet the standards of 
        performance in subsection (a)(4) with a certified stove, 
        including funds to pay for--
                  (A) installation of a replacement certified stove; 
                and
                  (B) necessary replacement of or repairs to 
                ventilation, flues, chimneys, or other relevant items 
                necessary for safe installation of a replacement 
                certified stove;
          (4) in addition to any funds that may be appropriated for the 
        program under this subsection, using existing Federal, State, 
        and local programs and incentives, to the greatest extent 
        practicable;
          (5) prioritizing the replacement of wood stoves or pellet 
        stoves manufactured before July 1, 1990; and
          (6) carrying out such other activities as the Administrator 
        determines appropriate to facilitate the replacement of wood 
        stoves or pellet stoves that do not meet the standards of 
        performance referred to in subsection (a)(3).
  (c) Regulations.--The Administrator may promulgate such regulations 
as are necessary to carry out the program established under subsection 
(b).
  (d) Funding.--
          (1) Authorization of appropriations.--There are authorized to 
        be appropriated to carry out the program under this section 
        $20,000,000 for the period of fiscal years 2010 through 2014.
          (2) Designated use.--Of amounts appropriated pursuant to this 
        subsection--
                  (A) 25 percent shall be designated for use to carry 
                out the program under this section on lands held in 
                trust for the benefit of a federally recognized Indian 
                tribe;
                  (B) 3 percent shall be designated for use to carry 
                out the program under this section in Alaskan Native 
                villages or regional or village corporations (as 
                defined in, or established under, the Alaskan Native 
                Claims Settlement Act (43 U.S.C. 1601 et seq.)); and
                  (C) 72 percent shall be designated for use to carry 
                out the program under this section nationwide.
          (3) Regulatory programs.--
                  (A) In general.--No grant or loan provided under this 
                section shall be used to fund the costs of emissions 
                reductions that are mandated under Federal, State, or 
                local law.
                  (B) Mandated.--For purposes of subparagraph (A), 
                voluntary or elective emission reduction measures shall 
                not be considered ``mandated'', regardless of whether 
                the reductions are included in the implementation plan 
                of a State.
  (e) EPA Authority to Accept Wood Stove or Pellet Stove Replacement 
Supplemental Environmental Projects.--
          (1) In general.--The Administrator may accept 
        (notwithstanding sections 3302 and 1301 of title 31, United 
        States Code) wood stove or pellet stove replacement 
        Supplemental Environmental Projects if such projects, as part 
        of a settlement of any alleged violation of environmental law--
                  (A) protect human health or the environment;
                  (B) are related to the underlying alleged violation;
                  (C) do not constitute activities that the defendant 
                would otherwise be legally required to perform; and
                  (D) do not provide funds for the staff of the Agency 
                or for contractors to carry out the Agency's internal 
                operations.
          (2) Certification.--In any settlement agreement regarding an 
        alleged violation of environmental law in which a defendant 
        agrees to perform a wood stove or pellet stove replacement 
        Supplemental Environmental Project, the Administrator shall 
        require the defendant to include in the settlement documents a 
        certification under penalty of law that the defendant would 
        have agreed to perform a comparably valued, alternative project 
        other than a wood stove or pellet stove replacement 
        Supplemental Environmental Project if the Administrator were 
        precluded by law from accepting a wood stove or pellet stove 
        replacement Supplemental Environmental Project. A failure by 
        the Administrator to include this language in such a settlement 
        agreement shall not create a cause of action against the United 
        States under the Clean Air Act or any other law or create a 
        basis for overturning a settlement agreement entered into by 
        the United States.

SEC. 219. ENERGY STAR STANDARDS.

  (a) Energy Star.--Section 324A(c) of the Energy Policy and 
Conservation Act is amended--
          (1) in paragraph (6)(B), by striking ``and'' after the 
        semicolon at the end;
          (2) in paragraph (7), by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following:
          ``(8) in establishing and revising an Energy Star product 
        category, specification, or criterion, require inclusion of 
        developmental products planned for sale within 2 years in the 
        testing or evaluation of products proposed for purposes of such 
        establishment or revision;
          ``(9) not later than 18 months after the date of enactment of 
        this paragraph, establish and implement a rating system for 
        products identified as Energy Star products pursuant to this 
        section to provide consumers with the most helpful information 
        on the relative energy efficiency of those products, unless the 
        Administrator and the Secretary communicate to Congress that 
        establishing such a system would diminish the value of the 
        Energy Star brand to consumers;
          ``(10)(A) review the Energy Star product criteria for the 10 
        products in each product category with the greatest energy 
        consumption at least once every 3 years; and
          ``(B) based on the review, update and publish the Energy Star 
        product criteria for each such category, as necessary; and
          ``(11) require periodic verification of compliance with the 
        Energy Star product criteria by products identified as Energy 
        Star products pursuant to this section, including--
                  ``(A) purchase and testing of products from the 
                market; or
                  ``(B) other appropriate testing and compliance 
                approaches.''.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the amendments made by this section 
$5,000,000 for fiscal year 2010 and for each fiscal year thereafter.

                 Subtitle C--Transportation Efficiency

SEC. 221. EMISSIONS STANDARDS.

  Title VIII of the Clean Air Act, as added by section 331 of this Act, 
is amended by inserting after part A the following new part:

                        ``PART B--MOBILE SOURCES

``SEC. 821. GREENHOUSE GAS EMISSION STANDARDS FOR MOBILE SOURCES.

  ``(a) New Motor Vehicles and New Motor Vehicle Engines.--(1) Pursuant 
to section 202(a)(1), by December 31, 2010, the Administrator shall 
promulgate standards applicable to emissions of greenhouse gases from 
new heavy-duty motor vehicles or new heavy-duty motor vehicle engines, 
excluding such motor vehicles covered by the Tier II standards (as 
established by the Administrator as of the date of the enactment of 
this section). The Administrator may revise these standards from time 
to time.
  ``(2) Regulations issued under section 202(a)(1) applicable to 
emissions of greenhouse gases from new heavy-duty motor vehicles or new 
heavy-duty motor vehicle engines, excluding such motor vehicles covered 
by the Tier II standards (as established by the Administrator as of the 
date of the enactment of this section), shall contain standards that 
reflect the greatest degree of emissions reduction achievable through 
the application of technology which the Administrator determines will 
be available for the model year to which such standards apply, giving 
appropriate consideration to cost, energy, and safety factors 
associated with the application of such technology. Any such 
regulations shall take effect after such period as the Administrator 
finds necessary to permit the development and application of the 
requisite technology, and, at a minimum, shall apply for a period no 
less than 3 model years beginning no earlier than the model year 
commencing 4 years after such regulations are promulgated.
  ``(3) Regulations issued under section 202(a)(1) applicable to 
emissions of greenhouse gases from new heavy-duty motor vehicles or new 
heavy-duty motor vehicle engines, excluding such motor vehicles covered 
by the Tier II standards (as established by the Administrator as of the 
date of the enactment of this section), shall supersede and satisfy any 
and all of the rulemaking and compliance requirements of section 
32902(k) of title 49, United States Code.
  ``(4) Other than as specifically set forth in paragraph (3) of this 
subsection, nothing in this section shall affect or otherwise increase 
or diminish the authority of the Secretary of Transportation to adopt 
regulations to improve the overall fuel efficiency of the commercial 
goods movement system.
  ``(b) Nonroad Vehicles and Engines.--(1) Pursuant to section 
213(a)(4) and (5), the Administrator shall identify those classes or 
categories of new nonroad vehicles or engines, or combinations of such 
classes or categories, that, in the judgment of the Administrator, both 
contribute significantly to the total emissions of greenhouse gases 
from nonroad engines and vehicles, and provide the greatest potential 
for significant and cost-effective reductions in emissions of 
greenhouse gases. The Administrator shall promulgate standards 
applicable to emissions of greenhouse gases from these new nonroad 
engines or vehicles by December 31, 2012. The Administrator shall also 
promulgate standards applicable to emissions of greenhouse gases for 
such other classes and categories of new nonroad vehicles and engines 
as the Administrator determines appropriate and in the timeframe the 
Administrator determines appropriate. The Administrator shall base such 
determination, among other factors, on the relative contribution of 
greenhouse gas emissions, and the costs for achieving reductions, from 
such classes or categories of new nonroad engines and vehicles. The 
Administrator may revise these standards from time to time.
  ``(2) Standards under section 213(a)(4) and (5) applicable to 
emissions of greenhouse gases from those classes or categories of new 
nonroad engines or vehicles identified in the first sentence of 
paragraph (1) of this subsection, shall achieve the greatest degree of 
emissions reduction achievable based on the application of technology 
which the Administrator determines will be available at the time such 
standards take effect, taking into consideration cost, energy, and 
safety factors associated with the application of such technology. Any 
such regulations shall take effect after such period as the 
Administrator finds necessary to permit the development and application 
of the requisite technology.
  ``(3) For purposes of this section and standards under section 
213(a)(4) or (5) applicable to emissions of greenhouse gases, the term 
`nonroad engines and vehicles' shall include non-internal combustion 
engines and the vehicles these engines power (such as electric engines 
and electric vehicles), for those non-internal combustion engines and 
vehicles which would be in the same category and have the same uses as 
nonroad engines and vehicles that are powered by internal combustion 
engines.
  ``(c) Aircraft and Aircraft Engines.--
          ``(1) Pursuant to section 231(a), the Administrator shall 
        promulgate standards applicable to emissions of greenhouse 
        gases from new aircraft and new engines used in aircraft by 
        December 31, 2012. Notwithstanding any requirement in section 
        231(a), the Administrator, in consultation with the 
        Administrator of the Federal Aviation Administration, shall 
        also promulgate standards applicable to emissions of greenhouse 
        gases from other classes and categories of aircraft and 
        aircraft engines for such classes and categories as the 
        Administrator determines appropriate and in the timeframe the 
        Administrator determines appropriate. The Administrator may 
        revise these standards from time to time.
          ``(2) Standards under section 231(a) applicable to emissions 
        of greenhouse gases from new aircraft and new engines used in 
        aircraft, and any later revisions or additional standards, 
        shall achieve the greatest degree of emissions reduction 
        achievable based on the application of technology which the 
        Administrator determines will be available at the time such 
        standards take effect, taking into consideration cost, energy, 
        and safety factors associated with the application of such 
        technology. Any such standards shall take effect after such 
        period as the Administrator finds necessary to permit the 
        development and application of the requisite technology.
  ``(d) Averaging, Banking, and Trading of Emissions Credits.--In 
establishing standards applicable to emissions of greenhouse gases 
pursuant to this section and sections 202(a), 213(a)(4) and (5), and 
231(a), the Administrator may establish provisions for averaging, 
banking, and trading of greenhouse gas emissions credits within or 
across classes or categories of motor vehicles and motor vehicle 
engines, nonroad vehicles and engines (including marine vessels), and 
aircraft and aircraft engines, to the extent the Administrator 
determines appropriate and considering the factors appropriate in 
setting standards under those sections. Such provisions may include 
reasonable and appropriate provisions concerning generation, banking, 
trading, duration, and use of credits.
  ``(e) Reports.--The Administrator shall, from time to time, submit a 
report to Congress that projects the amount of greenhouse gas emissions 
from the transportation sector, including transportation fuels, for the 
years 2030 and 2050, based on the standards adopted under this section.
  ``(f) Greenhouse Gases.--Notwithstanding the provisions of section 
711, hydrofluorocarbons shall be considered a greenhouse gas for 
purposes of this section.''.

SEC. 222. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH TRANSPORTATION 
                    EFFICIENCY.

  Title VIII of the Clean Air Act, as added by section 331 of this Act, 
is further amended by inserting after part C the following new part:

                    ``PART D--PLANNING REQUIREMENTS

``SEC. 841. GREENHOUSE GAS EMISSIONS REDUCTIONS THROUGH TRANSPORTATION 
                    EFFICIENCY.

  ``(a) In General.--Each State shall--
          ``(1) not later than 3 years after the date of enactment of 
        this section, submit to the Administrator goals for 
        transportation-related greenhouse gas emissions reductions, 
        which goals shall be reasonably commensurate with the targets 
        for overall greenhouse gas emissions reduction established by 
        this Act; and
          ``(2) as part of each transportation plan or transportation 
        improvement program developed under title 23 or title 49, 
        United States Code, ensure that a plan to achieve such goals, 
        or an updated version of such a plan, is submitted to the 
        Administrator and to the Secretary of Transportation (in this 
        section referred to as the `Secretary') by each metropolitan 
        planning organization in the State for an area with a 
        population exceeding 200,000.
  ``(b) Models and Methodologies.--
          ``(1) In general.--The Administrator shall promulgate 
        regulations to establish standards for use in developing goals, 
        plans, and strategies under this section and for monitoring 
        progress toward such goals. Such standards shall include--
                  ``(A) data collection techniques for assessing State 
                and regional transportation-related greenhouse gas 
                emissions;
                  ``(B) methodologies for determining transportation-
                related greenhouse gas emissions baselines;
                  ``(C) models and methodologies for scenario analysis; 
                and
                  ``(D) models and methodologies for estimating 
                transportation-related greenhouse gas emissions 
                reductions from the strategies considered under this 
                section.
        Such regulations may approve or improve existing models and 
        methodologies
          ``(2) Timing.--The Administrator shall--
                  ``(A) publish proposed regulations under paragraph 
                (1) not later than 1 year after the date of enactment 
                of this section; and
                  ``(B) promulgate final regulations under paragraph 
                (1) not later than 2 years after such date of 
                enactment.
          ``(3) Assessment.--At least every 6 years after promulgating 
        final regulations under paragraph (1), the Administrator, in 
        coordination with the Secretary, shall assess current and 
        projected progress in reducing transportation-related 
        greenhouse gas emissions. The assessment shall examine the 
        contributions to emissions reductions attributable to 
        improvements in vehicle efficiency, greenhouse gas performance 
        of transportation fuels, and increased efficiency in utilizing 
        transportation systems.
  ``(c) Greenhouse Gas Reduction Goals.--
          ``(1) Consultation.--Each State shall develop the goals 
        referred to in subsection (a)(1)--
                  ``(A) in concurrence with State agencies responsible 
                for air quality and transportation;
                  ``(B) in consultation with each metropolitan planning 
                organization for an area in the State with a population 
                exceeding 200,000 and applicable local air quality and 
                transportation agencies; and
                  ``(C) with public involvement, including public 
                comment periods and meetings.
          ``(2) Period.--The goals referred to in subsection (a)(1) 
        shall be for 4-, 10-, and 20-year periods.
          ``(3) Targets; designated year.--The goals referred to in 
        subsection (a)(1) shall establish targets to reduce 
        transportation-related greenhouse gas emissions in the covered 
        area. The targets shall be designed to ensure that the levels 
        of such emissions stabilize and decrease after a designated 
        year. The State shall consider designating 2010 as such 
        designated year.
          ``(4) Covered area.--The goals referred to in subsection 
        (a)(1)--
                  ``(A) shall be established on a statewide basis;
                  ``(B) shall be established for each metropolitan 
                planning organization in the State for an area with a 
                population exceeding 200,000; and
                  ``(C) may be established on a voluntary basis, in 
                accordance with the provisions of this section, for any 
                metropolitan planning organization not described in 
                subparagraph (B).
          ``(5) Revised goals.--Every 4 years, each State shall update 
        and revise, as appropriate, the goals referred to in subsection 
        (a)(1).
  ``(d) Planning.--A plan submitted under subsection (a)(2) shall--
          ``(1) be based upon the models and methodologies established 
        by the Administrator under subsection (b);
          ``(2) use transportation and land use scenario analysis to 
        address transportation-related greenhouse gas emissions and 
        economic development impacts; and
          ``(3) be developed--
                  ``(A) with public involvement, including public 
                comment periods and meetings that provide opportunities 
                for comment from a variety of stakeholders based on 
                age, race, income, and disability;
                  ``(B) with regional coordination, including with 
                respect to--
                          ``(i) metropolitan planning organizations;
                          ``(ii) the localities comprising the 
                        metropolitan planning organization;
                          ``(iii) the State in which the metropolitan 
                        planning organization is located; and
                          ``(iv) air quality, environmental health, and 
                        transportation agencies for the State and 
                        region involved; and
                  ``(C) in consultation with the State and local 
                housing, public health, economic development, land use, 
                environment, and public transportation agencies.
  ``(e) Strategies.--In developing goals under subsection (a)(1) and a 
plan under subsection (a)(2), the State or metropolitan planning 
organization, as applicable, shall consider transportation and land use 
planning strategies to reduce transportation-related greenhouse gas 
emissions, including the following:
          ``(1) Efforts to increase or improve public transportation, 
        including--
                  ``(A) new public transportation systems, including 
                new commuter rail systems;
                  ``(B) expansion of existing public transportation 
                systems;
                  ``(C) employer-based subsidies;
                  ``(D) cleaner locomotive technologies;
                  ``(E) quality of service improvements, including 
                improved frequency of service; and
                  ``(F) use of transit buses that are powered by 
                alternative fuels.
          ``(2) Updates to zoning and other land use regulations and 
        plans to support development that--
                  ``(A) coordinates transportation and land use 
                planning;
                  ``(B) focuses future growth close to existing and 
                planned job centers and public facilities;
                  ``(C) uses existing infrastructure;
                  ``(D) promotes walking, bicycling, and public 
                transportation use; and
                  ``(E) mixes land uses such as housing, retail, and 
                schools.
          ``(3) Implementation of a policy (referred to as a `complete 
        streets policy') that--
                  ``(A) ensures adequate accommodation of all users of 
                transportation systems, including pedestrians, 
                bicyclists, public transportation users, motorists, 
                children, the elderly, and individuals with 
                disabilities; and
                  ``(B) adequately addresses the safety and convenience 
                of all users of the transportation system.
          ``(4) Construction of bicycle and pedestrian infrastructure 
        facilities, including facilities that improve the connections 
        with networks that provide access to human services, 
        employment, schools, and retail.
          ``(5) Projects to promote telecommuting, flexible work 
        schedules, or satellite work centers.
          ``(6) Pricing measures, including tolling, congestion 
        pricing, and pay-as-you-drive insurance.
          ``(7) Intermodal freight system strategies, including 
        enhanced rail services, short sea shipping, and other 
        strategies.
          ``(8) Parking policies.
          ``(9) Intercity rail service, including high speed rail.
          ``(10) Travel demand management projects.
          ``(11) Restriction of the use of certain roads, or lanes, by 
        vehicles other than passenger buses and high-occupancy 
        vehicles.
          ``(12) Reduction of vehicle idling, including idling 
        associated with freight management, construction, 
        transportation, and commuter operations.
          ``(13) Policies to encourage the use of retrofit technologies 
        and early replacement of vehicles, engines and equipment to 
        reduce transportation-related greenhouse gas emissions from 
        existing mobile sources.
          ``(14) Other projects that the Administrator finds reduce 
        transportation-related greenhouse gas emissions.
  ``(f) Public Availability.--The Administrator shall publish, 
including by posting on the Environmental Protection Agency's website--
          ``(1) the goals and plans submitted under subsection (a); and
          ``(2) for each plan submitted under subsection (a)(2), an 
        analysis of the anticipated effects of the plan on greenhouse 
        gas emissions and oil consumption.
  ``(g) Certification.--The Administrator, in consultation with the 
Secretary, shall certify a State or metropolitan planning organization 
greenhouse gas reduction plan submitted under subsection (a)(2) if the 
plan's implementation is likely to meet the corresponding greenhouse 
gas reduction goal referred to in subsection (a)(1). If the 
Administrator, in consultation with the Secretary, determines that a 
submitted plan cannot be certified, the State or metropolitan planning 
organization shall revise and resubmit the plan within 1 year.
  ``(h) Enforcement.--If the Administrator finds that a State has 
failed to submit goals under subsection (a)(1), has failed to ensure 
the submission of a plan under subsection (a)(2), or has failed to 
submit a revised plan under subsection (g), for any area in the State 
(irrespective of whether the area is a nonattainment area), the 
Administrator shall impose a prohibition in accordance with section 
179(b)(1) applicable to the area within 2 years of such a finding. The 
Administrator may not impose a prohibition under the preceding 
sentence, and no action may be brought by the Administrator or any 
other entity alleging a violation of this section, based on the content 
or adequacy of a goal or plan submitted under subsection (a)(1) or 
(a)(2) or failure to achieve the goal submitted under subsection 
(a)(1).
  ``(i) Competitive Grants.--
          ``(1) Grants.--The Administrator, in consultation with the 
        Secretary, may award grants to States or metropolitan planning 
        organizations--
                  ``(A) to support activities related to improving data 
                collection, modeling, and monitoring systems to assess 
                transportation-related greenhouse gas emissions and the 
                effects of plans, policies, and strategies referenced 
                in this section;
                  ``(B) for the development of goals and plans to be 
                submitted under sections (a)(1) or (a)(2); and
                  ``(C) to implement plans certified under subsection 
                (g) or elements thereof, provided that each project 
                thus funded includes a measurement and evaluation 
                component that meets the regulations promulgated under 
                subsection (b).
          ``(2) Priority.--In making grants under paragraph (1)(C), the 
        Administrator shall give priority to applicants based upon--
                  ``(A) the amount of total greenhouse gas emissions to 
                be reduced as a result of implementation of a certified 
                plan, within the covered area, as determined by methods 
                established under subsection (b);
                  ``(B) the amount of per capita greenhouse gas 
                emissions to be reduced as a result of implementation 
                of a certified plan, within the covered area, as 
                determined by methods established under subsection (b);
                  ``(C) the cost effectiveness, in terms of dollars per 
                tons of greenhouse gas reductions, to be achieved as a 
                result of the implementation of a certified plan;
                  ``(D) the potential for both short- and long-term 
                reductions; and
                  ``(E) such other factors as the Administrator 
                determines appropriate.
          ``(3) Authorization of appropriations.--To carry out this 
        subsection, there are authorized to be appropriated such sums 
        as may be necessary.
  ``(j) Definitions.--In this section:
          ``(1) The term `metropolitan planning organization' means a 
        metropolitan planning organization, as such term is used in 
        section 176.
          ``(2) The term `scenario analysis' means an analysis that is 
        conducted by identifying different trends and making 
        projections based on those trends to develop a range of 
        scenarios and estimates of how each scenario could improve 
        access to goods and services, including access to employment, 
        education, and health care (especially for elderly and 
        economically disadvantaged communities), and could affect rates 
        of--
                  ``(A) vehicle miles traveled;
                  ``(B) vehicle hours traveled;
                  ``(C) use of mobile source fuel by type, including 
                electricity; and
                  ``(D) transportation-related greenhouse gas 
                emissions.
  ``(k) Land Use Authority.--Nothing in this section may be construed 
to--
          ``(1) infringe upon the existing authority of State or local 
        governments to plan or control land use; or
          ``(2) provide or transfer authority over land use to any 
        other entity.''.

