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114th Congress }                                          {Rept. 114-347

 1st Session   }         HOUSE OF REPRESENTATIVES         {  Part 1 
                                                                
_______________________________________________________________________


     NORTH AMERICAN ENERGY SECURITY AND INFRASTRUCTURE ACT OF 2015

                               __________

                              R E P O R T

                                 of the

                    COMMITTEE ON ENERGY AND COMMERCE

                             TOGETHER WITH

                            DISSENTING VIEWS

                         [TO ACCOMPANY H.R. 8]



               [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


 November 19, 2015.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                              __________
                 
                 
                 
                 U.S. GOVERNMENT PUBLISHING OFFICE

97-649                    WASHINGTON : 2015            
            



            
            
114th Congress }                                         { Rept. 114-347
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                         {    Part 1

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



 
     NORTH AMERICAN ENERGY SECURITY AND INFRASTRUCTURE ACT OF 2015

                                _______
                                

 November 19, 2015.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                         [To accompany H.R. 8]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 8) to modernize energy infrastructure, build a 
21st century energy and manufacturing workforce, bolster 
America's energy security and diplomacy, and promote energy 
efficiency and government accountability, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................    61
Background and Need for Legislation..............................    61
Hearings.........................................................    66
Committee Consideration..........................................    68
Committee Votes..................................................    69
Committee Oversight Findings.....................................    87
Statement of General Performance Goals and Objectives............    87
New Budget Authority, Entitlement Authority, and Tax Expenditures    87
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......    87
Committee Cost Estimate..........................................    87
Congressional Budget Office Estimate.............................    87
Federal Mandates Statement.......................................   101
Duplication of Federal Programs..................................   101
Disclosure of Directed Rule Makings..............................   101
Advisory Committee Statement.....................................   101
Applicability to Legislative Branch..............................   101
Section-by-Section Analysis of the Legislation...................   101
Changes in Existing Law Made by the Bill, as Reported............   115
Minority, Additional, or Dissenting Views........................   317
    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 ``North American 
Energy Security and Infrastructure Act of 2015''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

           TITLE I--MODERNIZING AND PROTECTING INFRASTRUCTURE

         Subtitle A--Energy Delivery, Reliability, and Security

Sec. 1101. FERC process coordination.
Sec. 1102. Resolving environmental and grid reliability conflicts.
Sec. 1103. Emergency preparedness for energy supply disruptions.
Sec. 1104. Critical electric infrastructure security.
Sec. 1105. Strategic Transformer Reserve.
Sec. 1106. Cyber Sense.
Sec. 1107. State coverage and consideration of PURPA standards for 
electric utilities.
Sec. 1108. Reliability analysis for certain rules that affect electric 
generating facilities.
Sec. 1109. Carbon capture, utilization, and sequestration technologies.
Sec. 1110. Reliability and performance assurance in Regional 
Transmission Organizations.

      Subtitle B--Energy Security and Infrastructure Modernization

Sec. 1201. Energy Security and Infrastructure Modernization Fund.

            Subtitle C--Hydropower Regulatory Modernization

Sec. 1301. Hydroelectric production and efficiency incentives.
Sec. 1302. Protection of private property rights in hydropower 
licensing.
Sec. 1303. Extension of time for FERC project involving W. Kerr Scott 
Dam.
Sec. 1304. Hydropower licensing and process improvements.
Sec. 1305. Judicial review of delayed Federal authorizations.
Sec. 1306. Licensing study improvements.
Sec. 1307. Closed-loop pumped storage projects.
Sec. 1308. License amendment improvements.
Sec. 1309. Promoting hydropower development at existing nonpowered 
dams.

                    TITLE II--21ST CENTURY WORKFORCE

Sec. 2001. Energy and manufacturing workforce development.

                TITLE III--ENERGY SECURITY AND DIPLOMACY

Sec. 3001. Sense of Congress.
Sec. 3002. Energy security valuation.
Sec. 3003. North American energy security plan.
Sec. 3004. Collective energy security.
Sec. 3005. Strategic Petroleum Reserve mission readiness plan.
Sec. 3006. Authorization to export natural gas.

             TITLE IV--ENERGY EFFICIENCY AND ACCOUNTABILITY

                     Subtitle A--Energy Efficiency

              Chapter 1--Federal Agency Energy Efficiency

Sec. 4111. Energy-efficient and energy-saving information technologies.
Sec. 4112. Energy efficient data centers.
Sec. 4113. Report on energy and water savings potential from thermal 
insulation.
Sec. 4114. Federal purchase requirement.
Sec. 4115. Energy performance requirement for Federal buildings.
Sec. 4116. Federal building energy efficiency performance standards; 
certification system and level for Federal buildings.
Sec. 4117. Operation of battery recharging stations in parking areas 
used by Federal employees.

        Chapter 2--Energy Efficient Technology and Manufacturing

Sec. 4121. Inclusion of Smart Grid capability on Energy Guide labels.
Sec. 4122. Voluntary verification programs for air conditioning, 
furnace, boiler, heat pump, and water heater products.
Sec. 4123. Facilitating consensus furnace standards.
Sec. 4124. Future of Industry program.
Sec. 4125. No warranty for certain certified Energy Star products.
Sec. 4126. Clarification to effective date for regional standards.
Sec. 4127. Internet of Things report.

               Chapter 3--Energy Performance Contracting

Sec. 4131. Use of energy and water efficiency measures in Federal 
buildings.

                      Chapter 4--School Buildings

Sec. 4141. Coordination of energy retrofitting assistance for schools.

                    Chapter 5--Building Energy Codes

Sec. 4151. Greater energy efficiency in building codes.
Sec. 4152. Voluntary nature of building asset rating program.

        Chapter 6--EPCA Technical Corrections and Clarifications

Sec. 4161. Modifying product definitions.
Sec. 4162. Clarifying rulemaking procedures.

                 Chapter 7--Energy and Water Efficiency

Sec. 4171. Smart energy and water efficiency pilot program.
Sec. 4172. WaterSense.

                       Subtitle B--Accountability

      Chapter 1--Market Manipulation, Enforcement, and Compliance

Sec. 4211. FERC Office of Compliance Assistance and Public 
Participation.

                       Chapter 2--Market Reforms

Sec. 4221. GAO study on wholesale electricity markets.
Sec. 4222. Clarification of facility merger authorization.

                      Chapter 3--Code Maintenance

Sec. 4231. Repeal of off-highway motor vehicles study.
Sec. 4232. Repeal of methanol study.
Sec. 4233. Repeal of residential energy efficiency standards study.
Sec. 4234. Repeal of weatherization study.
Sec. 4235. Repeal of report to Congress.
Sec. 4236. Repeal of report by General Services Administration.
Sec. 4237. Repeal of intergovernmental energy management planning and 
coordination workshops.
Sec. 4238. Repeal of Inspector General audit survey and President's 
Council on Integrity and Efficiency report to Congress.
Sec. 4239. Repeal of procurement and identification of energy efficient 
products program.
Sec. 4240. Repeal of national action plan for demand response.
Sec. 4241. Repeal of national coal policy study.
Sec. 4242. Repeal of study on compliance problem of small electric 
utility systems.
Sec. 4243. Repeal of study of socioeconomic impacts of increased coal 
production and other energy development.
Sec. 4244. Repeal of study of the use of petroleum and natural gas in 
combustors.
Sec. 4245. Repeal of submission of reports.
Sec. 4246. Repeal of electric utility conservation plan.
Sec. 4247. Technical amendment to Powerplant and Industrial Fuel Use 
Act of 1978.
Sec. 4248. Emergency energy conservation repeals.
Sec. 4249. Repeal of State utility regulatory assistance.
Sec. 4250. Repeal of survey of energy saving potential.
Sec. 4251. Repeal of photovoltaic energy program.
Sec. 4252. Repeal of energy auditor training and certification.

                    Chapter 4--Use of Existing Funds

Sec. 4261. Use of existing funds.

           TITLE I--MODERNIZING AND PROTECTING INFRASTRUCTURE

         Subtitle A--Energy Delivery, Reliability, and Security

SEC. 1101. FERC PROCESS COORDINATION.

  Section 15 of the Natural Gas Act (15 U.S.C. 717n) is amended--
          (1) by amending subsection (b)(2) to read as follows:
          ``(2) Other agencies.--
                  ``(A) In general.--Each Federal and State agency 
                considering an aspect of an application for Federal 
                authorization shall cooperate with the Commission and 
                comply with the deadlines established by the 
                Commission.
                  ``(B) Identification.--The Commission shall identify, 
                as early as practicable after it is notified by a 
                prospective applicant of a potential project requiring 
                Commission authorization, any Federal or State agency, 
                local government, or Indian tribe that may consider an 
                aspect of an application for that Federal 
                authorization.
                  ``(C) Notification.--
                          ``(i) In general.--The Commission shall 
                        notify any agency identified under subparagraph 
                        (B) of the opportunity to cooperate or 
                        participate in the review process.
                          ``(ii) Deadline.--A notification issued under 
                        clause (i) shall establish a deadline by which 
                        a response to the notification shall be 
                        submitted, which may be extended by the 
                        Commission for good cause.'';
          (2) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by striking ``and'' at the end of 
                        subparagraph (A);
                          (ii) by redesignating subparagraph (B) as 
                        subparagraph (C); and
                          (iii) by inserting after subparagraph (A) the 
                        following new subparagraph:
                  ``(B) set deadlines for all such Federal 
                authorizations; and'';
                  (B) by striking paragraph (2); and
                  (C) by adding at the end the following new 
                paragraphs:
          ``(2) Deadline for federal authorizations.--A final decision 
        on a Federal authorization is due no later than 90 days after 
        the Commission issues its final environmental document, unless 
        a schedule is otherwise established by Federal law.
          ``(3) Concurrent reviews.--Each Federal and State agency 
        considering an aspect of an application for a Federal 
        authorization shall--
                  ``(A) carry out the obligations of that agency under 
                applicable law concurrently, and in conjunction, with 
                the review required by the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.), unless 
                doing so would impair the ability of the agency to 
                conduct needed analysis or otherwise carry out those 
                obligations;
                  ``(B) formulate and implement administrative, policy, 
                and procedural mechanisms to enable the agency to 
                ensure completion of required Federal authorizations no 
                later than 90 days after the Commission issues its 
                final environmental document; and
                  ``(C) transmit to the Commission a statement--
                          ``(i) acknowledging receipt of the schedule 
                        established under paragraph (1); and
                          ``(ii) setting forth the plan formulated 
                        under subparagraph (B) of this paragraph.
          ``(4) Issue identification and resolution.--
                  ``(A) Identification.--Federal and State agencies 
                that may consider an aspect of an application for 
                Federal authorization shall identify, as early as 
                possible, any issues of concern that may delay or 
                prevent an agency from working with the Commission to 
                resolve such issues and granting such authorization.
                  ``(B) Issue resolution.--The Commission may forward 
                any issue of concern identified under subparagraph (A) 
                to the heads of the relevant agencies (including, in 
                the case of a failure by the State agency, the Federal 
                agency overseeing the delegated authority) for 
                resolution.
          ``(5) Failure to meet schedule.--If a Federal or State agency 
        does not complete a proceeding for an approval that is required 
        for a Federal authorization in accordance with the schedule 
        established by the Commission under paragraph (1)--
                  ``(A) the applicant may pursue remedies under section 
                19(d); and
                  ``(B) the head of the relevant Federal agency 
                (including, in the case of a failure by a State agency, 
                the Federal agency overseeing the delegated authority) 
                shall notify Congress and the Commission of such 
                failure and set forth a recommended implementation plan 
                to ensure completion of the proceeding for an 
                approval.'';
          (3) by redesignating subsections (d) through (f) as 
        subsections (g) through (i), respectively; and
          (4) by inserting after subsection (c) the following new 
        subsections:
  ``(d) Remote Surveys.--If a Federal or State agency considering an 
aspect of an application for Federal authorization requires the 
applicant to submit environmental data, the agency shall consider any 
such data gathered by aerial or other remote means that the applicant 
submits. The agency may grant a conditional approval for Federal 
authorization, conditioned on the verification of such data by 
subsequent onsite inspection.
  ``(e) Application Processing.--The Commission, and Federal and State 
agencies, may allow an applicant seeking Federal authorization to fund 
a third-party contractor to assist in reviewing the application.
  ``(f) Accountability, Transparency, Efficiency.--For applications 
requiring multiple Federal authorizations, the Commission, with input 
from any Federal or State agency considering an aspect of an 
application, shall track and make available to the public on the 
Commission's website information related to the actions required to 
complete permitting, reviews, and other actions required. Such 
information shall include the following:
          ``(1) The schedule established by the Commission under 
        subsection (c)(1).
          ``(2) A list of all the actions required by each applicable 
        agency to complete permitting, reviews, and other actions 
        necessary to obtain a final decision on the Federal 
        authorization.
          ``(3) The expected completion date for each such action.
          ``(4) A point of contact at the agency accountable for each 
        such action.
          ``(5) In the event that an action is still pending as of the 
        expected date of completion, a brief explanation of the reasons 
        for the delay.''.

SEC. 1102. RESOLVING ENVIRONMENTAL AND GRID RELIABILITY CONFLICTS.

  (a) Compliance With or Violation of Environmental Laws While Under 
Emergency Order.--Section 202(c) of the Federal Power Act (16 U.S.C. 
824a(c)) is amended--
          (1) by inserting ``(1)'' after ``(c)''; and
          (2) by adding at the end the following:
  ``(2) With respect to an order issued under this subsection that may 
result in a conflict with a requirement of any Federal, State, or local 
environmental law or regulation, the Commission shall ensure that such 
order requires generation, delivery, interchange, or transmission of 
electric energy only during hours necessary to meet the emergency and 
serve the public interest, and, to the maximum extent practicable, is 
consistent with any applicable Federal, State, or local environmental 
law or regulation and minimizes any adverse environmental impacts.
  ``(3) To the extent any omission or action taken by a party, that is 
necessary to comply with an order issued under this subsection, 
including any omission or action taken to voluntarily comply with such 
order, results in noncompliance with, or causes such party to not 
comply with, any Federal, State, or local environmental law or 
regulation, such omission or action shall not be considered a violation 
of such environmental law or regulation, or subject such party to any 
requirement, civil or criminal liability, or a citizen suit under such 
environmental law or regulation.
  ``(4)(A) An order issued under this subsection that may result in a 
conflict with a requirement of any Federal, State, or local 
environmental law or regulation shall expire not later than 90 days 
after it is issued. The Commission may renew or reissue such order 
pursuant to paragraphs (1) and (2) for subsequent periods, not to 
exceed 90 days for each period, as the Commission determines necessary 
to meet the emergency and serve the public interest.
  ``(B) In renewing or reissuing an order under subparagraph (A), the 
Commission shall consult with the primary Federal agency with expertise 
in the environmental interest protected by such law or regulation, and 
shall include in any such renewed or reissued order such conditions as 
such Federal agency determines necessary to minimize any adverse 
environmental impacts to the extent practicable. The conditions, if 
any, submitted by such Federal agency shall be made available to the 
public. The Commission may exclude such a condition from the renewed or 
reissued order if it determines that such condition would prevent the 
order from adequately addressing the emergency necessitating such order 
and provides in the order, or otherwise makes publicly available, an 
explanation of such determination.
  ``(5) If an order issued under this subsection is subsequently 
stayed, modified, or set aside by a court pursuant to section 313 or 
any other provision of law, any omission or action previously taken by 
a party that was necessary to comply with the order while the order was 
in effect, including any omission or action taken to voluntarily comply 
with the order, shall remain subject to paragraph (3).''.
  (b) Temporary Connection or Construction by Municipalities.--Section 
202(d) of the Federal Power Act (16 U.S.C. 824a(d)) is amended by 
inserting ``or municipality'' before ``engaged in the transmission or 
sale of electric energy''.

SEC. 1103. EMERGENCY PREPAREDNESS FOR ENERGY SUPPLY DISRUPTIONS.

  (a) Finding.--Congress finds that recent natural disasters have 
underscored the importance of having resilient oil and natural gas 
infrastructure and effective ways for industry and government to 
communicate to address energy supply disruptions.
  (b) Authorization for Activities To Enhance Emergency Preparedness 
for Natural Disasters.--The Secretary of Energy shall develop and adopt 
procedures to--
          (1) improve communication and coordination between the 
        Department of Energy's energy response team, Federal partners, 
        and industry;
          (2) leverage the Energy Information Administration's subject 
        matter expertise within the Department's energy response team 
        to improve supply chain situation assessments;
          (3) establish company liaisons and direct communication with 
        the Department's energy response team to improve situation 
        assessments;
          (4) streamline and enhance processes for obtaining temporary 
        regulatory relief to speed up emergency response and recovery;
          (5) facilitate and increase engagement among States, the oil 
        and natural gas industry, and the Department in developing 
        State and local energy assurance plans;
          (6) establish routine education and training programs for key 
        government emergency response positions with the Department and 
        States; and
          (7) involve States and the oil and natural gas industry in 
        comprehensive drill and exercise programs.
  (c) Cooperation.--The activities carried out under subsection (b) 
shall include collaborative efforts with State and local government 
officials and the private sector.
  (d) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary of Energy shall submit to Congress a report 
describing the effectiveness of the activities authorized under this 
section.

SEC. 1104. CRITICAL ELECTRIC INFRASTRUCTURE SECURITY.

  (a) Critical Electric Infrastructure Security.--Part II of the 
Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding after 
section 215 the following new section:

``SEC. 215A. CRITICAL ELECTRIC INFRASTRUCTURE SECURITY.