SEC. 223. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

  Part B of title VIII of the Clean Air Act, as added by section 221 of 
this Act is amended by adding after section 821 the following section:

``SEC. 822. SMARTWAY TRANSPORTATION EFFICIENCY PROGRAM.

  ``(a) In General.--There is established within the Environmental 
Protection Agency a SmartWay Transport Program to quantify, 
demonstrate, and promote the benefits of technologies, products, fuels, 
and operational strategies that reduce petroleum consumption, air 
pollution, and greenhouse gas emissions from the mobile source sector.
  ``(b) General Duties.--Under the program established under this 
section, the Administrator shall carry out each of the following:
          ``(1) Development of measurement protocols to evaluate the 
        energy consumption and greenhouse gas impacts from technologies 
        and strategies in the mobile source sector, including those for 
        passenger transport and goods movement.
          ``(2) Development of qualifying thresholds for certifying, 
        verifying, or designating energy-efficient, low-greenhouse gas 
        SmartWay technologies and strategies for each mode of passenger 
        transportation and goods movement.
          ``(3) Development of partnership and recognition programs to 
        promote best practices and drive demand for energy-efficient, 
        low-greenhouse gas transportation performance.
          ``(4) Promotion of the availability of, and encouragement of 
        the adoption of, SmartWay certified or verified technologies 
        and strategies, and publication of the availability of 
        financial incentives, such as assistance from loan programs and 
        other Federal and State incentives.
  ``(c) Smartway Transport Freight Partnership.--The Administrator 
shall establish a SmartWay Transport Partnership program with shippers 
and carriers of goods to promote energy-efficient, low-greenhouse gas 
transportation. In carrying out such partnership, the Administrator 
shall undertake each of the following:
          ``(1) Certification of the energy and greenhouse gas 
        performance of participating freight carriers, including those 
        operating rail, trucking, marine, and other goods movement 
        operations.
          ``(2) Publication of a comprehensive energy and greenhouse 
        gas performance index of freight modes (including rail, 
        trucking, marine, and other modes of transporting goods) and 
        individual freight companies so that shippers can choose to 
        deliver their goods more efficiently.
          ``(3) Development of tools for--
                  ``(A) carriers to calculate their energy and 
                greenhouse gas performance; and
                  ``(B) shippers to calculate the energy and greenhouse 
                gas impacts of moving their products and to evaluate 
                the relative impacts from transporting their goods by 
                different modes and corporate carriers.
          ``(4) Provision of recognition opportunities for 
        participating shipper and carrier companies demonstrating 
        advanced practices and achieving superior levels of greenhouse 
        gas performance.
  ``(d) Improving Freight Greenhouse Gas Performance Databases.--The 
Administrator shall, in coordination with other appropriate agencies, 
define and collect data on the physical and operational characteristics 
of the Nation's truck population, with special emphasis on data related 
to energy efficiency and greenhouse gas performance to inform the 
performance index published under subsection (c)(2) of this section, 
and other means of goods transport as necessary, at least every 5 
years.
  ``(e) Establishment of Financing Program.--The Administrator shall 
establish a SmartWay Financing Program to competitively award funding 
to eligible entities identified by the Administrator in accordance with 
the program requirements in subsection (g).
  ``(f) Purpose.--Under the SmartWay Financing Program, eligible 
entities shall--
          ``(1) use funds awarded by the Administrator to provide 
        flexible loan and lease terms that increase approval rates or 
        lower the costs of loans and leases in accordance with guidance 
        developed by the Administrator; and
          ``(2) make such loans and leases available to public and 
        private entities for the purpose of adopting low-greenhouse gas 
        technologies or strategies for the mobile source sector that 
        are designated by the Administrator.
  ``(g) Program Requirements.--The Administrator shall determine 
program design elements and requirements, including--
          ``(1) the type of financial mechanism with which to award 
        funding, in the form of grants or contracts;
          ``(2) the designation of eligible entities to receive 
        funding, including State, tribal, and local governments, 
        regional organizations comprised of governmental units, 
        nonprofit organizations, or for-profit companies;
          ``(3) criteria for evaluating applications from eligible 
        entities, including anticipated--
                  ``(A) cost-effectiveness of loan or lease program on 
                a metric-ton-of-greenhouse gas-saved-per-dollar basis;
                  ``(B) ability to promote the loan or lease program 
                and associated technologies and strategies to the 
                target audience; and
          ``(4) reporting requirements for entities that receive 
        awards, including--
                  ``(A) actual cost-effectiveness and greenhouse gas 
                savings from the loan or lease program based on a 
                methodology designated by the Administrator;
                  ``(B) the total number of applications and number of 
                approved applications; and
                  ``(C) terms granted to loan and lease recipients 
                compared to prevailing market practices.
  ``(h) Authorization of Appropriations.--Such sums as necessary are 
authorized to be appropriated to the Administrator to carry out this 
section.''.

SEC. 224. STATE VEHICLE FLEETS.

  Section 507(o) of the Energy Policy Act of 1992 (42 U.S.C. 13257) is 
amended by adding the following new paragraph at the end thereof:
  ``(3) The Secretary shall revise the rules under this subsection with 
respect to the types of alternative fueled vehicles required for 
compliance with this subsection to ensure those rules are consistent 
with any guidance issued pursuant to section 303 of this Act.''.

           Subtitle D--Industrial Energy Efficiency Programs

SEC. 241. INDUSTRIAL PLANT ENERGY EFFICIENCY STANDARDS.

  The Secretary of Energy shall continue to support the development of 
the American National Standards Institute (ANSI) voluntary industrial 
plant energy efficiency certification program, pending International 
Standards Organization (ISO) consensus standard 50001, and other 
related ANSI/ISO standards. In addition, the Department shall undertake 
complementary activities through the Department of Energy's Industry 
Technologies Program that support the voluntary implementation of such 
standards by manufacturing firms. There are authorized to be 
appropriated to the Secretary such sums as are necessary to carry out 
these activities. The Secretary shall report to Congress on the status 
of standards development and plans for further standards development 
pursuant to this section by not later than 18 months after the date of 
enactment of this Act, and shall prepare a second such report 18 months 
thereafter.

SEC. 242. ELECTRIC AND THERMAL WASTE ENERGY RECOVERY AWARD PROGRAM.

  (a) Electric and Thermal Waste Energy Recovery Awards.--The Secretary 
of Energy shall establish a program to make monetary awards to the 
owners and operators of new and existing electric energy generation 
facilities or thermal energy production facilities using fossil or 
nuclear fuel, to encourage them to use innovative means of recovering 
any thermal energy that is a potentially useful byproduct of electric 
power generation or other processes to--
          (1) generate additional electric energy; or
          (2) make sales of thermal energy not used for electric 
        generation, in the form of steam, hot water, chilled water, or 
        desiccant regeneration, or for other commercially valid 
        purposes.
  (b) Amount of Awards.--
          (1) Eligibility.--Awards shall be made under subsection (a) 
        only for the use of innovative means that achieve net energy 
        efficiency at the facility concerned significantly greater than 
        the current standard technology in use at similar facilities.
          (2) Amount.--The amount of an award made under subsection (a) 
        shall equal an amount up to the value of 25 percent of the 
        energy projected to be recovered or generated during the first 
        5 years of operation of the facility using the innovative 
        energy recovery method, or such lesser amount that the 
        Secretary determines to be the minimum amount that can cost-
        effectively stimulate such innovation.
          (3) Limitation.--No person may receive an award under this 
        section if a grant under the waste energy incentive grant 
        program under section 373 of the Energy Policy and Conservation 
        Act (42 U.S.C. 6343) is made for the same energy savings 
        resulting from the same innovative method.
  (c) Regulatory Status.--The Secretary of Energy shall--
          (1) assist State regulatory commissions to identify and make 
        changes in State regulatory programs for electric utilities to 
        provide appropriate regulatory status for thermal energy 
        byproduct businesses of regulated electric utilities to 
        encourage those utilities to enter businesses making the sales 
        referred to in subsection (a)(2); and
          (2) encourage self-regulated utilities to enter businesses 
        making the sales referred to in subsection (a)(2).
  (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy such sums as are necessary for 
the purposes of this section.

SEC. 243. CLARIFYING ELECTION OF WASTE HEAT RECOVERY FINANCIAL 
                    INCENTIVES.

  Section 373(e) of the Energy Policy and Conservation Act (42 U.S.C. 
6343(e)) is amended--
          (1) by striking ``that qualifies for'' and inserting ``who 
        elects to claim''; and
          (2) by inserting ``from that project'' after ``for waste heat 
        recovery''.

SEC. 244. MOTOR MARKET ASSESSMENT AND COMMERCIAL AWARENESS PROGRAM.

  (a) Findings.--Congress finds that--
          (1) electric motor systems account for about half of the 
        electricity used in the United States;
          (2) electric motor energy use is determined by both the 
        efficiency of the motor and the system in which the motor 
        operates;
          (3) Federal Government research on motor end use and 
        efficiency opportunities is more than a decade old; and
          (4) the Census Bureau has discontinued collection of data on 
        motor and generator importation, manufacture, shipment, and 
        sales.
  (b) Definitions.--In this section:
          (1) Department.--The term ``Department'' means the Department 
        of Energy.
          (2) Interested parties.--The term ``interested parties'' 
        includes--
                  (A) trade associations;
                  (B) motor manufacturers;
                  (C) motor end users;
                  (D) electric utilities; and
                  (E) individuals and entities that conduct energy 
                efficiency programs.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy, in consultation with interested parties.
  (c) Assessment.--The Secretary shall conduct an assessment of 
electric motors and the electric motor market in the United States that 
shall--
          (1) include important subsectors of the industrial and 
        commercial electric motor market (as determined by the 
        Secretary), including--
                  (A) the stock of motors and motor-driven equipment;
                  (B) efficiency categories of the motor population; 
                and
                  (C) motor systems that use drives, servos, and other 
                control technologies;
          (2) characterize and estimate the opportunities for 
        improvement in the energy efficiency of motor systems by market 
        segment, including opportunities for--
                  (A) expanded use of drives, servos, and other control 
                technologies;
                  (B) expanded use of process control, pumps, 
                compressors, fans or blowers, and material handling 
                components; and
                  (C) substitution of existing motor designs with 
                existing and future advanced motor designs, including 
                electronically commutated permanent magnet, interior 
                permanent magnet, and switched reluctance motors; and
          (3) develop an updated profile of motor system purchase and 
        maintenance practices, including surveying the number of 
        companies that have motor purchase and repair specifications, 
        by company size, number of employees, and sales.
  (d) Recommendations; Update.--Based on the assessment conducted under 
subsection (c), the Secretary shall--
          (1) develop--
                  (A) recommendations to update the detailed motor 
                profile on a periodic basis;
                  (B) methods to estimate the energy savings and market 
                penetration that is attributable to the Save Energy Now 
                Program of the Department; and
                  (C) recommendations for the Director of the Census 
                Bureau on market surveys that should be undertaken in 
                support of the motor system activities of the 
                Department; and
          (2) prepare an update to the Motor Master+ program of the 
        Department.
  (e) Program.--Based on the assessment, recommendations, and update 
required under subsections (c) and (d), the Secretary shall establish a 
proactive, national program targeted at motor end-users and delivered 
in cooperation with interested parties to increase awareness of--
          (1) the energy and cost-saving opportunities in commercial 
        and industrial facilities using higher efficiency electric 
        motors;
          (2) improvements in motor system procurement and management 
        procedures in the selection of higher efficiency electric 
        motors and motor-system components, including drives, controls, 
        and driven equipment; and
          (3) criteria for making decisions for new, replacement, or 
        repair motor and motor system components.

SEC. 245. MOTOR EFFICIENCY REBATE PROGRAM.

  (a) In General.--Part C of title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6311 et seq.) is amended by adding at the 
end the following:

``SEC. 347. MOTOR EFFICIENCY REBATE PROGRAM.

  ``(a) Establishment.--Not later than January 1, 2010, in accordance 
with subsection (b), the Secretary shall establish a program to provide 
rebates for expenditures made by entities--
          ``(1) for the purchase and installation of a new electric 
        motor that has a nominal full load efficiency that is not less 
        than the nominal full load efficiency as defined in--
                  ``(A) table 12-12 of NEMA Standards Publication MG 1-
                2006 for random wound motors rated 600 volts or lower; 
                or
                  ``(B) table 12-13 of NEMA Standards Publication MG 1-
                2006 for form wound motors rated 5000 volts or lower; 
                and
          ``(2) to replace an installed motor of the entity the 
        specifications of which are established by the Secretary by a 
        date that is not later than 90 days after the date of enactment 
        of this section.
  ``(b) Requirements.--
          ``(1) Application.--To be eligible to receive a rebate under 
        this section, an entity shall submit to the Secretary an 
        application in such form, at such time, and containing such 
        information as the Secretary may require, including--
                  ``(A) demonstrated evidence that the entity purchased 
                an electric motor described in subsection (a)(1) to 
                replace an installed motor described in subsection 
                (a)(2);
                  ``(B) demonstrated evidence that the entity--
                          ``(i) removed the installed motor of the 
                        entity from service; and
                          ``(ii) properly disposed the installed motor 
                        of the entity; and
                  ``(C) the physical nameplate of the installed motor 
                of the entity.
          ``(2) Authorized amount of rebate.--The Secretary may provide 
        to an entity that meets each requirement under paragraph (1) a 
        rebate the amount of which shall be equal to the product 
        obtained by multiplying--
                  ``(A) the nameplate horsepower of the electric motor 
                purchased by the entity in accordance with subsection 
                (a)(1); and
                  ``(B) $25.00.
          ``(3) Payments to distributors of qualifying electric 
        motors.--To assist in the payment for expenses relating to 
        processing and motor core disposal costs, the Secretary shall 
        provide to the distributor of an electric motor described in 
        subsection (a)(1), the purchaser of which received a rebate 
        under this section, an amount equal to the product obtained by 
        multiplying--
                  ``(A) the nameplate horsepower of the electric motor; 
                and
                  ``(B) $5.00.
  ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, to remain available until 
expended--
          ``(1) $80,000,000 for fiscal year 2011;
          ``(2) $75,000,000 for fiscal year 2012;
          ``(3) $70,000,000 for fiscal year 2013;
          ``(4) $65,000,000 for fiscal year 2014; and
          ``(5) $60,000,000 for fiscal year 2015.''.
  (b) Table of Contents.--The table of contents of the Energy Policy 
and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the 
end of the items relating to part C of title III the following:

``Sec. 347. Motor efficiency rebate program.''.

   Subtitle E--Improvements in Energy Savings Performance Contracting

SEC. 251. ENERGY SAVINGS PERFORMANCE CONTRACTS.

  (a) Competition Requirements for Task or Delivery Orders Under Energy 
Savings Performance Contracts.--
          (1) Competition requirements.--Subsection (a) of section 801 
        of the National Energy Conservation Policy Act (42 U.S.C. 
        8287(a)) is amended by adding at the end the following 
        paragraph:
  ``(3)(A) The head of a Federal agency may issue a task or delivery 
order under an energy savings performance contract by--
          ``(i) notifying all contractors that have received an award 
        under such contract that the agency proposes to discuss energy 
        savings performance services for some or all of its facilities, 
        soliciting an expression of interest in performing site surveys 
        or investigations and feasibility designs and studies and the 
        submission of qualifications from such contractors, and 
        including in such notice summary information concerning energy 
        use for any facilities that the agency has specific interest in 
        including in such contract;
          ``(ii) reviewing all expressions of interest and 
        qualifications submitted pursuant to the notice under clause 
        (i);
          ``(iii) selecting two or more contractors (from among those 
        reviewed under clause (ii)) to conduct discussions concerning 
        the contractors' respective qualifications to implement 
        potential energy conservation measures, including requesting 
        references demonstrating experience on similar efforts and the 
        resulting energy savings of such similar efforts;
          ``(iv) selecting and authorizing--
                  ``(I) more than one contractor (from among those 
                selected under clause (iii)) to conduct site surveys, 
                investigations, feasibility designs and studies or 
                similar assessments for the energy savings performance 
                contract services (or for discrete portions of such 
                services), for the purpose of allowing each such 
                contractor to submit a firm, fixed-price proposal to 
                implement specific energy conservation measures; or
                  ``(II) one contractor (from among those selected 
                under clause (iii)) to conduct a site survey, 
                investigation, a feasibility design and study or 
                similar for the purpose of allowing the contractor to 
                submit a firm, fixed-price proposal to implement 
                specific energy conservation measures;
          ``(v) negotiating a task or delivery order for energy savings 
        performance contracting services with the contractor or 
        contractors selected under clause (iv) based on the energy 
        conservation measures identified; and
          ``(vi) issuing a task or delivery order for energy savings 
        performance contracting services to such contractor or 
        contractors.
  ``(B) The issuance of a task or delivery order for energy savings 
performance contracting services pursuant to subparagraph (A) is deemed 
to satisfy the task and delivery order competition requirements in 
section 2304c(d) of title 10, United States Code, and section 303J(d) 
of the Federal Property and Administrative Services Act of 1949 (41 
U.S.C. 253j(d)).
  ``(C) The Secretary may issue guidance as necessary to agencies 
issuing task or delivery orders pursuant to subparagraph (A).''.
          (2) Effective date.--The amendment made by paragraph (1) is 
        inapplicable to task or delivery orders issued before the date 
        of enactment of this section.
  (b) Inclusion of Thermal Renewable Energy.--Section 203 of the Energy 
Policy Act of 2005 (42 U.S.C. 15852) is amended--
          (1) in subsection (a), by striking ``electric''; and
          (2) in subsection (b)(2), by inserting ``or thermal'' after 
        ``means electric''.
  (c)  Credit for Renewable Energy Produced and Used on Site.--
Subsection (c) of section 203 of the Energy Policy Act of 2005 (42 
U.S.C. 15852) is amended to read as follows:
  ``(c) Calculation.--Renewable energy produced at a Federal facility, 
on Federal lands, or on Indian lands (as defined in title XXVI of the 
Energy Policy Act of 1992 (25 U.S.C. 3501 et seq.)) shall be calculated 
separately from renewable energy consumed at a Federal facility, and 
each may be used to comply with the consumption requirement under 
subsection (a).''.
  (d) Financing Flexibility.--Section 801(a)(2)(E) of the National 
Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(E)) is amended by 
striking ``In'' and inserting ``Notwithstanding any other provision of 
law, in''.

                    Subtitle F--Public Institutions

SEC. 261. PUBLIC INSTITUTIONS.

  Section 399A of the Energy Policy and Conservation Act (42 U.S.C. 
6371h-1) is amended--
          (1) in subsection (a)(5), by striking ``or a designee'' and 
        inserting ``a not-for-profit hospital or not-for-profit 
        inpatient health care facility, or a designated agent'';
          (2) in subsection (c)(1), by striking subparagraph (C);
          (3) in subsection (f)(3)(A), by striking ``$1,000,000'' and 
        inserting ``$2,500,000''; and
          (4) in subsection (i)(1), by striking ``$250,000,000 for each 
        of fiscal years 2009 through 2013'' and inserting 
        ``$250,000,000 for each of fiscal years 2010 through 2015''.

SEC. 262. COMMUNITY ENERGY EFFICIENCY FLEXIBILITY.

  Section 545(b)(3) of the Energy Independence and Security Act of 2007 
(42 U.S.C. 17155(b)(3)) is amended--
          (1) by striking ``Indian tribe may use'' and all that follows 
        through ``for administrative expenses'' and inserting ``Indian 
        tribe may use for administrative expenses'';
          (2) by striking subparagraphs (B) and (C);
          (3) by redesignating the remaining clauses (i) and (ii) as 
        subparagraphs (A) and (B), respectively and adjusting the 
        margin of those subparagraphs accordingly; and
          (4) by striking the semicolon at the end and inserting a 
        period.

SEC. 263. SMALL COMMUNITY JOINT PARTICIPATION.

  (a) Section 541(3)(A) of the Energy Independence and Security Act of 
2007 is amended in clause (i) by striking ``and'' at the end of 
subclause (II), in clause (ii) by striking the period at the end of 
subclause (II) and inserting ``; or'', and by inserting the following 
new clause (iii):
                  ``(iii) a group of adjacent, contiguous, or 
                geographically proximate units of local government that 
                reach agreement to act jointly for purposes of this 
                section and that represent a combined population of not 
                less than 35,000.''.
  (b) Section 541(3)(B) of the Energy Independence and Security Act of 
2007 is amended in clause (i) by striking ``or'', in clause (ii) by 
striking the period at the end and inserting ``; or'', and by inserting 
the following new clause (iii):
                  ``(iii) a group of adjacent, contiguous, or 
                geographically proximate units of local government that 
                reach agreement to act jointly for purposes of this 
                section and that represent a combined population of not 
                less than 50,000.''.

SEC. 264. LOW INCOME COMMUNITY ENERGY EFFICIENCY PROGRAM.

  (a) In General.--The Secretary of Energy is authorized to make grants 
to private, nonprofit, mission-driven community development 
organizations including community development corporations and 
community development financial institutions to provide financing to 
businesses and projects that improve energy efficiency; identify and 
develop alternative, renewable, and distributed energy supplies; 
provide technical assistance and promote job and business opportunities 
for low-income residents; and increase energy conservation in low 
income rural and urban communities.
  (b) Grants.--The purpose of such grants is to increase the flow of 
capital and benefits to low income communities, minority-owned and 
woman-owned businesses and entrepreneurs and other projects and 
activities located in low income communities in order to reduce 
environmental degradation, foster energy conservation and efficiency 
and create job and business opportunities for local residents. The 
Secretary may make grants on a competitive basis for--
          (1) investments that develop alternative, renewable, and 
        distributed energy supplies;
          (2) capitalizing loan funds that lend to energy efficiency 
        projects and energy conservation programs;
          (3) technical assistance to plan, develop, and manage an 
        energy efficiency financing program; and
          (4) technical and financial assistance to assist small-scale 
        businesses and private entities develop new renewable and 
        distributed sources of power or combined heat and power 
        generation.
  (c) Authorization of Appropriations.--For the purposes of this 
section there is authorized to be appropriated $50,000,000 for each of 
the fiscal years 2010 through 2015.

                       Subtitle G--Miscellaneous

SEC. 271. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS TECHNOLOGIES.

  Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 
8253) is amended to read as follows:

``SEC. 543. ENERGY EFFICIENT INFORMATION AND COMMUNICATIONS 
                    TECHNOLOGIES.

  ``(a) In General.--Not later than 1 year after the date of enactment 
of the American Clean Energy and Security Act of 2009, each Federal 
agency shall collaborate with the Director of the Office of Management 
and Budget (referred to in this section as the `Director') to create an 
implementation strategy, including best practices and measurement and 
verification techniques, for the purchase and use of energy efficient 
information and communications technologies and practices. Wherever 
possible, existing standards, specifications, performance metrics, and 
best management practices that have been or are being developed in open 
collaboration and with broad stakeholder input and review should be 
incorporated. In addition, agency strategies shall be flexible, cost-
effective, and based on the specific operating requirements and 
statutory mission of each agency.
  ``(b) Energy Efficient Information and Communications Technologies.--
In developing an implementation strategy, each agency shall--
          ``(1) consider information and communications technologies 
        and infrastructure, including, but not limited to, advanced 
        metering infrastructure, information and communications 
        technology services and products, efficient data center 
        strategies, applications modernization and rationalization, 
        building systems energy efficiency, and telework; and
          ``(2) ensure that agencies are eligible to realize the 
        savings and rewards brought about through increased 
        efficiencies.
  ``(c) Performance Goals.--Not later than 6 months after the date of 
enactment of the American Clean Energy and Security Act of 2009, the 
Director shall establish performance goals for evaluating the efforts 
of the agencies in improving the maintenance, purchase and use of 
energy efficiency of information and communications technology systems. 
These performance goals should measure information technology costs 
over a specific time horizon (3 to 5 years), providing a complete 
picture of all costs, including energy.
  ``(d) Report.--Not later than 18 months after the date of enactment 
of the American Clean Energy and Security Act of 2009, and annually 
thereafter, the Director shall submit a report to Congress on--
          ``(1) the progress of each agency in reducing energy use 
        through its implementation strategy; and
          ``(2) new and emerging technologies that would help achieve 
        increased energy efficiency.''.

SEC. 272. NATIONAL ENERGY EFFICIENCY GOALS.

  (a) Goals.--The energy efficiency goals of the United States are--
          (1) to achieve an improvement in the overall energy 
        productivity of the United States (measured in gross domestic 
        product per unit of energy input) of at least 2.5 percent per 
        year by the year 2012; and
          (2) to maintain that annual rate of improvement each year 
        through 2030.
  (b) Strategic Plan.--
          (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of Energy (referred to in 
        this section as the ``Secretary''), in cooperation with the 
        Administrator and the heads of other appropriate Federal 
        agencies, shall develop a strategic plan to achieve the 
        national goals for improvement in energy productivity 
        established under subsection (a).
          (2) Public input and comment.--The Secretary shall develop 
        the plan in a manner that provides appropriate opportunities 
        for public input and comment.
  (c) Plan Contents.--The strategic plan shall--
          (1) identify future regulatory, funding, and policy 
        priorities that would assist the United States in meeting the 
        national goals;
          (2) include energy savings estimates for each sector; and
          (3) include data collection methodologies and compilations 
        used to establish baseline and energy savings data.
  (d) Plan Updates.--
          (1) In general.--The Secretary shall--
                  (A) update the strategic plan biennially; and
                  (B) include the updated strategic plan in the 
                national energy policy plan required by section 801 of 
                the Department of Energy Organization Act (42 U.S.C. 
                7321).
          (2) Contents.--In updating the plan, the Secretary shall--
                  (A) report on progress made toward implementing 
                efficiency policies to achieve the national goals 
                established under subsection (a); and
                  (B) verify, to the maximum extent practicable, energy 
                savings resulting from the policies.
  (e) Report to Congress and the Public.--The Secretary shall submit to 
Congress, and make available to the public, the initial strategic plan 
developed under subsection (b) and each updated plan.

SEC. 273. AFFILIATED ISLAND ENERGY INDEPENDENCE TEAM.

  (a) Definitions.--In this section:
          (1) Affiliated island.--The term ``affiliated island'' 
        means--
                  (A) the Commonwealth of Puerto Rico;
                  (B) Guam;
                  (C) American Samoa;
                  (D) the Commonwealth of the Northern Mariana Islands;
                  (E) the Federated States of Micronesia;
                  (F) the Republic of the Marshall Islands;
                  (G) the Republic of Palau; and
                  (H) the United States Virgin Islands.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy (acting through the Assistant Secretary of Energy 
        Efficiency and Renewable Energy), in consultation with the 
        Secretary of the Interior and the Secretary of State.
          (3) Team.--The term ``team'' means the team established by 
        the Secretary under subsection (b).
  (b) Establishment.--As soon as practicable after the date of 
enactment of this Act, the Secretary shall assemble a team of 
technical, policy, and financial experts to address the energy needs of 
each affiliated island--
          (1) to reduce the reliance and expenditure of each affiliated 
        island on imported fossil fuels;
          (2) to increase the use by each affiliated island of 
        indigenous, nonfossil fuel energy sources;
          (3) to improve the performance of the energy infrastructure 
        of the affiliated island through projects--
                  (A) to improve the energy efficiency of power 
                generation, transmission, and distribution; and
                  (B) to increase consumer energy efficiency;
          (4) to improve the performance of the energy infrastructure 
        of each affiliated island through enhanced planning, education, 
        and training;
          (5) to adopt research-based and public-private partnership-
        based approaches as appropriate;
          (6) to stimulate economic development and job creation; and
          (7) to enhance the engagement by the Federal Government in 
        international efforts to address island energy needs.
  (c) Duties of Team.--
          (1) Energy action plans.--
                  (A) In general.--In accordance with subparagraph (B), 
                the team shall provide technical, programmatic, and 
                financial assistance to each utility of each affiliated 
                island, and the government of each affiliated island, 
                as appropriate, to develop and implement an energy 
                Action Plan for each affiliated island to reduce the 
                reliance of each affiliated island on imported fossil 
                fuels through increased efficiency and use of 
                indigenous clean-energy resources.
                  (B) Requirements.--Each Action Plan described in 
                subparagraph (A) for each affiliated island shall 
                require and provide for--
                          (i) the conduct of 1 or more studies to 
                        assess opportunities to reduce fossil fuel use 
                        through--
                                  (I) the improvement of the energy 
                                efficiency of the affiliated island; 
                                and
                                  (II) the increased use by the 
                                affiliated island of indigenous clean-
                                energy resources;
                          (ii) the identification and implementation of 
                        the most cost-effective strategies and projects 
                        to reduce the dependence of the affiliated 
                        island on fossil fuels;
                          (iii) the promotion of education and training 
                        activities to improve the capacity of the local 
                        utilities of the affiliated island, and the 
                        government of the affiliated island, as 
                        appropriate, to plan for, maintain, and operate 
                        the energy infrastructure of the affiliated 
                        island through the use of local or regional 
                        institutions, as appropriate;
                          (iv) the coordination of the activities 
                        described in clause (iii) to leverage the 
                        expertise and resources of international 
                        entities, the Department of Energy, the 
                        Department of the Interior, and the regional 
                        utilities of the affiliated island;
                          (v) the identification, and development, as 
                        appropriate, of research-based and private-
                        public, partnership approaches to implement the 
                        Action Plan; and
                          (vi) any other component that the Secretary 
                        determines to be necessary to reduce 
                        successfully the use by each affiliated island 
                        of fossil fuels.
          (2) Reports to secretary.--Not later than 1 year after the 
        date on which the Secretary establishes the team and biennially 
        thereafter, the team shall submit to the Secretary a report 
        that contains a description of the progress of each affiliated 
        island in--
                  (A) implementing the Action Plan of the affiliated 
                island developed under paragraph (1)(A); and
                  (B) reducing the reliance of the affiliated island on 
                fossil fuels.
  (d) Use of Regional Utility Organizations.--To provide expertise to 
affiliated islands to assist the affiliated islands in meeting the 
purposes of this section, the Secretary shall consider--
          (1) including regional utility organizations in the 
        establishment of the team; and
          (2) providing assistance through regional utility 
        organizations.
  (e) Annual Reports to Congress.--Not later than 30 days after the 
date on which the Secretary receives a report submitted by the team 
under subsection (c)(2), the Secretary shall submit to the appropriate 
committees of Congress a report that contains a summary of the report 
of the team.
  (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 274. PRODUCT CARBON DISCLOSURE PROGRAM.

  (a) EPA Study.--The Administrator shall conduct a study to determine 
the feasibility of establishing a national program for measuring, 
reporting, publicly disclosing, and labeling products or materials sold 
in the United States for their carbon content, and shall, not later 
than 18 months after the date of enactment of this Act, transmit a 
report to Congress which shall include the following:
          (1) A determination of whether a national product carbon 
        disclosure program and labeling program would be effective in 
        achieving the intended goals of achieving greenhouse gas 
        reductions and an examination of existing programs globally and 
        their strengths and weaknesses.
          (2) Criteria for identifying and prioritizing sectors and 
        products and processes that should be covered in such program 
        or programs.
          (3) An identification of products, processes, or sectors 
        whose inclusion could have a substantial carbon impact 
        (prioritizing industrial products such as iron and steel, 
        aluminum, cement, chemicals, and paper products, and also 
        including food, beverage, hygiene, cleaning, household 
        cleaners, construction, metals, clothing, semiconductor, and 
        consumer electronics).
          (4) Suggested methodology and protocols for measuring the 
        carbon content of the products across the entire carbon 
        lifecycle of such products for use in a carbon disclosure 
        program and labeling program.
          (5) A review of existing greenhouse gas product accounting 
        standards, methodologies, and practices including the 
        Greenhouse Gas Protocol, ISO 14040/44, ISO 14067, and 
        Publically Available Specification 2050, and including a review 
        of the strengths and weaknesses of each.
          (6) A survey of secondary databases including the 
        Manufacturing Energy Consumption Survey and evaluate the 
        quality of data for use in a product carbon disclosure program 
        and product carbon labeling program and an identification of 
        gaps in the data relative to the potential purposes of a 
        national product carbon disclosure program and product carbon 
        labeling program and development of recommendations for 
        addressing these data gaps.
          (7) An assessment of the utility of comparing products and 
        the appropriateness of product carbon standards.
          (8) An evaluation of the information needed on a label for 
        clear and accurate communication, including what pieces of 
        quantitative and qualitative information needs to be disclosed.
          (9) An evaluation of the appropriate boundaries of the carbon 
        lifecycle analysis for different sectors and products.
          (10) An analysis of whether default values should be 
        developed for products whose producer does not participate in 
        the program or does not have data to support a disclosure or 
        label and determine best ways to develop such default values.
          (11) A recommendation of certification and verification 
        options necessary to assure the quality of the information and 
        avoid greenwashing or the use of insubstantial or meaningless 
        environmental claims to promote a product.
          (12) An assessment of options for educating consumers about 
        product carbon content and the product carbon disclosure 
        program and product carbon labeling program.
          (13) An analysis of the costs and timelines associated with 
        establishing a national product carbon disclosure program and 
        product carbon labeling program, including options for a phased 
        approach. Costs should include those for businesses associated 
        with the measurement of carbon footprints and those associated 
        with creating a product carbon label and managing and operating 
        a product carbon labeling program, and options for minimizing 
        these costs.
          (14) An evaluation of incentives (such as financial 
        incentives, brand reputation, and brand loyalty) to determine 
        whether reductions in emissions can be accelerated through 
        encouraging more efficient manufacturing or by encouraging 
        preferences for lower-emissions products to substitute for 
        higher-emissions products whose level of performance is no 
        better.
  (b) Development of National Carbon Disclosure Program.--Upon 
conclusion of the study, and not more than 36 months after the date of 
enactment of this Act, the Administrator shall establish a national 
product carbon disclosure program, participation in which shall be 
voluntary, and which may involve a product carbon label with broad 
applicability to the wholesale and consumer markets to enable and 
encourage knowledge about carbon content by producers and consumers and 
to inform efforts to reduce energy consumption (carbon dioxide 
equivalent emissions) nationwide. In developing such a program, the 
Administrator shall--
          (1) consider the results of the study conducted under 
        subsection (a);
          (2) consider existing and planned programs and proposals and 
        measurement standards (including the Publicly Available 
        Specification 2050, standards to be developed by the World 
        Resource Institute/World Business Council for Sustainable 
        Development, the International Standards Organization, and the 
        bill AB19 pending in the California legislature);
          (3) consider the compatibility of a national product carbon 
        disclosure program with existing programs;
          (4) utilize incentives and other means to spur the adoption 
        of product carbon disclosure and product carbon labeling;
          (5) develop protocols and parameters for a product carbon 
        disclosure program, including a methodology and formula for 
        assessing, verifying, and potentially labeling a product's 
        greenhouse gas content, and for data quality requirements to 
        allow for product comparison;
          (6) create a means to--
                  (A) document best practices;
                  (B) ensure clarity and consistency;
                  (C) work with suppliers, manufacturers, and retailers 
                to encourage participation;
                  (D) ensure that protocols are consistent and 
                comparable across like products; and
                  (E) evaluate the effectiveness of the program;
          (7) make publicly available information on product carbon 
        content to ensure transparency;
          (8) provide for public outreach, including a consumer 
        education program to increase awareness;
          (9) develop training and education programs to help 
        businesses learn how to measure and communicate their carbon 
        footprint and easy tools and templates for businesses to use to 
        reduce cost and time to measure their products' carbon 
        lifecycle;
          (10) consult with the Secretary of Energy, the Secretary of 
        Commerce, the Federal Trade Commission, and other Federal 
        agencies, as necessary;
          (11) gather input from stakeholders through consultations, 
        public workshops or hearings with representatives of consumer 
        product manufacturers, consumer groups, and environmental 
        groups;
          (12) utilize systems for verification and product 
        certification that will ensure that claims manufacturers make 
        about their products are valid;
          (13) create a process for reviewing the accuracy of product 
        carbon label information and protecting the product carbon 
        label in the case of a change in the product's energy source, 
        supply chain, ingredients, or other factors, and specify the 
        frequency to which data should be updated; and
          (14) develop a standardized, easily understandable carbon 
        label, if appropriate, and create a process for responding to 
        inaccuracies and misuses of such a label.
  (c) Report to Congress.--Not later than 5 years after the program is 
established pursuant to subsection (b), the Administrator shall report 
to Congress on the effectiveness and impact of the program, the level 
of voluntary participation, and any recommendations for additional 
measures.
  (d) Definitions.--As used in this section--
          (1) the term ``carbon content'' means the amount of 
        greenhouse gas emissions and their warming impact on the 
        atmosphere expressed in carbon dioxide equivalent associated 
        with a product's value chain;
          (2) the term ``carbon footprint'' means the level of 
        greenhouse gas emissions produced by a particular activity, 
        service, or entity; and
          (3) the term ``carbon lifecycle'' means the greenhouse gas 
        emissions that are released as part of the processes of 
        creating, producing, processing or manufacturing, modifying, 
        transporting, distributing, storing, using, recycling, or 
        disposing of goods and services.
  (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator $5,000,000 for the study required by 
subsection (a) and $25,000,000 for each of fiscal years 2010 through 
2025 for the program required under subsection (b).

              TITLE III--REDUCING GLOBAL WARMING POLLUTION

SEC. 301. SHORT TITLE.

  This title, and sections 112, 116, 221, 222, 223, and 401 of this 
Act, may be cited as the ``Safe Climate Act''.

             Subtitle A--Reducing Global Warming Pollution

SEC. 311. REDUCING GLOBAL WARMING POLLUTION.

  The Clean Air Act (42 U.S.C. and following) is amended by adding 
after title VI the following new title:

        ``TITLE VII--GLOBAL WARMING POLLUTION REDUCTION PROGRAM

     ``PART A--GLOBAL WARMING POLLUTION REDUCTION GOALS AND TARGETS

``SEC. 701. FINDINGS AND PURPOSE.

  ``(a) Findings.--The Congress finds as follows:
          ``(1) Global warming poses a significant threat to the 
        national security, economy, public health and welfare, and 
        environment of the United States, as well as of other nations.
          ``(2) Reviews of scientific studies, including by the 
        Intergovernmental Panel on Climate Change and the National 
        Academy of Sciences, demonstrate that global warming is the 
        result of the combined anthropogenic greenhouse gas emissions 
        from numerous sources of all types and sizes. Each increment of 
        emission, when combined with other emissions, causes or 
        contributes materially to the acceleration and extent of global 
        warming and its adverse effects for the lifetime of such gas in 
        the atmosphere. Accordingly, controlling emissions in small as 
        well as large amounts is essential to prevent, slow the pace 
        of, reduce the threats from, and mitigate global warming and 
        its adverse effects.
          ``(3) Because they induce global warming, greenhouse gas 
        emissions cause or contribute to injuries to persons in the 
        United States, including--
                  ``(A) adverse health effects such as disease and loss 
                of life;
                  ``(B) displacement of human populations;
                  ``(C) damage to property and other interests related 
                to ocean levels, acidification, and ice changes;
                  ``(D) severe weather and seasonal changes;
                  ``(E) disruption, costs, and losses to business, 
                trade, employment, farms, subsistence, aesthetic 
                enjoyment of the environment, recreation, culture, and 
                tourism;
                  ``(F) damage to plants, forests, lands, and waters;
                  ``(G) harm to wildlife and habitat;
                  ``(H) scarcity of water and the decreased abundance 
                of other natural resources;
                  ``(I) worsening of tropospheric air pollution;
                  ``(J) substantial threats of similar damage; and
                  ``(K) other harm.
          ``(4) That many of these effects and risks of future effects 
        of global warming are widely shared does not minimize the 
        adverse effects individual persons have suffered, will suffer, 
        and are at risk of suffering because of global warming.
          ``(5) That some of the adverse and potentially catastrophic 
        effects of global warming are at risk of occurring and not a 
        certainty does not negate the harm persons suffer from actions 
        that increase the likelihood, extent, and severity of such 
        future impacts.
          ``(6) Nations of the world look to the United States for 
        leadership in addressing the threat of and harm from global 
        warming. Full implementation of the Safe Climate Act is 
        critical to engage other nations in an international effort to 
        mitigate the threat of and harm from global warming.
          ``(7) Global warming and its adverse effects are occurring 
        and are likely to continue and increase in magnitude, and to do 
        so at a greater and more harmful rate, unless the Safe Climate 
        Act is fully implemented and enforced in an expeditious manner.
  ``(b) Purpose.--It is the general purpose of the Safe Climate Act to 
help prevent, reduce the pace of, mitigate, and remedy global warming 
and its adverse effects. To fulfill such purpose, it is necessary to--
          ``(1) require the timely fulfillment of all governmental acts 
        and duties, both substantive and procedural, and the prompt 
        compliance of covered entities with the requirements of the 
        Safe Climate Act;
          ``(2) establish and maintain an effective, transparent, and 
        fair market for emission allowances and preserve the integrity 
        of the cap on emissions and of offset credits;
          ``(3) advance the production and deployment of clean energy 
        and energy efficiency technologies; and
          ``(4) ensure effective enforcement of the Safe Climate Act by 
        citizens, States, Indian tribes, and all levels of government 
        because each violation of the Safe Climate Act is likely to 
        result in an additional increment of greenhouse gas emission 
        and will slow the pace of implementation of the Safe Climate 
        Act and delay the achievement of the goals set forth in section 
        702, and cause or contribute to global warming and its adverse 
        effects.

``SEC. 702. ECONOMY-WIDE REDUCTION GOALS.

  ``The goals of the Safe Climate Act are to reduce steadily the 
quantity of United States greenhouse gas emissions such that--
          ``(1) in 2012, the quantity of United States greenhouse gas 
        emissions does not exceed 97 percent of the quantity of United 
        States greenhouse gas emissions in 2005;
          ``(2) in 2020, the quantity of United States greenhouse gas 
        emissions does not exceed 80 percent of the quantity of United 
        States greenhouse gas emissions in 2005;
          ``(3) in 2030, the quantity of United States greenhouse gas 
        emissions does not exceed 58 percent of the quantity of United 
        States greenhouse gas emissions in 2005; and
          ``(4) in 2050, the quantity of United States greenhouse gas 
        emissions does not exceed 17 percent of the quantity of United 
        States greenhouse gas emissions in 2005.

``SEC. 703. REDUCTION TARGETS FOR SPECIFIED SOURCES.

  ``(a) In General.--The regulations issued under section 721 shall cap 
and reduce annually the greenhouse gas emissions of capped sources each 
calendar year beginning in 2012 such that--
          ``(1) in 2012, the quantity of greenhouse gas emissions from 
        capped sources does not exceed 97 percent of the quantity of 
        greenhouse gas emissions from such sources in 2005;
          ``(2) in 2020, the quantity of greenhouse gas emissions from 
        capped sources does not exceed 83 percent of the quantity of 
        greenhouse gas emissions from such sources in 2005;
          ``(3) in 2030, the quantity of greenhouse gas emissions from 
        capped sources does not exceed 58 percent of the quantity of 
        greenhouse gas emissions from such sources in 2005; and
          ``(4) in 2050, the quantity of greenhouse gas emissions from 
        capped sources does not exceed 17 percent of the quantity of 
        greenhouse gas emissions from such sources in 2005.
  ``(b) Definition.--For purposes of this section, the term `greenhouse 
gas emissions from such sources in 2005' means emissions to which 
section 722 would have applied if the requirements of this title for 
the specified year had been in effect for 2005.

``SEC. 704. SUPPLEMENTAL POLLUTION REDUCTIONS.

  ``For the purposes of decreasing the likelihood of catastrophic 
climate change, preserving tropical forests, building capacity to 
generate offset credits, and facilitating international action on 
global warming, the Administrator shall set aside the percentage 
specified in section 781 of the quantity of emission allowances 
established under section 721(a) for each year, to be used to achieve a 
reduction of greenhouse gas emissions from deforestation in developing 
countries in accordance with part E. In 2020, activities supported 
under part E shall provide greenhouse gas reductions in an amount equal 
to an additional 10 percentage points of reductions from United States 
greenhouse gas emissions in 2005. The Administrator shall distribute 
these allowances with respect to activities in countries that enter 
into and implement agreements or arrangements relating to reduced 
deforestation as described in section 754(a)(2).

``SEC. 705. REVIEW AND PROGRAM RECOMMENDATIONS.

  ``(a) In General.--The Administrator shall, in consultation with 
appropriate Federal agencies, submit to Congress a report not later 
than July 1, 2013, and every 4 years thereafter, that includes--
          ``(1) an analysis of key findings based on the latest 
        scientific information and data relevant to global climate 
        change;
          ``(2) an analysis of capabilities to monitor and verify 
        greenhouse gas reductions on a worldwide basis, including for 
        the United States, as required under the Safe Climate Act; and
          ``(3) an analysis of the status of worldwide greenhouse gas 
        reduction efforts, including implementation of the Safe Climate 
        Act and other policies, both domestic and international, for 
        reducing greenhouse gas emissions, preventing dangerous 
        atmospheric concentrations of greenhouse gases, preventing 
        significant irreversible consequences of climate change, and 
        reducing vulnerability to the impacts of climate change.
  ``(b) Exception.--Paragraph (3) of subsection (a) shall not apply to 
the first report submitted under such subsection.
  ``(c) Latest Scientific Information.--The analysis required under 
subsection (a)(1) shall--
          ``(1) address existing scientific information and reports, 
        considering, to the greatest extent possible, the most recent 
        assessment report of the Intergovernmental Panel on Climate 
        Change, reports by the United States Global Change Research 
        Program, the Natural Resources Climate Change Adaptation Panel 
        established under section 475 of the American Clean Energy and 
        Security Act of 2009, and Federal agencies, and the European 
        Union's global temperature data assessment; and
          ``(2) review trends and projections for--
                  ``(A) global and country-specific annual emissions of 
                greenhouse gases, and cumulative greenhouse gas 
                emissions produced between 1850 and the present, 
                including--
                          ``(i) global cumulative emissions of 
                        anthropogenic greenhouse gases;
                          ``(ii) global annual emissions of 
                        anthropogenic greenhouse gases; and
                          ``(iii) by country, annual total, annual per 
                        capita, and cumulative anthropogenic emissions 
                        of greenhouse gases for the top 50 emitting 
                        nations;
                  ``(B) significant changes, both globally and by 
                region, in annual net non-anthropogenic greenhouse gas 
                emissions from natural sources, including permafrost, 
                forests, or oceans;
                  ``(C) global atmospheric concentrations of greenhouse 
                gases, expressed in annual concentration units as well 
                as carbon dioxide equivalents based on 100-year global 
                warming potentials;
                  ``(D) major climate forcing factors, such as 
                aerosols;
                  ``(E) global average temperature, expressed as 
                seasonal and annual averages in land, ocean, and land-
                plus-ocean averages; and
                  ``(F) sea level rise;
          ``(3) assess the current and potential impacts of global 
        climate change on--
                  ``(A) human populations, including impacts on public 
                health, economic livelihoods, subsistence, human 
                infrastructure, and displacement or permanent 
                relocation due to flooding, severe weather, extended 
                drought, erosion, or other ecosystem changes;
                  ``(B) freshwater systems, including water resources 
                for human consumption and agriculture and natural and 
                managed ecosystems, flood and drought risks, and 
                relative humidity;
                  ``(C) the carbon cycle, including impacts related to 
                the thawing of permafrost, the frequency and intensity 
                of wildfire, and terrestrial and ocean carbon sinks;
                  ``(D) ecosystems and animal and plant populations, 
                including impacts on species abundance, phenology, and 
                distribution;
                  ``(E) oceans and ocean ecosystems, including effects 
                on sea level, ocean acidity, ocean temperatures, coral 
                reefs, ocean circulation, fisheries, and other 
                indicators of ocean ecosystem health;
                  ``(F) the cryosphere, including effects on ice sheet 
                mass balance, mountain glacier mass balance, and sea-
                ice extent and volume;
                  ``(G) changes in the intensity, frequency, or 
                distribution of severe weather events, including 
                precipitation, tropical cyclones, tornadoes, and severe 
                heat waves;
                  ``(H) agriculture and forest systems; and
                  ``(I) any other indicators the Administrator deems 
                appropriate;
          ``(4) summarize any significant socio-economic impacts of 
        climate change in the United States, including the territories 
        of the United States, drawing on work by Federal agencies and 
        the academic literature, including impacts on--
                  ``(A) public health;
                  ``(B) economic livelihoods and subsistence;
                  ``(C) displacement or permanent relocation due to 
                flooding, severe weather, extended drought, or other 
                ecosystem changes;
                  ``(D) human infrastructure, including coastal 
                infrastructure vulnerability to extreme events and sea 
                level rise, river floodplain infrastructure, and sewer 
                and water management systems;
                  ``(E) agriculture and forests, including effects on 
                potential growing season, distribution, and yield;
                  ``(F) water resources for human consumption, 
                agriculture and natural and managed ecosystems, flood 
                and drought risks, and relative humidity;
                  ``(G) energy supply and use; and
                  ``(H) transportation;
          ``(5) in assessing risks and impacts, use a risk management 
        framework, including both qualitative and quantitative 
        measures, to assess the observed and projected impacts of 
        current and future climate change, accounting for--
                  ``(A) both monetized and non-monetized losses;
                  ``(B) potential nonlinear, abrupt, or essentially 
                irreversible changes in the climate system;
                  ``(C) potential nonlinear increases in the cost of 
                impacts;
                  ``(D) potential low-probability, high impact events; 
                and
                  ``(E) whether impacts are transitory or essentially 
                permanent; and
          ``(6) based on the findings of the Administrator under this 
        section, as well as assessments produced by the 
        Intergovernmental Panel on Climate Change, the United States 
        Global Change Research program, and other relevant scientific 
        entities--
                  ``(A) describe increased risks to natural systems and 
                society that would result from an increase in global 
                average temperature 3.6 degrees Fahrenheit (2 degrees 
                Celsius) above the pre-industrial average or an 
                increase in atmospheric greenhouse gas concentrations 
                above 450 parts per million carbon dioxide equivalent; 
                and
                  ``(B) identify and assess--
                          ``(i) significant residual risks not avoided 
                        by the thresholds described in subparagraph 
                        (A);
                          ``(ii) alternative thresholds or targets that 
                        may more effectively limit the risks identified 
                        pursuant to clause (i); and
                          ``(iii) thresholds above those described in 
                        subparagraph (A) which significantly increase 
                        the risk of certain impacts or render them 
                        essentially permanent.
  ``(d) Status of Monitoring and Verification Capabilities to Evaluate 
Greenhouse Gas Reduction Efforts.--The analysis required under 
subsection (a)(2) shall evaluate the capabilities of the monitoring, 
reporting, and verification systems used to quantify progress in 
achieving reductions in greenhouse gas emissions both globally and in 
the United States (as described in section 702), including--
          ``(1) quantification of emissions and emission reductions by 
        entities participating in the cap and trade program under this 
        title;
          ``(2) quantification of emissions and emission reductions by 
        entities participating in the offset program under this title;
          ``(3) quantification of emission and emissions reductions by 
        entities regulated by performance standards;
          ``(4) quantification of aggregate net emissions and emissions 
        reductions by the United States; and
          ``(5) quantification of global changes in net emissions and 
        in sources and sinks of greenhouse gases.
  ``(e) Status of Greenhouse Gas Reduction Efforts.--The analysis 
required under subsection (a)(3) shall address--
          ``(1) whether the programs under Safe Climate Act and other 
        Federal statutes are resulting in sufficient United States 
        greenhouse gas emissions reductions to meet the emissions 
        reduction goals described in section 702, taking into account 
        the use of offsets; and
          ``(2) whether United States actions, taking into account 
        international actions, commitments, and trends, and considering 
        the range of plausible emissions scenarios, are sufficient to 
        avoid--
                  ``(A) atmospheric greenhouse gas concentrations above 
                450 parts per million carbon dioxide equivalent;
                  ``(B) global average surface temperature 3.6 degrees 
                Fahrenheit (2 degrees Celsius) above the pre-industrial 
                average, or such other temperature thresholds as the 
                Administrator deems appropriate; and
                  ``(C) other temperature or greenhouse gas thresholds 
                identified pursuant to subsection (c)(6)(B).
  ``(f) Recommendations.--
          ``(1) Latest scientific information.--Based on the analysis 
        described in subsection (a)(1), each report under subsection 
        (a) shall identify actions that could be taken to--
                  ``(A) improve the characterization of changes in the 
                earth-climate system and impacts of global climate 
                change;
                  ``(B) better inform decision making and actions 
                related to global climate change;
                  ``(C) mitigate risks to natural and social systems; 
                and
                  ``(D) design policies to better account for climate 
                risks.
          ``(2) Monitoring, reporting and verification.--Based on the 
        analysis described in subsection (a)(2), each report under 
        subsection (a) shall identify key gaps in measurement, 
        reporting, and verification capabilities and make 
        recommendations to improve the accuracy and reliability of 
        those capabilities.
          ``(3) Status of greenhouse gas reduction efforts.--Based on 
        the analysis described in subsection (a)(3), taking into 
        account international actions, commitments, and trends, and 
        considering the range of plausible emissions scenarios, each 
        report under subsection (a) shall identify--
                  ``(A) the quantity of additional reductions required 
                to meet the emissions reduction goals in section 702;
                  ``(B) the quantity of additional reductions in global 
                greenhouse gas emissions needed to avoid the 
                concentration and temperature thresholds identified in 
                subsection (e); and
                  ``(C) possible strategies and approaches for 
                achieving additional reductions.
  ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary.

``SEC. 706. NATIONAL ACADEMY REVIEW.

  ``(a) In General.--Not later than 1 year after the date of enactment 
of this title, the Administrator shall offer to enter into a contract 
with the National Academy of Sciences (in this section referred to as 
the `Academy') under which the Academy shall, not later than July 1, 
2014, and every 4 years thereafter, submit to Congress and the 
Administrator a report that includes--
          ``(1) a review of the most recent report and recommendations 
        issued under section 705; and
          ``(2) an analysis of technologies to achieve reductions in 
        greenhouse gas emissions.
  ``(b) Failure to Issue a Report.--In the event that the Administrator 
has not issued all or part of the most recent report required under 
section 705, the Academy shall conduct its own review and analysis of 
the required information.
  ``(c) Technological Information.--The analysis required under 
subsection (a)(2) shall--
          ``(1) review existing technological information and reports, 
        including the most recent reports by the Department of Energy, 
        the United States Global Change Research Program, the 
        Intergovernmental Panel on Climate Change, and the 
        International Energy Agency and any other relevant information 
        on technologies or practices that reduce or limit greenhouse 
        gas emissions;
          ``(2) include the participation of technical experts from 
        relevant private industry sectors;
          ``(3) review the current and future projected deployment of 
        technologies and practices in the United States that reduce or 
        limit greenhouse gas emissions, including--
                  ``(A) technologies for capture and sequestration of 
                greenhouse gases;
                  ``(B) technologies to improve energy efficiency;
                  ``(C) low- or zero-greenhouse gas emitting energy 
                technologies;
                  ``(D) low- or zero-greenhouse gas emitting fuels;
                  ``(E) biological sequestration practices and 
                technologies; and
                  ``(F) any other technologies the Academy deems 
                relevant; and
          ``(4) review and compare the emissions reduction potential, 
        commercial viability, market penetration, investment trends, 
        and deployment of the technologies described in paragraph (3), 
        including--
                  ``(A) the need for additional research and 
                development, including publicly funded research and 
                development;
                  ``(B) the extent of commercial deployment, including, 
                where appropriate, a comparison to the cost and level 
                of deployment of conventional fossil fuel-fired energy 
                technologies and devices; and
                  ``(C) an evaluation of any substantial technological, 
                legal, or market-based barriers to commercial 
                deployment.
  ``(d) Recommendations.--
          ``(1) Latest scientific information.--Based on the review 
        described in subsection (a)(1), the Academy shall identify 
        actions that could be taken to--
                  ``(A) improve the characterization of changes in the 
                earth-climate system and impacts of global climate 
                change;
                  ``(B) better inform decision making and actions 
                related to global climate change;
                  ``(C) mitigate risks to natural and social systems;
                  ``(D) design policies to better account for climate 
                risks; and
                  ``(E) improve the accuracy and reliability of 
                capabilities to monitor, report, and verify greenhouse 
                gas emissions reduction efforts.
          ``(2) Technological information.--Based on the analysis 
        described in subsection (a)(2), the Academy shall identify--
                  ``(A) additional emissions reductions that may be 
                possible as a result of technologies described in the 
                analysis;
                  ``(B) barriers to the deployment of such 
                technologies; and
                  ``(C) actions that could be taken to speed deployment 
                of such technologies.
          ``(3) Status of greenhouse gas reduction efforts.--Based on 
        the review described in subsection (a)(1), the Academy shall 
        identify--
                  ``(A) the quantity of additional reductions required 
                to meet the emissions reduction goals described in 
                section 702; and
                  ``(B) the quantity of additional reductions in global 
                greenhouse gas emissions needed to avoid the 
                concentration and temperature thresholds described in 
                section 705(c)(6)(A) or identified pursuant to section 
                705(c)(6)(B).
  ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary.

``SEC. 707. PRESIDENTIAL RESPONSE AND RECOMMENDATIONS.

  ``Not later than July 1, 2015, and every 4 years thereafter--
          ``(1) the President shall direct relevant Federal agencies to 
        use existing statutory authority to take appropriate actions 
        identified in the reports submitted under sections 705 and 706 
        and to address any shortfalls identified in such reports; and
          ``(2) in the event that the National Academy of Sciences has 
        concluded, in the most recent report submitted under section 
        706, that the United States will not achieve the necessary 
        domestic greenhouse gas emissions reductions, or that global 
        actions will not maintain safe global average surface 
        temperature and atmospheric greenhouse gas concentration 
        thresholds, the President shall submit to Congress a plan 
        identifying domestic and international actions that will 
        achieve necessary additional greenhouse gas reductions, 
        including any recommendations for legislative action.

       ``PART B--DESIGNATION AND REGISTRATION OF GREENHOUSE GASES

``SEC. 711. DESIGNATION OF GREENHOUSE GASES.

  ``(a) Greenhouse Gases.--For purposes of this title, the following 
are greenhouse gases:
          ``(1) Carbon dioxide.
          ``(2) Methane.
          ``(3) Nitrous oxide.
          ``(4) Sulfur hexafluoride.
          ``(5) Hydrofluorocarbons from a chemical manufacturing 
        process at an industrial stationary source.
          ``(6) Any perfluorocarbon.
          ``(7) Nitrogen trifluoride.
          ``(8) Any other anthropogenic gas designated as a greenhouse 
        gas by the Administrator under this section.
  ``(b) Determination on Administrator's Initiative.--The Administrator 
shall, by rule--
          ``(1) determine whether 1 metric ton of another anthropogenic 
        gas makes the same or greater contribution to global warming 
        over 100 years as 1 metric ton of carbon dioxide;
          ``(2) determine the carbon dioxide equivalent value for each 
        gas with respect to which the Administrator makes an 
        affirmative determination under paragraph (1);
          ``(3) for each gas with respect to which the Administrator 
        makes an affirmative determination under paragraph (1) and that 
        is used as a substitute for a class I or class II substance 
        under title VI, determine the extent to which to regulate that 
        gas under section 619 and specify appropriate compliance 
        obligations under section 619;
          ``(4) designate as a greenhouse gas for purposes of this 
        title each gas for which the Administrator makes an affirmative 
        determination under paragraph (1), to the extent that it is not 
        regulated under section 619; and
          ``(5) specify the appropriate compliance obligations under 
        this title for each gas designated as a greenhouse gas under 
        paragraph (4).
  ``(c) Petitions to Designate a Greenhouse Gas.--
          ``(1) In general.--Any person may petition the Administrator 
        to designate as a greenhouse gas any anthropogenic gas 1 metric 
        ton of which makes the same or greater contribution to global 
        warming over 100 years as 1 metric ton of carbon dioxide.
          ``(2) Contents of petition.--The petitioner shall provide 
        sufficient data, as specified by rule by the Administrator, to 
        demonstrate that the gas is likely to be a greenhouse gas and 
        is likely to be produced, imported, used, or emitted in the 
        United States. To the extent practicable, the petitioner shall 
        also identify producers, importers, distributors, users, and 
        emitters of the gas in the United States.
          ``(3) Review and action by the administrator.--Not later than 
        90 days after receipt of a petition under paragraph (2), the 
        Administrator shall determine whether the petition is complete 
        and notify the petitioner and the public of the decision.
          ``(4) Additional information.--The Administrator may require 
        producers, importers, distributors, users, or emitters of the 
        gas to provide information on the contribution of the gas to 
        global warming over 100 years compared to carbon dioxide.
          ``(5) Treatment of petition.--For any substance used as a 
        substitute for a class I or class II substance under title VI, 
        the Administrator may elect to treat a petition under this 
        subsection as a petition to list the substance as a class II, 
        group II substance under section 619, and may require the 
        petition to be amended to address listing criteria promulgated 
        under that section.
          ``(6) Determination.--Not later than 2 years after receipt of 
        a complete petition, the Administrator shall, after notice and 
        an opportunity for comment--
                  ``(A) issue and publish in the Federal Register--
                          ``(i) a determination that 1 metric ton of 
                        the gas does not make a contribution to global 
                        warming over 100 years that is equal to or 
                        greater than that made by 1 metric ton of 
                        carbon dioxide; and
                          ``(ii) an explanation of the decision; or
                  ``(B) determine that 1 metric ton of the gas makes a 
                contribution to global warming over 100 years that is 
                equal to or greater than that made by 1 metric ton of 
                carbon dioxide, and take the actions described in 
                subsection (b) with respect to such gas.
          ``(7) Grounds for denial.--The Administrator may not deny a 
        petition under this subsection solely on the basis of 
        inadequate Environmental Protection Agency resources or time 
        for review.
  ``(d) Science Advisory Board Consultation.--
          ``(1) Consultation.--The Administrator shall--
                  ``(A) give notice to the Science Advisory Board prior 
                to making a determination under subsection (b)(1), 
                (c)(6), or (e)(2)(B);
                  ``(B) consider the written recommendations of the 
                Science Advisory Board under paragraph (2) regarding 
                the determination; and
                  ``(C) consult with the Science Advisory Board 
                regarding such determination, including consultation 
                subsequent to receipt of such written recommendations.
          ``(2) Formulation of recommendations.--Upon receipt of notice 
        under paragraph (1)(A) regarding a pending determination under 
        subsection (b)(1), (c)(6), or (e)(2)(B), the Science Advisory 
        Board shall--
                  ``(A) formulate recommendations regarding such 
                determination, subject to a peer review process; and
                  ``(B) submit such recommendations in writing to the 
                Administrator.
  ``(e) Manufacturing and Emission Notices.--
          ``(1) Notice requirement.--
                  ``(A) In general.--Effective 24 months after the date 
                of enactment of this title, no person may manufacture 
                or introduce into interstate commerce a fluorinated 
                gas, or emit a significant quantity, as determined by 
                the Administrator, of any fluorinated gas that is 
                generated as a byproduct during the production or use 
                of another fluorinated gas, unless--
                          ``(i) the gas is designated as a greenhouse 
                        gas under this section or is an ozone-depleting 
                        substance listed as a class I or class II 
                        substance under title VI;
                          ``(ii) the Administrator has determined that 
                        1 metric ton of such gas does not make a 
                        contribution to global warming that is equal to 
                        or greater than that made by 1 metric ton of 
                        carbon dioxide; or
                          ``(iii) the person manufacturing or importing 
                        the gas for distribution into interstate 
                        commerce, or emitting the gas, has submitted to 
                        the Administrator, at least 90 days before the 
                        start of such manufacture, introduction into 
                        commerce, or emission, a notice of such 
                        person's manufacture, introduction into 
                        commerce, or emission of such gas, and the 
                        Administrator has not determined that notice or 
                        a substantially similar notice is incomplete.
                  ``(B) Alternative compliance.--For a gas that is a 
                substitute for a class I or class II substance under 
                title VI and either has been listed as acceptable for 
                use under section 612 or is currently subject to 
                evaluation under section 612, the Administrator may 
                accept the notice and information provided pursuant to 
                that section as fulfilling the obligation under clause 
                (iii) of subparagraph (A).
          ``(2) Review and action by the administrator.--
                  ``(A) Completeness.--Not later than 90 days after 
                receipt of notice under paragraph (1)(A)(iii) or (B), 
                the Administrator shall determine whether the notice is 
                complete.
                  ``(B) Determination.-- If the Administrator 
                determines that the notice is complete, the 
                Administrator shall, after notice and an opportunity 
                for comment, not later than 12 months after receipt of 
                the notice--
                          ``(i) issue and publish in the Federal 
                        Register a determination that 1 metric ton of 
                        the gas does not make a contribution to global 
                        warming over 100 years that is equal to or 
                        greater than that made by 1 metric ton of 
                        carbon dioxide and an explanation of the 
                        decision; or
                          ``(ii) determine that 1 metric ton of the gas 
                        makes a contribution to global warming over 100 
                        years that is equal to or greater than that 
                        made by 1 metric ton of carbon dioxide, and 
                        take the actions described in subsection (b) 
                        with respect to such gas.
  ``(f) Regulations.--Not later than one year after the date of 
enactment of this title, the Administrator shall promulgate regulations 
to carry out this section. Such regulations shall include--
          ``(1) requirements for the contents of a petition submitted 
        under subsection (c);
          ``(2) requirements for the contents of a notice required 
        under subsection (e); and
          ``(3) methods and standards for evaluating the carbon dioxide 
        equivalent value of a gas.
  ``(g) Gases Regulated Under Title VI.--The Administrator shall not 
designate a gas as a greenhouse gas under this section to the extent 
that the gas is regulated under title VI.
  ``(h) Savings Clause.--Nothing in this section shall be interpreted 
to relieve any person from complying with the requirements of section 
612.

``SEC. 712. CARBON DIOXIDE EQUIVALENT VALUE OF GREENHOUSE GASES.