  ``(a) Definitions.--For purposes of this section:
          ``(1) Bulk-power system; electric reliability organization; 
        regional entity.--The terms `bulk-power system', `Electric 
        Reliability Organization', and `regional entity' have the 
        meanings given such terms in paragraphs (1), (2), and (7) of 
        section 215(a), respectively.
          ``(2) Critical electric infrastructure.--The term `critical 
        electric infrastructure' means a system or asset of the bulk-
        power system, whether physical or virtual, the incapacity or 
        destruction of which would negatively affect national security, 
        economic security, public health or safety, or any combination 
        of such matters.
          ``(3) Critical electric infrastructure information.--The term 
        `critical electric infrastructure information' means 
        information related to critical electric infrastructure, or 
        proposed critical electrical infrastructure, generated by or 
        provided to the Commission or other Federal agency, other than 
        classified national security information, that is designated as 
        critical electric infrastructure information by the Commission 
        under subsection (d)(2). Such term includes information that 
        qualifies as critical energy infrastructure information under 
        the Commission's regulations.
          ``(4) Defense critical electric infrastructure.--The term 
        `defense critical electric infrastructure' means any electric 
        infrastructure located in the United States (including the 
        territories) that serves a facility designated by the Secretary 
        pursuant to subsection (c), but is not owned or operated by the 
        owner or operator of such facility.
          ``(5) Electromagnetic pulse.--The term `electromagnetic 
        pulse' means 1 or more pulses of electromagnetic energy emitted 
        by a device capable of disabling or disrupting operation of, or 
        destroying, electronic devices or communications networks, 
        including hardware, software, and data, by means of such a 
        pulse.
          ``(6) Geomagnetic storm.--The term `geomagnetic storm' means 
        a temporary disturbance of the Earth's magnetic field resulting 
        from solar activity.
          ``(7) Grid security emergency.--The term `grid security 
        emergency' means the occurrence or imminent danger of--
                  ``(A)(i) a malicious act using electronic 
                communication or an electromagnetic pulse, or a 
                geomagnetic storm event, that could disrupt the 
                operation of those electronic devices or communications 
                networks, including hardware, software, and data, that 
                are essential to the reliability of critical electric 
                infrastructure or of defense critical electric 
                infrastructure; and
                  ``(ii) disruption of the operation of such devices or 
                networks, with significant adverse effects on the 
                reliability of critical electric infrastructure or of 
                defense critical electric infrastructure, as a result 
                of such act or event; or
                  ``(B)(i) a direct physical attack on critical 
                electric infrastructure or on defense critical electric 
                infrastructure; and
                  ``(ii) significant adverse effects on the reliability 
                of critical electric infrastructure or of defense 
                critical electric infrastructure as a result of such 
                physical attack.
          ``(8) Secretary.--The term `Secretary' means the Secretary of 
        Energy.
  ``(b) Authority To Address Grid Security Emergency.--
          ``(1) Authority.--Whenever the President issues and provides 
        to the Secretary a written directive or determination 
        identifying a grid security emergency, the Secretary may, with 
        or without notice, hearing, or report, issue such orders for 
        emergency measures as are necessary in the judgment of the 
        Secretary to protect or restore the reliability of critical 
        electric infrastructure or of defense critical electric 
        infrastructure during such emergency. As soon as practicable 
        but not later than 180 days after the date of enactment of this 
        section, the Secretary shall, after notice and opportunity for 
        comment, establish rules of procedure that ensure that such 
        authority can be exercised expeditiously.
          ``(2) Notification of congress.--Whenever the President 
        issues and provides to the Secretary a written directive or 
        determination under paragraph (1), the President shall promptly 
        notify congressional committees of relevant jurisdiction, 
        including the Committee on Energy and Commerce of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate, of the contents of, and justification 
        for, such directive or determination.
          ``(3) Consultation.--Before issuing an order for emergency 
        measures under paragraph (1), the Secretary shall, to the 
        extent practicable in light of the nature of the grid security 
        emergency and the urgency of the need for action, consult with 
        appropriate governmental authorities in Canada and Mexico, 
        entities described in paragraph (4), the Electricity Sub-sector 
        Coordinating Council, the Commission, and other appropriate 
        Federal agencies regarding implementation of such emergency 
        measures.
          ``(4) Application.--An order for emergency measures under 
        this subsection may apply to--
                  ``(A) the Electric Reliability Organization;
                  ``(B) a regional entity; or
                  ``(C) any owner, user, or operator of critical 
                electric infrastructure or of defense critical electric 
                infrastructure within the United States.
          ``(5) Expiration and reissuance.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), an order for emergency measures issued under 
                paragraph (1) shall expire no later than 15 days after 
                its issuance.
                  ``(B) Extensions.--The Secretary may reissue an order 
                for emergency measures issued under paragraph (1) for 
                subsequent periods, not to exceed 15 days for each such 
                period, provided that the President, for each such 
                period, issues and provides to the Secretary a written 
                directive or determination that the grid security 
                emergency identified under paragraph (1) continues to 
                exist or that the emergency measure continues to be 
                required.
          ``(6) Cost recovery.--
                  ``(A) Critical electric infrastructure.--If the 
                Commission determines that owners, operators, or users 
                of critical electric infrastructure have incurred 
                substantial costs to comply with an order for emergency 
                measures issued under this subsection and that such 
                costs were prudently incurred and cannot reasonably be 
                recovered through regulated rates or market prices for 
                the electric energy or services sold by such owners, 
                operators, or users, the Commission shall, consistent 
                with the requirements of section 205, after notice and 
                an opportunity for comment, establish a mechanism that 
                permits such owners, operators, or users to recover 
                such costs.
                  ``(B) Defense critical electric infrastructure.--To 
                the extent the owner or operator of defense critical 
                electric infrastructure is required to take emergency 
                measures pursuant to an order issued under this 
                subsection, the owners or operators of a critical 
                defense facility or facilities designated by the 
                Secretary pursuant to subsection (c) that rely upon 
                such infrastructure shall bear the full incremental 
                costs of the measures.
          ``(7) Temporary access to classified information.--The 
        Secretary, and other appropriate Federal agencies, shall, to 
        the extent practicable and consistent with their obligations to 
        protect classified information, provide temporary access to 
        classified information related to a grid security emergency for 
        which emergency measures are issued under paragraph (1) to key 
        personnel of any entity subject to such emergency measures to 
        enable optimum communication between the entity and the 
        Secretary and other appropriate Federal agencies regarding the 
        grid security emergency.
  ``(c) Designation of Critical Defense Facilities.--Not later than 180 
days after the date of enactment of this section, the Secretary, in 
consultation with other appropriate Federal agencies and appropriate 
owners, users, or operators of infrastructure that may be defense 
critical electric infrastructure, shall identify and designate 
facilities located in the United States (including the territories) 
that are--
          ``(1) critical to the defense of the United States; and
          ``(2) vulnerable to a disruption of the supply of electric 
        energy provided to such facility by an external provider.
The Secretary may, in consultation with appropriate Federal agencies 
and appropriate owners, users, or operators of defense critical 
electric infrastructure, periodically revise the list of designated 
facilities as necessary.
  ``(d) Protection and Sharing of Critical Electric Infrastructure 
Information.--
          ``(1) Protection of critical electric infrastructure 
        information.--Critical electric infrastructure information--
                  ``(A) shall be exempt from disclosure under section 
                552(b)(3) of title 5, United States Code; and
                  ``(B) shall not be made available by any Federal, 
                State, political subdivision or tribal authority 
                pursuant to any Federal, State, political subdivision 
                or tribal law requiring public disclosure of 
                information or records.
          ``(2) Designation and sharing of critical electric 
        infrastructure information.--Not later than one year after the 
        date of enactment of this section, the Commission, in 
        consultation with the Secretary of Energy, shall promulgate 
        such regulations and issue such orders as necessary to--
                  ``(A) designate information as critical electric 
                infrastructure information;
                  ``(B) prohibit the unauthorized disclosure of 
                critical electric infrastructure information;
                  ``(C) ensure there are appropriate sanctions in place 
                for Commissioners, officers, employees, or agents of 
                the Commission who knowingly and willfully disclose 
                critical electric infrastructure information in a 
                manner that is not authorized under this section; and
                  ``(D) taking into account standards of the Electric 
                Reliability Organization, facilitate voluntary sharing 
                of critical electric infrastructure information with, 
                between, and by--
                          ``(i) Federal, State, political subdivision, 
                        and tribal authorities;
                          ``(ii) the Electric Reliability Organization;
                          ``(iii) regional entities;
                          ``(iv) information sharing and analysis 
                        centers established pursuant to Presidential 
                        Decision Directive 63;
                          ``(v) owners, operators, and users of 
                        critical electric infrastructure in the United 
                        States; and
                          ``(vi) other entities determined appropriate 
                        by the Commission.
          ``(3) Considerations.--In promulgating regulations and 
        issuing orders under paragraph (2), the Commission shall take 
        into consideration the role of State commissions in reviewing 
        the prudence and cost of investments, determining the rates and 
        terms of conditions for electric services, and ensuring the 
        safety and reliability of the bulk-power system and 
        distribution facilities within their respective jurisdictions.
          ``(4) Protocols.--The Commission shall, in consultation with 
        Canadian and Mexican authorities, develop protocols for the 
        voluntary sharing of critical electric infrastructure 
        information with Canadian and Mexican authorities and owners, 
        operators, and users of the bulk-power system outside the 
        United States.
          ``(5) No required sharing of information.--Nothing in this 
        section shall require a person or entity in possession of 
        critical electric infrastructure information to share such 
        information with Federal, State, political subdivision, or 
        tribal authorities, or any other person or entity.
          ``(6) Submission of information to congress.--Nothing in this 
        section shall permit or authorize the withholding of 
        information from Congress, any committee or subcommittee 
        thereof, or the Comptroller General.
          ``(7) Disclosure of nonprotected information.--In 
        implementing this section, the Commission shall protect from 
        disclosure only the minimum amount of information necessary to 
        protect the security and reliability of the bulk-power system 
        and distribution facilities. The Commission shall segregate 
        critical electric infrastructure information within documents 
        and electronic communications, wherever feasible, to facilitate 
        disclosure of information that is not designated as critical 
        electric infrastructure information.
          ``(8) Duration of designation.--Information may not be 
        designated as critical electric infrastructure information for 
        longer than 5 years, unless specifically re-designated by the 
        Commission.
          ``(9) Removal of designation.--The Commission shall remove 
        the designation of critical electric infrastructure 
        information, in whole or in part, from a document or electronic 
        communication if the Commission determines that the 
        unauthorized disclosure of such information could no longer be 
        used to impair the security or reliability of the bulk-power 
        system or distribution facilities.
          ``(10) Judicial review of designations.--Notwithstanding 
        section 313(b), any determination by the Commission concerning 
        the designation of critical electric infrastructure information 
        under this subsection shall be subject to review under chapter 
        7 of title 5, United States Code, except that such review shall 
        be brought in the district court of the United States in the 
        district in which the complainant resides, or has his principal 
        place of business, or in the District of Columbia. In such a 
        case the court shall examine in camera the contents of 
        documents or electronic communications that are the subject of 
        the determination under review to determine whether such 
        documents or any part thereof were improperly designated or not 
        designated as critical electric infrastructure information.
  ``(e) Security Clearances.--The Secretary shall facilitate and, to 
the extent practicable, expedite the acquisition of adequate security 
clearances by key personnel of any entity subject to the requirements 
of this section, to enable optimum communication with Federal agencies 
regarding threats to the security of the critical electric 
infrastructure. The Secretary, the Commission, and other appropriate 
Federal agencies shall, to the extent practicable and consistent with 
their obligations to protect classified and critical electric 
infrastructure information, share timely actionable information 
regarding grid security with appropriate key personnel of owners, 
operators, and users of the critical electric infrastructure.
  ``(f) Clarifications of Liability.--
          ``(1) Compliance with or violation of this act.--Except as 
        provided in paragraph (4), to the extent any action or omission 
        taken by an entity that is necessary to comply with an order 
        for emergency measures issued under subsection (b)(1), 
        including any action or omission taken to voluntarily comply 
        with such order, results in noncompliance with, or causes such 
        entity not to comply with any rule, order, regulation, or 
        provision of this Act, including any reliability standard 
        approved by the Commission pursuant to section 215, such action 
        or omission shall not be considered a violation of such rule, 
        order, regulation, or provision.
          ``(2)  Relation to section 202(c).--Except as provided in 
        paragraph (4), an action or omission taken by an owner, 
        operator, or user of critical electric infrastructure or of 
        defense critical electric infrastructure to comply with an 
        order for emergency measures issued under subsection (b)(1) 
        shall be treated as an action or omission taken to comply with 
        an order issued under section 202(c) for purposes of such 
        section.
          ``(3) Sharing or receipt of information.--No cause of action 
        shall lie or be maintained in any Federal or State court for 
        the sharing or receipt of information under, and that is 
        conducted in accordance with, subsection (d).
          ``(4) Rule of construction.--Nothing in this subsection shall 
        be construed to require dismissal of a cause of action against 
        an entity that, in the course of complying with an order for 
        emergency measures issued under subsection (b)(1) by taking an 
        action or omission for which they would be liable but for 
        paragraph (1) or (2), takes such action or omission in a 
        grossly negligent manner.''.
  (b) Conforming Amendments.--
          (1) Jurisdiction.--Section 201(b)(2) of the Federal Power Act 
        (16 U.S.C. 824(b)(2)) is amended by inserting ``215A,'' after 
        ``215,'' each place it appears.
          (2) Public utility.--Section 201(e) of the Federal Power Act 
        (16 U.S.C. 824(e)) is amended by inserting ``215A,'' after 
        ``215,''.

SEC. 1105. STRATEGIC TRANSFORMER RESERVE.

  (a) Finding.--Congress finds that the storage of strategically 
located spare large power transformers and emergency mobile substations 
will reduce the vulnerability of the United States to multiple risks 
facing electric grid reliability, including physical attack, cyber 
attack, electromagnetic pulse, geomagnetic disturbances, severe 
weather, and seismic events.
  (b) Definitions.--In this section:
          (1) Bulk-power system.--The term ``bulk-power system'' has 
        the meaning given such term in section 215(a) of the Federal 
        Power Act (16 U.S.C. 824o(a)).
          (2) Critically damaged large power transformer.--The term 
        ``critically damaged large power transformer'' means a large 
        power transformer that--
                  (A) has sustained extensive damage such that--
                          (i) repair or refurbishment is not 
                        economically viable; or
                          (ii) the extensive time to repair or 
                        refurbish the large power transformer would 
                        create an extended period of instability in the 
                        bulk-power system; and
                  (B) prior to sustaining such damage, was part of the 
                bulk-power system.
          (3) Critical electric infrastructure.--The term ``critical 
        electric infrastructure'' has the meaning given that term in 
        section 215A of the Federal Power Act.
          (4) Electric reliability organization.--The term ``Electric 
        Reliability Organization'' has the meaning given such term in 
        section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
          (5) Emergency mobile substation.--The term ``emergency mobile 
        substation'' means a mobile substation or mobile transformer 
        that is--
                  (A) assembled and permanently mounted on a trailer 
                that is capable of highway travel and meets relevant 
                Department of Transportation regulations; and
                  (B) intended for express deployment and capable of 
                being rapidly placed into service.
          (6) Large power transformer.--The term ``large power 
        transformer'' means a power transformer with a maximum 
        nameplate rating of 100 megavolt-amperes or higher, including 
        related critical equipment, that is, or is intended to be, a 
        part of the bulk-power system.
          (7) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.
          (8) Spare large power transformer.--The term ``spare large 
        power transformer'' means a large power transformer that is 
        stored within the Strategic Transformer Reserve to be available 
        to temporarily replace a critically damaged large power 
        transformer.
  (c) Strategic Transformer Reserve Plan.--
          (1) Plan.--Not later than one year after the date of 
        enactment of this Act, the Secretary, acting through the Office 
        of Electricity Delivery and Energy Reliability, shall, in 
        consultation with the Federal Energy Regulatory Commission, the 
        Electricity Sub-sector Coordinating Council, the Electric 
        Reliability Organization, and owners and operators of critical 
        electric infrastructure and defense and military installations, 
        prepare and submit to Congress a plan to establish a Strategic 
        Transformer Reserve for the storage, in strategically located 
        facilities, of spare large power transformers and emergency 
        mobile substations in sufficient numbers to temporarily replace 
        critically damaged large power transformers and substations 
        that are critical electric infrastructure or serve defense and 
        military installations.
          (2) Inclusions.--The Strategic Transformer Reserve plan shall 
        include a description of--
                  (A) the appropriate number and type of spare large 
                power transformers necessary to provide or restore 
                sufficient resiliency to the bulk-power system, 
                critical electric infrastructure, and defense and 
                military installations to mitigate significant impacts 
                to the electric grid resulting from--
                          (i) physical attack;
                          (ii) cyber attack;
                          (iii) electromagnetic pulse attack;
                          (iv) geomagnetic disturbances;
                          (v) severe weather; or
                          (vi) seismic events;
                  (B) other critical electric grid equipment for which 
                an inventory of spare equipment, including emergency 
                mobile substations, is necessary to provide or restore 
                sufficient resiliency to the bulk-power system, 
                critical electric infrastructure, and defense and 
                military installations;
                  (C) the degree to which utility sector actions or 
                initiatives, including individual utility ownership of 
                spare equipment, joint ownership of spare equipment 
                inventory, sharing agreements, or other spare equipment 
                reserves or arrangements, satisfy the needs identified 
                under subparagraphs (A) and (B);
                  (D) the potential locations for, and feasibility and 
                appropriate number of, strategic storage locations for 
                reserve equipment, including consideration of--
                          (i) the physical security of such locations;
                          (ii) the protection of the confidentiality of 
                        such locations; and
                          (iii) the proximity of such locations to 
                        sites of potentially critically damaged large 
                        power transformers and substations that are 
                        critical electric infrastructure or serve 
                        defense and military installations, so as to 
                        enable efficient delivery of equipment to such 
                        sites;
                  (E) the necessary degree of flexibility of spare 
                large power transformers to be included in the 
                Strategic Transformer Reserve to conform to different 
                substation configurations, including consideration of 
                transformer--
                          (i) power and voltage rating for each 
                        winding;
                          (ii) overload requirements;
                          (iii) impedance between windings;
                          (iv) configuration of windings; and
                          (v) tap requirements;
                  (F) an estimate of the direct cost of the Strategic 
                Transformer Reserve, as proposed, including--
                          (i) the cost of storage facilities;
                          (ii) the cost of the equipment; and
                          (iii) management, maintenance, and operation 
                        costs;
                  (G) the funding options available to establish, 
                stock, manage, and maintain the Strategic Transformer 
                Reserve, including consideration of fees on owners and 
                operators of bulk-power system facilities, critical 
                electric infrastructure, and defense and military 
                installations relying on the Strategic Transformer 
                Reserve, use of Federal appropriations, and public-
                private cost-sharing options;
                  (H) the ease and speed of transportation, 
                installation, and energization of spare large power 
                transformers to be included in the Strategic 
                Transformer Reserve, including consideration of factors 
                such as--
                          (i) transformer transportation weight;
                          (ii) transformer size;
                          (iii) topology of critical substations;
                          (iv) availability of appropriate transformer 
                        mounting pads;
                          (v) flexibility of the spare large power 
                        transformers as described in subparagraph (E); 
                        and
                          (vi) ability to rapidly transition a spare 
                        large power transformer from storage to 
                        energization;
                  (I) eligibility criteria for withdrawal of equipment 
                from the Strategic Transformer Reserve;
                  (J) the process by which owners or operators of 
                critically damaged large power transformers or 
                substations that are critical electric infrastructure 
                or serve defense and military installations may apply 
                for a withdrawal from the Strategic Transformer 
                Reserve;
                  (K) the process by which equipment withdrawn from the 
                Strategic Transformer Reserve is returned to the 
                Strategic Transformer Reserve or is replaced;
                  (L) possible fees to be paid by users of equipment 
                withdrawn from the Strategic Transformer Reserve;
                  (M) possible fees to be paid by owners and operators 
                of large power transformers and substations that are 
                critical electric infrastructure or serve defense and 
                military installations to cover operating costs of the 
                Strategic Transformer Reserve;
                  (N) the domestic and international large power 
                transformer supply chain;
                  (O) the potential reliability, cost, and operational 
                benefits of including emergency mobile substations in 
                any Strategic Transformer Reserve established under 
                this section; and
                  (P) other considerations for designing, constructing, 
                stocking, funding, and managing the Strategic 
                Transformer Reserve.
  (d) Establishment.--The Secretary may establish a Strategic 
Transformer Reserve in accordance with the plan prepared pursuant to 
subsection (c) after the date that is 6 months after the date on which 
such plan is submitted to Congress.
  (e) Disclosure of Information.--Any information included in the 
Strategic Transformer Reserve plan, or shared in the preparation and 
development of such plan, the disclosure of which could cause harm to 
critical electric infrastructure, shall be exempt from disclosure under 
section 552(b)(3) of title 5, United States Code, and any State, 
tribal, or local law requiring disclosure of information or records.

SEC. 1106. CYBER SENSE.

  (a) In General.--The Secretary of Energy shall establish a voluntary 
Cyber Sense program to identify and promote cyber-secure products 
intended for use in the bulk-power system, as defined in section 215(a) 
of the Federal Power Act (16 U.S.C. 824o(a)).
  (b) Program Requirements.--In carrying out subsection (a), the 
Secretary of Energy shall--
          (1) establish a Cyber Sense testing process to identify 
        products and technologies intended for use in the bulk-power 
        system, including products relating to industrial control 
        systems, such as supervisory control and data acquisition 
        systems;
          (2) for products tested and identified under the Cyber Sense 
        program, establish and maintain cybersecurity vulnerability 
        reporting processes and a related database;
          (3) promulgate regulations regarding vulnerability reporting 
        processes for products tested and identified under the Cyber 
        Sense program;
          (4) provide technical assistance to utilities, product 
        manufacturers, and other electric sector stakeholders to 
        develop solutions to mitigate identified vulnerabilities in 
        products tested and identified under the Cyber Sense program;
          (5) biennially review products tested and identified under 
        the Cyber Sense program for vulnerabilities and provide 
        analysis with respect to how such products respond to and 
        mitigate cyber threats;
          (6) develop procurement guidance for utilities for products 
        tested and identified under the Cyber Sense program;
          (7) provide reasonable notice to the public, and solicit 
        comments from the public, prior to establishing or revising the 
        Cyber Sense testing process;
          (8) oversee Cyber Sense testing carried out by third parties; 
        and
          (9) consider incentives to encourage the use in the bulk-
        power system of products tested and identified under the Cyber 
        Sense program.
  (c) Disclosure of Information.--Any vulnerability reported pursuant 
to regulations promulgated under subsection (b)(3), the disclosure of 
which could cause harm to critical electric infrastructure (as defined 
in section 215A of the Federal Power Act), shall be exempt from 
disclosure under section 552(b)(3) of title 5, United States Code, and 
any State, tribal, or local law requiring disclosure of information or 
records.
  (d) Federal Government Liability.--Consistent with other voluntary 
Federal Government certification programs, nothing in this section 
shall be construed to authorize the commencement of an action against 
the United States Government with respect to the testing and 
identification of a product under the Cyber Sense program.

SEC. 1107. STATE COVERAGE AND CONSIDERATION OF PURPA STANDARDS FOR 
                    ELECTRIC UTILITIES.

  (a) State Consideration of Resiliency and Advanced Energy Analytics 
Technologies and Reliable Generation.--
          (1) Consideration.--Section 111(d) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended 
        by adding the following at the end:
          ``(20) Improving the resilience of electric infrastructure.--
                  ``(A) In general.--Each electric utility shall 
                develop a plan to use resiliency-related technologies, 
                upgrades, measures, and other approaches designed to 
                improve the resilience of electric infrastructure, 
                mitigate power outages, continue delivery of vital 
                services, and maintain the flow of power to facilities 
                critical to public health, safety, and welfare, to the 
                extent practicable using the most current data, 
                metrics, and frameworks related to current and future 
                threats, including physical and cyber attacks, 
                electromagnetic pulse attacks, geomagnetic 
                disturbances, seismic events, and severe weather and 
                other environmental stressors.
                  ``(B) Resiliency-related technologies.--For purposes 
                of this paragraph, examples of resiliency-related 
                technologies, upgrades, measures, and other approaches 
                include--
                          ``(i) hardening, or other enhanced 
                        protection, of utility poles, wiring, cabling, 
                        and other distribution components, facilities, 
                        or structures;
                          ``(ii) advanced grid technologies capable of 
                        isolating or repairing problems remotely, such 
                        as advanced metering infrastructure, high-tech 
                        sensors, grid monitoring and control systems, 
                        and remote reconfiguration and redundancy 
                        systems;
                          ``(iii) cybersecurity products and 
                        components;
                          ``(iv) distributed generation, including 
                        back-up generation to power critical facilities 
                        and essential services, and related integration 
                        components, such as advanced inverter 
                        technology;
                          ``(v) microgrid systems, including hybrid 
                        microgrid systems for isolated communities;
                          ``(vi) combined heat and power;
                          ``(vii) waste heat resources;
                          ``(viii) non-grid-scale energy storage 
                        technologies;
                          ``(ix) wiring, cabling, and other 
                        distribution components, including submersible 
                        distribution components, and enclosures;
                          ``(x) electronically controlled reclosers and 
                        similar technologies for power restoration, 
                        including emergency mobile substations, as 
                        defined in section 1105 of the North American 
                        Energy Security and Infrastructure Act of 2015;
                          ``(xi) advanced energy analytics technology, 
                        such as Internet-based and cloud-based 
                        computing solutions and subscription licensing 
                        models;
                          ``(xii) measures that enhance resilience 
                        through planning, preparation, response, and 
                        recovery activities;
                          ``(xiii) operational capabilities to enhance 
                        resilience through rapid response recovery; and
                          ``(xiv) measures to ensure availability of 
                        key critical components through contracts, 
                        cooperative agreements, stockpiling and 
                        prepositioning, or other measures.
                  ``(C) Rate recovery.--Each State regulatory authority 
                (with respect to each electric utility for which it has 
                ratemaking authority) shall consider authorizing each 
                such electric utility to recover any capital, operating 
                expenditure, or other costs of the electric utility 
                related to the procurement, deployment, or use of 
                resiliency-related technologies, including a reasonable 
                rate of return on the capital expenditures of the 
                electric utility for the procurement, deployment, or 
                use of resiliency-related technologies.
          ``(21) Promoting investments in advanced energy analytics 
        technology.--
                  ``(A) In general.--Each electric utility shall 
                develop and implement a plan for deploying advanced 
                energy analytics technology.
                  ``(B) Rate recovery.--Each State regulatory authority 
                (with respect to each electric utility for which it has 
                ratemaking authority) shall consider confirming and 
                clarifying, if necessary, that each such electric 
                utility is authorized to recover the costs of the 
                electric utility relating to the procurement, 
                deployment, or use of advanced energy analytics 
                technology, including a reasonable rate of return on 
                all such costs incurred by the electric utility for the 
                procurement, deployment, or use of advanced energy 
                analytics technology, provided such technology is used 
                by the electric utility for purposes of realizing 
                operational efficiencies, cost savings, enhanced energy 
                management and customer engagement, improvements in 
                system reliability, safety, and cybersecurity, or other 
                benefits to ratepayers.
                  ``(C) Advanced energy analytics technology.--For 
                purposes of this paragraph, examples of advanced energy 
                analytics technology include Internet-based and cloud-
                based computing solutions and subscription licensing 
                models, including software as a service that uses 
                cyber-physical systems to allow the correlation of data 
                aggregated from appropriate data sources and smart grid 
                sensor networks, employs analytics and machine 
                learning, or employs other advanced computing solutions 
                and models.
          ``(22) Assuring electric reliability with reliable 
        generation.--
                  ``(A) Assurance of electric reliability.--Each 
                electric utility shall adopt or modify policies to 
                ensure that such electric utility incorporates reliable 
                generation into its integrated resource plan to assure 
                the availability of electric energy over a 10-year 
                planning period.
                  ``(B) Reliable generation.--For purposes of this 
                paragraph, `reliable generation' means electric 
                generation facilities with reliability attributes that 
                include--
                          ``(i)(I) possession of adequate fuel on-site 
                        to enable operation for an extended period of 
                        time;
                          ``(II) the operational ability to generate 
                        electric energy from more than one source; or
                          ``(III) fuel certainty, through firm 
                        contractual obligations, that ensures adequate 
                        fuel supply to enable operation, for an 
                        extended period of time, for the duration of an 
                        emergency or severe weather conditions;
                          ``(ii) operational characteristics that 
                        enable the generation of electric energy for 
                        the duration of an emergency or severe weather 
                        conditions; and
                          ``(iii) unless procured through other 
                        procurement mechanisms, essential reliability 
                        services, including frequency support and 
                        regulation services.
          ``(23) Subsidization of customer-side technology.--
                  ``(A) Consideration.--To the extent that a State 
                regulatory authority may require or allow rates charged 
                by any electric utility for which it has ratemaking 
                authority to electric consumers that do not use a 
                customer-side technology to include any cost, fee, or 
                charge that directly or indirectly cross-subsidizes the 
                deployment, construction, maintenance, or operation of 
                that customer-side technology, such authority shall 
                evaluate whether subsidizing the deployment, 
                construction, maintenance, or operation of a customer-
                side technology would--
                          ``(i) result in benefits predominately 
                        enjoyed by only the users of that customer-side 
                        technology;
                          ``(ii) shift costs of a customer-side 
                        technology to electricity consumers that do not 
                        use that customer-side technology, particularly 
                        where disparate economic or resource conditions 
                        exist among the electricity consumers cross-
                        subsidizing the costumer-side technology;
                          ``(iii) negatively affect resource 
                        utilization, fuel diversity, or grid security;
                          ``(iv) provide any unfair competitive 
                        advantage to market the customer-side 
                        technology; and
                          ``(v) be necessary to fulfill an obligation 
                        to serve electric consumers.
                  ``(B) Public notice.--Each State regulatory authority 
                shall make available to the public the evaluation 
                completed under subparagraph (A) at least 90 days prior 
                to any proceedings in which such authority considers 
                the cross-subsidization of a customer-side technology.
                  ``(C) Customer-side technology.--For purposes of this 
                paragraph, the term `customer-side technology' means a 
                device connected to the electricity distribution 
                system--
                          ``(i) at, or on the customer side of, the 
                        meter; or
                          ``(ii) that, if owned or operated by or on 
                        behalf of an electric utility, would otherwise 
                        be at, or on the customer side of, the 
                        meter.''.
          (2) Compliance.--
                  (A) Time limitations.--Section 112(b) of the Public 
                Utility Regulatory Policies Act of 1978 (16 U.S.C. 
                2622(b)) is amended by adding at the end the following:
          ``(7)(A) Not later than 1 year after the date of enactment of 
        this paragraph, each State regulatory authority (with respect 
        to each electric utility for which it has ratemaking authority) 
        and each nonregulated electric utility, as applicable, shall 
        commence the consideration referred to in section 111, or set a 
        hearing date for consideration, with respect to the standards 
        established by paragraphs (20), (22), and (23) of section 
        111(d).
          ``(B) Not later than 2 years after the date of the enactment 
        of this paragraph, each State regulatory authority (with 
        respect to each electric utility for which it has ratemaking 
        authority) and each nonregulated electric utility, as 
        applicable, shall complete the consideration, and shall make 
        the determination, referred to in section 111 with respect to 
        each standard established by paragraphs (20), (22), and (23) of 
        section 111(d).
          ``(8)(A) Not later than 6 months after the date of enactment 
        of this paragraph, each State regulatory authority (with 
        respect to each electric utility for which it has ratemaking 
        authority) and each nonregulated electric utility shall 
        commence the consideration referred to in section 111, or set a 
        hearing date for consideration, with respect to the standard 
        established by paragraph (21) of section 111(d).
          ``(B) Not later than 1 year after the date of enactment of 
        this paragraph, each State regulatory authority (with respect 
        to each electric utility for which it has ratemaking authority) 
        and each nonregulated electric utility shall complete the 
        consideration, and shall make the determination, referred to in 
        section 111 with respect to the standard established by 
        paragraph (21) of section 111(d).''.
                  (B) 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 
                paragraphs (20) through (23) 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 paragraphs.''.
                  (C) Prior state actions.--Section 112 of the Public 
                Utility Regulatory Policies Act of 1978 (16 U.S.C. 
                2622) is amended by adding at the end the following new 
                subsection:
  ``(g) Prior State Actions.--Subsections (b) and (c) of this section 
shall not apply to a standard established by paragraph (20), (21), 
(22), or (23) of section 111(d) in the case of any electric utility in 
a State if--
          ``(1) before the date of enactment of this subsection, the 
        State has implemented for such utility the standard concerned 
        (or a comparable standard);
          ``(2) the State regulatory authority for such State or 
        relevant nonregulated electric utility has conducted a 
        proceeding to consider implementation of the standard concerned 
        (or a comparable standard) for such utility during the 3-year 
        period ending on the date of enactment of this subsection; or
          ``(3) the State legislature has voted on the implementation 
        of the standard concerned (or a comparable standard) for such 
        utility during the 3-year period ending on the date of 
        enactment of this subsection.''.
  (b) Coverage for Competitive Markets.--Section 102 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2612) is amended by 
adding at the end the following:
  ``(d) Coverage for Competitive Markets.--The requirements of this 
title do not apply to the operations of an electric utility, or to 
proceedings respecting such operations, to the extent that such 
operations or proceedings, or any portion thereof, relate to the 
competitive sale of retail electric energy that is unbundled or 
separated from the regulated provision or sale of distribution 
service.''.