  ``(a) Measure of Quantity of Greenhouse Gases.--Any provision of this 
title or title VIII that refers to a quantity or percentage of a 
quantity of greenhouse gases shall mean the quantity or percentage of 
the greenhouse gases expressed in carbon dioxide equivalents.
  ``(b) Initial Value.--Except as provided by the Administrator under 
this section or section 711--
          ``(1) the carbon dioxide equivalent value of greenhouse gases 
        for purposes of this Act shall be as follows:

                         ``CARBON DIOXIDE EQUIVALENT OF 1 TON OF LISTED GREENHOUSE GASES
----------------------------------------------------------------------------------------------------------------
             Greenhouse gas (1 metric ton)                       Carbon dioxide equivalent (metric tons)
----------------------------------------------------------------------------------------------------------------
Carbon dioxide                                           1
----------------------------------------------------------------------------------------------------------------
Methane                                                  25
----------------------------------------------------------------------------------------------------------------
Nitrous oxide                                            298
----------------------------------------------------------------------------------------------------------------
HFC-23                                                   14,800
----------------------------------------------------------------------------------------------------------------
HFC-125                                                  3,500
----------------------------------------------------------------------------------------------------------------
HFC-134a                                                 1,430
----------------------------------------------------------------------------------------------------------------
HFC-143a                                                 4,470
----------------------------------------------------------------------------------------------------------------
HFC-152a                                                 124
----------------------------------------------------------------------------------------------------------------
HFC-227ea                                                3,220
----------------------------------------------------------------------------------------------------------------
HFC-236fa                                                9,810
----------------------------------------------------------------------------------------------------------------
HFC-4310mee                                              1,640
----------------------------------------------------------------------------------------------------------------
CF4                                                      7,390
----------------------------------------------------------------------------------------------------------------
C2F6                                                     12,200
----------------------------------------------------------------------------------------------------------------
C4F10                                                    8,860
----------------------------------------------------------------------------------------------------------------
C6F14                                                    9,300
----------------------------------------------------------------------------------------------------------------
SF6                                                      22,800
----------------------------------------------------------------------------------------------------------------
NF3                                                      17,200
----------------------------------------------------------------------------------------------------------------

        ; and
          ``(2) the carbon dioxide equivalent value for purposes of 
        this Act for any greenhouse gas not listed in the table under 
        paragraph (1) shall be the 100-year Global Warming Potentials 
        provided in the Intergovernmental Panel on Climate Change 
        Fourth Assessment Report.
  ``(c) Periodic Review.--
          ``(1) Not later than February 1, 2017, and (except as 
        provided in paragraph (3)) not less than every 5 years 
        thereafter, the Administrator shall--
                  ``(A) review and, if appropriate, revise the carbon 
                dioxide equivalent values established under this 
                section or section 711(b)(2), based on a determination 
                of the number of metric tons of carbon dioxide that 
                makes the same contribution to global warming over 100 
                years as 1 metric ton of each greenhouse gas; and
                  ``(B) publish in the Federal Register the results of 
                that review and any revisions.
          ``(2) A revised determination published in the Federal 
        Register under paragraph (1)(B) shall take effect for 
        greenhouse gas emissions starting on January 1 of the first 
        calendar year starting at least 9 months after the date on 
        which the revised determination was published.
          ``(3) The Administrator may decrease the frequency of review 
        and revision under paragraph (1) if the Administrator 
        determines that such decrease is appropriate in order to 
        synchronize such review and revision with any similar review 
        process carried out pursuant to the United Nations Framework 
        Convention on Climate Change, done at New York on May 9, 1992, 
        or to an agreement negotiated under that convention, except 
        that in no event shall the Administrator carry out such review 
        and revision any less frequently than every 10 years.
  ``(d) Methodology.--In setting carbon dioxide equivalent values, for 
purposes of this section or section 711, the Administrator shall take 
into account publications by the Intergovernmental Panel on Climate 
Change or a successor organization under the auspices of the United 
Nations Environmental Programme and the World Meteorological 
Organization.

``SEC. 713. GREENHOUSE GAS REGISTRY.

  ``(a) Definitions.--For purposes of this section:
          ``(1) Climate registry.--The term `Climate Registry' means 
        the greenhouse gas emissions registry jointly established and 
        managed by more than 40 States and Indian tribes in 2007 to 
        collect high-quality greenhouse gas emission data from 
        facilities, corporations, and other organizations to support 
        various greenhouse gas emission reporting and reduction 
        policies for the member States and Indian tribes.
          ``(2) Reporting entity.--The term `reporting entity' means--
                  ``(A) a covered entity;
                  ``(B) an entity that--
                          ``(i) would be a covered entity if it had 
                        emitted, produced, imported, manufactured, or 
                        delivered in 2008 or any subsequent year more 
                        than the applicable threshold level in the 
                        definition of covered entity in paragraph (13) 
                        of section 700; and
                          ``(ii) has emitted, produced, imported, 
                        manufactured, or delivered in 2008 or any 
                        subsequent year more than the applicable 
                        threshold level in the definition of covered 
                        entity in paragraph (13) of section 700, 
                        provided that the figure of 25,000 tons of 
                        carbon dioxide equivalent is read instead as 
                        10,000 tons of carbon dioxide equivalent and 
                        the figure of 460,000,000 cubic feet is read 
                        instead as 184,000,000 cubic feet;
                  ``(C) any other entity that emits a greenhouse gas, 
                or produces, imports, manufactures, or delivers 
                material whose use results or may result in greenhouse 
                gas emissions if the Administrator determines that 
                reporting under this section by such entity will help 
                achieve the purposes of this title or title VIII;
                  ``(D) any vehicle fleet with emissions of more than 
                25,000 tons of carbon dioxide equivalent on an annual 
                basis, if the Administrator determines that the 
                inclusion of such fleet will help achieve the purposes 
                of this title or title VIII; or
                  ``(E) any entity that delivers electricity to an 
                energy-intensive facility in an industrial sector that 
                meets the energy or greenhouse gas intensity criteria 
                in section 764(b)(2)(A)(i).
  ``(b) Regulations.--
          ``(1) In general.--Not later than 6 months after the date of 
        enactment of this title, the Administrator shall issue 
        regulations establishing a Federal greenhouse gas registry. 
        Such regulations shall--
                  ``(A) require reporting entities to submit to the 
                Administrator data on--
                          ``(i) greenhouse gas emissions in the United 
                        States;
                          ``(ii) the production and manufacture in the 
                        United States, importation into the United 
                        States, and, at the discretion of the 
                        Administrator, exportation from the United 
                        States, of fuels and industrial gases the uses 
                        of which result or may result in greenhouse gas 
                        emissions;
                          ``(iii) deliveries in the United States of 
                        natural gas, and any other gas meeting the 
                        specifications for commingling with natural gas 
                        for purposes of delivery, the combustion of 
                        which result or may result in greenhouse gas 
                        emissions; and
                          ``(iv) the capture and sequestration of 
                        greenhouse gases;
                  ``(B) require covered entities and, where 
                appropriate, other reporting entities to submit to the 
                Administrator data sufficient to ensure compliance with 
                or implementation of the requirements of this title;
                  ``(C) require reporting of electricity delivered to 
                industrial sources in energy-intensive industries;
                  ``(D) ensure the completeness, consistency, 
                transparency, accuracy, precision, and reliability of 
                such data;
                  ``(E) take into account the best practices from the 
                most recent Federal, State, tribal, and international 
                protocols for the measurement, accounting, reporting, 
                and verification of greenhouse gas emissions, including 
                protocols from the Climate Registry and other mandatory 
                State or multistate authorized programs;
                  ``(F) take into account the latest scientific 
                research;
                  ``(G) require that, for covered entities with respect 
                to greenhouse gases to which section 722 applies, and, 
                to the extent determined to be appropriate by the 
                Administrator, for covered entities with respect to 
                other greenhouse gases and for other reporting 
                entities, submitted data are based on--
                          ``(i) continuous monitoring systems for fuel 
                        flow or emissions, such as continuous emission 
                        monitoring systems;
                          ``(ii) alternative systems that are 
                        demonstrated as providing data with the same 
                        precision, reliability, accessibility, and 
                        timeliness, or, to the extent the Administrator 
                        determines is appropriate for reporting small 
                        amounts of emissions, the same precision, 
                        reliability, and accessibility and similar 
                        timeliness, as data provided by continuous 
                        monitoring systems for fuel flow or emissions; 
                        or
                          ``(iii) alternative methodologies that are 
                        demonstrated to provide data with precision, 
                        reliability, accessibility, and timeliness, or, 
                        to the extent the Administrator determines is 
                        appropriate for reporting small amounts of 
                        emissions, precision, reliability, and 
                        accessibility, as similar as is technically 
                        feasible to that of data generally provided by 
                        continuous monitoring systems for fuel flow or 
                        emissions, if the Administrator determines 
                        that, with respect to a reporting entity, there 
                        is no continuous monitoring system or 
                        alternative system described in clause (i) or 
                        (ii) that is technically feasible;
                  ``(H) require that the Administrator, in determining 
                the extent to which the requirement to use systems or 
                methodologies in accordance with subparagraph (G) is 
                appropriate for reporting entities other than covered 
                entities or for greenhouse gases to which section 722 
                does not apply, consider the cost of using such systems 
                and methodologies, and of using other systems and 
                methodologies that are available and suitable, for 
                quantifying the emissions involved in light of the 
                purposes of this title, including the goal of 
                collecting consistent entity-wide data;
                  ``(I) include methods for minimizing double reporting 
                and avoiding irreconcilable double reporting of 
                greenhouse gas emissions;
                  ``(J) establish measurement protocols for carbon 
                capture and sequestration systems, taking into 
                consideration the regulations promulgated under section 
                813;
                  ``(K) require that reporting entities provide the 
                data required under this paragraph in reports submitted 
                electronically to the Administrator, in such form and 
                containing such information as may be required by the 
                Administrator;
                  ``(L) include requirements for keeping records 
                supporting or related to, and protocols for auditing, 
                submitted data;
                  ``(M) establish consistent policies for calculating 
                carbon content and greenhouse gas emissions for each 
                type of fossil fuel with respect to which reporting is 
                required;
                  ``(N) subsequent to implementation of policies 
                developed under subparagraph (M), provide for immediate 
                dissemination, to States, Indian tribes, and on the 
                Internet, of all data reported under this section as 
                soon as practicable after electronic audit by the 
                Administrator and any resulting correction of data, 
                except that data shall not be disseminated under this 
                subparagraph if--
                          ``(i) its nondissemination is vital to the 
                        national security of the United States, as 
                        determined by the President; or
                          ``(ii) it is confidential business 
                        information that cannot be derived from 
                        information that is otherwise publicly 
                        available and that would cause significant 
                        calculable competitive harm if published, 
                        except that--
                                  ``(I) data relating to greenhouse gas 
                                emissions, including any upstream or 
                                verification data from reporting 
                                entities, shall not be considered to be 
                                confidential business information; and
                                  ``(II) data that is confidential 
                                business information shall be provided 
                                to a State or Indian tribe within whose 
                                jurisdiction the reporting entity is 
                                located, if the Administrator 
                                determines that such State or Indian 
                                tribe has in effect protections for 
                                confidential business information that 
                                are equivalent to protections 
                                applicable to the Federal Government;
                  ``(O) prescribe methods by which the Administrator 
                shall, in cases in which satisfactory data are not 
                submitted to the Administrator for any period of time, 
                estimate emission, production, importation, 
                manufacture, or delivery levels--
                          ``(i) for covered entities with respect to 
                        greenhouse gas emissions, production, 
                        importation, manufacture, or delivery regulated 
                        under this title to ensure that emissions, 
                        production, importation, manufacture, or 
                        deliveries are not underreported, and to create 
                        a strong incentive for meeting data monitoring 
                        and reporting requirements--
                                  ``(I) with a conservative estimate of 
                                the highest emission, production, 
                                importation, manufacture, or delivery 
                                levels that may have occurred during 
                                the period for which data are missing; 
                                or
                                  ``(II) to the extent the 
                                Administrator considers appropriate, 
                                with an estimate of such levels 
                                assuming the unit is emitting, 
                                producing, importing, manufacturing, or 
                                delivering at a maximum potential level 
                                during the period, in order to ensure 
                                that such levels are not underreported 
                                and to create a strong incentive for 
                                meeting data monitoring and reporting 
                                requirements; and
                          ``(ii) for covered entities with respect to 
                        greenhouse gas emissions to which section 722 
                        does not apply and for other reporting 
                        entities, with a reasonable estimate of the 
                        emission, production, importation, manufacture, 
                        or delivery levels that may have occurred 
                        during the period for which data are missing;
                  ``(P) require the designation of a designated 
                representative for each reporting entity;
                  ``(Q) require an appropriate certification, by the 
                designated representative for the reporting entity, of 
                accurate and complete accounting of greenhouse gas 
                emissions, as determined by the Administrator; and
                  ``(R) include requirements for other data necessary 
                for accurate and complete accounting of greenhouse gas 
                emissions, as determined by the Administrator, 
                including data for quality assurance of monitoring 
                systems, monitors and other measurement devices, and 
                other data needed to verify reported emissions, 
                production, importation, manufacture, or delivery.
          ``(2) Timing.--
                  ``(A) Calendar years 2007 through 2010.--For a base 
                period of calendar years 2007 through 2010, each 
                reporting entity shall submit annual data required 
                under this section to the Administrator not later than 
                March 31, 2011. The Administrator may waive or modify 
                reporting requirements for calendar years 2007 through 
                2010 for categories of reporting entities to the extent 
                that the Administrator determines that the reporting 
                entities did not keep data or records necessary to meet 
                reporting requirements. The Administrator may, in 
                addition to or in lieu of such requirements, collect 
                information on energy consumption and production.
                  ``(B) Subsequent calendar years.--For calendar year 
                2011 and each subsequent calendar year, each reporting 
                entity shall submit quarterly data required under this 
                section to the Administrator not later than 60 days 
                after the end of the applicable quarter, except when 
                the data is already being reported to the Administrator 
                on an earlier timeframe for another program.
          ``(3) Waiver of reporting requirements.--The Administrator 
        may waive reporting requirements under this section for 
        specific entities to the extent that the Administrator 
        determines that sufficient and equally or more reliable 
        verified and timely data are available to the Administrator and 
        the public on the Internet under other mandatory statutory 
        requirements.
          ``(4) Alternative threshold.--The Administrator may, by rule, 
        establish applicability thresholds for reporting under this 
        section using alternative metrics and levels, provided that 
        such metrics and levels are easier to administer and cover the 
        same size and type of sources as the threshold defined in this 
        section.
  ``(c) Interrelationship With Other Systems.--In developing the 
regulations issued under subsection (b), the Administrator shall take 
into account the work done by the Climate Registry and other mandatory 
State or multistate programs. Such regulations shall include an 
explanation of any major differences in approach between the system 
established under the regulations and such registries and programs.

                        ``PART C--PROGRAM RULES

``SEC. 721. EMISSION ALLOWANCES.

  ``(a) In General.--The Administrator shall establish a separate 
quantity of emission allowances for each calendar year starting in 
2012, in the amounts prescribed under subsection (e).
  ``(b) Identification Numbers.--The Administrator shall assign to each 
emission allowance established under subsection (a) a unique 
identification number that includes the vintage year for that emission 
allowance.
  ``(c) Legal Status of Emission Allowances.--
          ``(1) In general.--An allowance established by the 
        Administrator under this title does not constitute a property 
        right.
          ``(2) Termination or limitation.--Nothing in this Act or any 
        other provision of law shall be construed to limit or alter the 
        authority of the United States, including the Administrator 
        acting pursuant to statutory authority, to terminate or limit 
        allowances or offset credits.
          ``(3) Other provisions unaffected.--Except as otherwise 
        specified in this Act, nothing in this Act relating to 
        allowances or offset credits established or issued under this 
        title shall affect the application of any other provision of 
        law to a covered entity, or the responsibility for a covered 
        entity to comply with any such provision of law.
  ``(d) Savings Provision.--Nothing in this part shall be construed as 
requiring a change of any kind in any State law regulating electric 
utility rates and charges, or as affecting any State law regarding such 
State regulation, or as limiting State regulation (including any 
prudency review) under such a State law. Nothing in this part shall be 
construed as modifying the Federal Power Act or as affecting the 
authority of the Federal Energy Regulatory Commission under that Act. 
Nothing in this part shall be construed to interfere with or impair any 
program for competitive bidding for power supply in a State in which 
such program is established.
  ``(e) Allowances for Each Calendar Year.--
          ``(1) In general.--Except as provided in paragraph (2), the 
        number of emission allowances established by the Administrator 
        under subsection (a) for each calendar year shall be as 
        provided in the following table:


----------------------------------------------------------------------------------------------------------------
                    ``Calendar year                                 Emission allowances (in millions)
----------------------------------------------------------------------------------------------------------------
2012                                                     4,627
----------------------------------------------------------------------------------------------------------------
2013                                                     4,544
----------------------------------------------------------------------------------------------------------------
2014                                                     5,099
----------------------------------------------------------------------------------------------------------------
2015                                                     5,003
----------------------------------------------------------------------------------------------------------------
2016                                                     5,482
----------------------------------------------------------------------------------------------------------------
2017                                                     5,375
----------------------------------------------------------------------------------------------------------------
2018                                                     5,269
----------------------------------------------------------------------------------------------------------------
2019                                                     5,162
----------------------------------------------------------------------------------------------------------------
2020                                                     5,056
----------------------------------------------------------------------------------------------------------------
2021                                                     4,903
----------------------------------------------------------------------------------------------------------------
2022                                                     4,751
----------------------------------------------------------------------------------------------------------------
2023                                                     4,599
----------------------------------------------------------------------------------------------------------------
2024                                                     4,446
----------------------------------------------------------------------------------------------------------------
2025                                                     4,294
----------------------------------------------------------------------------------------------------------------
2026                                                     4,142
----------------------------------------------------------------------------------------------------------------
2027                                                     3,990
----------------------------------------------------------------------------------------------------------------
2028                                                     3,837
----------------------------------------------------------------------------------------------------------------
2029                                                     3,685
----------------------------------------------------------------------------------------------------------------
2030                                                     3,533
----------------------------------------------------------------------------------------------------------------
2031                                                     3,408
----------------------------------------------------------------------------------------------------------------
2032                                                     3,283
----------------------------------------------------------------------------------------------------------------
2033                                                     3,158
----------------------------------------------------------------------------------------------------------------
2034                                                     3,033
----------------------------------------------------------------------------------------------------------------
2035                                                     2,908
----------------------------------------------------------------------------------------------------------------
2036                                                     2,784
----------------------------------------------------------------------------------------------------------------
2037                                                     2,659
----------------------------------------------------------------------------------------------------------------
2038                                                     2,534
----------------------------------------------------------------------------------------------------------------
2039                                                     2,409
----------------------------------------------------------------------------------------------------------------
2040                                                     2,284
----------------------------------------------------------------------------------------------------------------
2041                                                     2,159
----------------------------------------------------------------------------------------------------------------
2042                                                     2,034
----------------------------------------------------------------------------------------------------------------
2043                                                     1,910
----------------------------------------------------------------------------------------------------------------
2044                                                     1,785
----------------------------------------------------------------------------------------------------------------
2045                                                     1,660
----------------------------------------------------------------------------------------------------------------
2046                                                     1,535
----------------------------------------------------------------------------------------------------------------
2047                                                     1,410
----------------------------------------------------------------------------------------------------------------
2048                                                     1,285
----------------------------------------------------------------------------------------------------------------
2049                                                     1,160
----------------------------------------------------------------------------------------------------------------
2050 and each year thereafter                            1,035
----------------------------------------------------------------------------------------------------------------

          ``(2) Revision.--
                  ``(A) In general.--The Administrator may adjust, in 
                accordance with subparagraph (B), the number of 
                emission allowances established pursuant to paragraph 
                (1) if, after notice and an opportunity for public 
                comment, the Administrator determines that--
                          ``(i) United States greenhouse gas emissions 
                        in 2005 were other than 7,206 million metric 
                        tons carbon dioxide equivalent;
                          ``(ii) if the requirements of this title for 
                        2012 had been in effect in 2005, section 722 
                        would have required emission allowances to be 
                        held for other than 66.2 percent of United 
                        States greenhouse gas emissions in 2005;
                          ``(iii) if the requirements of this title for 
                        2014 had been in effect in 2005, section 722 
                        would have required emission allowances to be 
                        held for other than 75.7 percent of United 
                        States greenhouse gas emissions in 2005; or
                          ``(iv) if the requirements of this title for 
                        2016 had been in effect in 2005, section 722 
                        would have required emission allowances to be 
                        held for other than 84.5 percent United States 
                        greenhouse gas emissions in 2005.
                  ``(B) Adjustment formula.--
                          ``(i) In general.--If the Administrator 
                        adjusts under this paragraph the number of 
                        emission allowances established pursuant to 
                        paragraph (1), the number of emission 
                        allowances the Administrator establishes for 
                        any given calendar year shall equal the product 
                        of--
                                  ``(I) United States greenhouse gas 
                                emissions in 2005, expressed in tons of 
                                carbon dioxide equivalent;
                                  ``(II) the percent of United States 
                                greenhouse gas emissions in 2005, 
                                expressed in tons of carbon dioxide 
                                equivalent, that would have been 
                                subject to section 722 if the 
                                requirements of this title for the 
                                given calendar year had been in effect 
                                in 2005; and
                                  ``(III) the percentage set forth for 
                                that calendar year in section 703(a), 
                                or determined under clause (ii) of this 
                                subparagraph.
                          ``(ii) Targets.--In applying the portion of 
                        the formula in clause (i)(III) of this 
                        subparagraph, for calendar years for which a 
                        percentage is not listed in section 703(a), the 
                        Administrator shall use a uniform annual 
                        decline in the amount of emissions between the 
                        years that are specified.
                          ``(iii) Carbon dioxide equivalent value.--If 
                        the Administrator adjusts under this paragraph 
                        the number of emission allowances established 
                        pursuant to paragraph (1), the Administrator 
                        shall use the carbon dioxide equivalent values 
                        established pursuant to section 712.
                          ``(iv) Limitation on adjustment timing.--Once 
                        a calendar year has started, the Administrator 
                        may not adjust the number of emission 
                        allowances to be established for that calendar 
                        year.
                  ``(C) Limitation on adjustment authority.--The 
                Administrator may adjust under this paragraph the 
                number of emission allowances to be established 
                pursuant to paragraph (1) only once.
  ``(f) Compensatory Allowance.--
          ``(1) In general.--The regulations promulgated under 
        subsection (h) shall provide for the establishment and 
        distribution of compensatory allowances for--
                  ``(A) the destruction, in 2012 or later, of 
                fluorinated gases that are greenhouse gases if--
                          ``(i) allowances or offset credits were 
                        retired for their production or importation; 
                        and
                          ``(ii) such gases are not required to be 
                        destroyed under any other provision of law;
                  ``(B) the nonemissive use, in 2012 or later, of 
                petroleum-based or coal-based liquid or gaseous fuel, 
                petroleum coke, natural gas liquid, or natural gas as a 
                feedstock, if allowances or offset credits were retired 
                for the greenhouse gases that would have been emitted 
                from their combustion; and
                  ``(C) the conversionary use, in 2012 or later, of 
                fluorinated gases in a manufacturing process, including 
                semiconductor research or manufacturing, if allowances 
                or offset credits were retired for the production or 
                importation of such gas.
          ``(2) Establishment and distribution.--
                  ``(A) In general.--Not later than 90 days after the 
                end of each calendar year, the Administrator shall 
                establish and distribute to the entity taking the 
                actions described in subparagraph (A), (B), or (C) of 
                paragraph (1) a quantity of compensatory allowances 
                equivalent to the number of tons of carbon dioxide 
                equivalent of avoided emissions achieved through such 
                actions. In establishing the quantity of compensatory 
                allowances, the Administrator shall take into account 
                the carbon dioxide equivalent value of any greenhouse 
                gas resulting from such action.
                  ``(B) Source of allowances.--Compensatory allowances 
                established under this subsection shall not be emission 
                allowances established under subsection (a).
                  ``(C) Identification numbers.--The Administrator 
                shall assign to each compensatory allowance established 
                under subparagraph (A) a unique identification number.
          ``(3) Definitions.--For purposes of this subsection--
                  ``(A) the term `destruction' means the conversion of 
                a greenhouse gas by thermal, chemical, or other means 
                to another gas or set of gases with little or no carbon 
                dioxide equivalent value;
                  ``(B) the term `nonemissive use' means the use of 
                fossil fuel as a feedstock in an industrial or 
                manufacturing process to the extent that greenhouse 
                gases are not emitted from such process, and to the 
                extent that the products of such process are not 
                intended for use as, or to be contained in, a fuel; and
                  ``(C) the term `conversionary use' means the 
                conversion during research or manufacturing of a 
                fluorinated gas into another greenhouse gas or set of 
                gases with a lower carbon dioxide equivalent value.
          ``(4) Feedstock emissions study.--
                  ``(A) The Administrator may conduct a study to 
                determine the extent to which petroleum-based or coal-
                based liquid or gaseous fuel, petroleum coke, natural 
                gas liquid, or natural gas are used as feedstocks in 
                manufacturing processes to produce products and the 
                greenhouse gas emissions resulting from such uses.
                  ``(B) If as a result of such a study, the 
                Administrator determines that the use of such products 
                by noncovered sources results in substantial emissions 
                of greenhouse gases or their precursors and that such 
                emissions have not been adequately addressed under 
                other requirements of this Act, the Administrator may, 
                after notice and comment rulemaking, promulgate a 
                regulation reducing compensatory allowances 
                commensurately if doing so will not result in leakage.
  ``(g) Fluorinated Gases Assessment.--No later than March 31, 2014, 
the Administrator shall conduct an assessment of the regulation of non-
HFC fluorinated gases under this title to determine whether the most 
appropriate point of regulation is at the gas manufacturer or importer 
level, or at the source of emissions downstream. If the Administrator 
determines, based on consideration of environmental effectiveness, cost 
effectiveness, administrative feasibility, extent of coverage of 
emissions, and competitiveness considerations, that emissions of non-
HFC fluorinated gases can best be regulated by designating downstream 
emission sources as covered entities with compliance obligations under 
section 722, the Administrator shall, after notice and comment 
rulemaking, change the definition of covered entity with respect to 
fluorinated gases (other than HFCs) accordingly and establish such 
requirements as are necessary to ensure compliance for such entities 
with the requirements of this title.
  ``(h) Regulations.--Not later than 24 months after the date of 
enactment of this title, the Administrator shall promulgate regulations 
to carry out the provisions of this title.