SEC. 1108. RELIABILITY ANALYSIS FOR CERTAIN RULES THAT AFFECT ELECTRIC 
                    GENERATING FACILITIES.

  (a) Applicability.--This section shall apply with respect to any 
proposed or final covered rule issued by a Federal agency for which 
compliance with the rule may impact an electric utility generating unit 
or units, including by resulting in closure or interruption to 
operations of such a unit or units.
  (b) Reliability Analysis.--
          (1) Analysis of rules.--The Federal Energy Regulatory 
        Commission, in consultation with the Electric Reliability 
        Organization, shall conduct an independent reliability analysis 
        of a proposed or final covered rule under this section to 
        evaluate the anticipated effects of implementation and 
        enforcement of the rule on--
                  (A) electric reliability and resource adequacy;
                  (B) the electricity generation portfolio of the 
                United States;
                  (C) the operation of wholesale electricity markets; 
                and
                  (D) energy delivery and infrastructure, including 
                electric transmission facilities and natural gas 
                pipelines.
          (2) Relevant information.--
                  (A) Materials from federal agencies.--A Federal 
                agency shall provide to the Commission materials and 
                information relevant to the analysis required under 
                paragraph (1) for a rule, including relevant data, 
                modeling, and resource adequacy and reliability 
                assessments, prepared or relied upon by such agency in 
                developing the rule.
                  (B) Analyses from other entities.--The Electric 
                Reliability Organization, regional entities, regional 
                transmission organizations, independent system 
                operators, and other reliability coordinators and 
                planning authorities shall timely conduct analyses and 
                provide such information as may be reasonably requested 
                by the Commission.
          (3) Notice.--A Federal agency shall provide to the Commission 
        notice of the issuance of any proposed or final covered rule 
        not later than 15 days after the date of such issuance.
  (c) Proposed Rules.--Not later than 150 days after the date of 
publication in the Federal Register of a proposed rule described in 
subsection (a), the Federal Energy Regulatory Commission shall make 
available to the public an analysis of the proposed rule conducted in 
accordance with subsection (b), and any relevant special assessment or 
seasonal or long-term reliability assessment completed by the Electric 
Reliability Organization.
  (d) Final Rules.--
          (1) Inclusion.--A final rule described in subsection (a) 
        shall include, if available at the time of issuance, a copy of 
        the analysis conducted pursuant to subsection (c) of the rule 
        as proposed.
          (2) Analysis.--Not later than 120 days after the date of 
        publication in the Federal Register of a final rule described 
        in subsection (a), the Federal Energy Regulatory Commission 
        shall make available to the public an analysis of the final 
        rule conducted in accordance with subsection (b), and any 
        relevant special assessment or seasonal or long-term 
        reliability assessment completed by the Electric Reliability 
        Organization.
  (e) Definitions.--In this section:
          (1) Electric reliability organization.--The term ``Electric 
        Reliability Organization'' has the meaning given to such term 
        in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
          (2) Federal agency.--The term ``Federal agency'' means an 
        agency, as that term is defined in section 551 of title 5, 
        United States Code.
          (3) Covered rule.--The term ``covered rule'' means a proposed 
        or final rule that is estimated by the Federal agency issuing 
        the rule, or the Director of the Office of Management and 
        Budget, to result in an annual effect on the economy of 
        $1,000,000,000 or more.

SEC. 1109. CARBON CAPTURE, UTILIZATION, AND SEQUESTRATION TECHNOLOGIES.

  (a) Amendments to the Energy Policy Act of 2005.--
          (1) Fossil energy.--Section 961(a) of the Energy Policy Act 
        of 2005 (42 U.S.C. 16291(a)) is amended by adding at the end 
        the following:
          ``(8) Improving the conversion, use, and storage of carbon 
        dioxide produced from fossil fuels.''.
          (2) Coal and related technologies program.--Section 962(b)(1) 
        of the Energy Policy Act of 2005 (42 U.S.C. 16292(b)(1)) is 
        amended--
                  (A) by striking ``during each of calendar years 2008, 
                2010, 2012, and 2016, and during each fiscal year 
                beginning after September 30, 2021,'' and inserting 
                ``during each fiscal year beginning after September 30, 
                2016,'';
                  (B) by inserting ``allow for large-scale 
                demonstration and'' after ``technologies that would''; 
                and
                  (C) by inserting ``commercial use,'' after ``use of 
                coal for''.
  (b) Increased Accountability With Respect to Carbon Capture, 
Utilization, and Sequestration Projects.--
          (1) DOE evaluation.--
                  (A) In general.--The Secretary of Energy (in this 
                subsection referred to as the ``Secretary'') shall, in 
                accordance with this subsection, annually conduct an 
                evaluation, and make recommendations, with respect to 
                each project conducted by the Secretary for research, 
                development, demonstration, or deployment of carbon 
                capture, utilization, and sequestration technologies 
                (also known as carbon capture and storage and 
                utilization technologies).
                  (B) Scope.--For purposes of this subsection, a 
                project includes any contract, lease, cooperative 
                agreement, or other similar transaction with a public 
                agency or private organization or person, entered into 
                or performed, or any payment made, by the Secretary for 
                research, development, demonstration, or deployment of 
                carbon capture, utilization, and sequestration 
                technologies.
          (2) Requirements for evaluation.--In conducting an evaluation 
        of a project under this subsection, the Secretary shall--
                  (A) examine if the project has made advancements 
                toward achieving any specific goal of the project with 
                respect to a carbon capture, utilization, and 
                sequestration technology; and
                  (B) evaluate and determine if the project has made 
                significant progress in advancing a carbon capture, 
                utilization, and sequestration technology.
          (3) Recommendations.--For each evaluation of a project 
        conducted under this subsection, if the Secretary determines 
        that--
                  (A) significant progress in advancing a carbon 
                capture, utilization, and sequestration technology has 
                been made, the Secretary shall assess the funding of 
                the project and make a recommendation as to whether 
                increased funding is necessary to advance the project; 
                or
                  (B) significant progress in advancing a carbon 
                capture, utilization, and sequestration technology has 
                not been made, the Secretary shall--
                          (i) assess the funding of the project and 
                        make a recommendation as to whether increased 
                        funding is necessary to advance the project;
                          (ii) assess and determine if the project has 
                        reached its full potential; and
                          (iii) make a recommendation as to whether the 
                        project should continue.
          (4)  Reports.--
                  (A) Report on evaluations and recommendations.--Not 
                later than 2 years after the date of enactment of this 
                Act, and every 2 years thereafter, the Secretary 
                shall--
                          (i) issue a report on the evaluations 
                        conducted and recommendations made during the 
                        previous year pursuant to this subsection; and
                          (ii) make each such report available on the 
                        Internet website of the Department of Energy.
                  (B) Report.--Not later than 2 years after the date of 
                enactment of this Act, and every 3 years thereafter, 
                the Secretary shall submit to the Subcommittee on 
                Energy and Power of the Committee on Energy and 
                Commerce of the House of Representatives and the 
                Committee on Energy and Natural Resources of the Senate 
                a report on--
                          (i) the evaluations conducted and 
                        recommendations made during the previous 3 
                        years pursuant to this subsection; and
                          (ii) the progress of the Department of Energy 
                        in advancing carbon capture, utilization, and 
                        sequestration technologies, including progress 
                        in achieving the Department of Energy's goal of 
                        having an array of advanced carbon capture and 
                        sequestration technologies ready by 2020 for 
                        large-scale demonstration.

SEC. 1110. RELIABILITY AND PERFORMANCE ASSURANCE IN REGIONAL 
                    TRANSMISSION ORGANIZATIONS.

  Part II of the Federal Power Act (16 U.S.C. 824 et seq.), as amended 
by section 1104, is further amended by adding after section 215A the 
following new section:

``SEC. 215B. RELIABILITY AND PERFORMANCE ASSURANCE IN REGIONAL 
                    TRANSMISSION ORGANIZATIONS.

  ``(a) Existing Capacity Markets.--
          ``(1) Analysis concerning capacity market design.--Not later 
        than 180 days after the date of enactment of this section, each 
        Regional Transmission Organization, and each Independent System 
        Operator, that operates a capacity market, or a comparable 
        market intended to ensure the procurement and availability of 
        sufficient future electric energy resources, that is subject to 
        the jurisdiction of the Commission, shall provide to the 
        Commission an analysis of how the structure of such market 
        meets the following criteria:
                  ``(A) The structure of such market utilizes 
                competitive market forces to the extent practicable in 
                procuring capacity resources.
                  ``(B) Consistent with subparagraph (A), the structure 
                of such market includes resource-neutral performance 
                criteria that ensure the procurement of sufficient 
                capacity from physical generation facilities that have 
                reliability attributes that include--
                          ``(i)(I) possession of adequate fuel on-site 
                        to enable operation for an extended period of 
                        time;
                          ``(II) the operational ability to generate 
                        electric energy from more than one fuel source; 
                        or
                          ``(III) fuel certainty, through firm 
                        contractual obligations, that ensures adequate 
                        fuel supply to enable operation, for an 
                        extended period of time, for the duration of an 
                        emergency or severe weather conditions;
                          ``(ii) operational characteristics that 
                        enable the generation of electric energy for 
                        the duration of an emergency or severe weather 
                        conditions; and
                          ``(iii) unless procured through other markets 
                        or procurement mechanisms, essential 
                        reliability services, including frequency 
                        support and regulation services.
          ``(2) Commission evaluation and report.--Not later than 1 
        year after the date of enactment of this section, the 
        Commission shall make publicly available, and submit to the 
        Committee on Energy and Commerce in the House of 
        Representatives and the Committee on Energy and Natural 
        Resources in the Senate, a report containing--
                  ``(A) evaluation of whether the structure of each 
                market addressed in an analysis submitted pursuant to 
                paragraph (1) meets the criteria under such paragraph, 
                based on the analysis; and
                  ``(B) to the extent a market so addressed does not 
                meet such criteria, any recommendations with respect to 
                the procurement of sufficient capacity, as described in 
                paragraph (1)(B).
  ``(b) Commission Evaluation and Report for New Schedules.--
          ``(1) Inclusion of analysis in filing.--Except as provided in 
        subsection (a)(2), whenever a Regional Transmission 
        Organization or Independent System Operator files a new 
        schedule under section 205 to establish a market described in 
        subsection (a)(1), or that substantially modifies the capacity 
        market design of a market described in subsection (a)(1), the 
        Regional Transmission Organization or Independent System 
        Operator shall include in any such filing the analysis required 
        by subsection (a)(1).
          ``(2) Evaluation and report.--Not later than 180 days of 
        receiving an analysis under paragraph (1), the Commission shall 
        make publicly available, and submit to the Committee on Energy 
        and Commerce in the House of Representatives and the Committee 
        on Energy and Natural Resources in the Senate, a report 
        containing--
                  ``(A) an evaluation of whether the structure of the 
                market addressed in the analysis meets the criteria 
                under subsection (a)(1), based on the analysis; and
                  ``(B) to the extent the market does not meet such 
                criteria, any recommendations with respect to the 
                procurement of sufficient capacity, as described in 
                subsection (a)(1)(B).
  ``(c) Effect on Existing Approvals.--Nothing in this section shall be 
considered to--
          ``(1) require a modification of the Commission's approval of 
        the capacity market design approved pursuant to docket numbers 
        ER15-623-000, EL15-29-000, EL14-52-000, and ER14-2419-000; or
          ``(2) provide grounds for the Commission to grant rehearing 
        or otherwise modify orders issued in those dockets.''.

      Subtitle B--Energy Security and Infrastructure Modernization

SEC. 1201. ENERGY SECURITY AND INFRASTRUCTURE MODERNIZATION FUND.

  (a) Establishment.--There is hereby established in the Treasury of 
the United States a fund to be known as the Energy Security and 
Infrastructure Modernization Fund (referred to in this section as the 
``Fund''), consisting of--
          (1) collections deposited in the Fund under subsection (c); 
        and
          (2) amounts otherwise appropriated to the Fund.
  (b) Purpose.--The purpose of the Fund is--
          (1) to provide for the construction, maintenance, repair, and 
        replacement of Strategic Petroleum Reserve facilities; and
          (2) for carrying out non-Strategic Petroleum Reserve projects 
        needed to enhance the energy security of the United States by 
        increasing the resilience, reliability, safety, and security of 
        energy supply, transmission, storage, or distribution 
        infrastructure.
  (c) Collection and Deposit of Sale Proceeds in Fund.--
          (1) Drawdown and sale.--Notwithstanding section 161 of the 
        Energy Policy and Conservation Act (42 U.S.C. 6241), to the 
        extent provided in advance in appropriation Acts, the Secretary 
        of Energy shall draw down and sell crude oil from the Strategic 
        Petroleum Reserve in amounts as authorized under subsection 
        (e), except as provided in paragraphs (2) and (3). Amounts 
        received for a sale under this subsection shall be deposited 
        into the Fund during the fiscal year in which the sale occurs. 
        Such amounts shall remain available in the Fund without fiscal 
        year limitation.
          (2) Emergency protection.--The Secretary shall not draw down 
        and sell crude oil under this subsection in amounts that would 
        limit the authority to sell petroleum products under section 
        161(h) of the Energy Policy and Conservation Act (42 U.S.C. 
        6241(h)) in the full amount authorized by that subsection.
          (3) Investment protection.--The Secretary shall not draw down 
        and sell crude oil under this subsection at a price lower than 
        the average price paid for oil in the Strategic Petroleum 
        Reserve.
  (d) Authorized Uses of Fund.--
          (1) In general.--Amounts in the Fund may be used for, or may 
        be credited as offsetting collections for amounts used for, 
        carrying out the programs described in paragraphs (2), (3), and 
        (4), to the extent provided in advance in appropriation Acts.
          (2) Program to modernize the strategic petroleum reserve.--
                  (A) Findings.--Congress finds the following:
                          (i) The Strategic Petroleum Reserve is one of 
                        the Nation's most valuable energy security 
                        assets.
                          (ii) The age and condition of the Strategic 
                        Petroleum Reserve have diminished its value as 
                        a Federal energy security asset.
                          (iii) Global oil markets and the location and 
                        amount of United States oil production and 
                        refining capacity have dramatically changed in 
                        the 40 years since the establishment of the 
                        Strategic Petroleum Reserve.
                          (iv) Maximizing the energy security value of 
                        the Strategic Petroleum Reserve requires a 
                        modernized infrastructure that meets the 
                        drawdown and distribution needs of changed 
                        domestic and international oil and refining 
                        market conditions.
                  (B) Reaffirmation of policy.--Congress reaffirms the 
                continuing strategic importance and need for the 
                Strategic Petroleum Reserve as found and declared in 
                section 151 of the Energy Policy and Conservation Act 
                (42 U.S.C. 6231).
                  (C) Program.--The Secretary of Energy shall establish 
                a Strategic Petroleum Reserve modernization program to 
                protect the United States economy from the impacts of 
                emergency petroleum product supply disruptions. The 
                program shall include--
                          (i) operational improvements to extend the 
                        useful life of surface and subsurface 
                        infrastructure;
                          (ii) maintenance of cavern storage integrity; 
                        and
                          (iii) addition of infrastructure and 
                        facilities to maximize the drawdown and 
                        incremental distribution capacity of the 
                        Strategic Petroleum Reserve.
          (3) Program to enhance safety, performance, and resilience of 
        natural gas distribution systems.--
                  (A) Program.--The Secretary of Energy shall establish 
                a grant program to provide financial assistance to 
                States to offset the incremental rate increases paid by 
                eligible households resulting from the implementation 
                of State-approved infrastructure replacement, repair, 
                and maintenance programs designed to accelerate the 
                necessary replacement, repair, or maintenance of 
                natural gas distribution systems.
                  (B) Date of eligibility.--Awards may be provided 
                under this paragraph to offset rate increases described 
                in subsection (a) occurring on or after July 1, 2015.
                  (C) Prioritization.--The Secretary shall collaborate 
                with States to prioritize the distribution of grants 
                made under this paragraph. At a minimum, the Secretary 
                shall consider prioritizing the distribution of grants 
                to States which have--
                          (i) authorized or adopted enhanced 
                        infrastructure replacement programs or 
                        innovative rate recovery mechanisms, such as 
                        infrastructure cost trackers and riders, 
                        infrastructure base rate surcharges, deferred 
                        regulatory asset programs, and earnings 
                        stability mechanisms; and
                          (ii) a viable means for delivering financial 
                        assistance to eligible households.
                  (D) Definition.--In this paragraph, the term 
                ``eligible household'' means a household that is 
                eligible to receive payments under section 8624(b)(2) 
                of title 42, United States Code.
          (4) Program to enhance electric infrastructure resilience, 
        reliability, and energy security.--
                  (A) Program.--The Secretary shall establish a 
                competitive grant program to provide grants to States, 
                units of local government, and Indian tribe economic 
                development entities to enhance energy security through 
                measures for electricity delivery infrastructure 
                hardening and enhanced resilience and reliability.
                  (B) Purpose of grants.--The Secretary may make grants 
                on a competitive basis to enable broader use of 
                resiliency-related technologies, upgrades, and 
                institutional measures and practices designed to--
                          (i) improve the resilience, reliability, and 
                        security of electricity delivery 
                        infrastructure;
                          (ii) improve preparedness and restoration 
                        time to mitigate power disturbances resulting 
                        from physical and cyber attacks, 
                        electromagnetic pulse attacks, geomagnetic 
                        disturbances, seismic events, and severe 
                        weather and other environmental stressors;
                          (iii) continue delivery of power to 
                        facilities critical to public health, safety, 
                        and welfare, including hospitals, assisted 
                        living facilities, and schools;
                          (iv) continue delivery of power to 
                        electricity-dependent essential services, 
                        including fueling stations and pumps, 
                        wastewater and sewage treatment facilities, gas 
                        pipeline infrastructure, communications 
                        systems, transportation services and systems, 
                        and services provided by emergency first 
                        responders; and
                          (v) enhance regional grid resilience and the 
                        resilience of electricity-dependent regional 
                        infrastructure.
                  (C) Examples.--Resiliency-related technologies, 
                upgrades, and measures with respect to which grants may 
                be made under this paragraph include--
                          (i) hardening, or other enhanced protection, 
                        of utility poles, wiring, cabling, and other 
                        distribution components, facilities, or 
                        structures;
                          (ii) advanced grid technologies capable of 
                        isolating or repairing problems remotely, such 
                        as advanced metering infrastructure, high-tech 
                        sensors, grid monitoring and control systems, 
                        and remote reconfiguration and redundancy 
                        systems;
                          (iii) cybersecurity products and components;
                          (iv) distributed generation, including back-
                        up generation to power critical facilities and 
                        essential services, and related integration 
                        components, such as advanced inverter 
                        technology;
                          (v) microgrid systems, including hybrid 
                        microgrid systems for isolated communities;
                          (vi) combined heat and power;
                          (vii) waste heat resources;
                          (viii) non-grid-scale energy storage 
                        technologies;
                          (ix) wiring, cabling, and other distribution 
                        components, including submersible distribution 
                        components, and enclosures;
                          (x) electronically controlled reclosers and 
                        similar technologies for power restoration, 
                        including emergency mobile substations, as 
                        defined in section 1105 of the North American 
                        Energy Security and Infrastructure Act of 2015;
                          (xi) advanced energy analytics technology, 
                        such as Internet-based and cloud-based 
                        computing solutions and subscription licensing 
                        models;
                          (xii) measures that enhance resilience 
                        through planning, preparation, response, and 
                        recovery activities;
                          (xiii) operational capabilities to enhance 
                        resilience through rapid response recovery; and
                          (xiv) measures to ensure availability of key 
                        critical components through contracts, 
                        cooperative agreements, stockpiling and 
                        prepositioning, or other measures.
                  (D) Implementation.--Specific projects or programs 
                established, or to be established, pursuant to awards 
                provided under this paragraph shall be implemented 
                through the States by public and publicly regulated 
                entities on a cost-shared basis.
                  (E) Cooperation.--In carrying out projects or 
                programs established, or to be established, pursuant to 
                awards provided under this paragraph, award recipients 
                shall cooperate, as applicable, with--
                          (i) State public utility commissions;
                          (ii) State energy offices;
                          (iii) electric infrastructure owners and 
                        operators; and
                          (iv) other entities responsible for 
                        maintaining electric reliability.
                  (F) Data and metrics.--
                          (i) In general.--To the extent practicable, 
                        award recipients shall utilize the most current 
                        data, metrics, and frameworks related to--
                                  (I) electricity delivery 
                                infrastructure hardening and enhancing 
                                resilience and reliability; and
                                  (II) current and future threats, 
                                including physical and cyber attacks, 
                                electromagnetic pulse, geomagnetic 
                                disturbances, seismic events, and 
                                severe weather and other environmental 
                                stressors.
                          (ii) Metrics.--Award recipients shall 
                        demonstrate to the Secretary with measurable 
                        and verifiable data how the deployment of 
                        resiliency-related technologies, upgrades, and 
                        technologies achieve improvements in the 
                        resiliency and recovery of electricity delivery 
                        infrastructure and related services, including 
                        a comparison of data collected before and after 
                        deployment. Metrics for demonstrating 
                        improvements in resiliency and recovery may 
                        include--
                                  (I) power quality during power 
                                disturbances when delivered power does 
                                not meet power quality requirements of 
                                the customer;
                                  (II) duration of customer 
                                interruptions;
                                  (III) number of customers impacted;
                                  (IV) cost impacts, including business 
                                and other economic losses;
                                  (V) impacts on electricity-dependent 
                                essential services and critical 
                                facilities; and
                                  (VI) societal impacts.
                          (iii) Furthering energy assurance plans.--
                        Award recipients shall demonstrate to the 
                        Secretary how projects or programs established, 
                        or to be established, pursuant to awards 
                        provided under this paragraph further 
                        applicable State and local energy assurance 
                        plans.
                  (G) Matching contributions.--The Secretary may not 
                make a grant under this paragraph unless the applicant 
                agrees to make available non-Federal contributions 
                (which may include in-kind contributions) in an amount 
                not less than 50 percent of the Federal contribution.
  (e) Authorization of Appropriations.--There are authorized to be 
appropriated (and drawdowns and sales under subsection (c) in an equal 
amount are authorized)--
          (1) for carrying out subsection (d)(2), $500,000,000 for the 
        period encompassing fiscal years 2017 through 2020;
          (2) for carrying out subsection (d)(3), $100,000,000 for the 
        period encompassing fiscal years 2017 through 2020, of which 
        not more than 5 percent may be used for administrative 
        expenses; and
          (3) for carrying out subsection (d)(4), $250,000,000 for the 
        period encompassing fiscal years 2017 through 2020, of which 
        not more than 5 percent may be used for administrative 
        expenses.
  (f) Transmission of Department Budget Requests.--The Secretary of 
Energy shall prepare and submit in the Department's annual budget 
request to Congress--
          (1) an itemization of the amounts of funds necessary to carry 
        out subsection (d); and
          (2) a designation of any activities thereunder for which a 
        multiyear budget authority would be appropriate.
  (g) Sunset.--The authority of the Secretary to drawdown and sell 
crude oil from the Strategic Petroleum Reserve under this section shall 
expire at the end of fiscal year 2020.