``SEC. 722. PROHIBITION OF EXCESS EMISSIONS.

  ``(a) Prohibition.--Except as provided in subsection (c), effective 
January 1, 2012, each covered entity is prohibited from emitting 
greenhouse gases, and having attributable greenhouse gas emissions, in 
combination, in excess of its allowable emissions level. A covered 
entity's allowable emissions level for each calendar year is the number 
of emission allowances (or credits or other allowances as provided in 
subsection (d)) it holds as of 12:01 a.m. on April 1 (or a later date 
established by the Administrator under subsection (j)) of the following 
calendar year.
  ``(b) Methods of Demonstrating Compliance.--Except as otherwise 
provided in this section, the owner or operator of a covered entity 
shall not be considered to be in compliance with the prohibition in 
subsection (a) unless, as of 12:01 a.m. on April 1 (or a later date 
established by the Administrator under subsection (j)) of each calendar 
year starting in 2013, the owner or operator holds a quantity of 
emission allowances (or credits or other allowances as provided in 
subsection (d)) at least as great as the quantity calculated as 
follows:
          ``(1) Electricity sources.--For a covered entity described in 
        section 700(13)(A), 1 emission allowance for each ton of carbon 
        dioxide equivalent of greenhouse gas that such covered entity 
        emitted in the previous calendar year, excluding emissions 
        resulting from the combustion of--
                  ``(A) petroleum-based or coal-based liquid fuel;
                  ``(B) natural gas liquid;
                  ``(C) renewable biomass or gas derived from renewable 
                biomass; or
                  ``(D) petroleum coke or gas derived from petroleum 
                coke.
          ``(2) Fuel producers and importers.--For a covered entity 
        described in section 700(13)(B), 1 emission allowance for each 
        ton of carbon dioxide equivalent of greenhouse gas that would 
        be emitted from the combustion of any petroleum-based or coal-
        based liquid fuel, petroleum coke, or natural gas liquid, 
        produced or imported by such covered entity during the previous 
        calendar year for sale or distribution in interstate commerce, 
        assuming no capture and sequestration of any greenhouse gas 
        emissions.
          ``(3) Industrial gas producers and importers.--For a covered 
        entity described in section 700(13)(C), 1 emission allowance 
        for each ton of carbon dioxide equivalent of fossil fuel-based 
        carbon dioxide, nitrous oxide, or any other fluorinated gas 
        that is a greenhouse gas (except for nitrogen trifluoride), or 
        any combination thereof, produced or imported by such covered 
        entity during the previous calendar year for sale or 
        distribution in interstate commerce or released as fugitive 
        emissions in the production of fluorinated gas.
          ``(4) Nitrogen trifluoride sources.--For a covered entity 
        described in section 700(13)(D), 1 emission allowance for each 
        ton of carbon dioxide equivalent of nitrogen trifluoride that 
        such covered entity emitted in the previous calendar year.
          ``(5) Geological sequestration sites.--For a covered entity 
        described in section 700(13)(E), 1 emission allowance for each 
        ton of carbon dioxide equivalent of greenhouse gas that such 
        covered entity emitted in the previous calendar year.
          ``(6) Industrial stationary sources.--For a covered entity 
        described in section 700(13)(F), (G), or (H), 1 emission 
        allowance for each ton of carbon dioxide equivalent of 
        greenhouse gas that such covered entity emitted in the previous 
        calendar year, excluding emissions resulting from--
                  ``(A) the combustion of petroleum-based or coal-based 
                liquid fuel;
                  ``(B) the combustion of natural gas liquid;
                  ``(C) the combustion of renewable biomass or gas 
                derived from renewable biomass;
                  ``(D) the combustion of petroleum coke or gas derived 
                from petroleum coke; or
                  ``(E) the use of any fluorinated gas that is a 
                greenhouse gas purchased for use at that covered 
                entity, except for nitrogen trifluoride.
          ``(7) Industrial fossil fuel-fired combustion devices.--For a 
        covered entity described in section 700(13)(I), 1 emission 
        allowance for each ton of carbon dioxide equivalent of 
        greenhouse gas that the devices emitted in the previous 
        calendar year, excluding emissions resulting from the 
        combustion of--
                  ``(A) petroleum-based or coal-based liquid fuel;
                  ``(B) natural gas liquid;
                  ``(C) renewable biomass or gas derived from renewable 
                biomass; or
                  ``(D) petroleum coke or gas derived from petroleum 
                coke.
          ``(8) Natural gas local distribution companies.--For a 
        covered entity described in section 700(13)(J), 1 emission 
        allowance for each ton of carbon dioxide equivalent of 
        greenhouse gas that would be emitted from the combustion of the 
        natural gas, and any other gas meeting the specifications for 
        commingling with natural gas for purposes of delivery, that 
        such entity delivered during the previous calendar year to 
        customers that are not covered entities, assuming no capture 
        and sequestration of that greenhouse gas.
          ``(9) Algae-based fuels.--Where carbon dioxide (or another 
        greenhouse gas) is used as an input in the production of algae-
        based fuels, the Administrator shall ensure that allowances are 
        required to be held either for the carbon dioxide used to grow 
        the algae or for the carbon dioxide emitted from combustion of 
        the fuel produced from such algae, but not for both.
          ``(10) Fugitive emissions.--The greenhouse gas emissions to 
        which paragraphs (1), (4), (6), and (7) apply shall not include 
        fugitive emissions of greenhouse gas, except to the extent the 
        Administrator determines that data on the carbon dioxide 
        equivalent value of greenhouse gas in the fugitive emissions 
        can be provided with sufficient precision, reliability, 
        accessibility, and timeliness to ensure the integrity of 
        emission allowances, the allowance tracking system, and the cap 
        on emissions.
          ``(11) Export exemption.--This section shall not apply to any 
        petroleum-based or coal-based liquid fuel, petroleum coke, 
        natural gas liquid, fossil fuel-based carbon dioxide, nitrous 
        oxide, or fluorinated gas that is exported for sale or use.
          ``(12) Natural gas liquids.--Notwithstanding subsection (a), 
        if the owner or operator of a covered entity described in 
        section 700(13)(B) that produces natural gas liquids does not 
        take ownership of the liquids, and is not responsible for the 
        distribution or use of the liquids in commerce, the owner of 
        the liquids shall be responsible for compliance with this 
        section, section 723, and other relevant sections of this title 
        with respect to such liquids. In the regulations promulgated 
        under section 721, the Administrator shall include such 
        provisions with respect to such liquids as the Administrator 
        determines are appropriate to determine and ensure compliance, 
        and to penalize noncompliance. In such a case, the owner of the 
        covered entity shall provide to the Administrator, in a manner 
        to be determined by the Administrator, information regarding 
        the quantity and ownership of liquids produced at the covered 
        entity.
          ``(13) Application of multiple paragraphs.--For a covered 
        entity to which more than 1 of paragraphs (1) through (8) 
        apply, all applicable paragraphs shall apply, except that not 
        more than 1 emission allowance shall be required for the same 
        emission.
  ``(c) Phase-in of Prohibition.--
          ``(1) Industrial stationary sources.--The prohibition under 
        subsection (a) shall first apply to a covered entity described 
        in section 700(13)(D), (F), (G), (H), or (I), with respect to 
        emissions occurring during calendar year 2014.
          ``(2) Natural gas local distribution companies.--The 
        prohibition under subsection (a) shall first apply to a covered 
        entity described in section 700(13)(J) with respect to 
        deliveries occurring during calendar year 2016.
  ``(d) Additional Methods.--In addition to using the method of 
compliance described in subsection (b), a covered entity may do the 
following:
          ``(1) Offset credits.--
                  ``(A) In general.--Covered entities collectively may, 
                in accordance with this paragraph, use offset credits 
                to demonstrate compliance for up to a maximum of 2 
                billion tons of greenhouse gas emissions annually. The 
                ability to demonstrate compliance with offset credits 
                shall be divided pro rata among covered entities by 
                allowing each covered entity to satisfy a percentage of 
                the number of allowances required to be held under 
                subsection (b) to demonstrate compliance by holding 1 
                domestic offset credit or 1.25 international offset 
                credits in lieu of an emission allowance, except as 
                provided in subparagraph (D).
                  ``(B) Applicable percentage.--The percentage referred 
                to in subparagraph (A) for a given calendar year shall 
                be determined by dividing 2 billion by the sum of 2 
                billion plus the number of emission allowances 
                established under section 721(a) for the previous year, 
                and multiplying that number by 100. Not more than one 
                half of the applicable percentage under this paragraph 
                may be used by holding domestic offset credits, and not 
                more than one half of the applicable percentage under 
                this paragraph may be used by holding international 
                offset credits, except as provided in subparagraph (C).
                  ``(C) Modified percentages.--If the Administrator 
                determines that domestic offset credits available for 
                use in demonstrating compliance in any calendar year at 
                domestic offset prices generally equal to or less than 
                allowance prices, are likely to offset less than 0.9 
                billion tons of greenhouse gas emissions (measured in 
                tons of carbon dioxide equivalents), the Administrator 
                shall increase the percent of emissions that can be 
                offset through the use of international offset credits 
                (and decrease the percent of emissions that can be 
                allowed through the use of domestic offset credits by 
                the same amount) to reflect the amount that 1.0 billion 
                exceeds the number of domestic offset credits the 
                Administrator determines is available for that year, up 
                to a maximum of 0.5 billion tons of greenhouse gas 
                emissions.
                  ``(D) International offset credits.--Notwithstanding 
                subparagraph (A), to demonstrate compliance prior to 
                calendar year 2018, a covered entity may use 1 
                international offset credit in lieu of an emission 
                allowance up to the amount permitted under this 
                paragraph.
                  ``(E) President's recommendation.--The President may 
                make a recommendation to Congress as to whether the 
                number 2 billion specified in subparagraphs (A) and (B) 
                should be increased or decreased.
          ``(2) International emission allowances.--To demonstrate 
        compliance, a covered entity may hold an international emission 
        allowance in lieu of an emission allowance, except as modified 
        under section 728(d).
          ``(3) Compensatory allowances.--To demonstrate compliance, a 
        covered entity may hold a compensatory allowance obtained under 
        section 721(f) in lieu of an emission allowance.
  ``(e) Retirement of Allowances and Credits.--As soon as practicable 
after a deadline established for covered entities to demonstrate 
compliance with this title, the Administrator shall retire the quantity 
of allowances or credits required to be held under this title.
  ``(f) Alternative Metrics.--For categories of covered entities 
described in subparagraph (B), (C), (D), (G), (H), or (I) of section 
700(13), the Administrator may, by rule, establish an applicability 
threshold for inclusion under those subparagraphs using an alternative 
metric and level, provided that such metric and level are easier to 
administer and cover the same size and type of sources as the threshold 
defined in such subparagraphs.
  ``(g) Threshold Review.--For each category of covered entities 
described in subparagraph (B), (C), (D), (G), (H), or (I) of section 
700(13), the Administrator shall, in 2020 and once every 8 years 
thereafter, review the carbon dioxide equivalent emission thresholds 
that are used to define covered entities. After consideration of--
          ``(1) emissions from covered entities in each such category, 
        and from other entities of the same type that emit less than 
        the threshold amount for the category (including emission 
        sources that commence operation after the date of enactment of 
        this title that are not covered entities); and
          ``(2) whether greater greenhouse gas emission reductions can 
        be cost-effectively achieved by lowering the applicable 
        threshold,
the Administrator may by rule lower such threshold to not less than 
10,000 tons of carbon dioxide equivalent emissions. In determining the 
cost effectiveness of potential reductions from lowering the threshold 
for covered entities, the Administrator shall consider alternative 
regulatory greenhouse gas programs, including setting standards under 
other titles of this Act.
  ``(h) Designated Representatives.--The regulations promulgated under 
section 721(h) shall require that each covered entity, and each entity 
holding allowances or credits or receiving allowances or credits from 
the Administrator under this title, select a designated representative.
  ``(i) Education and Outreach.--
          ``(1) In general.--The Administrator shall establish and 
        carry out a program of education and outreach to assist covered 
        entities, especially entities having little experience with 
        environmental regulatory requirements similar or comparable to 
        those under this title, in preparing to meet the compliance 
        obligations of this title. Such program shall include education 
        with respect to using markets to effectively achieve such 
        compliance.
          ``(2) Failure to receive information.--A failure to receive 
        information or assistance under this subsection may not be used 
        as a defense against an allegation of any violation of this 
        title.
  ``(j) Adjustment of Deadline.--The Administrator may, by rule, 
establish a deadline for demonstrating compliance, for a calendar year, 
later than the date provided in subsection (a), as necessary to ensure 
the availability of emissions data, but in no event shall the deadline 
be later than June 1.
  ``(k) Notice Requirement for Covered Entities Receiving Natural Gas 
From Natural Gas Local Distribution Companies.--The owner or operator 
of a covered entity that takes delivery of natural gas from a natural 
gas local distribution company shall, not later than September 1 of 
each calendar year, notify such natural gas local distribution company 
in writing that such entity will qualify as a covered entity under this 
title for that calendar year.
  ``(l) Compliance Obligation.--For purposes of this title, the year of 
a compliance obligation is the year in which compliance is determined, 
not the year in which the greenhouse gas emissions occur or the covered 
entity has attributable greenhouse gas emissions.

``SEC. 723. PENALTY FOR NONCOMPLIANCE.

  ``(a) Enforcement.--A violation of any prohibition of, requirement 
of, or regulation promulgated pursuant to this title shall be a 
violation of this Act. It shall be a violation of this Act for a 
covered entity to emit greenhouse gases, and have attributable 
greenhouse gas emissions, in combination, in excess of its allowable 
emissions level as provided in section 722(a). Each ton of carbon 
dioxide equivalent for which a covered entity fails to demonstrate 
compliance under section 722(b) shall be a separate violation.
  ``(b) Excess Emissions Penalty.--
          ``(1) In general.--The owner or operator of any covered 
        entity that fails for any year to comply, on the deadline 
        described in section 722(a) or (j), shall be liable for payment 
        to the Administrator of an excess emissions penalty in the 
        amount described in paragraph (2).
          ``(2) Amount.--The amount of an excess emissions penalty 
        required to be paid under paragraph (1) shall be equal to the 
        product obtained by multiplying--
                  ``(A) the tons of carbon dioxide equivalent of 
                greenhouse gas emissions or attributable greenhouse gas 
                emissions for which the owner or operator of a covered 
                entity failed to comply under section 722(b) on the 
                deadline; by
                  ``(B) twice the fair market value of emission 
                allowances established for emissions occurring in the 
                calendar year for which the emission allowances were 
                due.
          ``(3) Timing.--An excess emissions penalty required under 
        this subsection shall be immediately due and payable to the 
        Administrator, without demand, in accordance with regulations 
        promulgated by the Administrator, which shall be issued not 
        later than 2 years after the date of enactment of this title.
          ``(4) No effect on liability.--An excess emissions penalty 
        due and payable by the owners or operators of a covered entity 
        under this subsection shall not diminish the liability of the 
        owners or operators for any fine, penalty, or assessment 
        against the owners or operators for the same violation under 
        any other provision of this Act or any other law.
  ``(c) Excess Emissions Allowances.--The owner or operator of a 
covered entity that fails for any year to comply on the deadline 
described in section 722(a) or (j) shall be liable to offset the 
covered entity's excess combination of greenhouse gases emitted and 
attributable greenhouse gas emissions by an equal quantity of emission 
allowances during the following calendar year, or such longer period as 
the Administrator may prescribe. During the year in which the covered 
entity failed to comply, or any year thereafter, the Administrator may 
deduct the emission allowances required under this subsection to offset 
the covered entity's excess actual or attributable emissions.

``SEC. 724. TRADING.

  ``(a) Permitted Transactions.--Except as otherwise provided in this 
title, the lawful holder of an emission allowance, compensatory 
allowance, or offset credit may, without restriction, sell, exchange, 
transfer, hold for compliance in accordance with section 722, or 
request that the Administrator retire the emission allowance, 
compensatory allowance, or offset credit.
  ``(b) No Restriction on Transactions.--The privilege of purchasing, 
holding, selling, exchanging, transferring, and requesting retirement 
of emission allowances, compensatory allowances, or offset credits 
shall not be restricted to the owners and operators of covered 
entities, except as otherwise provided in this title.
  ``(c) Effectiveness of Allowance Transfers.--No transfer of an 
allowance or offset credit shall be effective for purposes of this 
title until a certification of the transfer, signed by the designated 
representative of the transferor, is received and recorded by the 
Administrator in accordance with regulations promulgated under section 
721(h).
  ``(d) Allowance Tracking System.--The regulations promulgated under 
section 721(h) shall include a system for issuing, recording, holding, 
and tracking allowances and offset credits that shall specify all 
necessary procedures and requirements for an orderly and competitive 
functioning of the allowance and offset credit markets. Such 
regulations shall provide for appropriate publication of the 
information in the system on the Internet.

``SEC. 725. BANKING AND BORROWING.

  ``(a) Banking.--An emission allowance may be used to comply with 
section 722 or section 723 for emissions in--
          ``(1) the vintage year for the allowance; or
          ``(2) any calendar year subsequent to the vintage year for 
        the allowance.
  ``(b) Expiration.--
          ``(1) Regulations.--The Administrator may establish by 
        regulation criteria and procedures for determining whether, and 
        for implementing a determination that, the expiration of an 
        allowance or credit established or issued by the Administrator 
        under this title, or expiration of the ability to use an 
        international emission allowance to comply with section 722, is 
        necessary to ensure the authenticity and integrity of 
        allowances or credits or the allowance tracking system.
          ``(2) General rule.--An allowance or credit established or 
        issued by the Administrator under this title shall not expire 
        unless--
                  ``(A) it is retired by the Administrator as required 
                under this title; or
                  ``(B) it is determined to expire or to have expired 
                by a specific date by the Administrator in accordance 
                with regulations promulgated under paragraph (1).
          ``(3) International emission allowances.--The ability to use 
        an international emission allowance to comply with section 722 
        shall not expire unless--
                  ``(A) the allowance is retired by the Administrator 
                as required by this title; or
                  ``(B) the ability to use such allowance to meet such 
                compliance obligation requirements is determined to 
                expire or to have expired by a specific date by the 
                Administrator in accordance with regulations 
                promulgated under paragraph (1).
  ``(c) Borrowing Future Vintage Year Allowances.--
          ``(1) Borrowing without interest.--In addition to the uses 
        described in subsection (a), an emission allowance may be used 
        to comply with section 722(a) or section 723 for emissions, 
        production, importation, manufacture, or deliveries in the 
        calendar year immediately preceding the vintage year for the 
        allowance.
          ``(2) Borrowing with interest.--
                  ``(A) In general.--A covered entity may demonstrate 
                compliance under subsection (b) in a specific calendar 
                year for up to 15 percent of its emissions by holding 
                emission allowances with a vintage year 1 to 5 years 
                later than that calendar year.
                  ``(B) Limitations.--An emission allowance borrowed 
                pursuant to this paragraph shall be an emission 
                allowance that is established by the Administrator for 
                a specific future calendar year under section 721(a) 
                and that is held by the borrower.
                  ``(C) Prepayment of interest.--For each emission 
                allowance that an owner or operator of a covered entity 
                borrows pursuant to this paragraph, such owner or 
                operator shall, at the time it borrows the allowance, 
                hold for retirement by the Administrator a quantity of 
                emission allowances that is equal to the product 
                obtained by multiplying--
                          ``(i) 0.08; by
                          ``(ii) the number of years between the 
                        calendar year in which the allowance is being 
                        used to satisfy a compliance obligation and the 
                        vintage year of the allowance.