            Subtitle C--Hydropower Regulatory Modernization

SEC. 1301. HYDROELECTRIC PRODUCTION AND EFFICIENCY INCENTIVES.

  (a) Hydroelectric Production Incentives.--Section 242 of the Energy 
Policy Act of 2005 (42 U.S.C.15881) is amended--
          (1) in subsection (c), by striking ``10'' and inserting 
        ``20'';
          (2) in subsection (f), by striking ``20'' and inserting 
        ``30''; and
          (3) in subsection (g), by striking ``each of the fiscal years 
        2006 through 2015'' and inserting ``each of fiscal years 2016 
        through 2025''.
  (b) Hydroelectric Efficiency Improvement.--Section 243(c) of the 
Energy Policy Act of 2005 (42 U.S.C. 15882(c)) is amended by striking 
``each of the fiscal years 2006 through 2015'' and inserting ``each of 
fiscal years 2016 through 2025''.

SEC. 1302. PROTECTION OF PRIVATE PROPERTY RIGHTS IN HYDROPOWER 
                    LICENSING.

  (a) Licences.--Section 4(e) of the Federal Power Act (16 U.S.C. 
797(e)) is amended--
          (1) by striking ``and'' after ``recreational 
        opportunities,''; and
          (2) by inserting ``, and minimizing infringement on the 
        useful exercise and enjoyment of property rights held by 
        nonlicensees'' after ``aspects of environmental quality''.
  (b) Private Landownership.--Section 10 of the Federal Power Act (16 
U.S.C. 803) is amended--
          (1) in subsection (a)(1), by inserting ``, including 
        minimizing infringement on the useful exercise and enjoyment of 
        property rights held by nonlicensees'' after ``section 4(e)''; 
        and
          (2) by adding at the end the following:
  ``(k) Private Landownership.--In developing any recreational resource 
within the project boundary, the licensee shall consider private 
landownership as a means to encourage and facilitate--
          ``(1) private investment; and
          ``(2) increased tourism and recreational use.''.

SEC. 1303. EXTENSION OF TIME FOR FERC PROJECT INVOLVING W. KERR SCOTT 
                    DAM.

  (a) In General.--Notwithstanding the time period specified in section 
13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply 
to the Federal Energy Regulatory Commission project numbered 12642, the 
Commission may, at the request of the licensee for the project, and 
after reasonable notice, in accordance with the good faith, due 
diligence, and public interest requirements of that section and the 
Commission's procedures under that section, extend the time period 
during which the licensee is required to commence the construction of 
the project for up to 3 consecutive 2-year periods from the date of the 
expiration of the extension originally issued by the Commission.
  (b) Reinstatement of Expired License.--If the period required for 
commencement of construction of the project described in subsection (a) 
has expired prior to the date of the enactment of this Act, the 
Commission may reinstate the license effective as of the date of its 
expiration and the first extension authorized under subsection (a) 
shall take effect on the date of such expiration.

SEC. 1304. HYDROPOWER LICENSING AND PROCESS IMPROVEMENTS.

  Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is amended by 
adding at the end the following:

``SEC. 34. HYDROPOWER LICENSING AND PROCESS IMPROVEMENTS.

  ``(a) Definition.--In this section, the term `Federal 
authorization'--
          ``(1) means any authorization required under Federal law with 
        respect to an application for a license, license amendment, or 
        exemption under this part; and
          ``(2) includes any permits, special use authorizations, 
        certifications, opinions, or other approvals as may be required 
        under Federal law to approve or implement the license, license 
        amendment, or exemption under this part.
  ``(b) Designation as Lead Agency.--
          ``(1) In general.--The Commission shall act as the lead 
        agency for the purposes of coordinating all applicable Federal 
        authorizations and for the purposes of complying with the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.).
          ``(2) Other agencies and indian tribes.--
                  ``(A) In general.--Each Federal, State, and local 
                government agency and Indian tribe considering an 
                aspect of an application for Federal authorization 
                shall coordinate with the Commission and comply with 
                the deadline established in the schedule developed for 
                the project in accordance with the rule issued by the 
                Commission under subsection (c).
                  ``(B) Identification.--The Commission shall identify, 
                as early as practicable after it is notified by the 
                applicant of a project or facility requiring Commission 
                action under this part, any Federal or State agency, 
                local government, or Indian tribe that may consider an 
                aspect of an application for a Federal authorization.
                  ``(C) Notification.--
                          ``(i) In general.--The Commission shall 
                        notify any agency and Indian tribe identified 
                        under subparagraph (B) of the opportunity to 
                        participate in the process of reviewing an 
                        aspect of an application for a Federal 
                        authorization.
                          ``(ii) Deadline.--Each agency and Indian 
                        tribe receiving a notice under clause (i) shall 
                        submit a response acknowledging receipt of the 
                        notice to the Commission within 30 days of 
                        receipt of such notice and request.
                  ``(D) Issue identification and resolution.--
                          ``(i) Identification of issues.--Federal, 
                        State, and local government agencies and Indian 
                        tribes that may consider an aspect of an 
                        application for Federal authorization shall 
                        identify, as early as possible, and share with 
                        the Commission and the applicant, any issues of 
                        concern identified during the pendency of the 
                        Commission's action under this part relating to 
                        any Federal authorization that may delay or 
                        prevent the granting of such authorization, 
                        including any issues that may prevent the 
                        agency or Indian tribe from meeting the 
                        schedule established for the project in 
                        accordance with the rule issued by the 
                        Commission under subsection (c).
                          ``(ii) Issue resolution.--The Commission may 
                        forward any issue of concern identified under 
                        clause (i) to the heads of the relevant State 
                        and Federal agencies (including, in the case of 
                        scheduling concerns identified by a State or 
                        local government agency or Indian tribe, the 
                        Federal agency overseeing the delegated 
                        authority, or the Secretary of the Interior 
                        with regard to scheduling concerns identified 
                        by an Indian tribe) for resolution. The 
                        Commission and any relevant agency shall enter 
                        into a memorandum of understanding to 
                        facilitate interagency coordination and 
                        resolution of such issues of concern, as 
                        appropriate.
  ``(c) Schedule.--
          ``(1) Commission rulemaking to establish process to set 
        schedule.--Within 180 days of the date of enactment of this 
        section the Commission shall, in consultation with the 
        appropriate Federal agencies, issue a rule, after providing for 
        notice and public comment, establishing a process for setting a 
        schedule following the filing of an application under this part 
        for the review and disposition of each Federal authorization.
          ``(2) Elements of scheduling rule.--In issuing a rule under 
        this subsection, the Commission shall ensure that the schedule 
        for each Federal authorization--
                  ``(A) includes deadlines for actions by--
                          ``(i) any Federal or State agency, local 
                        government, or Indian tribe that may consider 
                        an aspect of an application for the Federal 
                        authorization;
                          ``(ii) the applicant;
                          ``(iii) the Commission; and
                          ``(iv) other participants in a proceeding;
                  ``(B) is developed in consultation with the applicant 
                and any agency and Indian tribe that submits a response 
                under subsection (b)(2)(C)(ii);
                  ``(C) provides an opportunity for any Federal or 
                State agency, local government, or Indian tribe that 
                may consider an aspect of an application for the 
                applicable Federal authorization to identify and 
                resolve issues of concern, as provided in subsection 
                (b)(2)(D);
                  ``(D) complies with applicable schedules established 
                under Federal and State law;
                  ``(E) ensures expeditious completion of all 
                proceedings required under Federal and State law, to 
                the extent practicable; and
                  ``(F) facilitates completion of Federal and State 
                agency studies, reviews, and any other procedures 
                required prior to, or concurrent with, the preparation 
                of the Commission's environmental document required 
                under the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.).
  ``(d) Transmission of Final Schedule.--
          ``(1) In general.--For each application for a license, 
        license amendment, or exemption under this part, the Commission 
        shall establish a schedule in accordance with the rule issued 
        by the Commission under subsection (c). The Commission shall 
        publicly notice and transmit the final schedule to the 
        applicant and each agency and Indian tribe identified under 
        subsection (b)(2)(B).
          ``(2) Response.--Each agency and Indian tribe receiving a 
        schedule under this subsection shall acknowledge receipt of 
        such schedule in writing to the Commission within 30 days.
  ``(e) Adherence to Schedule.--All applicants, other licensing 
participants, and agencies and tribes considering an aspect of an 
application for a Federal authorization shall meet the deadlines set 
forth in the schedule established pursuant to subsection (d)(1).
  ``(f) Application Processing.--The Commission, Federal, State, and 
local government agencies, and Indian tribes may allow an applicant 
seeking a Federal authorization to fund a third-party contractor 
selected by such agency or tribe to assist in reviewing the 
application. All costs of an agency or tribe incurred pursuant to 
direct funding by the applicant, including all costs associated with 
the third party contractor, shall not be considered costs of the United 
States for the administration of this part under section 10(e).
  ``(g) Commission Recommendation on Scope of Environmental Review.--
For the purposes of coordinating Federal authorizations for each 
project, the Commission shall consult with and make a recommendation to 
agencies and Indian tribes receiving a schedule under subsection (d) on 
the scope of the environmental review for all Federal authorizations 
for such project. Each Federal and State agency and Indian tribe shall 
give due consideration and may give deference to the Commission's 
recommendations, to the extent appropriate under Federal law.
  ``(h) Failure To Meet Schedule.--A Federal, State, or local 
government agency or Indian tribe that anticipates that it will be 
unable to complete its disposition of a Federal authorization by the 
deadline set forth in the schedule established under subsection (d)(1) 
may file for an extension as provided under section 313(b)(2).
  ``(i) Consolidated Record.--The Commission shall, with the 
cooperation of Federal, State, and local government agencies and Indian 
tribes, maintain a complete consolidated record of all decisions made 
or actions taken by the Commission or by a Federal administrative 
agency or officer (or State or local government agency or officer or 
Indian tribe acting under delegated Federal authority) with respect to 
any Federal authorization. Such record shall constitute the record for 
judicial review under section 313(b).''.

SEC. 1305. JUDICIAL REVIEW OF DELAYED FEDERAL AUTHORIZATIONS.

  Section 313(b) of the Federal Power Act (16 U.S.C. 825l(b)) is 
amended--
          (1) by striking ``(b) Any party'' and inserting the 
        following:
  ``(b) Judicial Review.--
          ``(1) In general.--Any party''; and
          (2) by adding at the end the following:
          ``(2) Delay of a federal authorization.--Any Federal, State, 
        or local government agency or Indian tribe that will not 
        complete its disposition of a Federal authorization by the 
        deadline set forth in the schedule by the Commission under 
        section 34 may file for an extension in the United States court 
        of appeals for any circuit wherein the project or proposed 
        project is located, or in the United States Court of Appeals 
        for the District of Columbia. Such petition shall be filed not 
        later than 30 days prior to such deadline. The court shall only 
        grant an extension if the agency or tribe demonstrates, based 
        on the record maintained under section 34, that it otherwise 
        complied with the requirements of section 34 and that complying 
        with the schedule set by the Commission would have prevented 
        the agency or tribe from complying with applicable Federal or 
        State law. If the court grants the extension, the court shall 
        set a reasonable schedule and deadline, not to exceed 90 days, 
        for the agency to act on remand. If the court denies the 
        extension, or if an agency or tribe does not file for an 
        extension as provided in this subsection and does not complete 
        its disposition of a Federal authorization by the applicable 
        deadline, the Commission and applicant may move forward with 
        the proposed action.''.

SEC. 1306. LICENSING STUDY IMPROVEMENTS.

  Part I of the Federal Power Act (16 U.S.C. 792 et seq.), as amended 
by section 1304, is further amended by adding at the end the following:

``SEC. 35. LICENSING STUDY IMPROVEMENTS.

  ``(a) In General.--To facilitate the timely and efficient completion 
of the license proceedings under this part, the Commission shall, in 
consultation with applicable Federal and State agencies and interested 
members of the public--
          ``(1) compile current and accepted best practices in 
        performing studies required in such license proceedings, 
        including methodologies and the design of studies to assess the 
        full range of environmental impacts of a project that reflect 
        the most recent peer-reviewed science;
          ``(2) compile a comprehensive collection of studies and data 
        accessible to the public that could be used to inform license 
        proceedings under this part; and
          ``(3) encourage license applicants, agencies, and Indian 
        tribes to develop and use, for the purpose of fostering timely 
        and efficient consideration of license applications, a limited 
        number of open-source methodologies and tools applicable across 
        a wide array of projects, including water balance models and 
        streamflow analyses.
  ``(b) Use of Studies.--To the extent practicable, the Commission and 
other Federal, State, and local government agencies and Indian tribes 
considering an aspect of an application for Federal authorization shall 
use current, accepted science toward studies and data in support of 
their actions. Any participant in a proceeding with respect to a 
Federal authorization shall demonstrate a study requested by the party 
is not duplicative of current, existing studies that are applicable to 
the project.
  ``(c) Basin-Wide or Regional Review.--The Commission shall establish 
a program to develop comprehensive plans, at the request of project 
applicants, on a regional or basin-wide scale, in consultation with the 
applicants, appropriate Federal agencies, and affected States, local 
governments, and Indian tribes, in basins or regions with respect to 
which there are more than one project or application for a project. 
Upon such a request, the Commission, in consultation with the 
applicants, such Federal agencies, and affected States, local 
governments, and Indian tribes, may conduct or commission regional or 
basin-wide environmental studies, with the participation of at least 2 
applicants. Any study conducted under this subsection shall apply only 
to a project with respect to which the applicant participates.''.

SEC. 1307. CLOSED-LOOP PUMPED STORAGE PROJECTS.

  Part I of the Federal Power Act (16 U.S.C. 792 et seq.), as amended 
by section 1306, is further amended by adding at the end the following:

``SEC. 36. CLOSED-LOOP PUMPED STORAGE PROJECTS.

  ``(a) Definition.--For purposes of this section, a closed-loop pumped 
storage project is a project--
          ``(1) in which the upper and lower reservoirs do not impound 
        or directly withdraw water from navigable waters; or
          ``(2) that is not continuously connected to a naturally 
        flowing water feature.
  ``(b) In General.--As provided in this section, the Commission may 
issue and amend licenses and preliminary permits, as appropriate, for 
closed-loop pumped storage projects.
  ``(c) Dam Safety.--Before issuing any license for a closed-loop 
pumped storage project, the Commission shall assess the safety of 
existing dams and other structures related to the project (including 
possible consequences associated with failure of such structures).
  ``(d) License Conditions.--With respect to a closed-loop pumped 
storage project, the authority of the Commission to impose conditions 
on a license under sections 4(e), 10(a), 10(g), and 10(j) shall not 
apply, and any condition included in or applicable to a closed-loop 
pumped storage project licensed under this section, including any 
condition or other requirement of a Federal authorization, shall be 
limited to those that are--
          ``(1) necessary to protect public safety; or
          ``(2) reasonable, economically feasible, and essential to 
        prevent loss of or damage to, or to mitigate adverse effects 
        on, fish and wildlife resources directly caused by the 
        construction and operation of the project, as compared to the 
        environmental baseline existing at the time the Commission 
        completes its environmental review.
  ``(e) Transfers.--Notwithstanding section 5, and regardless of 
whether the holder of a preliminary permit for a closed-loop pumped 
storage project claimed municipal preference under section 7(a) when 
obtaining the permit, the Commission may, to facilitate development of 
a closed-loop pumped storage project--
          ``(1) add entities as joint permittees following issuance of 
        a preliminary permit; and
          ``(2) transfer a license in part to one or more nonmunicipal 
        entities as co-licensees with a municipality.''.

SEC. 1308. LICENSE AMENDMENT IMPROVEMENTS.

  Part I of the Federal Power Act (16 U.S.C. 792 et seq.), as amended 
by section 1307, is further amended by adding at the end the following:

``SEC. 37. LICENSE AMENDMENT IMPROVEMENTS.

  ``(a) Qualifying Project Upgrades.--
          ``(1) In general.--As provided in this section, the 
        Commission may approve an application for an amendment to a 
        license issued under this part for a qualifying project 
        upgrade.
          ``(2) Application.--A licensee filing an application for an 
        amendment to a project license under this section shall include 
        in such application information sufficient to demonstrate that 
        the proposed change to the project described in the application 
        is a qualifying project upgrade.
          ``(3) Initial determination.--Not later than 15 days after 
        receipt of an application under paragraph (2), the Commission 
        shall make an initial determination as to whether the proposed 
        change to the project described in the application for a 
        license amendment is a qualifying project upgrade. The 
        Commission shall publish its initial determination and issue 
        notice of the application filed under paragraph (2). Such 
        notice shall solicit public comment on the initial 
        determination within 45 days.
          ``(4) Public comment on qualifying criteria.--The Commission 
        shall accept public comment regarding whether a proposed 
        license amendment is for a qualifying project upgrade for a 
        period of 45 days beginning on the date of publication of a 
        public notice described in paragraph (3), and shall--
                  ``(A) if no entity contests whether the proposed 
                license amendment is for a qualifying project upgrade 
                during such comment period, immediately publish a 
                notice stating that the initial determination has not 
                been contested; or
                  ``(B) if an entity contests whether the proposed 
                license amendment is for a qualifying project upgrade 
                during the comment period, issue a written 
                determination in accordance with paragraph (5).
          ``(5) Written determination.--If an entity contests whether 
        the proposed license amendment is for a qualifying project 
        upgrade during the comment period under paragraph (4), the 
        Commission shall, not later than 30 days after the date of 
        publication of the public notice of the initial determination 
        under paragraph (3), issue a written determination as to 
        whether the proposed license amendment is for a qualifying 
        project upgrade.
          ``(6) Public comment on amendment application.--If no entity 
        contests whether the proposed license amendment is for a 
        qualifying project upgrade during the comment period under 
        paragraph (4) or the Commission issues a written determination 
        under paragraph (5) that a proposed license amendment is a 
        qualifying project upgrade, the Commission shall--
                  ``(A) during the 60-day period beginning on the date 
                of publication of a notice under paragraph (4)(A) or 
                the date on which the Commission issues the written 
                determination under paragraph (5), as applicable, 
                solicit comments from each Federal, State, and local 
                government agency and Indian tribe considering an 
                aspect of an application for Federal authorization (as 
                defined in section 34) with respect to the proposed 
                license amendment, as well as other interested 
                agencies, Indian tribes, and members of the public; and
                  ``(B) during the 90-day period beginning on the date 
                of publication of a notice under paragraph (4)(A) or 
                the date on which the Commission issues the written 
                determination under paragraph (5), as applicable, 
                consult with--
                          ``(i) appropriate Federal agencies and the 
                        State agency exercising administrative control 
                        over the fish and wildlife resources, and water 
                        quality and supply, of the State in which the 
                        qualifying project upgrade is located;
                          ``(ii) any Federal department supervising any 
                        public lands or reservations occupied by the 
                        qualifying project upgrade; and
                          ``(iii) any Indian tribe affected by the 
                        qualifying project upgrade.
          ``(7) Federal authorizations.--The schedule established by 
        the Commission under section 34 for any project upgrade under 
        this subsection shall require final disposition on all 
        necessary Federal authorizations (as defined in section 34), 
        other than final action by the Commission, by not later than 
        120 days after the date on which the Commission issues a notice 
        under paragraph (4)(A) or a written determination under 
        paragraph (5), as applicable.
          ``(8) Commission action.--Not later than 150 days after the 
        date on which the Commission issues a notice under paragraph 
        (4)(A) or a written determination under paragraph (5), as 
        applicable, the Commission shall take final action on the 
        license amendment application.
          ``(9) License amendment conditions.--Any condition included 
        in or applicable to a license amendment approved under this 
        subsection, including any condition or other requirement of a 
        Federal authorization, shall be limited to those that are--
                  ``(A) necessary to protect public safety; or
                  ``(B) reasonable, economically feasible, and 
                essential to prevent loss of or damage to, or to 
                mitigate adverse effects on, fish and wildlife 
                resources, water supply, and water quality that are 
                directly caused by the construction and operation of 
                the qualifying project upgrade, as compared to the 
                environmental baseline existing at the time the 
                Commission approves the application for the license 
                amendment.
          ``(10) Proposed license amendments that are not qualifying 
        project upgrades.--If the Commission determines under paragraph 
        (3) or (5) that a proposed license amendment is not for a 
        qualifying project upgrade, the procedures under paragraphs (6) 
        through (9) shall not apply to the application.
          ``(11) Rulemaking.--Not later than 180 days after the date of 
        enactment of this section, the Commission shall, after notice 
        and opportunity for public comment, issue a rule to implement 
        this subsection.
          ``(12) Definitions.--For purposes of this subsection:
                  ``(A) Qualifying project upgrade.--The term 
                `qualifying project upgrade' means a change to a 
                project licensed under this part that meets the 
                qualifying criteria, as determined by the Commission.
                  ``(B) Qualifying criteria.--The term `qualifying 
                criteria' means, with respect to a project license 
                under this part, a change to the project that--
                          ``(i) if carried out, would be unlikely to 
                        adversely affect any species listed as 
                        threatened or endangered under the Endangered 
                        Species Act of 1973 or result in the 
                        destruction or adverse modification of critical 
                        habitat, as determined in consultation with the 
                        Secretary of the Interior or Secretary of 
                        Commerce, as appropriate, in accordance with 
                        section 7 of the Endangered Species Act of 
                        1973;
                          ``(ii) is consistent with any applicable 
                        comprehensive plan under section 10(a)(2);
                          ``(iii) includes only changes to project 
                        lands, waters, or operations that, in the 
                        judgment of the Commission, would result in 
                        only insignificant or minimal cumulative 
                        adverse environmental effects;
                          ``(iv) would be unlikely to adversely affect 
                        water quality and water supply; and
                          ``(v) proposes to implement--
                                  ``(I) capacity increases, efficiency 
                                improvements, or other enhancements to 
                                hydropower generation at the licensed 
                                project;
                                  ``(II) environmental protection, 
                                mitigation, or enhancement measures to 
                                benefit fish and wildlife resources or 
                                other natural and cultural resources; 
                                or
                                  ``(III) improvements to public 
                                recreation at the licensed project.
  ``(b) Amendment Approval Processes.--
          ``(1) Rule.--Not later than 1 year after the date of 
        enactment of this section, the Commission shall, after notice 
        and opportunity for public comment, issue a rule establishing 
        new standards and procedures for license amendment applications 
        under this part. In issuing such rule, the Commission shall 
        seek to develop the most efficient and expedient process, 
        consultation, and review requirements, commensurate with the 
        scope of different categories of proposed license amendments. 
        Such rule shall account for differences in environmental 
        effects across a wide range of categories of license amendment 
        applications.
          ``(2) Capacity.--In issuing a rule under this subsection, the 
        Commission shall take into consideration that a change in 
        generating or hydraulic capacity may indicate the potential 
        environmental effects of a proposed amendment but is not 
        determinative of such effects.
          ``(3) Process options.--In issuing a rule under this 
        subsection, the Commission shall take into consideration the 
        range of process options available under the Commission's 
        regulations for new and original license applications and adapt 
        such options to amendment applications, where appropriate.''.

SEC. 1309. PROMOTING HYDROPOWER DEVELOPMENT AT EXISTING NONPOWERED 
                    DAMS.

  Part I of the Federal Power Act (16 U.S.C. 792 et seq.), as amended 
by section 1308, is further amended by adding at the end the following:

``SEC. 38. PROMOTING HYDROPOWER DEVELOPMENT AT EXISTING NONPOWERED 
                    DAMS.

  ``(a) Exemptions for Qualifying Facilities.--
          ``(1) Exemption qualifications.--Subject to the requirements 
        of this subsection, the Commission may grant an exemption in 
        whole or in part from the requirements of this part, including 
        any license requirements contained in this part, to any 
        facility the Commission determines is a qualifying facility.
          ``(2) Consultation with federal and state agencies.--In 
        granting any exemption under this subsection, the Commission 
        shall consult with--
                  ``(A) the United States Fish and Wildlife Service, 
                the National Marine Fisheries Service, and the State 
                agency exercising administrative control over the fish 
                and wildlife resources of the State in which the 
                facility will be located, in the manner provided by the 
                Fish and Wildlife Coordination Act;
                  ``(B) any Federal department supervising any public 
                lands or reservations occupied by the project; and
                  ``(C) any Indian tribe affected by the project.
          ``(3) Exemption conditions.--
                  ``(A) In general.--The Commission shall include in 
                any exemption granted under this subsection only such 
                terms and conditions that the Commission determines 
                are--
                          ``(i) necessary to protect public safety; or
                          ``(ii) reasonable, economically feasible, and 
                        essential to prevent loss of or damage to, or 
                        to mitigate adverse effects on, fish and 
                        wildlife resources directly caused by the 
                        construction and operation of the qualifying 
                        facility, as compared to the environmental 
                        baseline existing at the time the Commission 
                        grants the exemption.
                  ``(B) No changes to release regime.--No Federal 
                authorization required with respect to a qualifying 
                facility described in paragraph (1), including an 
                exemption granted by the Commission under this 
                subsection, may include any condition or other 
                requirement that results in any material change to the 
                storage, control, withdrawal, diversion, release, or 
                flow operations of the associated qualifying nonpowered 
                dam.
          ``(4) Environmental review.--The Commission's environmental 
        review under the National Environmental Policy Act of 1969 of a 
        proposed exemption under this subsection shall consist only of 
        an environmental assessment, unless the Commission determines, 
        by rule or order, that the Commission's obligations under such 
        Act for granting exemptions under this subsection can be met 
        through a categorical exclusion.
          ``(5) Violation of terms of exemption.--Any violation of a 
        term or condition of any exemption granted under this 
        subsection shall be treated as a violation of a rule or order 
        of the Commission under this Act.
          ``(6) Annual charges for enhancement activities.--Exemptees 
        under this subsection for any facility located at a non-Federal 
        dam shall pay to the United States reasonable annual charges in 
        an amount to be fixed by the Commission for the purpose of 
        funding environmental enhancement projects in watersheds in 
        which facilities exempted under this subsection are located. 
        Such annual charges shall be equivalent to the annual charges 
        for use of a Government dam under section 10(e), unless the 
        Commission determines, by rule, that a lower charge is 
        appropriate to protect exemptees' investment in the project or 
        avoid increasing the price to consumers of power due to such 
        charges. The proceeds of charges made by the Commission under 
        this paragraph shall be paid into the Treasury of the United 
        States and credited to miscellaneous receipts. Subject to 
        annual appropriation Acts, such proceeds shall be available to 
        Federal and State fish and wildlife agencies for purposes of 
        carrying out specific environmental enhancement projects in 
        watersheds in which one or more facilities exempted under this 
        subsection are located. Not later than 180 days after the date 
        of enactment of this section, the Commission shall establish 
        rules, after notice and opportunity for public comment, for the 
        collection and administration of annual charges under this 
        paragraph.
          ``(7) Effect of jurisdiction.--The jurisdiction of the 
        Commission over any qualifying facility exempted under this 
        subsection shall extend only to the qualifying facility 
        exempted and any associated primary transmission line, and 
        shall not extend to any conduit, dam, impoundment, shoreline or 
        other land, or any other project work associated with the 
        qualifying facility exempted under this subsection.
  ``(b) Definitions.--For purposes of this section--
          ``(1) Federal authorization.--The term `Federal 
        authorization' has the same meaning as provided in section 34.
          ``(2) Qualifying criteria.--The term `qualifying criteria' 
        means, with respect to a facility--
                  ``(A) as of the date of enactment of this section, 
                the facility is not licensed under, or exempted from 
                the license requirements contained in, this part;
                  ``(B) the facility will be associated with a 
                qualifying nonpowered dam;
                  ``(C) the facility will be constructed, operated, and 
                maintained for the generation of electric power;
                  ``(D) the facility will use for such generation any 
                withdrawals, diversions, releases, or flows from the 
                associated qualifying nonpowered dam, including its 
                associated impoundment or other infrastructure; and
                  ``(E) the operation of the facility will not result 
                in any material change to the storage, control, 
                withdrawal, diversion, release, or flow operations of 
                the associated qualifying nonpowered dam.
          ``(3) Qualifying facility.--The term `qualifying facility' 
        means a facility that is determined under this section to meet 
        the qualifying criteria.
          ``(4) Qualifying nonpowered dam.--The term `qualifying 
        nonpowered dam' means any dam, dike, embankment, or other 
        barrier--
                  ``(A) the construction of which was completed on or 
                before the date of enactment of this section;
                  ``(B) that is operated for the control, release, or 
                distribution of water for agricultural, municipal, 
                navigational, industrial, commercial, environmental, 
                recreational, aesthetic, or flood control purposes;
                  ``(C) that, as of the date of enactment of this 
                section, is not equipped with hydropower generating 
                works that are licensed under, or exempted from the 
                license requirements contained in, this part; and
                  ``(D) that, in the case of a non-Federal dam, has 
                been certified by an independent consultant approved by 
                the Commission as complying with the Commission's dam 
                safety requirements.''.

                    TITLE II--21ST CENTURY WORKFORCE

SEC. 2001. ENERGY AND MANUFACTURING WORKFORCE DEVELOPMENT.

  (a) In General.--The Secretary of Energy (in this section referred to 
as the ``Secretary'') shall establish and carry out a comprehensive 
program to improve education and training for energy and manufacturing-
related jobs in order to increase the number of skilled workers trained 
to work in energy and manufacturing-related fields, including by--
          (1) encouraging underrepresented groups, including religious 
        and ethnic minorities, women, veterans, individuals with 
        disabilities, and socioeconomically disadvantaged individuals 
        to enter into the science, technology, engineering, and 
        mathematics (in this section referred to as ``STEM'') fields;
          (2) encouraging the Nation's education system to equip 
        students with the skills, mentorships, training, and technical 
        expertise necessary to fill the employment opportunities vital 
        to managing and operating the Nation's energy and manufacturing 
        industries;
          (3) providing students and other candidates for employment 
        with the necessary skills and certifications for skilled, 
        semiskilled, and highly skilled energy and manufacturing-
        related jobs; and
          (4) strengthening and more fully engaging Department of 
        Energy programs and labs in carrying out the Department's 
        Minorities in Energy Initiative.
  (b) Priority.--The Secretary shall make educating and training 
underrepresented groups for energy and manufacturing-related jobs a 
national priority under the program established under subsection (a).
  (c) Direct Assistance.--In carrying out the program established under 
subsection (a), the Secretary shall provide direct assistance 
(including financial assistance awards, technical expertise, wraparound 
services, career coaching, mentorships, internships, and partnerships) 
to schools, community colleges, workforce development organizations, 
nonprofit organizations, labor organizations, apprenticeship programs, 
and minority serving institutions. The Secretary shall distribute 
direct assistance in a manner proportional to energy and manufacturing 
industry needs and demand for jobs, consistent with information 
obtained under subsections (e)(3) and (i).
  (d) Clearinghouse.--In carrying out the program established under 
subsection (a), the Secretary shall establish a clearinghouse to--
          (1) maintain and update information and resources on training 
        and workforce development programs for energy and 
        manufacturing-related jobs, including job training and 
        workforce development programs available to assist displaced 
        and unemployed energy and manufacturing workers transitioning 
        to new employment; and
          (2) act as a resource, and provide guidance, for schools, 
        community colleges, universities (including minority serving 
        institutions), workforce development programs, labor-management 
        organizations, and industry organizations that would like to 
        develop and implement energy and manufacturing-related training 
        programs.
  (e) Collaboration.--In carrying out the program established under 
subsection (a), the Secretary--
          (1) shall collaborate with schools, community colleges, 
        universities (including minority serving institutions), 
        workforce-training organizations, national laboratories, 
        unions, State energy offices, workforce investment boards, and 
        the energy and manufacturing industries;
          (2) shall encourage and foster collaboration, mentorships, 
        and partnerships among organizations (including unions, 
        industry, schools, community colleges, workforce-development 
        organizations, and colleges and universities) that currently 
        provide effective job training programs in the energy and 
        manufacturing fields and institutions (including schools, 
        community colleges, workforce development programs, and 
        colleges and universities) that seek to establish these types 
        of programs in order to share best practices and approaches 
        that best suit local, State, and national needs; and
          (3) shall collaborate with the Bureau of Labor Statistics, 
        the Department of Commerce, the Bureau of the Census, and the 
        energy and manufacturing industries to develop a comprehensive 
        and detailed understanding of the energy and manufacturing 
        workforce needs and opportunities by State and by region, and 
        publish an annual report on energy and manufacturing job 
        creation by the sectors enumerated in subsection (i).
  (f) Guidelines for Educational Institutions.--
          (1) In general.--In carrying out the program established 
        under subsection (a), the Secretary, in collaboration with the 
        Secretary of Education, the Secretary of Commerce, the 
        Secretary of Labor, the National Science Foundation, and 
        industry shall develop voluntary guidelines and best practices 
        for educational institutions of all levels, including for 
        elementary and secondary schools and community colleges and for 
        undergraduate, graduate, and postgraduate university programs, 
        to help provide graduates with the skills necessary to work in 
        energy and manufacturing-related jobs.
          (2) Input.--The Secretary shall solicit input from the oil, 
        gas, coal, renewable, nuclear, utility, energy-intensive and 
        advanced manufacturing, and pipeline industries in developing 
        guidelines under paragraph (1).
          (3) Energy and manufacturing efficiency and conservation 
        initiatives.--The guidelines developed under paragraph (1) 
        shall include grade-specific guidelines for teaching energy and 
        manufacturing efficiency and conservation initiatives to 
        educate students and families.
          (4) STEM education.--The guidelines developed under paragraph 
        (1) shall promote STEM education as it relates to job 
        opportunities in energy and manufacturing-related fields of 
        study in schools, community colleges, and universities 
        nationally.
  (g) Outreach to Minority Serving Institutions.--In carrying out the 
program established under subsection (a), the Secretary shall--
          (1) give special consideration to increasing outreach to 
        minority serving institutions (including historically black 
        colleges and universities, predominantly black institutions, 
        Hispanic serving institutions, and tribal institutions);
          (2) make resources available to minority serving institutions 
        with the objective of increasing the number of skilled 
        minorities and women trained to go into the energy and 
        manufacturing sectors;
          (3) encourage industry to improve the opportunities for 
        students of minority serving institutions to participate in 
        industry internships and cooperative work/study programs; and
          (4) partner with the Department of Energy laboratories to 
        increase underrepresented groups' participation in internships, 
        fellowships, traineeships, and employment at all Department of 
        Energy laboratories.
  (h) Outreach to Displaced and Unemployed Energy and Manufacturing 
Workers.--In carrying out the program established under subsection (a), 
the Secretary shall--
          (1) give special consideration to increasing outreach to 
        employers and job trainers preparing displaced and unemployed 
        energy and manufacturing workers for emerging energy and 
        manufacturing jobs;
          (2) make resources available to institutions serving 
        displaced and unemployed energy and manufacturing workers with 
        the objective of training individuals to re-enter the energy 
        and manufacturing workforce;
          (3) encourage the energy and manufacturing industries to 
        improve opportunities for displaced and unemployed energy and 
        manufacturing workers to participate in internships and 
        cooperative work/study programs; and
          (4) work closely with the energy and manufacturing industries 
        to identify energy and manufacturing operations, such as coal-
        fired power plants and coal mines, scheduled for closure and to 
        provide early intervention assistance to workers employed at 
        such energy and manufacturing operations by--
                  (A) giving special consideration to employers and job 
                trainers preparing such workers for emerging energy and 
                manufacturing jobs;
                  (B) making resources available to institutions 
                serving such workers with the objective of training 
                them to re-enter the energy and manufacturing 
                workforce; and
                  (C) encouraging the energy and manufacturing 
                industries to improve opportunities for such workers to 
                participate in internships and cooperative work-study 
                programs.
  (i) Guidelines To Develop Skills for an Energy and Manufacturing 
Industry Workforce.--In carrying out the program established under 
subsection (a), the Secretary shall collaborate with representatives 
from the energy and manufacturing industries (including the oil, gas, 
coal, nuclear, utility, pipeline, renewable, petrochemical, 
manufacturing, and electrical construction sectors) to identify the 
areas of highest need in each sector and to develop guidelines for the 
skills necessary to develop a workforce trained to go into the 
following sectors of the energy and manufacturing sectors:
          (1) Energy efficiency industry, including work in energy 
        efficiency, conservation, weatherization, or retrofitting, or 
        as inspectors or auditors.
          (2) Pipeline industry, including work in pipeline 
        construction and maintenance or work as engineers or technical 
        advisors.
          (3) Utility industry, including work in the generation, 
        transmission, and distribution of electricity and natural gas, 
        such as utility technicians, operators, lineworkers, engineers, 
        scientists, and information technology specialists.
          (4) Alternative fuels, including work in biofuel development 
        and production.
          (5) Nuclear industry, including work as scientists, 
        engineers, technicians, mathematicians, or security personnel.
          (6) Oil and gas industry, including work as scientists, 
        engineers, technicians, mathematicians, petrochemical 
        engineers, or geologists.
          (7) Renewable industry, including work in the development, 
        manufacturing, and production of renewable energy sources (such 
        as solar, hydropower, wind, or geothermal energy).
          (8) Coal industry, including work as coal miners, engineers, 
        developers and manufacturers of state-of-the-art coal 
        facilities, technology vendors, coal transportation workers and 
        operators, or mining equipment vendors.
          (9) Manufacturing industry, including work as operations 
        technicians, operations and design in additive manufacturing, 
        3-D printing, advanced composites, and advanced aluminum and 
        other metal alloys, industrial energy efficiency management 
        systems, including power electronics, and other innovative 
        technologies.
          (10) Chemical manufacturing industry, including work in 
        construction (such as welders, pipefitters, and tool and die 
        makers) or as instrument and electrical technicians, 
        machinists, chemical process operators, chemical engineers, 
        quality and safety professionals, and reliability engineers.
  (j) Enrollment in Training and Apprenticeship Programs.--In carrying 
out the program established under subsection (a), the Secretary shall 
work with industry, organized labor, and community-based workforce 
organizations to help identify students and other candidates, including 
from underrepresented communities such as minorities, women, and 
veterans, to enroll into training and apprenticeship programs for 
energy and manufacturing-related jobs.

                TITLE III--ENERGY SECURITY AND DIPLOMACY

SEC. 3001. SENSE OF CONGRESS.

  Congress finds the following:
          (1) North America's energy revolution has significantly 
        enhanced energy security in the United States, and 
        fundamentally changed the Nation's energy future from that of 
        scarcity to abundance.
          (2) North America's energy abundance has increased global 
        energy supplies and reduced the price of energy for consumers 
        in the United States and abroad.
          (3) Allies and trading partners of the United States, 
        including in Europe and Asia, are seeking stable and affordable 
        energy supplies from North America to enhance their energy 
        security.
          (4) The United States has an opportunity to improve its 
        energy security and promote greater stability and affordability 
        of energy supplies for its allies and trading partners through 
        a more integrated, secure, and competitive North American 
        energy system.
          (5) The United States also has an opportunity to promote such 
        objectives by supporting the free flow of energy commodities 
        and more open, transparent, and competitive global energy 
        markets, and through greater Federal agency coordination 
        relating to regulations or agency actions that significantly 
        affect the supply, distribution, or use of energy.

SEC. 3002. ENERGY SECURITY VALUATION.

  (a) Establishment of Energy Security Valuation Methods.--Not later 
than one year after the date of enactment of this Act, the Secretary of 
Energy, in collaboration with the Secretary of State, shall develop and 
transmit, after public notice and comment, to the Committee on Energy 
and Commerce and the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Energy and Natural Resources and 
the Committee on Foreign Relations of the Senate a report that develops 
recommended United States energy security valuation methods. In 
developing the report, the Secretaries may consider the recommendations 
of the Administration's Quadrennial Energy Review released on April 21, 
2015. The report shall--
          (1) evaluate and define United States energy security to 
        reflect modern domestic and global energy markets and the 
        collective needs of the United States and its allies and 
        partners;
          (2) identify transparent and uniform or coordinated 
        procedures and criteria to ensure that energy-related actions 
        that significantly affect the supply, distribution, or use of 
        energy are evaluated with respect to their potential impact on 
        energy security, including their impact on--
                  (A) consumers and the economy;
                  (B) energy supply diversity and resiliency;
                  (C) well-functioning and competitive energy markets;
                  (D) United States trade balance; and
                  (E) national security objectives; and
          (3) include a recommended implementation strategy that 
        identifies and aims to ensure that the procedures and criteria 
        referred to in paragraph (2) are--
                  (A) evaluated consistently across the Federal 
                Government; and
                  (B) weighed appropriately and balanced with 
                environmental considerations required by Federal law.
  (b) Participation.--In developing the report referred to in 
subsection (a), the Secretaries may consult with relevant Federal, 
State, private sector, and international participants, as appropriate 
and consistent with applicable law.

SEC. 3003. NORTH AMERICAN ENERGY SECURITY PLAN.

  (a) Requirement.--Not later than one year after the date of enactment 
of this Act, the Secretary of Energy, in collaboration with the 
Secretary of State, shall develop and transmit to the Committee on 
Energy and Commerce and the Committee on Foreign Affairs of the House 
of Representatives and the Committee on Energy and Natural Resources 
and the Committee on Foreign Relations of the Senate the plan described 
in subsection (b).
  (b) Purpose.--The plan referred to in subsection (a) shall include--
          (1) a recommended framework and implementation strategy to--
                  (A) improve planning and coordination with Canada and 
                Mexico to enhance energy integration, strengthen North 
                American energy security, and promote efficiencies in 
                the exploration, production, storage, supply, 
                distribution, marketing, pricing, and regulation of 
                North American energy resources; and
                  (B) address--
                          (i) North American energy public data, 
                        statistics, and mapping collaboration;
                          (ii) responsible and sustainable best 
                        practices for the development of unconventional 
                        oil and natural gas; and
                          (iii) modern, resilient energy infrastructure 
                        for North America, including physical 
                        infrastructure as well as institutional 
                        infrastructure such as policies, regulations, 
                        and practices relating to energy development; 
                        and
          (2) a recommended framework and implementation strategy to 
        improve collaboration with Caribbean and Central American 
        partners on energy security, including actions to support--
                  (A) more open, transparent, and competitive energy 
                markets;
                  (B) regulatory capacity building;
                  (C) improvements to energy transmission and storage; 
                and
                  (D) improvements to the performance of energy 
                infrastructure and efficiency.
  (c) Participation.--In developing the plan referred to in subsection 
(a), the Secretaries may consult with other Federal, State, private 
sector, and international participants, as appropriate and consistent 
with applicable law.

SEC. 3004. COLLECTIVE ENERGY SECURITY.