``SEC. 726. STRATEGIC RESERVE.

  ``(a) Strategic Reserve Auctions.--
          ``(1) In general.--Once each quarter of each calendar year 
        for which allowances are established under section 721(a), the 
        Administrator shall auction strategic reserve allowances.
          ``(2) Restriction to covered entities.--In each auction 
        conducted under paragraph (1), only covered entities that the 
        Administrator expects will be required to comply with section 
        722 in the following calendar year shall be eligible to make 
        purchases.
  ``(b) Pool of Emission Allowances for Strategic Reserve Auctions.--
          ``(1) Filling the strategic reserve initially.--
                  ``(A) In general.--The Administrator shall, not later 
                than 2 years after the date of enactment of this title, 
                establish a strategic reserve account, and shall place 
                in that account an amount of emission allowances 
                established under section 721(a) for each calendar year 
                from 2012 through 2050 in the amounts specified in 
                subparagraph (B) of this paragraph.
                  ``(B) Amount.--The amount referred to in subparagraph 
                (A) shall be--
                          ``(i) for each of calendar years 2012 through 
                        2019, 1 percent of the quantity of emission 
                        allowances established for that year pursuant 
                        to section 721(e)(1);
                          ``(ii) for each of calendar years 2020 
                        through 2029, 2 percent of the quantity of 
                        emission allowances established for that year 
                        pursuant to section 721(e)(1); and
                          ``(iii) for each of calendar years 2030 
                        through 2050, 3 percent of the quantity of 
                        emission allowances established for that year 
                        pursuant to section 721(e)(1).
                  ``(C) Effect on other provisions.--Any provision in 
                this title (except for subparagraph (B) of this 
                paragraph) that refers to a quantity or percentage of 
                the emission allowances established for a calendar year 
                under section 721(a) shall be considered to refer to 
                the amount of emission allowances as determined 
                pursuant to section 721(e), less any emission 
                allowances established for that year that are placed in 
                the strategic reserve account under this paragraph.
          ``(2) Supplementing the strategic reserve.--The Administrator 
        shall also--
                  ``(A) at the end of each calendar year, transfer to 
                the strategic reserve account each emission allowance 
                that was offered for sale but not sold at any auction 
                conducted under section 791; and
                  ``(B) transfer emission allowances established under 
                subsection (g) from auction proceeds, and deposit them 
                into the strategic reserve, to the extent necessary to 
                maintain the reserve at its original size.
  ``(c) Minimum Strategic Reserve Auction Price.--
          ``(1) In general.--At each strategic reserve auction, the 
        Administrator shall offer emission allowances for sale 
        beginning at a minimum price per emission allowance, which 
        shall be known as the `minimum strategic reserve auction 
        price'.
          ``(2) Initial minimum strategic reserve auction prices.--The 
        minimum strategic reserve auction price shall be $28 (in 
        constant 2009 dollars) for the strategic reserve auctions held 
        in 2012. For the strategic reserve auctions held in 2013 and 
        2014, the minimum strategic reserve auction price shall be the 
        strategic reserve auction price for the previous year increased 
        by 5 percent plus the rate of inflation (as measured by the 
        Consumer Price Index for All Urban Consumers).
          ``(3) Minimum strategic reserve auction price in subsequent 
        years.--For each strategic reserve auction held in 2015 and 
        each year thereafter, the minimum strategic reserve auction 
        price shall be 60 percent above a rolling 36-month average of 
        the daily closing price for that year's emission allowance 
        vintage as reported on registered carbon trading facilities, 
        calculated using constant dollars.
  ``(d) Quantity of Emission Allowances Released From the Strategic 
Reserve.--
          ``(1) Initial limits.--For each of calendar years 2012 
        through 2016, the annual limit on the number of emission 
        allowances from the strategic reserve account that may be 
        auctioned is an amount equal to 5 percent of the emission 
        allowances established for that calendar year under section 
        721(a). This limit does not apply to international offset 
        credits sold on consignment pursuant to subsection (h).
          ``(2) Limits in subsequent years.--For calendar year 2017 and 
        each year thereafter, the annual limit on the number of 
        emission allowances from the strategic reserve account that may 
        be auctioned is an amount equal to 10 percent of the emission 
        allowances established for that calendar year under section 
        721(a). This limit does not apply to international offset 
        credits sold on consignment pursuant to subsection (h).
          ``(3) Allocation of limitation.--One-fourth of each year's 
        annual strategic reserve auction limit under this subsection 
        shall be made available for auction in each quarter. Any 
        allowances from the strategic reserve account that are made 
        available for sale in a quarterly auction and not sold shall be 
        rolled over and added to the quantity available for sale in the 
        following quarter, except that allowances not sold at auction 
        in the fourth quarter of a year shall not be rolled over to the 
        following calendar year's auctions, but shall be returned to 
        the strategic reserve account.
  ``(e) Purchase Limit.--
          ``(1) In general.--Except as provided in paragraph (2) or 
        (3), the annual number of emission allowances that a covered 
        entity may purchase at the strategic reserve auctions in each 
        calendar year shall not exceed 20 percent of the covered 
        entity's emissions during the most recent year for which 
        allowances or credits were retired under section 722.
          ``(2) 2012 Limit.--For calendar year 2012, the maximum 
        aggregate number of emission allowances that a covered entity 
        may purchase from that year's strategic reserve auctions shall 
        be 20 percent of the covered entity's greenhouse gas emissions 
        that the covered entity reported to the registry established 
        under section 713 for 2011 and that would be subject to section 
        722(a) if occurring in later calendar years.
          ``(3) New entrants.--The Administrator shall, by regulation, 
        establish a separate purchase limit applicable to entities that 
        expect to become a covered entity in the year of the auction, 
        permitting them to purchase emission allowances at the 
        strategic reserve auctions in their first calendar year of 
        operation in an amount of at least 20 percent of their expected 
        combined emissions and attributable greenhouse gas emissions 
        for that year.
  ``(f) Delegation or Contract.--Pursuant to regulations under this 
section, the Administrator may, by delegation or contract, provide for 
the conduct of strategic reserve auctions under the Administrator's 
supervision by other departments or agencies of the Federal Government 
or by nongovernmental agencies, groups, or organizations.
  ``(g) Use of Auction Proceeds.--
          ``(1) Deposit in strategic reserve fund.--The proceeds from 
        strategic reserve auctions shall be placed in the Strategic 
        Reserve Fund established under section 793(1), and shall be 
        available without further appropriation or fiscal year 
        limitation for the purposes described in this subsection.
          ``(2) International offset credits for reduced 
        deforestation.--The Administrator shall use the proceeds from 
        each strategic reserve auction to purchase international offset 
        credits issued for reduced deforestation activities pursuant to 
        section 743(e). The Administrator shall retire those 
        international offset credits and establish a number of emission 
        allowances equal to 80 percent of the number of international 
        offset credits so retired. Emission allowances established 
        under this paragraph shall be in addition to those established 
        under section 721(a).
          ``(3) Emission allowances.--The Administrator shall deposit 
        emission allowances established under paragraph (2) in the 
        strategic reserve, except that, with respect to any such 
        emission allowances in excess of the amount necessary to fill 
        the strategic reserve to its original size, the Administrator 
        shall--
                  ``(A) except as provided in subparagraph (B), assign 
                a vintage year to the emission allowance, which shall 
                be no earlier than the year in which the allowance is 
                established under paragraph (2) and shall treat such 
                allowances as ones that are not designated for 
                distribution or auction for purposes of section 782(q) 
                and (r); and
                  ``(B) to the extent any such allowances cannot be 
                assigned a vintage year because of the limitation in 
                paragraph (4), retire the allowances.
          ``(4) Limitation.--In no case may the Administrator assign 
        under paragraph (3)(A) more emission allowances to a vintage 
        year than the number of emission allowances from that vintage 
        year that were placed in the strategic reserve account under 
        subsection (b)(1).
  ``(h) Availability of International Offset Credits for Auction.--
          ``(1) In general.--The regulations promulgated under section 
        721(h) shall allow any entity holding international offset 
        credits from reduced deforestation issued under section 743(e) 
        to request that the Administrator include such offset credits 
        in an upcoming strategic reserve auction. The regulations shall 
        provide that--
                  ``(A) such international offset credits will be used 
                to fill bid orders only after the supply of strategic 
                reserve allowances available for sale at that auction 
                has been depleted;
                  ``(B) international offset credits may be sold at a 
                strategic reserve auction under this subsection only if 
                the Administrator determines that it is highly likely 
                that covered entities will, to cover emissions 
                occurring in the year the auction is held, use offset 
                credits to demonstrate compliance under section 722 for 
                emissions equal to or greater than 80 percent of 2 
                billion tons of carbon dioxide equivalent;
                  ``(C) upon sale of such international offset credits, 
                the Administrator shall retire those international 
                offset credits, and establish and provide to the 
                purchasers a number of emission allowances equal to 80 
                percent of the number of international offset credits 
                so retired, which allowances shall be in addition to 
                those established under section 721(a); and
                  ``(D) for international offset credits sold pursuant 
                to this subsection, the proceeds for the entity that 
                offered the international offset credits for sale shall 
                be the lesser of--
                          ``(i) the average daily closing price for 
                        international offset credits sold on registered 
                        exchanges (or if such price is unavailable, the 
                        average price as determined by the 
                        Administrator) during the six months prior to 
                        the strategic reserve auction at which they 
                        were auctioned, with the remaining funds 
                        collected upon the sale of the international 
                        offset credits deposited in the Treasury; and
                          ``(ii) the amount received for the 
                        international offset credits at the auction.
          ``(2) Proceeds.--For international offset credits sold 
        pursuant to this subsection, notwithstanding section 3302 of 
        title 31, United States Code, or any other provision of law, 
        within 90 days of receipt, the United States shall transfer the 
        proceeds from the auction, as defined in paragraph (1)(D), to 
        the entity that offered the international offset credits for 
        sale. No funds transferred from a purchaser to a seller of 
        international offset credits under this paragraph shall be held 
        by any officer or employee of the United States or treated for 
        any purpose as public monies.
          ``(3) Pricing.--When the Administrator acts under this 
        subsection as the agent of an entity in possession of 
        international offset credits, the Administrator is not 
        obligated to obtain the highest price possible for the 
        international offset credits, and instead shall auction such 
        international offset credits in the same manner and pursuant to 
        the same rules (except as modified in paragraph (1)) as set 
        forth for auctioning strategic reserve allowances. Entities 
        requesting that such international offset credits be offered 
        for sale at a strategic reserve auction may not set a minimum 
        reserve price for their international offset credits that is 
        different than the minimum strategic reserve auction price set 
        pursuant to subsection (c).
  ``(i) Initial Regulations.--Not later than 24 months after the date 
of enactment of this title, the Administrator shall promulgate 
regulations, in consultation with other appropriate agencies, governing 
the auction of allowances under this section. Such regulations shall 
include the following requirements:
          ``(1) Frequency; first auction.--Auctions shall be held four 
        times per year at regular intervals, with the first auction to 
        be held no later than March 31, 2012.
          ``(2) Auction format.--Auctions shall follow a single-round, 
        sealed-bid, uniform price format.
          ``(3) Participation; financial assurance.--Auctions shall be 
        open to any covered entity eligible to purchase emission 
        allowances at the auction under subsection (a)(2), except that 
        the Administrator may establish financial assurance 
        requirements to ensure that auction participants can and will 
        perform on their bids.
          ``(4) Disclosure of beneficial ownership.--Each bidder in an 
        auction shall be required to disclose the person or entity 
        sponsoring or benefitting from the bidder's participation in 
        the auction if such person or entity is, in whole or in part, 
        other than the bidder.
          ``(5) Purchase limits.--No person may, directly or in concert 
        with another participant, purchase more than 20 percent of the 
        allowances offered for sale at any quarterly auction.
          ``(6) Publication of information.--After the auction, the 
        Administrator shall, in a timely fashion, publish the 
        identities of winning bidders, the quantity of allowances 
        obtained by each winning bidder, and the auction clearing 
        price.
          ``(7) Other requirements.--The Administrator may include in 
        the regulations such other requirements or provisions as the 
        Administrator, in consultation with other agencies as 
        appropriate, considers appropriate to promote effective, 
        efficient, transparent, and fair administration of auctions 
        under this section.
  ``(j) Revision of Regulations.--The Administrator may, at any time, 
in consultation with other agencies as appropriate, revise the initial 
regulations promulgated under subsection (i). Such revised regulations 
need not meet the requirements identified in subsection (i) if the 
Administrator determines that an alternative auction design would be 
more effective, taking into account factors including costs of 
administration, transparency, fairness, and risks of collusion or 
manipulation. In determining whether and how to revise the initial 
regulations under this subsection, the Administrator shall not consider 
maximization of revenues to the Federal Government.

``SEC. 727. PERMITS.

  ``(a) Permit Program.--For stationary sources subject to title V of 
this Act, that are covered entities, the provisions of this title shall 
be implemented by permits issued to such covered entities (and 
enforced) in accordance with the provisions of title V, as modified by 
this title. Any such permit issued by the Administrator, or by a State 
with an approved permit program, shall require the owner or operator of 
a covered entity to hold emission allowances or offset credits at least 
equal to the total annual amount of carbon dioxide equivalents for its 
combined emissions and attributable greenhouse gas emissions to which 
section 722 applies. No such permit shall be issued that is 
inconsistent with the requirements of this title, and title V as 
applicable. Nothing in this section regarding compliance plans or in 
title V shall be construed as affecting allowances or offset credits. 
Submission of a statement by the owner or operator, or the designated 
representative of the owners and operators, of a covered entity that 
the owners and operators will hold emission allowances or offset 
credits for the entity's combined emissions and attributable greenhouse 
gas emissions to which section 722 applies shall be deemed to meet the 
proposed and approved planning requirements of title V. Recordation by 
the Administrator of transfers of emission allowances shall amend 
automatically all applicable proposed or approved permit applications, 
compliance plans, and permits.
  ``(b) Multiple Owners.--No permit shall be issued under this section 
and no allowances or offset credits shall be disbursed under this title 
to a covered entity or any other person until the designated 
representative of the owners or operators has filed a certificate of 
representation with regard to matters under this title, including the 
holding and distribution of emission allowances and the proceeds of 
transactions involving emission allowances. Where there are multiple 
holders of a legal or equitable title to, or a leasehold interest in, 
such a covered entity or other entity or where a utility or industrial 
customer purchases power under a long-term power purchase contract from 
an independent power production facility that is a covered entity, the 
certificate shall state--
          ``(1) that emission allowances and the proceeds of 
        transactions involving emission allowances will be deemed to be 
        held or distributed in proportion to each holder's legal, 
        equitable, leasehold, or contractual reservation or 
        entitlement; or
          ``(2) if such multiple holders have expressly provided for a 
        different distribution of emission allowances by contract, that 
        emission allowances and the proceeds of transactions involving 
        emission allowances will be deemed to be held or distributed in 
        accordance with the contract.
A passive lessor, or a person who has an equitable interest through 
such lessor, whose rental payments are not based, either directly or 
indirectly, upon the revenues or income from the covered entity or 
other entity shall not be deemed to be a holder of a legal, equitable, 
leasehold, or contractual interest for the purpose of holding or 
distributing emission allowances as provided in this subsection, during 
either the term of such leasehold or thereafter, unless expressly 
provided for in the leasehold agreement. Except as otherwise provided 
in this subsection, where all legal or equitable title to or interest 
in a covered entity, or other entity, is held by a single person, the 
certificate shall state that all emission allowances received by the 
entity are deemed to be held for that person.
  ``(c) Prohibition.--It shall be unlawful for any person to operate 
any stationary source subject to the requirements of this section 
except in compliance with the terms and requirements of a permit issued 
by the Administrator or a State with an approved permit program in 
accordance with this section. For purposes of this subsection, 
compliance, as provided in section 504(f), with a permit issued under 
title V which complies with this title for covered entities shall be 
deemed compliance with this subsection as well as section 502(a).
  ``(d) Reliability.--Nothing in this section or title V shall be 
construed as requiring termination of operations of a stationary source 
that is a covered entity for failure to have an approved permit, or 
compliance plan, that is consistent with the requirements in the second 
and fifth sentences of subsection (a) concerning the holding of 
emission allowances, compensatory allowances, international emission 
allowances, or offset allowances, except that any such covered entity 
may be subject to the applicable enforcement provision of section 113.
  ``(e) Regulations.--The Administrator shall promulgate regulations to 
implement this section. To provide for permits required under this 
section, each State in which one or more stationary sources and that 
are covered entities are located shall submit, in accordance with this 
section and title V, revised permit programs for approval.

``SEC. 728. INTERNATIONAL EMISSION ALLOWANCES.

  ``(a) Qualifying Programs.--The Administrator, in consultation with 
the Secretary of State, may by rule designate an international climate 
change program as a qualifying international program if--
          ``(1) the program is run by a national or supranational 
        foreign government, and imposes a mandatory absolute tonnage 
        limit on greenhouse gas emissions from 1 or more foreign 
        countries, or from 1 or more economic sectors in such a country 
        or countries; and
          ``(2) the program is at least as stringent as the program 
        established by this title, including provisions to ensure at 
        least comparable monitoring, compliance, enforcement, quality 
        of offsets, and restrictions on the use of offsets.
  ``(b) Disqualified Allowances.--An international emission allowance 
may not be held under section 722(d)(2) if it is in the nature of an 
offset instrument or allowance awarded based on the achievement of 
greenhouse gas emission reductions or avoidance, or greenhouse gas 
sequestration, that are not subject to the mandatory absolute tonnage 
limits referred to in subsection (a)(1).
  ``(c) Retirement.--
          ``(1) Entity certification.--The owner or operator of an 
        entity that holds an international emission allowance under 
        section 722(d)(2) shall certify to the Administrator that such 
        international emission allowance has not previously been used 
        to comply with any foreign, international, or domestic 
        greenhouse gas regulatory program.
          ``(2) Retirement.--
                  ``(A) Foreign and international regulatory 
                entities.--The Administrator, in consultation with the 
                Secretary of State, shall seek, by whatever means 
                appropriate, including agreements and technical 
                cooperation on allowance tracking, to ensure that any 
                relevant foreign, international, and domestic 
                regulatory entities--
                          ``(i) are notified of the use, for purposes 
                        of compliance with this title, of any 
                        international emission allowance; and
                          ``(ii) provide for the disqualification of 
                        such international emission allowance for any 
                        subsequent use under the relevant foreign, 
                        international, or domestic greenhouse gas 
                        regulatory program, regardless of whether such 
                        use is a sale, exchange, or submission to 
                        satisfy a compliance obligation.
                  ``(B) Disqualification from further use.--The 
                Administrator shall ensure that, once an international 
                emission allowance has been disqualified or otherwise 
                used for purposes of compliance with this title, such 
                allowance shall be disqualified from any further use 
                under this title.
  ``(d) Use Limitations.--The Administrator may, by rule, modify the 
percentage applicable to international emission allowances under 
section 722(d)(2), consistent with the purposes of the Safe Climate 
Act.

                           ``PART D--OFFSETS

``SEC. 731. OFFSETS INTEGRITY ADVISORY BOARD.

  ``(a) Establishment.--Not later than 30 days after the date of 
enactment of this title, the Administrator shall establish an 
independent Offsets Integrity Advisory Board. The Advisory Board shall 
make recommendations to the Administrator for use in promulgating and 
revising regulations under this part and part E, and for ensuring the 
overall environmental integrity of the programs established pursuant to 
those regulations.
  ``(b) Membership.--The Advisory Board shall be comprised of at least 
nine members. Each member shall be qualified by education, training, 
and experience to evaluate scientific and technical information on 
matters referred to the Board under this section. The Administrator 
shall appoint Advisory Board members, including a chair and vice-chair 
of the Advisory Board. Terms shall be 3 years in length, except for 
initial terms, which may be up to 5 years in length to allow 
staggering. Members may be reappointed only once for an additional 3-
year term, and such second term may follow directly after a first term.
  ``(c) Activities.--The Advisory Board established pursuant to 
subsection (a) shall--
          ``(1) provide recommendations, not later than 90 days after 
        the Advisory Board's establishment and periodically thereafter, 
        to the Administrator regarding offset project types that should 
        be considered for eligibility under section 733, taking into 
        consideration relevant scientific and other issues, including--
                  ``(A) the availability of a representative data set 
                for use in developing the activity baseline;
                  ``(B) the potential for accurate quantification of 
                greenhouse gas reduction, avoidance, or sequestration 
                for an offset project type;
                  ``(C) the potential level of scientific and 
                measurement uncertainty associated with an offset 
                project type; and
                  ``(D) any beneficial or adverse environmental, public 
                health, welfare, social, economic, or energy effects 
                associated with an offset project type;
          ``(2) make available to the Administrator its advice and 
        comments on offset methodologies that should be considered 
        under regulations promulgated pursuant to section 734(a) and 
        (b), including methodologies to address the issues of 
        additionality, activity baselines, measurement, leakage, 
        uncertainty, permanence, and environmental integrity;
          ``(3) make available to the Administrator, and other relevant 
        Federal agencies, its advice and comments regarding scientific, 
        technical, and methodological issues specific to the issuance 
        of international offset credits under section 743;
          ``(4) make available to the Administrator, and other relevant 
        Federal agencies, its advice and comments regarding scientific, 
        technical, and methodological issues associated with the 
        implementation of part E;
          ``(5) make available to the Administrator its advice and 
        comments on areas in which further knowledge is required to 
        appraise the adequacy of existing, revised, or proposed 
        methodologies for use under this part and part E, and describe 
        the research efforts necessary to provide the required 
        information; and
          ``(6) make available to the Administrator its advice and 
        comments on other ways to improve or safeguard the 
        environmental integrity of programs established under this part 
        and part E.
  ``(d) Scientific Review of Offset and Deforestation Reduction 
Programs.--Not later than January 1, 2017, and at five-year intervals 
thereafter, the Advisory Board shall submit to the Administrator and 
make available to the public an analysis of relevant scientific and 
technical information related to this part and part E. The Advisory 
Board shall review approved and potential methodologies, scientific 
studies, offset project monitoring, offset project verification 
reports, and audits related to this part and part E, and evaluate the 
net emissions effects of implemented offset projects. The Advisory 
Board shall recommend changes to offset methodologies, protocols, or 
project types, or to the overall offset program under this part, to 
ensure that offset credits issued by the Administrator do not 
compromise the integrity of the annual emission reductions established 
under section 703, and to avoid or minimize adverse effects to human 
health or the environment.

``SEC. 732. ESTABLISHMENT OF OFFSETS PROGRAM.