  (a) In General.--The Secretary of Energy and the Secretary of State 
shall collaborate to strengthen domestic energy security and the energy 
security of the allies and trading partners of the United States, 
including through actions that support or facilitate--
          (1) energy diplomacy;
          (2) the delivery of United States assistance, including 
        energy resources and technologies, to prevent or mitigate an 
        energy security crisis;
          (3) the development of environmentally and commercially 
        sustainable energy resources;
          (4) open, transparent, and competitive energy markets; and
          (5) regulatory capacity building.
  (b) Energy Security Forums.--Not later than one year after the date 
of enactment of this Act, the Secretary of Energy, in collaboration 
with the Secretary of State, shall convene not less than 2 forums to 
promote the collective energy security of the United States and its 
allies and trading partners. The forums shall include participation by 
the Secretary of Energy and the Secretary of State. In addition, an 
invitation shall be extended to--
          (1) appropriate representatives of foreign governments that 
        are allies or trading partners of the United States; and
          (2) independent experts and industry representatives.
  (c) Requirements.--The forums shall--
          (1) consist of at least one Trans-Atlantic and one Trans-
        Pacific energy security forum;
          (2) be designed to foster dialogue among government 
        officials, independent experts, and industry representatives 
        regarding--
                  (A) the current state of global energy markets;
                  (B) trade and investment issues relevant to energy; 
                and
                  (C) barriers to more open, competitive, and 
                transparent energy markets; and
          (3) be recorded and made publicly available on the Department 
        of Energy's website, including, not later than 30 days after 
        each forum, publication on the website any significant 
        outcomes.
  (d) Notification.--At least 30 days before each of the forums 
referred to in subsection (b), the Secretary of Energy shall send a 
notification regarding the forum to--
          (1) the chair and the ranking minority member of the 
        Committee on Energy and Commerce and the Committee on Foreign 
        Affairs of the House of Representatives; and
          (2) the chair and ranking minority member of the Committee on 
        Energy and Natural Resources and the Committee on Foreign 
        Relations of the Senate.

SEC. 3005. STRATEGIC PETROLEUM RESERVE MISSION READINESS PLAN.

  Not later than 180 days after the date of enactment of this Act, the 
Secretary of Energy shall conduct a long-range strategic review of the 
Strategic Petroleum Reserve and develop and transmit to Congress a plan 
that includes an analysis and implementation schedule that--
          (1) specifies near-term and long-term roles of the Strategic 
        Petroleum Reserve relative to United States energy security and 
        economic goals and objectives;
          (2) describes existing legal authorities governing the 
        policies, configuration, and capabilities of the Strategic 
        Petroleum Reserve;
          (3) identifies Strategic Petroleum Reserve configuration and 
        performance capabilities and recommends an action plan to 
        achieve the optimal--
                  (A) capacity, location, and composition of petroleum 
                products in the Reserve; and
                  (B) storage and distributional capabilities; and
          (4) estimates the resources required to attain and maintain 
        the Strategic Petroleum Reserve's long-term sustainability and 
        operational effectiveness.

SEC. 3006. AUTHORIZATION TO EXPORT NATURAL GAS.

  (a) Decision Deadline.--For proposals that must also obtain 
authorization from the Federal Energy Regulatory Commission or the 
United States Maritime Administration to site, construct, expand, or 
operate LNG export facilities, the Department of Energy shall issue a 
final decision on any application for the authorization to export 
natural gas under section 3 of the Natural Gas Act (15 U.S.C. 717b) not 
later than 30 days after the later of--
          (1) the conclusion of the review to site, construct, expand, 
        or operate the LNG facilities required by the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); or
          (2) the date of enactment of this Act.
  (b) Conclusion of Review.--For purposes of subsection (a), review 
required by the National Environmental Policy Act of 1969 shall be 
considered concluded--
          (1) for a project requiring an Environmental Impact 
        Statement, 30 days after publication of a Final Environmental 
        Impact Statement;
          (2) for a project for which an Environmental Assessment has 
        been prepared, 30 days after publication by the Department of 
        Energy of a Finding of No Significant Impact; and
          (3) upon a determination by the lead agency that an 
        application is eligible for a categorical exclusion pursuant to 
        National Environmental Policy Act of 1969 implementing 
        regulations.
  (c) Public Disclosure of Export Destinations.--Section 3 of the 
Natural Gas Act (15 U.S.C. 717b) is amended by adding at the end the 
following:
  ``(g) Public Disclosure of LNG Export Destinations.--As a condition 
for approval of any authorization to export LNG, the Secretary of 
Energy shall require the applicant to publicly disclose the specific 
destination or destinations of any such authorized LNG exports.''.

             TITLE IV--ENERGY EFFICIENCY AND ACCOUNTABILITY

                     Subtitle A--Energy Efficiency

              CHAPTER 1--FEDERAL AGENCY ENERGY EFFICIENCY

SEC. 4111. ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION TECHNOLOGIES.

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

``SEC. 530. ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION 
                    TECHNOLOGIES.

  ``(a) Definitions.--In this section:
          ``(1) Director.--The term `Director' means the Director of 
        the Office of Management and Budget.
          ``(2) Information technology.--The term `information 
        technology' has the meaning given that term in section 11101 of 
        title 40, United States Code.
  ``(b) Development of Implementation Strategy.--Not later than 1 year 
after the date of enactment of this section, each Federal agency shall 
coordinate with the Director, the Secretary, and the Administrator of 
the Environmental Protection Agency to develop an implementation 
strategy (that includes best practices and measurement and verification 
techniques) for the maintenance, purchase, and use by the Federal 
agency of energy-efficient and energy-saving information technologies, 
taking into consideration the performance goals established under 
subsection (d).
  ``(c) Administration.--In developing an implementation strategy under 
subsection (b), each Federal agency shall consider--
          ``(1) advanced metering infrastructure;
          ``(2) energy-efficient data center strategies and methods of 
        increasing asset and infrastructure utilization;
          ``(3) advanced power management tools;
          ``(4) building information modeling, including building 
        energy management;
          ``(5) secure telework and travel substitution tools; and
          ``(6) mechanisms to ensure that the agency realizes the 
        energy cost savings brought about through increased efficiency 
        and utilization.
  ``(d) Performance Goals.--
          ``(1) In general.--Not later than 180 days after the date of 
        enactment of this section, the Director, in consultation with 
        the Secretary, shall establish performance goals for evaluating 
        the efforts of Federal agencies in improving the maintenance, 
        purchase, and use of energy-efficient and energy-saving 
        information technology.
          ``(2) Best practices.--The Chief Information Officers Council 
        established under section 3603 of title 44, United States Code, 
        shall recommend best practices for the attainment of the 
        performance goals, which shall include Federal agency 
        consideration of, to the extent applicable by law, the use of--
                  ``(A) energy savings performance contracting; and
                  ``(B) utility energy services contracting.
  ``(e) Reports.--
          ``(1) Agency reports.--Each Federal agency shall include in 
        the report of the agency under section 527 a description of the 
        efforts and results of the agency under this section.
          ``(2) OMB government efficiency reports and scorecards.--
        Effective beginning not later than October 1, 2017, the 
        Director shall include in the annual report and scorecard of 
        the Director required under section 528 a description of the 
        efforts and results of Federal agencies under this section.''.
  (b) Conforming Amendment.--The table of contents for the Energy 
Independence and Security Act of 2007 is amended by adding after the 
item relating to section 529 the following:

``Sec. 530. Energy-efficient and energy-saving information 
technologies.''.

SEC. 4112. ENERGY EFFICIENT DATA CENTERS.

  Section 453 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17112) is amended--
          (1) in subsection (b)(2)(D)(iv), by striking ``determined by 
        the organization'' and inserting ``proposed by the 
        stakeholders'';
          (2) by striking subsection (b)(3); and
          (3) by striking subsections (c) through (g) and inserting the 
        following:
  ``(c) Stakeholder Involvement.--The Secretary and the Administrator 
shall carry out subsection (b) in collaboration with the information 
technology industry and other key stakeholders, with the goal of 
producing results that accurately reflect the most relevant and useful 
information available. In such collaboration, the Secretary and the 
Administrator shall pay particular attention to organizations that--
          ``(1) have members with expertise in energy efficiency and in 
        the development, operation, and functionality of data centers, 
        information technology equipment, and software, such as 
        representatives of hardware manufacturers, data center 
        operators, and facility managers;
          ``(2) obtain and address input from Department of Energy 
        National Laboratories or any college, university, research 
        institution, industry association, company, or public interest 
        group with applicable expertise;
          ``(3) follow--
                  ``(A) commonly accepted procedures for the 
                development of specifications; and
                  ``(B) accredited standards development processes; and
          ``(4) have a mission to promote energy efficiency for data 
        centers and information technology.
  ``(d) Measurements and Specifications.--The Secretary and the 
Administrator shall consider and assess the adequacy of the 
specifications, measurements, best practices, and benchmarks described 
in subsection (b) for use by the Federal Energy Management Program, the 
Energy Star Program, and other efficiency programs of the Department of 
Energy or the Environmental Protection Agency.
  ``(e) Study.--The Secretary, in collaboration with the Administrator, 
shall, not later than 18 months after the date of enactment of the 
North American Energy Security and Infrastructure Act of 2015, make 
available to the public an update to the Report to Congress on Server 
and Data Center Energy Efficiency published on August 2, 2007, under 
section 1 of Public Law 109-431 (120 Stat. 2920), that provides--
          ``(1) a comparison and gap analysis of the estimates and 
        projections contained in the original report with new data 
        regarding the period from 2008 through 2015;
          ``(2) an analysis considering the impact of information 
        technologies, including virtualization and cloud computing, in 
        the public and private sectors;
          ``(3) an evaluation of the impact of the combination of cloud 
        platforms, mobile devices, social media, and big data on data 
        center energy usage;
          ``(4) an evaluation of water usage in data centers and 
        recommendations for reductions in such water usage; and
          ``(5) updated projections and recommendations for best 
        practices through fiscal year 2020.
  ``(f) Data Center Energy Practitioner Program.--The Secretary, in 
collaboration with key stakeholders and the Director of the Office of 
Management and Budget, shall maintain a data center energy practitioner 
program that leads to the certification of energy practitioners 
qualified to evaluate the energy usage and efficiency opportunities in 
Federal data centers. Each Federal agency shall consider having the 
data centers of the agency evaluated every 4 years, in accordance with 
section 543(f) of the National Energy Conservation Policy Act (42 
U.S.C. 8253), by energy practitioners certified pursuant to such 
program.
  ``(g) Open Data Initiative.--The Secretary, in collaboration with key 
stakeholders and the Director of the Office of Management and Budget, 
shall establish an open data initiative for Federal data center energy 
usage data, with the purpose of making such data available and 
accessible in a manner that encourages further data center innovation, 
optimization, and consolidation. In establishing the initiative, the 
Secretary shall consider the use of the online Data Center Maturity 
Model.
  ``(h) International Specifications and Metrics.--The Secretary, in 
collaboration with key stakeholders, shall actively participate in 
efforts to harmonize global specifications and metrics for data center 
energy and water efficiency.
  ``(i) Data Center Utilization Metric.--The Secretary, in 
collaboration with key stakeholders, shall facilitate the development 
of an efficiency metric that measures the energy efficiency of a data 
center (including equipment and facilities).
  ``(j) Protection of Proprietary Information.--The Secretary and the 
Administrator shall not disclose any proprietary information or trade 
secrets provided by any individual or company for the purposes of 
carrying out this section or the programs and initiatives established 
under this section.''.

SEC. 4113. REPORT ON ENERGY AND WATER SAVINGS POTENTIAL FROM THERMAL 
                    INSULATION.

  (a) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Energy, in consultation with appropriate 
Federal agencies and relevant stakeholders, shall submit to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Energy and Commerce of the House of Representatives a 
report on the impact of thermal insulation on both energy and water use 
systems for potable hot and chilled water in Federal buildings, and the 
return on investment of installing such insulation.
  (b) Contents.--The report shall include--
          (1) an analysis based on the cost of municipal or regional 
        water for delivered water and the avoided cost of new water; 
        and
          (2) a summary of energy and water savings, including short-
        term and long-term (20 years) projections of such savings.

SEC. 4114. FEDERAL PURCHASE REQUIREMENT.

  (a) Definitions.--Section 203(b) of the Energy Policy Act of 2005 (42 
U.S.C. 15852(b)) is amended by striking paragraph (2) and inserting the 
following:
          ``(2) Renewable energy.--The term `renewable energy' means 
        electric energy, or thermal energy if resulting from a thermal 
        energy project placed in service after December 31, 2014, 
        generated from, or avoided by, solar, wind, biomass, landfill 
        gas, ocean (including tidal, wave, current, and thermal), 
        geothermal, municipal solid waste (in accordance with 
        subsection (e)), qualified waste heat resource, or new 
        hydroelectric generation capacity achieved from increased 
        efficiency or additions of new capacity at an existing 
        hydroelectric project.
          ``(3) Qualified waste heat resource.--The term `qualified 
        waste heat resource' means--
                  ``(A) exhaust heat or flared gas from any industrial 
                process;
                  ``(B) waste gas or industrial tail gas that would 
                otherwise be flared, incinerated, or vented;
                  ``(C) a pressure drop in any gas for an industrial or 
                commercial process; or
                  ``(D) such other forms of waste heat as the Secretary 
                determines appropriate.''.
  (b) Paper Recycling.--Section 203 of the Energy Policy Act of 2005 
(42 U.S.C. 15852) is amended by adding at the end the following:
  ``(e) Paper Recycling.--
          ``(1) Separate collection.--For purposes of this section, any 
        Federal agency may consider electric energy generation 
        purchased from a facility to be renewable energy if the 
        municipal solid waste used by the facility to generate the 
        electricity is--
                  ``(A) separately collected (within the meaning of 
                section 246.101(z) of title 40, Code of Federal 
                Regulations, as in effect on the date of enactment of 
                the North American Energy Security and Infrastructure 
                Act of 2015) from paper that is commonly recycled; and
                  ``(B) processed in a way that keeps paper that is 
                commonly recycled segregated from non-recyclable solid 
                waste.
          ``(2) Incidental inclusion.--Municipal solid waste used to 
        generate electric energy that meets the conditions described in 
        paragraph (1) shall be considered renewable energy even if the 
        municipal solid waste contains incidental commonly recycled 
        paper.
          ``(3) No effect on existing processes.--Nothing in paragraph 
        (1) shall be interpreted to require a State or political 
        subdivision of a State, directly or indirectly, to change the 
        systems, processes, or equipment it uses to collect, treat, 
        dispose of, or otherwise use municipal solid waste, within the 
        meaning of the Solid Waste Disposal Act (42 U.S.C. 6901 et 
        seq.), nor require a change to the regulations that implement 
        subtitle D of such Act (42 U.S.C. 6941 et seq.).''.

SEC. 4115. ENERGY PERFORMANCE REQUIREMENT FOR FEDERAL BUILDINGS.

  Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 
8253) is amended--
          (1) by striking subsection (a) and inserting the following:
  ``(a) Energy Performance Requirement for Federal Buildings.--
          ``(1) Requirement.--Subject to paragraph (2), each agency 
        shall apply energy conservation measures to, and shall improve 
        the design for the construction of, the Federal buildings of 
        the agency (including each industrial or laboratory facility) 
        so that the energy consumption per gross square foot of the 
        Federal buildings of the agency in fiscal years 2006 through 
        2017 is reduced, as compared with the energy consumption per 
        gross square foot of the Federal buildings of the agency in 
        fiscal year 2003, by the percentage specified in the following 
        table:

                                                             Percentage
``Fiscal Year                                                 Reduction
        2006...............................................          2 
        2007...............................................          4 
        2008...............................................          9 
        2009...............................................         12 
        2010...............................................         15 
        2011...............................................         18 
        2012...............................................         21 
        2013...............................................         24 
        2014...............................................         27 
        2015...............................................         30 
        2016...............................................         33 
        2017...............................................         36.

          ``(2) Exclusion for buildings with energy intensive 
        activities.--
                  ``(A) In general.--An agency may exclude from the 
                requirements of paragraph (1) any building (including 
                the associated energy consumption and gross square 
                footage) in which energy intensive activities are 
                carried out.
                  ``(B) Reports.--Each agency shall identify and list 
                in each report made under section 548(a) the buildings 
                designated by the agency for exclusion under 
                subparagraph (A).
          ``(3) Review.--Not later than December 31, 2017, the 
        Secretary shall--
                  ``(A) review the results of the implementation of the 
                energy performance requirements established under 
                paragraph (1); and
                  ``(B) based on the review conducted under 
                subparagraph (A), submit to Congress a report that 
                addresses the feasibility of requiring each agency to 
                apply energy conservation measures to, and improve the 
                design for the construction of, the Federal buildings 
                of the agency (including each industrial or laboratory 
                facility) so that the energy consumption per gross 
                square foot of the Federal buildings of the agency in 
                each of fiscal years 2018 through 2030 is reduced, as 
                compared with the energy consumption per gross square 
                foot of the Federal buildings of the agency in the 
                prior fiscal year, by 3 percent.''; and
          (2) in subsection (f)--
                  (A) in paragraph (1)--
                          (i) by redesignating subparagraphs (E), (F), 
                        and (G) as subparagraphs (F), (G), and (H), 
                        respectively; and
                          (ii) by inserting after subparagraph (D) the 
                        following:
                  ``(E) Ongoing commissioning.--The term `ongoing 
                commissioning' means an ongoing process of 
                commissioning using monitored data, the primary goal of 
                which is to ensure continuous optimum performance of a 
                facility, in accordance with design or operating needs, 
                over the useful life of the facility, while meeting 
                facility occupancy requirements.'';
                  (B) in paragraph (2), by adding at the end the 
                following:
                  ``(C) Energy management system.--An energy manager 
                designated under subparagraph (A) shall consider use of 
                a system to manage energy use at the facility and 
                certification of the facility in accordance with the 
                International Organization for Standardization standard 
                numbered 50001 and entitled `Energy Management 
                Systems'.'';
                  (C) by striking paragraphs (3) and (4) and inserting 
                the following:
          ``(3) Energy and water evaluations and commissioning.--
                  ``(A) Evaluations.--Except as provided in 
                subparagraph (B), effective beginning on the date that 
                is 180 days after the date of enactment of the North 
                American Energy Security and Infrastructure Act of 
                2015, and annually thereafter, each energy manager 
                shall complete, for each calendar year, a comprehensive 
                energy and water evaluation and recommissioning or 
                retrocommissioning for approximately 25 percent of the 
                facilities of that energy manager's agency that meet 
                the criteria under paragraph (2)(B) in a manner that 
                ensures that an evaluation of each facility is 
                completed at least once every 4 years.
                  ``(B) Exceptions.--An evaluation and recommissioning 
                or recommissioning shall not be required under 
                subparagraph (A) with respect to a facility that--
                          ``(i) has had a comprehensive energy and 
                        water evaluation during the 8-year period 
                        preceding the date of the evaluation;
                          ``(ii)(I) has been commissioned, 
                        recommissioned, or retrocommissioned during the 
                        10-year period preceding the date of the 
                        evaluation; or
                          ``(II) is under ongoing commissioning, 
                        recommissioning, or retrocommissioning;
                          ``(iii) has not had a major change in 
                        function or use since the previous evaluation 
                        and commissioning, recommissioning, or 
                        retrocommissioning;
                          ``(iv) has been benchmarked with public 
                        disclosure under paragraph (8) within the year 
                        preceding the evaluation; and
                          ``(v)(I) based on the benchmarking, has 
                        achieved at a facility level the most recent 
                        cumulative energy savings target under 
                        subsection (a) compared to the earlier of--
                                  ``(aa) the date of the most recent 
                                evaluation; or
                                  ``(bb) the date--
                                          ``(AA) of the most recent 
                                        commissioning, recommissioning, 
                                        or retrocommissioning; or
                                          ``(BB) on which ongoing 
                                        commissioning, recommissioning, 
                                        or retrocommissioning began; or
                          ``(II) has a long-term contract in place 
                        guaranteeing energy savings at least as great 
                        as the energy savings target under subclause 
                        (I).
          ``(4) Implementation of identified energy and water 
        efficiency measures.--
                  ``(A) In general.--Not later than 2 years after the 
                date of completion of each evaluation under paragraph 
                (3), each energy manager may--
                          ``(i) implement any energy- or water-saving 
                        measure that the Federal agency identified in 
                        the evaluation conducted under paragraph (3) 
                        that is life-cycle cost effective; and
                          ``(ii) bundle individual measures of varying 
                        paybacks together into combined projects.
                  ``(B) Measures not implemented.--Each energy manager, 
                as part of the certification system under paragraph (7) 
                and using guidelines developed by the Secretary, shall 
                provide an explanation regarding any life-cycle cost-
                effective measures described in subparagraph (A)(i) 
                that have not been implemented.''; and
                  (D) in paragraph (7)(C), by adding at the end the 
                following:
                          ``(iii) Summary report.--The Secretary shall 
                        make publicly available a report that 
                        summarizes the information tracked under 
                        subparagraph (B)(i) by each agency and, as 
                        applicable, by each type of measure.''.

SEC. 4116. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS; 
                    CERTIFICATION SYSTEM AND LEVEL FOR FEDERAL 
                    BUILDINGS.

  (a) Definitions.--Section 303 of the Energy Conservation and 
Production Act (42 U.S.C. 6832) is amended--
          (1) in paragraph (6), by striking ``to be constructed'' and 
        inserting ``constructed or altered''; and
          (2) by adding at the end the following:
          ``(17) Major renovation.--The term `major renovation' means a 
        modification of building energy systems sufficiently extensive 
        that the whole building can meet energy standards for new 
        buildings, based on criteria to be established by the Secretary 
        through notice and comment rulemaking.''.
  (b) Federal Building Efficiency Standards.--Section 305 of the Energy 
Conservation and Production Act (42 U.S.C. 6834) is amended--
          (1) in subsection (a)(3)--
                  (A) by striking ``(3)(A) Not later than'' and all 
                that follows through the end of subparagraph (B) and 
                inserting the following:
          ``(3) Revised federal building energy efficiency performance 
        standards; certification for green buildings.--
                  ``(A) Revised federal building energy efficiency 
                performance standards.--
                          ``(i) In general.--Not later than 1 year 
                        after the date of enactment of the North 
                        American Energy Security and Infrastructure Act 
                        of 2015, the Secretary shall establish, by 
                        rule, revised Federal building energy 
                        efficiency performance standards that require 
                        that--
                                  ``(I) new Federal buildings and 
                                alterations and additions to existing 
                                Federal buildings--
                                          ``(aa) meet or exceed the 
                                        most recent revision of the 
                                        IECC (in the case of 
                                        residential buildings) or 
                                        ASHRAE Standard 90.1 (in the 
                                        case of commercial buildings) 
                                        as of the date of enactment of 
                                        the North American Energy 
                                        Security and Infrastructure Act 
                                        of 2015; and
                                          ``(bb) meet or exceed the 
                                        energy provisions of State and 
                                        local building codes applicable 
                                        to the building, if the codes 
                                        are more stringent than the 
                                        IECC or ASHRAE Standard 90.1, 
                                        as applicable;
                                  ``(II) unless demonstrated not to be 
                                life-cycle cost effective for new 
                                Federal buildings and Federal buildings 
                                with major renovations--
                                          ``(aa) the buildings be 
                                        designed to achieve energy 
                                        consumption levels that are at 
                                        least 30 percent below the 
                                        levels established in the 
                                        version of the ASHRAE Standard 
                                        or the IECC, as appropriate, 
                                        that is applied under subclause 
                                        (I)(aa), including updates 
                                        under subparagraph (B); and
                                          ``(bb) sustainable design 
                                        principles are applied to the 
                                        location, siting, design, and 
                                        construction of all new Federal 
                                        buildings and replacement 
                                        Federal buildings;
                                  ``(III) if water is used to achieve 
                                energy efficiency, water conservation 
                                technologies shall be applied to the 
                                extent that the technologies are life-
                                cycle cost effective; and
                                  ``(IV) if life-cycle cost effective, 
                                as compared to other reasonably 
                                available technologies, not less than 
                                30 percent of the hot water demand for 
                                each new Federal building or Federal 
                                building undergoing a major renovation 
                                be met through the installation and use 
                                of solar hot water heaters.
                          ``(ii) Limitation.--Clause (i)(I) shall not 
                        apply to unaltered portions of existing Federal 
                        buildings and systems that have been added to 
                        or altered.
                  ``(B) Updates.--Not later than 1 year after the date 
                of approval of each subsequent revision of ASHRAE 
                Standard 90.1 or the IECC, as appropriate, the 
                Secretary shall determine whether the revised standards 
                established under subparagraph (A) should be updated to 
                reflect the revisions, based on the energy savings and 
                life-cycle cost effectiveness of the revisions.'';
                  (B) in subparagraph (C), by striking ``(C) In the 
                budget request'' and inserting the following:
                  ``(C) Budget request.--In the budget request''; and
                  (C) in subparagraph (D)--
                          (i) by striking ``(D) Not later than'' and 
                        all that follows through the end of the first 
                        sentence of clause (i)(III) and inserting the 
                        following:
                  ``(D) Certification for green buildings.--
                          ``(i) In general.--'';
                          (ii) by striking clause (ii);
                          (iii) in clause (iii), by striking ``(iii) In 
                        identifying'' and inserting the following:
                          ``(ii) Considerations.--In identifying'';
                          (iv) in clause (iv)--
                                  (I) by striking ``(iv) At least 
                                once'' and inserting the following:
                          ``(iii) Study.--At least once''; and
                                  (II) by striking ``clause (iii)'' and 
                                inserting ``clause (ii)'';
                          (v) in clause (v)--
                                  (I) by striking ``(v) The Secretary 
                                may'' and inserting the following:
                          ``(iv) Internal certification processes.--The 
                        Secretary may''; and
                                  (II) by striking ``clause (i)(III)'' 
                                each place it appears and inserting 
                                ``clause (i)'';
                          (vi) in clause (vi)--
                                  (I) by striking ``(vi) With respect'' 
                                and inserting the following:
                          ``(v) Privatized military housing.--With 
                        respect''; and
                                  (II) by striking ``develop 
                                alternative criteria to those 
                                established by subclauses (I) and (III) 
                                of clause (i) that achieve an 
                                equivalent result in terms of energy 
                                savings, sustainable design, and'' and 
                                inserting ``develop alternative 
                                certification systems and levels than 
                                the systems and levels identified under 
                                clause (i) that achieve an equivalent 
                                result in terms of''; and
                          (vii) in clause (vii), by striking ``(vii) In 
                        addition to'' and inserting the following:
                          ``(vi) Water conservation technologies.--In 
                        addition to''; and
          (2) by striking subsections (c) and (d) and inserting the 
        following:
  ``(c) Periodic Review.--The Secretary shall--
          ``(1) every 5 years, review the Federal building energy 
        standards established under this section; and
          ``(2) on completion of a review under paragraph (1), if the 
        Secretary determines that significant energy savings would 
        result, upgrade the standards to include all new energy 
        efficiency and renewable energy measures that are 
        technologically feasible and economically justified.''.

SEC. 4117. OPERATION OF BATTERY RECHARGING STATIONS IN PARKING AREAS 
                    USED BY FEDERAL EMPLOYEES.

  (a) Authorization.--
          (1) In general.--The head of any office of the Federal 
        Government which owns or operates a parking area for the use of 
        its employees (either directly or indirectly through a 
        contractor) may install, construct, operate, and maintain on a 
        reimbursable basis a battery recharging station in such area 
        for the use of privately owned vehicles of employees of the 
        office and others who are authorized to park in such area.
          (2) Use of vendors.--The head of an office may carry out 
        paragraph (1) through a contract with a vendor, under such 
        terms and conditions (including terms relating to the 
        allocation between the office and the vendor of the costs of 
        carrying out the contract) as the head of the office and the 
        vendor may agree to.
  (b) Imposition of Fees To Cover Costs.--
          (1) Fees.--The head of an office of the Federal Government 
        which operates and maintains a battery recharging station under 
        this section shall charge fees to the individuals who use the 
        station in such amount as is necessary to ensure that office 
        recovers all of the costs it incurs in installing, 
        constructing, operating, and maintaining the station.
          (2) Deposit and availability of fees.--Any fees collected by 
        the head of an office under this subsection shall be--
                  (A) deposited monthly in the Treasury to the credit 
                of the appropriations account for salaries and expenses 
                of the office; and
                  (B) available for obligation without further 
                appropriation during--
                          (i) the fiscal year collected; and
                          (ii) the fiscal year following the fiscal 
                        year collected.
  (c) No Effect on Existing Programs for House and Senate.--Nothing in 
this section may be construed to affect the installation, construction, 
operation, or maintenance of battery recharging stations by the 
Architect of the Capitol--
          (1) under Public Law 112-170 (2 U.S.C. 2171), relating to 
        employees of the House of Representatives and individuals 
        authorized to park in any parking area under the jurisdiction 
        of the House of Representatives on the Capitol Grounds; or
          (2) under Public Law 112-167 (2 U.S.C. 2170), relating to 
        employees of the Senate and individuals authorized to park in 
        any parking area under the jurisdiction of the Senate on the 
        Capitol Grounds.
  (d) Effective Date.--This section shall apply with respect to fiscal 
year 2016 and each succeeding fiscal year.

        CHAPTER 2--ENERGY EFFICIENT TECHNOLOGY AND MANUFACTURING

SEC. 4121. INCLUSION OF SMART GRID CAPABILITY ON 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) Smart grid capability on energy guide labels.--
                          ``(i) Rule.--Not later than 1 year after the 
                        date of enactment of this subparagraph, the 
                        Commission shall initiate a rulemaking to 
                        consider making a special note in a prominent 
                        manner on any Energy Guide label for any 
                        product that includes Smart Grid capability 
                        that--
                                  ``(I) Smart Grid capability is a 
                                feature of that product;
                                  ``(II) the use and value of that 
                                feature depend on the Smart Grid 
                                capability of the utility system in 
                                which the product is 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 as a result 
                                of the incremental energy and 
                                electricity cost savings that would 
                                result from the customer taking full 
                                advantage of such Smart Grid 
                                capability.
                          ``(ii) Deadline.--Not later than 3 years 
                        after the date of enactment of this 
                        subparagraph, the Commission shall complete the 
                        rulemaking initiated under clause (i).''.

SEC. 4122. VOLUNTARY VERIFICATION PROGRAMS FOR AIR CONDITIONING, 
                    FURNACE, BOILER, HEAT PUMP, AND WATER HEATER 
                    PRODUCTS.

   Section 326(b) of the Energy Policy and Conservation Act (42 U.S.C. 
6296(b)) is amended by adding at the end the following:
          ``(6) Voluntary verification programs for air conditioning, 
        furnace, boiler, heat pump, and water heater products.--
                  ``(A) Reliance on voluntary programs.--For the 
                purpose of verifying compliance with energy 
                conservation standards established under sections 325 
                and 342 for covered products described in paragraphs 
                (3), (4), (5), (9), and (11) of section 322(a) and 
                covered equipment described in subparagraphs (B), (C), 
                (D), (F), (I), (J), and (K) of section 340(1), the 
                Secretary shall rely on testing conducted by recognized 
                voluntary verification programs that are recognized by 
                the Secretary in accordance with subparagraph (B).
                  ``(B) Recognition of voluntary verification 
                programs.--
                          ``(i) In general.--Not later than 180 days 
                        after the date of enactment of this paragraph, 
                        the Secretary shall initiate a negotiated 
                        rulemaking in accordance with subchapter III of 
                        chapter 5 of title 5, United States Code 
                        (commonly known as the `Negotiated Rulemaking 
                        Act of 1990') to develop criteria that have 
                        consensus support for achieving recognition by 
                        the Secretary as an approved voluntary 
                        verification program. Any subsequent amendment 
                        to such criteria may be made only pursuant to a 
                        subsequent negotiated rulemaking in accordance 
                        with subchapter III of chapter 5 of title 5, 
                        United States Code.
                          ``(ii) Minimum requirements.--The criteria 
                        developed under clause (i) shall, at a minimum, 
                        ensure that a voluntary verification program--
                                  ``(I) is nationally recognized;
                                  ``(II) is operated by a third party 
                                and not directly operated by a program 
                                participant;
                                  ``(III) satisfies any applicable 
                                elements of--
                                          ``(aa) International 
                                        Organization for 
                                        Standardization standard 
                                        numbered 17025; and
                                          ``(bb) any other relevant 
                                        International Organization for 
                                        Standardization standards 
                                        identified and agreed to 
                                        through the negotiated 
                                        rulemaking under clause (i);
                                  ``(IV) at least annually tests 
                                independently obtained products 
                                following the test procedures 
                                established under this title to verify 
                                the certified rating of a 
                                representative sample of products and 
                                equipment within the scope of the 
                                program;
                                  ``(V) maintains a publicly available 
                                list of all ratings of products subject 
                                to verification;
                                  ``(VI) requires the changing of the 
                                performance rating or removal of the 
                                product or equipment from the program 
                                if testing determines that the 
                                performance rating does not meet the 
                                levels the manufacturer has certified 
                                to the Secretary;
                                  ``(VII) requires new program 
                                participants to substantiate ratings 
                                through test data generated in 
                                accordance with Department of Energy 
                                regulations;
                                  ``(VIII) allows for challenge testing 
                                of products and equipment within the 
                                scope of the program;
                                  ``(IX) requires program participants 
                                to disclose the performance rating of 
                                all covered products and equipment 
                                within the scope of the program for the 
                                covered product or equipment;
                                  ``(X) provides to the Secretary--
                                          ``(aa) an annual report of 
                                        all test results, the contents 
                                        of which shall be determined 
                                        through the negotiated 
                                        rulemaking process under clause 
                                        (i); and
                                          ``(bb) test reports, on the 
                                        request of the Secretary, that 
                                        note any instructions specified 
                                        by the manufacturer or the 
                                        representative of the 
                                        manufacturer for the purpose of 
                                        conducting the verification 
                                        testing, to be exempted from 
                                        disclosure under section 
                                        552(b)(4) of title 5, United 
                                        States Code; and
                                  ``(XI) satisfies any additional 
                                requirements or standards that the 
                                Secretary shall establish consistent 
                                with this subparagraph.
                          ``(iii) Cessation of recognition.--The 
                        Secretary may only cease recognition of a 
                        voluntary verification program as an approved 
                        program described in subparagraph (A) upon a 
                        finding that the program is not meeting its 
                        obligations for compliance through program 
                        review criteria developed during the negotiated 
                        rulemaking conducted under subparagraph (B).
                  ``(C) Administration.--
                          ``(i) In general.--The Secretary shall not 
                        require--
                                  ``(I) manufacturers to participate in 
                                a recognized voluntary verification 
                                program described in subparagraph (A); 
                                or
                                  ``(II) participating manufacturers to 
                                provide information that has already 
                                been provided to the Secretary.
                          ``(ii) List of covered products.--The 
                        Secretary may maintain a publicly available 
                        list of covered products and equipment that 
                        distinguishes between products that are and are 
                        not covered products and equipment verified 
                        through a recognized voluntary verification 
                        program described in subparagraph (A).
                          ``(iii) Periodic verification testing.--The 
                        Secretary--
                                  ``(I) shall not subject products or 
                                equipment that have been verification 
                                tested under a recognized voluntary 
                                verification program described in 
                                subparagraph (A) to periodic 
                                verification testing to verify the 
                                accuracy of the certified performance 
                                rating of the products or equipment; 
                                but
                                  ``(II) may require testing of 
                                products or equipment described in 
                                subclause (I)--
                                          ``(aa) if the testing is 
                                        necessary--
                                                  ``(AA) to assess the 
                                                overall performance of 
                                                a voluntary 
                                                verification program;
                                                  ``(BB) to address 
                                                specific performance 
                                                issues;
                                                  ``(CC) for use in 
                                                updating test 
                                                procedures and 
                                                standards; or
                                                  ``(DD) for other 
                                                purposes consistent 
                                                with this title; or
                                          ``(bb) if such testing is 
                                        agreed to during the negotiated 
                                        rulemaking conducted under 
                                        subparagraph (B).
                  ``(D) Effect on other authority.--Nothing in this 
                paragraph limits the authority of the Secretary to 
                enforce compliance with any law.''.

SEC. 4123. FACILITATING CONSENSUS FURNACE STANDARDS.

  (a) Congressional Findings and Declaration of Purpose.--
          (1) Findings.--Congress finds that--
                  (A) acting pursuant to the requirements of section 
                325 of the Energy Policy and Conservation Act (42 
                U.S.C. 6295), the Secretary of Energy is considering 
                amending the energy conservation standards applicable 
                to residential nonweatherized gas furnaces and mobile 
                home gas furnaces;
                  (B) numerous stakeholders, representing 
                manufacturers, distributors, and installers of 
                residential nonweatherized gas furnaces and mobile home 
                furnaces, natural gas utilities, home builders, 
                multifamily property owners, and energy efficiency, 
                environmental, and consumer advocates have begun 
                negotiations in an attempt to agree on a consensus 
                recommendation to the Secretary on levels for such 
                standards that will meet the statutory criteria; and
                  (C) the stakeholders believe these negotiations are 
                likely to result in a consensus recommendation, but 
                several of the stakeholders do not support suspending 
                the current rulemaking.
          (2) Purpose.--It is the purpose of this section to provide 
        the stakeholders described in paragraph (1) with an opportunity 
        to continue negotiations for a limited time period to 
        facilitate the proposal for adoption of standards that enjoy 
        consensus support, while not delaying the current rulemaking 
        except to the extent necessary to provide such opportunity.
  (b) Opportunity for a Negotiated Furnace Standard.--Section 325(f)(4) 
of the Energy Policy and Conservation Act (42 U.S.C. 6295(f)(4)) is 
amended by adding after subparagraph (D) the following:
  ``(E)(i) Unless the Secretary has published such a notice prior to 
the date of enactment of this Act, the Secretary shall publish, not 
later than October 31, 2015, a supplemental notice of proposed 
rulemaking or a notice of data availability updating the proposed rule 
entitled `Energy Conservation Program for Consumer Products: Energy 
Conservation Standards for Residential Furnaces' and published in the 
Federal Register on March 12, 2015 (80 Fed. Reg. 13119), to provide 
notice and an opportunity for comment on--
          ``(I) dividing nonweatherized gas furnaces into two or more 
        product classes with separate energy conservation standards 
        based on capacity; and
          ``(II) any other matters the Secretary determines 
        appropriate.
  ``(ii) On receipt of a statement that is submitted on or before 
January 1, 2016, jointly by interested persons that are fairly 
representative of relevant points of view, that contains recommended 
standards for nonweatherized gas furnaces and mobile home gas furnaces 
that are consistent with the requirements of this part (except that the 
date on which such standards will apply may be earlier or later than 
the date required under this part), the Secretary shall evaluate the 
standards proposed in the joint statement for consistency with the 
requirements of subsection (o), and shall publish notice of the 
potential adoption of the standards proposed in the joint statement, 
modified as necessary to ensure consistency with subsection (o). The 
Secretary shall solicit public comment for a period of at least 30 days 
with respect to such notice.
  ``(iii) Not later than July 31, 2016, but not before July 1, 2016, 
the Secretary shall publish a final rule containing a determination of 
whether the standards for nonweatherized gas furnaces and mobile home 
gas furnaces should be amended. Such rule shall contain any such 
amendments to the standards.''.

SEC. 4124. FUTURE OF INDUSTRY PROGRAM.

  (a) In General.--Section 452 of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17111) is amended by striking the section 
heading and inserting the following: ``future of industry program''.
  (b) Definition of Energy Service Provider.--Section 452(a) of the 
Energy Independence and Security Act of 2007 (42 U.S.C. 17111(a)) is 
amended--
          (1) by redesignating paragraphs (3) through (5) as paragraphs 
        (4) through (6), respectively; and
          (2) by inserting after paragraph (2):
          ``(3) Energy service provider.--The term `energy service 
        provider' means any business providing technology or services 
        to improve the energy efficiency, water efficiency, power 
        factor, or load management of a manufacturing site or other 
        industrial process in an energy-intensive industry, or any 
        utility operating under a utility energy service project.''.
  (c) 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--
          (1) by redesignating paragraphs (1) through (5) as 
        subparagraphs (A) through (E), respectively, and indenting 
        appropriately;
          (2) by striking ``The Secretary'' and inserting the 
        following:
          ``(1) In general.--The Secretary'';
          (3) in subparagraph (A) (as redesignated by paragraph (1)), 
        by inserting before the semicolon at the end the following: ``, 
        including assessments of sustainable manufacturing goals and 
        the implementation of information technology advancements for 
        supply chain analysis, logistics, system monitoring, industrial 
        and manufacturing processes, and other purposes''; and
          (4) by adding at the end the following:
          ``(2) Coordination.--To increase the value and capabilities 
        of the industrial research and assessment centers, the centers 
        shall--
                  ``(A) coordinate with Manufacturing Extension 
                Partnership Centers of the National Institute of 
                Standards and Technology;
                  ``(B) coordinate with the Building Technologies 
                Office of the Department of Energy to provide building 
                assessment services to manufacturers;
                  ``(C) increase partnerships with the National 
                Laboratories of the Department of Energy to leverage 
                the expertise and technologies of the National 
                Laboratories for national industrial and manufacturing 
                needs; and
                  ``(D) increase partnerships with energy service 
                providers and technology providers to leverage private 
                sector expertise and accelerate deployment of new and 
                existing technologies and processes for energy 
                efficiency, power factor, and load management.
          ``(3) Outreach.--The Secretary shall provide funding for--
                  ``(A) outreach activities by the industrial research 
                and assessment centers to inform small- and medium-
                sized manufacturers of the information, technologies, 
                and services available; and
                  ``(B) coordination activities by each industrial 
                research and assessment center to leverage efforts 
                with--
                          ``(i) Federal and State efforts;
                          ``(ii) the efforts of utilities and energy 
                        service providers;
                          ``(iii) the efforts of regional energy 
                        efficiency organizations; and
                          ``(iv) the efforts of other industrial 
                        research and assessment centers.
          ``(4) Small business loans.--The Administrator of the Small 
        Business Administration shall, to the maximum extent 
        practicable, expedite consideration of applications from 
        eligible small business concerns for loans under the Small 
        Business Act (15 U.S.C. 631 et seq.) to implement 
        recommendations of industrial research and assessment centers 
        established under paragraph (1).''.
  (d) Conforming Amendment.--The item relating to section 452 in the 
table of contents for the Energy Independence and Security Act of 2007 
is amended to read as follows:

``Sec. 452. Future of Industry program.''.

SEC. 4125. NO WARRANTY FOR CERTAIN CERTIFIED ENERGY STAR PRODUCTS.

  Section 324A of the Energy Policy and Conservation Act (42 U.S.C. 
6294a) is amended by adding at the end the following new subsection:
  ``(e) No Warranty.--
          ``(1) In general.--Any disclosure relating to participation 
        of a product in the Energy Star program shall not create an 
        express or implied warranty or give rise to any private claims 
        or rights of action under State or Federal law relating to the 
        disqualification of that product from Energy Star if--
                  ``(A) the product has been certified by a 
                certification body recognized by the Energy Star 
                program;
                  ``(B) the Administrator has approved corrective 
                measures, including a determination of whether or not 
                consumer compensation is appropriate; and
                  ``(C) the responsible party has fully complied with 
                all approved corrective measures.
          ``(2) Construal.--Nothing in this subsection shall be 
        construed to require the Administrator to modify any procedure 
        or take any other action.''.

SEC. 4126. CLARIFICATION TO EFFECTIVE DATE FOR REGIONAL STANDARDS.

  Section 325(o)(6)(E)(ii) of the Energy Policy and Conservation Act 
(42 U.S.C. 6295(o)(6)(E)(ii)) is amended by striking ``installed'' and 
inserting ``manufactured or imported into the United States''.

SEC. 4127. INTERNET OF THINGS REPORT.

  The Secretary of Energy shall, not later than 18 months after the 
date of enactment of this Act, report to the Committee on Energy and 
Commerce of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate on the efforts made to take 
advantage of, and promote, the utilization of advanced technologies 
such as Internet of Things end-to-end platform solutions to provide 
real-time actionable analytics and enable predictive maintenance and 
asset management to improve energy efficiency wherever feasible. In 
doing so, the Secretary shall look to encourage and utilize Internet of 
Things energy management solutions that have security tightly 
integrated into the hardware and software from the outset. The 
Secretary shall also encourage the use of Internet of Things solutions 
that enable seamless connectivity and that are interoperable, open 
standards-based, and built on a repeatable foundation for ease of 
scalability.

               CHAPTER 3--ENERGY PERFORMANCE CONTRACTING

SEC. 4131. USE OF ENERGY AND WATER EFFICIENCY MEASURES IN FEDERAL 
                    BUILDINGS.

  (a) Reports.--Section 548(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(b)) is amended--
          (1) in paragraph (3), by striking ``and'' at the end;
          (2) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following new paragraph:
          ``(5) the status of each agency's energy savings performance 
        contracts and utility energy service contracts, the investment 
        value of such contracts, the guaranteed energy savings for the 
        previous year as compared to the actual energy savings for the 
        previous year, the plan for entering into such contracts in the 
        coming year, and information explaining why any previously 
        submitted plans for such contracts were not implemented.''.
  (b) Federal Energy Management Definitions.--Section 551(4) of the 
National Energy Conservation Policy Act (42 U.S.C. 8259(4)) is amended 
by striking ``or retrofit activities'' and inserting ``retrofit 
activities, or energy consuming devices and required support 
structures''.
  (c) Authority To Enter Into Contracts.--Section 801(a)(2)(F) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(F)) is 
amended--
          (1) in clause (i), by striking ``or'' at the end;
          (2) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
          (3) by adding at the end the following new clause:
                          ``(iii) limit the recognition of operation 
                        and maintenance savings associated with systems 
                        modernized or replaced with the implementation 
                        of energy conservation measures, water 
                        conservation measures, or any series of energy 
                        conservation measures and water conservation 
                        measures.''.
  (d) Miscellaneous Authority.--Section 801(a)(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding 
at the end the following:
                  ``(H) Miscellaneous authority.--Notwithstanding any 
                other provision of law, a Federal agency may sell or 
                transfer energy savings and apply the proceeds of such 
                sale or transfer to fund a contract under this 
                title.''.
  (e) Payment of Costs.--Section 802 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287a) is amended by striking ``(and 
related operation and maintenance expenses)'' and inserting ``, 
including related operations and maintenance expenses''.
  (f) Energy Savings Performance Contracts Definitions.--Section 804(2) 
of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is 
amended--
          (1) in subparagraph (A), by striking ``federally owned 
        building or buildings or other federally owned facilities'' and 
        inserting ``Federal building (as defined in section 551 (42 
        U.S.C. 8259))'' each place it appears;
          (2) in subparagraph (C), by striking ``; and'' and inserting 
        a semicolon;
          (3) in subparagraph (D), by striking the period at the end 
        and inserting a semicolon; and
          (4) by adding at the end the following new subparagraphs:
                  ``(E) the use, sale, or transfer of energy 
                incentives, rebates, or credits (including renewable 
                energy credits) from Federal, State, or local 
                governments or utilities; and
                  ``(F) any revenue generated from a reduction in 
                energy or water use, more efficient waste recycling, or 
                additional energy generated from more efficient 
                equipment.''.