  ``(a) Regulations.--Not later than 2 years after the date of 
enactment of this title, the Administrator, in consultation with 
appropriate Federal agencies and taking into consideration the 
recommendations of the Advisory Board, shall promulgate regulations 
establishing a program for the issuance of offset credits in accordance 
with the requirements of this part. The Administrator shall 
periodically revise these regulations as necessary to meet the 
requirements of this part.
  ``(b) Requirements.--The regulations described in subsection (a) 
shall--
          ``(1) authorize the issuance of offset credits with respect 
        to qualifying offset projects that result in reductions or 
        avoidance of greenhouse gas emissions, or sequestration of 
        greenhouse gases;
          ``(2) ensure that such offset credits represent verifiable 
        and additional greenhouse gas emission reductions or avoidance, 
        or increases in sequestration;
          ``(3) ensure that offset credits issued for sequestration 
        offset projects are only issued for greenhouse gas reductions 
        that are permanent;
          ``(4) provide for the implementation of the requirements of 
        this part; and
          ``(5) include as reductions in greenhouse gases reductions 
        achieved through the destruction of methane and its conversion 
        to carbon dioxide.
  ``(c) Coordination to Minimize Negative Effects.--In promulgating and 
implementing regulations under this part, the Administrator shall act 
(including by rejecting projects, if necessary) to avoid or minimize, 
to the maximum extent practicable, adverse effects on human health or 
the environment resulting from the implementation of offset projects 
under this part.
  ``(d) Offset Registry.--The Administrator shall establish within the 
allowance tracking system established under section 724(d) an Offset 
Registry for qualifying offset projects and offset credits issued with 
respect thereto under this part.
  ``(e) Legal Status of Offset Credit.--An offset credit does not 
constitute a property right.
  ``(f) Fees.--The Administrator shall assess fees payable by offset 
project developers in an amount necessary to cover the administrative 
costs to the Environmental Protection Agency of carrying out the 
activities under this part. Amounts collected for such fees shall be 
available to the Administrator for carrying out the activities under 
this part to the extent provided in advance in appropriations Acts.

``SEC. 733. ELIGIBLE PROJECT TYPES.

  ``(a) List of Eligible Project Types.--
          ``(1) In general.--As part of the regulations promulgated 
        under section 732(a), the Administrator shall establish, and 
        may periodically revise, a list of types of projects eligible 
        to generate offset credits, including international offset 
        credits, under this part.
          ``(2) Advisory board recommendations.--In determining the 
        eligibility of project types, the Administrator shall take into 
        consideration the recommendations of the Advisory Board. If a 
        list established under this section differs from the 
        recommendations of the Advisory Board, the regulations 
        promulgated under section 732(a) shall include a justification 
        for the discrepancy.
          ``(3) Initial determination.--The Administrator shall 
        establish the initial eligibility list under paragraph (1) not 
        later than one year after the date of enactment of this title. 
        The Administrator shall add additional project types to the 
        list not later than 2 years after the date of enactment of this 
        title. In determining the initial list, the Administrator shall 
        give priority to consideration of offset project types that are 
        recommended by the Advisory Board and for which there are well 
        developed methodologies that the Administrator determines would 
        meet the criteria of section 734, with such modifications as 
        the Administrator deems appropriate. In issuing methodologies 
        pursuant to section 734, the Administrator shall give priority 
        to methodologies for offset types included on the initial 
        eligibility list.
  ``(b) Modification of List.--The Administrator--
          ``(1) may at any time, by rule, add a project type to the 
        list established under subsection (a) if the Administrator, in 
        consultation with appropriate Federal agencies and taking into 
        consideration the recommendations of the Advisory Board, 
        determines that the project type can generate additional 
        reductions or avoidance of greenhouse gas emissions, or 
        sequestration of greenhouse gases, subject to the requirements 
        of this part;
          ``(2) may at any time, by rule, determine that a project type 
        on the list does not meet the requirements of this part, and 
        remove a project type from the list established under 
        subsection (a), in consultation with appropriate Federal 
        agencies and taking into consideration any recommendations of 
        the Advisory Board; and
          ``(3) shall consider adding to or removing from the list 
        established under subsection (a), at a minimum, project types 
        proposed to the Administrator--
                  ``(A) by petition pursuant to subsection (c); or
                  ``(B) by the Advisory Board.
  ``(c) Petition Process.--Any person may petition the Administrator to 
modify the list established under subsection (a) by adding or removing 
a project type pursuant to subsection (b). Any such petition shall 
include a showing by the petitioner that there is adequate data to 
establish that the project type does or does not meet the requirements 
of this part. Not later than 12 months after receipt of such a 
petition, the Administrator shall either grant or deny the petition and 
publish a written explanation of the reasons for the Administrator's 
decision. The Administrator may not deny a petition under this 
subsection on the basis of inadequate Environmental Protection Agency 
resources or time for review.

``SEC. 734. REQUIREMENTS FOR OFFSET PROJECTS.

  ``(a) Methodologies.--As part of the regulations promulgated under 
section 732(a), the Administrator shall establish, for each type of 
offset project listed as eligible under section 733, the following:
          ``(1) Additionality.--A standardized methodology for 
        determining the additionality of greenhouse gas emission 
        reductions or avoidance, or greenhouse gas sequestration, 
        achieved by an offset project of that type. Such methodology 
        shall ensure, at a minimum, that any greenhouse gas emission 
        reduction or avoidance, or any greenhouse gas sequestration, is 
        considered additional only to the extent that it results from 
        activities that--
                  ``(A) are not required by or undertaken to comply 
                with any law, including any regulation or consent 
                order;
                  ``(B) were not commenced prior to January 1, 2009, 
                except in the case of--
                          ``(i) offset project activities that 
                        commenced after January 1, 2001, and were 
                        registered as of the date of enactment of this 
                        title under an offset program with respect to 
                        which the Administrator has made an affirmative 
                        determination under section 740(a)(2); or
                          ``(ii) activities that are readily 
                        reversible, with respect to which the 
                        Administrator may set an alternative earlier 
                        date under this subparagraph that is not 
                        earlier than January 1, 2001, where the 
                        Administrator determines that setting such an 
                        alternative date may produce an environmental 
                        benefit by removing an incentive to cease and 
                        then reinitiate activities that began prior to 
                        January 1, 2009;
                  ``(C) are not receiving support under part E of this 
                title or title IV, subtitle D of the American Clean 
                Energy and Security Act of 2009; and
                  ``(D) exceed the activity baseline established under 
                paragraph (2).
          ``(2) Activity baselines.--A standardized methodology for 
        establishing activity baselines for offset projects of that 
        type. The Administrator shall set activity baselines to reflect 
        a conservative estimate of business-as-usual performance or 
        practices for the relevant type of activity such that the 
        baseline provides an adequate margin of safety to ensure the 
        environmental integrity of offsets calculated in reference to 
        such baseline.
          ``(3) Quantification methods.--A standardized methodology for 
        determining the extent to which greenhouse gas emission 
        reductions or avoidance, or greenhouse gas sequestration, 
        achieved by an offset project of that type exceed a relevant 
        activity baseline, including protocols for monitoring and 
        accounting for uncertainty.
          ``(4) Leakage.--A standardized methodology for accounting for 
        and mitigating potential leakage, if any, from an offset 
        project of that type, taking uncertainty into account.
  ``(b) Accounting for Reversals.--
          ``(1) In general.--For each type of sequestration project 
        listed under section 733, the Administrator shall establish 
        requirements to account for and address reversals, including--
                  ``(A) a requirement to report any reversal with 
                respect to an offset project for which offset credits 
                have been issued under this part;
                  ``(B) provisions to require emission allowances to be 
                held in amounts to fully compensate for greenhouse gas 
                emissions attributable to reversals, and to assign 
                responsibility for holding such emission allowances; 
                and
                  ``(C) any other provisions the Administrator 
                determines necessary to account for and address 
                reversals.
          ``(2) Mechanisms.--The Administrator shall prescribe 
        mechanisms to ensure that any sequestration with respect to 
        which an offset credit is issued under this part results in a 
        permanent net increase in sequestration, and that full account 
        is taken of any actual or potential reversal of such 
        sequestration, with an adequate margin of safety. The 
        Administrator shall prescribe at least one of the following 
        mechanisms to meet the requirements of this paragraph:
                  ``(A) An offsets reserve, pursuant to paragraph (3).
                  ``(B) Insurance that provides for purchase and 
                provision to the Administrator for retirement of an 
                amount of offset credits or emission allowances equal 
                in number to the tons of carbon dioxide equivalents of 
                greenhouse gas emissions released due to reversal.
                  ``(C) Another mechanism that the Administrator 
                determines satisfies the requirements of this part.
          ``(3) Offsets reserve.--
                  ``(A) In general.--An offsets reserve referred to in 
                paragraph (2)(A) is a program under which, before 
                issuance of offset credits under this part, the 
                Administrator shall subtract and reserve from the 
                quantity to be issued a quantity of offset credits 
                based on the risk of reversal. The Administrator 
                shall--
                          ``(i) hold these reserved offset credits in 
                        the offsets reserve; and
                          ``(ii) register the holding of the reserved 
                        offset credits in the Offset Registry 
                        established under section 732(d).
                  ``(B) Project reversal.--
                          ``(i) In general.--If a reversal has occurred 
                        with respect an offset project for which offset 
                        credits are reserved under this paragraph, the 
                        Administrator shall remove offset credits from 
                        the offsets reserve and cancel them to fully 
                        account for the tons of carbon dioxide 
                        equivalent that are no longer sequestered.
                          ``(ii) Intentional reversals.--If the 
                        Administrator determines that a reversal was 
                        intentional, the offset project developer for 
                        the relevant offset project shall place into 
                        the offsets reserve a quantity of offset 
                        credits, or combination of offset credits and 
                        emission allowances, equal in number to the 
                        number of reserve offset credits that were 
                        canceled due to the reversal pursuant to clause 
                        (i).
                          ``(iii) Unintentional reversals.--If the 
                        Administrator determines that a reversal was 
                        unintentional, the offset project developer for 
                        the relevant offset project shall place into 
                        the offsets reserve a quantity of offset 
                        credits, or combination of offset credits and 
                        emission allowances, equal in number to half 
                        the number of offset credits that were reserved 
                        for that offset project, or half the number of 
                        reserve offset credits that were canceled due 
                        to the reversal pursuant to clause (i), 
                        whichever is less.
                  ``(C) Use of reserved offset credits.--Offset credits 
                placed into the offsets reserve under this paragraph 
                may not be used to comply with section 722.
  ``(c) Crediting Periods.--
          ``(1) In general.--For each offset project type, the 
        Administrator shall specify a crediting period, and establish 
        provisions for petitions for new crediting periods, in 
        accordance with this subsection.
          ``(2) Duration.--The crediting period shall be no less than 5 
        and no greater than 10 years for any project type other than 
        those involving sequestration.
          ``(3) Eligibility.--An offset project shall be eligible to 
        generate offset credits under this part only during the 
        project's crediting period. During such crediting period, the 
        project shall remain eligible to generate offset credits, 
        subject to the methodologies and project type eligibility list 
        that applied as of the date of project approval under section 
        735, except as provided in paragraph (4) of this subsection.
          ``(4) Petition for new crediting period.--An offset project 
        developer may petition for a new crediting period to commence 
        after termination of a crediting period, subject to the 
        methodologies and project type eligibility list in effect at 
        the time when such petition is submitted. A petition may not be 
        submitted under this paragraph more than 18 months before the 
        end of the pending crediting period. The Administrator may 
        limit the number of new crediting periods available for 
        projects of particular project types.
  ``(d) Environmental Integrity.--In establishing the requirements 
under this section, the Administrator shall apply conservative 
assumptions or methods to maximize the certainty that the environmental 
integrity of the cap established under section 703 is not compromised.
  ``(e) Pre-Existing Methodologies.--In promulgating requirements under 
this section, the Administrator shall give due consideration to 
methodologies for offset projects existing as of the date of enactment 
of this title.
  ``(f) Added Project Types.--The Administrator shall establish 
methodologies described in subsection (a), and, as applicable, 
requirements and mechanisms for reversals as described in subsection 
(b), for any project type that is added to the list pursuant to section 
733.

``SEC. 735. APPROVAL OF OFFSET PROJECTS.

  ``(a) Approval Petition.--An offset project developer shall submit an 
offset project approval petition providing such information as the 
Administrator requires to determine whether the offset project is 
eligible for issuance of offset credits under rules promulgated 
pursuant to this part.
  ``(b) Timing.--An approval petition shall be submitted to the 
Administrator under subsection (a) no later than the time at which an 
offset project's first verification report is submitted under section 
736.
  ``(c) Approval Petition Requirements.--As part of the regulations 
promulgated under section 732, the Administrator shall include 
provisions for, and shall specify, the required components of an offset 
project approval petition required under subsection (a), which shall 
include--
          ``(1) designation of an offset project developer; and
          ``(2) any other information that the Administrator considers 
        to be necessary to achieve the purposes of this part.
  ``(d) Approval and Notification.--Not later than 90 days after 
receiving a complete approval petition under subsection (a), the 
Administrator shall approve or deny the petition in writing and, if the 
petition is denied, provide the reasons for denial. After an offset 
project is approved, the offset project developer shall not be required 
to resubmit an approval petition during the offset project's crediting 
period, except as provided in section 734(c)(4).
  ``(e) Appeal.--The Administrator shall establish procedures for 
appeal and review of determinations made under subsection (d).
  ``(f) Voluntary Preapproval Review.--The Administrator may establish 
a voluntary preapproval review procedure, to allow an offset project 
developer to request the Administrator to conduct a preliminary 
eligibility review for an offset project. Findings of such reviews 
shall not be binding upon the Administrator. The voluntary preapproval 
review procedure--
          ``(1) shall require the offset project developer to submit 
        such basic project information as the Administrator requires to 
        provide a meaningful review; and
          ``(2) shall require a response from the Administrator not 
        later than 6 weeks after receiving a request for review under 
        this subsection.

``SEC. 736. VERIFICATION OF OFFSET PROJECTS.

  ``(a) In General.--As part of the regulations promulgated under 
section 732(a), the Administrator shall establish requirements, 
including protocols, for verification of the quantity of greenhouse gas 
emission reductions or avoidance, or sequestration of greenhouse gases, 
resulting from an offset project. The regulations shall require that an 
offset project developer shall submit a report, prepared by a third-
party verifier accredited under subsection (d), providing such 
information as the Administrator requires to determine the quantity of 
greenhouse gas emission reductions or avoidance, or sequestration of 
greenhouse gas, resulting from the offset project.
  ``(b) Schedule.--The Administrator shall prescribe a schedule for the 
submission of verification reports under subsection (a).
  ``(c) Verification Report Requirements.--The Administrator shall 
specify the required components of a verification report required under 
subsection (a), which shall include--
          ``(1) the name and contact information for a designated 
        representative for the offset project developer;
          ``(2) the quantity of greenhouse gas reduced, avoided, or 
        sequestered;
          ``(3) the methodologies applicable to the project pursuant to 
        section 734;
          ``(4) a certification that the project meets the applicable 
        requirements;
          ``(5) a certification establishing that the conflict of 
        interest requirements in the regulations promulgated under 
        subsection (d)(1) have been complied with; and
          ``(6) any other information that the Administrator considers 
        to be necessary to achieve the purposes of this part.
  ``(d) Verifier Accreditation.--
          ``(1) In general.--As part of the regulations promulgated 
        under section 732(a), the Administrator shall establish a 
        process and requirements for periodic accreditation of third-
        party verifiers to ensure that such verifiers are 
        professionally qualified and have no conflicts of interest.
          ``(2) Standards.--
                  ``(A) American national standards institute 
                accreditation.--The Administrator may accredit, or 
                accept for purposes of accreditation under this 
                subsection, verifiers accredited under the American 
                National Standards Institute (ANSI) accreditation 
                program in accordance with ISO 14065. The Administrator 
                shall accredit, or accept for accreditation, verifiers 
                under this subparagraph only if the Administrator finds 
                that the American National Standards Institute 
                accreditation program provides sufficient assurance 
                that the requirements of this part will be met.
                  ``(B) EPA accreditation.--As part of the regulations 
                promulgated under section 732(a), the Administrator may 
                establish accreditation standards for verifiers under 
                this subsection, and may establish related training and 
                testing programs and requirements.
          ``(3) Public accessibility.--Each verifier meeting the 
        requirements for accreditation in accordance with this 
        subsection shall be listed in a publicly accessible database, 
        which shall be maintained and updated by the Administrator.

``SEC. 737. ISSUANCE OF OFFSET CREDITS.

  ``(a) Determination and Notification.--Not later than 90 days after 
receiving a complete verification report under section 736, the 
Administrator shall--
          ``(1) make the report publicly available;
          ``(2) make a determination of the quantity of greenhouse gas 
        emissions reduced or avoided, or greenhouse gases sequestered, 
        resulting from an offset project approved under section 735; 
        and
          ``(3) notify the offset project developer in writing of such 
        determination.
  ``(b) Issuance Of Offset Credits.--The Administrator shall issue one 
offset credit to an offset project developer for each ton of carbon 
dioxide equivalent that the Administrator has determined has been 
reduced, avoided, or sequestered during the period covered by a 
verification report submitted in accordance with section 736, only if--
          ``(1) the Administrator has approved the offset project 
        pursuant to section 735; and
          ``(2) the relevant emissions reduction, avoidance, or 
        sequestration has--
                  ``(A) already occurred, during the offset project's 
                crediting period; and
                  ``(B) occurred after January 1, 2009.
  ``(c) Appeal.--The Administrator shall establish procedures for 
appeal and review of determinations made under subsection (a).
  ``(d) Timing.--Offset credits meeting the criteria established in 
subsection (b) shall be issued not later than 2 weeks following the 
verification determination made by the Administrator under subsection 
(a).
  ``(e) Registration.--The Administrator shall assign a unique serial 
number to and register each offset credit to be issued in the Offset 
Registry established under section 732(d).

``SEC. 738. AUDITS.

  ``(a) In General.--The Administrator shall, on an ongoing basis, 
conduct random audits of offset projects, offset credits, and practices 
of third-party verifiers. In each year, the Administrator shall conduct 
audits, at minimum, for a representative sample of project types and 
geographic areas.
  ``(b) Delegation.--The Administrator may delegate to a State or 
tribal government the responsibility for conducting audits under this 
section if the Administrator finds that the program proposed by the 
State or tribal government provides assurances equivalent to those 
provided by the auditing program of the Administrator, and that the 
integrity of the offset program under this part will be maintained. 
Nothing in this subsection shall prevent the Administrator from 
conducting any audit the Administrator considers necessary and 
appropriate.

``SEC. 739. PROGRAM REVIEW AND REVISION.

  ``At least once every 5 years, the Administrator shall review and, 
based on new or updated information and taking into consideration the 
recommendations of the Advisory Board, update and revise--
          ``(1) the list of eligible project types established under 
        section 733;
          ``(2) the methodologies established, including specific 
        activity baselines, under section 734(a);
          ``(3) the reversal requirements and mechanisms established or 
        prescribed under section 734(b);
          ``(4) measures to improve the accountability of the offsets 
        program; and
          ``(5) any other requirements established under this part to 
        ensure the environmental integrity and effective operation of 
        this part.

``SEC. 740. EARLY OFFSET SUPPLY.

  ``(a) Projects Registered Under Other Government-Recognized 
Programs.--Except as provided in subsection (b) or (c), the 
Administrator shall issue one offset credit for each ton of carbon 
dioxide equivalent emissions reduced, avoided, or sequestered--
          ``(1) under an offset project that was started after January 
        1, 2001;
          ``(2) for which a credit was issued under any regulatory or 
        voluntary greenhouse gas emission offset program that the 
        Administrator determines--
                  ``(A) was established under State or tribal law or 
                regulation prior to January 1, 2009, or has been 
                approved by the Administrator pursuant to subsection 
                (e);
                  ``(B) has developed offset project type standards, 
                methodologies, and protocols through a public 
                consultation process or a peer review process;
                  ``(C) has made available to the public standards, 
                methodologies, and protocols that require that credited 
                emission reductions, avoidance, or sequestration are 
                permanent, additional, verifiable, and enforceable;
                  ``(D) requires that all emission reductions, 
                avoidance, or sequestration be verified by a State 
                regulatory agency or an accredited third-party 
                independent verification body;
                  ``(E) requires that all credits issued are registered 
                in a publicly accessible registry, with individual 
                serial numbers assigned for each ton of carbon dioxide 
                equivalent emission reductions, avoidance, or 
                sequestration; and
                  ``(F) ensures that no credits are issued for 
                activities for which the entity administering the 
                program, or a program administrator or representative, 
                has funded, solicited, or served as a fund 
                administrator for the development of, the project or 
                activity that caused the emission reduction, avoidance, 
                or sequestration; and
          ``(3) for which the credit described in paragraph (2) is 
        transferred to the Administrator.
  ``(b) Ineligible Credits.--Subsection (a) shall not apply to offset 
credits that have expired or have been retired, canceled, or used for 
compliance under a program established under State or tribal law or 
regulation.
  ``(c) Limitation.--Notwithstanding subsection (a)(1), offset credits 
shall be issued under this section--
          ``(1) only for reductions or avoidance of greenhouse gas 
        emissions, or sequestration of greenhouse gases, that occur 
        after January 1, 2009; and
          ``(2) only until the date that is 3 years after the date of 
        enactment of this title, or the date that regulations 
        promulgated under section 732(a) take effect, whichever occurs 
        sooner.
  ``(d) Retirement of Credits.--The Administrator shall seek to ensure 
that offset credits described in subsection (a)(2) are retired for 
purposes of use under a program described in subsection (b).
  ``(e) Other Programs.--(1) Offset programs that either--
          ``(A) were not established under State or tribal law; or
          ``(B) were not established prior to January 1, 2009,
        but that otherwise meet all of the criteria of subsection 
        (a)(2) may apply to the Administrator to be approved under this 
        subsection as an eligible program for early offset credits 
        under this section.
  ``(2) The Administrator shall approve any such program that the 
Administrator determines has criteria and methodologies of at least 
equal stringency to the criteria and methodologies of the programs 
established under State or tribal law that the Administrator determines 
meet the criteria of subsection (a)(2). The Administrator may approve 
types of offsets under any such program that are subject to criteria 
and methodologies of at least equal stringency to the criteria and 
methodologies for such types of offsets applied under the programs 
established under State or tribal law that the Administrator determines 
meet the criteria of subsection (a)(2). The Administrator shall make a 
determination on any application received under this subsection by no 
later than 180 days from t