                      CHAPTER 4--SCHOOL BUILDINGS

SEC. 4141. COORDINATION OF ENERGY RETROFITTING ASSISTANCE FOR SCHOOLS.

  Section 392 of the Energy Policy and Conservation Act (42 U.S.C. 
6371a) is amended by adding at the end the following:
  ``(e) Coordination of Energy Retrofitting Assistance for Schools.--
          ``(1) Definition of school.--Notwithstanding section 391(6), 
        for the purposes of this subsection, the term `school' means--
                  ``(A) an elementary school or secondary school (as 
                defined in section 9101 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7801));
                  ``(B) an institution of higher education (as defined 
                in section 102(a) of the Higher Education Act of 1965 
                (20 U.S.C. 1002(a)));
                  ``(C) a school of the defense dependents' education 
                system under the Defense Dependents' Education Act of 
                1978 (20 U.S.C. 921 et seq.) or established under 
                section 2164 of title 10, United States Code;
                  ``(D) a school operated by the Bureau of Indian 
                Affairs;
                  ``(E) a tribally controlled school (as defined in 
                section 5212 of the Tribally Controlled Schools Act of 
                1988 (25 U.S.C. 2511)); and
                  ``(F) a Tribal College or University (as defined in 
                section 316(b) of the Higher Education Act of 1965 (20 
                U.S.C. 1059c(b))).
          ``(2) Establishment of clearinghouse.--The Secretary, acting 
        through the Office of Energy Efficiency and Renewable Energy, 
        shall establish a clearinghouse to disseminate information 
        regarding available Federal programs and financing mechanisms 
        that may be used to help initiate, develop, and finance energy 
        efficiency, distributed generation, and energy retrofitting 
        projects for schools.
          ``(3) Requirements.--In carrying out paragraph (2), the 
        Secretary shall--
                  ``(A) consult with appropriate Federal agencies to 
                develop a list of Federal programs and financing 
                mechanisms that are, or may be, used for the purposes 
                described in paragraph (2); and
                  ``(B) coordinate with appropriate Federal agencies to 
                develop a collaborative education and outreach effort 
                to streamline communications and promote available 
                Federal programs and financing mechanisms described in 
                subparagraph (A), which may include the development and 
                maintenance of a single online resource that includes 
                contact information for relevant technical assistance 
                in the Office of Energy Efficiency and Renewable Energy 
                that States, local education agencies, and schools may 
                use to effectively access and use such Federal programs 
                and financing mechanisms.''.

                    CHAPTER 5--BUILDING ENERGY CODES

SEC. 4151. GREATER ENERGY EFFICIENCY IN BUILDING CODES.

  (a) Definitions.--Section 303 of the Energy Conservation and 
Production Act (42 U.S.C. 6832), as amended by section 4116, is further 
amended--
          (1) by striking paragraph (14) and inserting the following:
          ``(14) Model building energy code.--The term `model building 
        energy code' means a voluntary building energy code or standard 
        developed and updated through a consensus process among 
        interested persons, such as the IECC or ASHRAE Standard 90.1 or 
        a code used by other appropriate organizations regarding which 
        the Secretary has issued a determination that buildings subject 
        to it would achieve greater energy efficiency than under a 
        previously developed code.''; and
          (2) by adding at the end the following:
          ``(18) ASHRAE standard 90.1.--The term `ASHRAE Standard 90.1' 
        means the American Society of Heating, Refrigerating and Air-
        Conditioning Engineers ANSI/ASHRAE/IES Standard 90/1 Energy 
        Standard for Buildings Except Low-Rise Residential Buildings.
          ``(19) Cost-effective.--The term `cost-effective' means 
        having a simple payback of 10 years or less.
          ``(20) IECC.--The term `IECC' means the International Energy 
        Conservation Code as published by the International Code 
        Council.
          ``(21) Indian tribe.--The term `Indian tribe' has the meaning 
        given the term in section 4 of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).
          ``(22) Simple payback.--The term `simple payback' means the 
        time in years that is required for energy savings to exceed the 
        incremental first cost of a new requirement or code.
          ``(23) Technically feasible.--The term `technically feasible' 
        means capable of being achieved, based on widely available 
        appliances, equipment, technologies, materials, and 
        construction practices.''.
  (b) State Building Energy Efficiency Codes.--Section 304 of the 
Energy Conservation and Production Act (42 U.S.C. 6833) is amended to 
read as follows:

``SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

  ``(a) In General.--The Secretary shall provide technical assistance, 
as described in subsection (e), for the purposes of--
          ``(1) implementation of building energy codes by States, 
        Indian tribes, and, as appropriate, by local governments, that 
        are technically feasible and cost-effective; and
          ``(2) supporting full compliance with the State, tribal, and 
        local codes.
  ``(b) State and Indian Tribe Certification of Building Energy Code 
Updates.--
          ``(1) Review and updating of codes by each state and indian 
        tribe.--
                  ``(A) In general.--Not later than 3 years after the 
                date on which a model building energy code is 
                published, each State or Indian tribe shall certify 
                whether or not the State or Indian tribe, respectively, 
                has reviewed and updated the energy provisions of the 
                building code of the State or Indian tribe, 
                respectively.
                  ``(B) Demonstration.--The certification shall include 
                a statement of whether or not the energy savings for 
                the code provisions that are in effect throughout the 
                State or Indian tribal territory meet or exceed--
                          ``(i) the energy savings of the most recently 
                        published model building energy code; or
                          ``(ii) the targets established under section 
                        307(b)(2).
                  ``(C) No model building energy code update.--If a 
                model building energy code is not updated by a target 
                date established under section 307(b)(2)(D), each State 
                or Indian tribe shall, not later than 3 years after the 
                specified date, certify whether or not the State or 
                Indian tribe, respectively, has reviewed and updated 
                the energy provisions of the building code of the State 
                or Indian tribe, respectively, to meet or exceed the 
                target in section 307(b)(2).
          ``(2) Validation by secretary.--Not later than 90 days after 
        a State or Indian tribe certification under paragraph (1), the 
        Secretary shall--
                  ``(A) determine whether the code provisions of the 
                State or Indian tribe, respectively, meet the criteria 
                specified in paragraph (1);
                  ``(B) determine whether the certification submitted 
                by the State or Indian tribe, respectively, is 
                complete; and
                  ``(C) if the requirements of subparagraph (B) are 
                satisfied, validate the certification.
          ``(3) Limitation.--Nothing in this section shall be 
        interpreted to require a State or Indian tribe to adopt any 
        building code or provision within a code.
  ``(c) Improvements in Compliance With Building Energy Codes.--
          ``(1) Requirement.--
                  ``(A) In general.--Not later than 3 years after the 
                date of a certification under subsection (b), each 
                State and Indian tribe shall certify whether or not the 
                State or Indian tribe, respectively, has--
                          ``(i) achieved full compliance under 
                        paragraph (3) with the applicable certified 
                        State or Indian tribe building energy code or 
                        with the associated model building energy code; 
                        or
                          ``(ii) made significant progress under 
                        paragraph (4) toward achieving compliance with 
                        the applicable certified State or Indian tribe 
                        building energy code or with the associated 
                        model building energy code.
                  ``(B) Repeat certifications.--If the State or Indian 
                tribe certifies progress toward achieving compliance, 
                the State or Indian tribe shall repeat the 
                certification until the State or Indian tribe certifies 
                that the State or Indian tribe has achieved full 
                compliance.
          ``(2) Measurement of compliance.--A certification under 
        paragraph (1) shall include documentation of the rate of 
        compliance based on--
                  ``(A) inspections of a random sample of the buildings 
                covered by the code in the preceding year; or
                  ``(B) an alternative method that yields an accurate 
                measure of compliance.
          ``(3) Achievement of compliance.--A State or Indian tribe 
        shall be considered to achieve full compliance under paragraph 
        (1) if--
                  ``(A) at least 90 percent of building space covered 
                by the code in the preceding year substantially meets 
                all the requirements of the applicable code specified 
                in paragraph (1), or achieves equivalent or greater 
                energy savings level; or
                  ``(B) the estimated excess energy use of buildings 
                that did not meet the applicable code specified in 
                paragraph (1) in the preceding year, compared to a 
                baseline of comparable buildings that meet this code, 
                is not more than 5 percent of the estimated energy use 
                of all buildings covered by this code during the 
                preceding year.
          ``(4) Significant progress toward achievement of 
        compliance.--A State or Indian tribe shall be considered to 
        have made significant progress toward achieving compliance for 
        purposes of paragraph (1) if the State or Indian tribe--
                  ``(A) has developed and is implementing a plan for 
                achieving compliance during the 8-year period beginning 
                on the date of enactment of this paragraph, including 
                annual targets for compliance and active training and 
                enforcement programs; and
                  ``(B) has met the most recent target under 
                subparagraph (A).
          ``(5) Validation by secretary.--Not later than 90 days after 
        a State or Indian tribe certification under paragraph (1), the 
        Secretary shall--
                  ``(A) determine whether the State or Indian tribe has 
                demonstrated meeting the criteria of this subsection, 
                including accurate measurement of compliance;
                  ``(B) determine whether the certification submitted 
                by the State or Indian tribe is complete; and
                  ``(C) if the requirements of subparagraph (B) are 
                satisfied, validate the certification.
          ``(6) Limitation.--Nothing in this section shall be 
        interpreted to require a State or Indian tribe to adopt any 
        building code or provision within a code.
  ``(d) States or Indian Tribes That Do Not Achieve Compliance.--
          ``(1) Reporting.--A State or Indian tribe that has not made a 
        certification required under subsection (b) or (c) by the 
        applicable deadline shall submit to the Secretary a report on 
        the status of the State or Indian tribe with respect to meeting 
        the requirements and submitting the certification.
          ``(2) State sovereignty.--Nothing in this section shall be 
        interpreted to require a State or Indian tribe to adopt any 
        building code or provision within a code.
          ``(3) Local government.--In any State or Indian tribe for 
        which the Secretary has not validated a certification under 
        subsection (b) or (c), a local government may be eligible for 
        Federal support by meeting the certification requirements of 
        subsections (b) and (c).
          ``(4) Annual reports by secretary.--
                  ``(A) In general.--The Secretary shall annually 
                submit to Congress, and publish in the Federal 
                Register, a report on--
                          ``(i) the status of model building energy 
                        codes;
                          ``(ii) the status of code adoption and 
                        compliance in the States and Indian tribes;
                          ``(iii) implementation of this section; and
                          ``(iv) improvements in energy savings over 
                        time as a result of the targets established 
                        under section 307(b)(2).
                  ``(B) Impacts.--The report shall include estimates of 
                impacts of past action under this section, and 
                potential impacts of further action, on--
                          ``(i) upfront financial and construction 
                        costs, cost benefits and returns (using a 
                        return on investment analysis), and lifetime 
                        energy use for buildings;
                          ``(ii) resulting energy costs to individuals 
                        and businesses; and
                          ``(iii) resulting overall annual building 
                        ownership and operating costs.
  ``(e) Technical Assistance to States and Indian Tribes.--
          ``(1) In general.--The Secretary shall, upon request, provide 
        technical assistance to States and Indian tribes to implement 
        the goals and requirements of this section--
                  ``(A) to implement State residential and commercial 
                building energy codes; and
                  ``(B) to document the rate of compliance with a 
                building energy code.
          ``(2) Technical assistance.--The assistance shall include, as 
        requested by the State or Indian tribe, technical assistance 
        in--
                  ``(A) evaluating the energy savings of building 
                energy codes;
                  ``(B) assessing the economic considerations, 
                referenced in section 307(b)(4), of implementing 
                building energy codes;
                  ``(C) building energy analysis and design tools;
                  ``(D) energy simulation models;
                  ``(E) building demonstrations;
                  ``(F) developing the definitions of energy use 
                intensity and building types for use in model building 
                energy codes to evaluate the efficiency impacts of the 
                model building energy codes; and
                  ``(G) complying with a performance-based pathway 
                referenced in the model code.
          ``(3) Exclusion.--For purposes of this section, `technical 
        assistance' shall not include actions that promote or 
        discourage the adoption of a particular building energy code, 
        code provision, or energy savings target to a State or Indian 
        tribe.
          ``(4) Information quality and transparency.--For purposes of 
        this section, information provided by the Secretary, attendant 
        to any technical assistance provided to a State or Indian 
        tribe, is `influential information' and shall satisfy the 
        guidelines established by the Office of Management and Budget 
        and published at 67 Federal Register 8,452 (Feb. 22, 2002).
  ``(f) Federal Support.--
          ``(1) In general.--The Secretary shall provide support to 
        States and Indian tribes--
                  ``(A) to implement the reporting requirements of this 
                section; and
                  ``(B) to implement residential and commercial 
                building energy codes, including increasing and 
                verifying compliance with the codes and training of 
                State, tribal, and local building code officials to 
                implement and enforce the codes.
          ``(2) Exclusion.--Support shall not be given to support 
        adoption and implementation of model building energy codes for 
        which the Secretary has made a determination under section 
        307(g)(1)(C) that the code is not cost-effective.
          ``(3) Training.--Support shall be offered to States to train 
        State and local building code officials to implement and 
        enforce codes described in paragraph (1)(B).
          ``(4) Local governments.--States may work under this 
        subsection with local governments that implement and enforce 
        codes described in paragraph (1)(B).
  ``(g) Voluntary Programs To Exceed Model Building Energy Code.--
          ``(1) In general.--The Secretary shall provide technical 
        assistance, as described in subsection (e), for the development 
        of voluntary programs that exceed the model building energy 
        codes for residential and commercial buildings for use as--
                  ``(A) voluntary incentive programs adopted by local, 
                tribal, or State governments; and
                  ``(B) nonbinding guidelines for energy-efficient 
                building design.
          ``(2) Targets.--The voluntary programs described in paragraph 
        (1) shall be designed--
                  ``(A) to achieve substantial energy savings compared 
                to the model building energy codes; and
                  ``(B) to meet targets under section 307(b), if 
                available, up to 3 to 6 years in advance of the target 
                years.
  ``(h) Studies.--
          ``(1) GAO study.--
                  ``(A) In general.--The Comptroller General of the 
                United States shall conduct a study of the impacts of 
                updating the national model building energy codes for 
                residential and commercial buildings. In conducting the 
                study, the Comptroller General shall consider and 
                report, at a minimum--
                          ``(i) the actual energy consumption savings 
                        stemming from updated energy codes compared to 
                        the energy consumption savings predicted during 
                        code development;
                          ``(ii) the actual consumer cost savings 
                        stemming from updated energy codes compared to 
                        predicted consumer cost savings; and
                          ``(iii) an accounting of expenditures of the 
                        Federal funds under each program authorized by 
                        this title.
                  ``(B) Report to congress.--Not later than 3 years 
                after the date of enactment of the North American 
                Energy Security and Infrastructure Act of 2015, the 
                Comptroller General of the United States shall submit a 
                report to the Committee on Energy and Natural Resources 
                of the Senate and the Committee on Energy and Commerce 
                of the House of Representatives including the study 
                findings and conclusions.
          ``(2) Feasibility study.--The Secretary, in consultation with 
        building science experts from the National Laboratories and 
        institutions of higher education, designers and builders of 
        energy-efficient residential and commercial buildings, code 
        officials, and other stakeholders, shall undertake a study of 
        the feasibility, impact, economics, and merit of--
                  ``(A) code improvements that would require that 
                buildings be designed, sited, and constructed in a 
                manner that makes the buildings more adaptable in the 
                future to become zero-net-energy after initial 
                construction, as advances are achieved in energy-saving 
                technologies;
                  ``(B) code procedures to incorporate a ten-year 
                payback, not just first-year energy use, in trade-offs 
                and performance calculations; and
                  ``(C) legislative options for increasing energy 
                savings from building energy codes, including 
                additional incentives for effective State and local 
                verification of compliance with and enforcement of a 
                code.
          ``(3) Energy data in multitenant buildings.--The Secretary, 
        in consultation with appropriate representatives of the 
        utility, utility regulatory, building ownership, and other 
        stakeholders, shall--
                  ``(A) undertake a study of best practices regarding 
                delivery of aggregated energy consumption information 
                to owners and managers of residential and commercial 
                buildings with multiple tenants and uses; and
                  ``(B) consider the development of a memorandum of 
                understanding between and among affected stakeholders 
                to reduce barriers to the delivery of aggregated energy 
                consumption information to such owners and managers.
  ``(i) Effect on Other Laws.--Nothing in this section or section 307 
supersedes or modifies the application of sections 321 through 346 of 
the Energy Policy and Conservation Act (42 U.S.C. 6291 et seq.).
  ``(j) Funding Limitations.--No Federal funds shall be--
          ``(1) used to support actions by the Secretary, or States, to 
        promote or discourage the adoption of a particular building 
        energy code, code provision, or energy saving target to a State 
        or Indian tribe; or
          ``(2) provided to private third parties or non-governmental 
        organizations to engage in such activities.''.
  (c) Federal Building Energy Efficiency Standards.--Section 305 of the 
Energy Conservation and Production Act (42 U.S.C. 6834) is amended by 
striking ``voluntary building energy code'' in subsections (a)(2)(B) 
and (b) and inserting ``model building energy code''.
  (d) Model Building Energy Codes.--
          (1) Amendment.--Section 307 of the Energy Conservation and 
        Production Act (42 U.S.C. 6836) is amended to read as follows:

``SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES.

  ``(a) In General.--The Secretary shall provide technical assistance, 
as described in subsection (c), for updating of model building energy 
codes.
  ``(b) Targets.--
          ``(1) In general.--The Secretary shall provide technical 
        assistance, for updating the model building energy codes.
          ``(2) Targets.--
                  ``(A) In general.--The Secretary shall provide 
                technical assistance to States, Indian tribes, local 
                governments, nationally recognized code and standards 
                developers, and other interested parties for updating 
                of model building energy codes by establishing one or 
                more aggregate energy savings targets through 
                rulemaking in accordance with section 553 of title 5, 
                United States Code, to achieve the purposes of this 
                section.
                  ``(B) Separate targets.--Separate targets may be 
                established for commercial and residential buildings.
                  ``(C) Baselines.--The baseline for updating model 
                building energy codes shall be the 2009 IECC for 
                residential buildings and ASHRAE Standard 90.1-2010 for 
                commercial buildings.
                  ``(D) Specific years.--
                          ``(i) In general.--Targets for specific years 
                        shall be established and revised by the 
                        Secretary through rulemaking in accordance with 
                        section 553 of title 5, United States Code, and 
                        coordinated with nationally recognized code and 
                        standards developers at a level that--
                                  ``(I) is at the maximum level of 
                                energy efficiency that is technically 
                                feasible and cost effective, while 
                                accounting for the economic 
                                considerations under paragraph (4); and
                                  ``(II) promotes the achievement of 
                                commercial and residential high 
                                performance buildings through high 
                                performance energy efficiency (within 
                                the meaning of section 401 of the 
                                Energy Independence and Security Act of 
                                2007 (42 U.S.C. 17061)).
                          ``(ii) Initial targets.--Not later than 1 
                        year after the date of enactment of this 
                        clause, the Secretary shall establish initial 
                        targets under this subparagraph.
                          ``(iii) Different target years.--Subject to 
                        clause (i), prior to the applicable year, the 
                        Secretary may set a later target year for any 
                        of the model building energy codes described in 
                        subparagraph (A) if the Secretary determines 
                        that a target cannot be met.
                  ``(E) Small business.--When establishing targets 
                under this paragraph through rulemaking, the Secretary 
                shall ensure compliance with the Small Business 
                Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 
                601 note; Public Law 104-121) for any indirect economic 
                effect on small entities that is reasonably foreseeable 
                and a result of such rule.
          ``(3) Appliance standards and other factors affecting 
        building energy use.--In establishing energy savings targets 
        under paragraph (2), the Secretary shall develop and adjust the 
        targets in recognition of potential savings and costs relating 
        to--
                  ``(A) efficiency gains made in appliances, lighting, 
                windows, insulation, and building envelope sealing;
                  ``(B) advancement of distributed generation and on-
                site renewable power generation technologies;
                  ``(C) equipment improvements for heating, cooling, 
                and ventilation systems and water heating systems;
                  ``(D) building management systems and smart grid 
                technologies to reduce energy use; and
                  ``(E) other technologies, practices, and building 
                systems regarding building plug load and other energy 
                uses.
        In developing and adjusting the targets, the Secretary shall 
        use climate zone weighted averages for equipment efficiency for 
        heating, cooling, ventilation, and water heating systems, using 
        equipment that is actually installed.
          ``(4) Economic considerations.--In establishing and revising 
        energy savings targets under paragraph (2), the Secretary shall 
        consider the economic feasibility of achieving the proposed 
        targets established under this section and the potential costs 
        and savings for consumers and building owners, by conducting a 
        return on investment analysis, using a simple payback 
        methodology over a 3-, 5-, and 7-year period. The Secretary 
        shall not propose or provide technical or financial assistance 
        for any code, provision in the code, or energy target, or 
        amendment thereto, that has a payback greater than 10 years.
  ``(c) Technical Assistance to Model Building Energy Code-Setting and 
Standard Development Organizations.--
          ``(1) In general.--The Secretary shall, on a timely basis, 
        provide technical assistance to model building energy code-
        setting and standard development organizations consistent with 
        the goals of this section.
          ``(2) Technical assistance.--The assistance shall include, as 
        requested by the organizations, technical assistance in--
                  ``(A) evaluating the energy savings of building 
                energy codes;
                  ``(B) assessing the economic considerations, under 
                subsection (b)(4), of code or standards proposals or 
                revisions;
                  ``(C) building energy analysis and design tools;
                  ``(D) energy simulation models;
                  ``(E) building demonstrations;
                  ``(F) developing definitions of energy use intensity 
                and building types for use in model building energy 
                codes to evaluate the efficiency impacts of the model 
                building energy codes;
                  ``(G) developing a performance-based pathway for 
                compliance;
                  ``(H) developing model building energy codes by 
                Indian tribes in accordance with tribal law; and
                  ``(I) code development meetings, including through 
                direct Federal employee participation in committee 
                meetings, hearings and online communication, voting, 
                and presenting research and technical or economic 
                analyses during such meetings.
          ``(3) Exclusion.--Except as provided in paragraph (2)(I), for 
        purposes of this section, `technical assistance' shall not 
        include actions that promote or discourage the adoption of a 
        particular building energy code, code provision, or energy 
        savings target.
          ``(4) Information quality and transparency.--For purposes of 
        this section, information provided by the Secretary, attendant 
        to development of any energy savings targets, is influential 
        information and shall satisfy the guidelines established by the 
        Office of Management and Budget and published at 67 Federal 
        Register 8,452 (Feb. 22, 2002).
  ``(d) Amendment Proposals.--
          ``(1) In general.--The Secretary may submit timely model 
        building energy code amendment proposals that are technically 
        feasible, cost-effective, and technology-neutral to the model 
        building energy code-setting and standard development 
        organizations, with supporting evidence, sufficient to enable 
        the model building energy codes to meet the targets established 
        under subsection (b)(2).
          ``(2) Process and factors.--All amendment proposals submitted 
        by the Secretary shall be published in the Federal Register and 
        made available on the Department of Energy website 90 days 
        prior to any submittal to a code development body, and shall be 
        subject to a public comment period of not less than 60 days. 
        Information provided by the Secretary, attendant to submission 
        of any amendment proposals, is influential information and 
        shall satisfy the guidelines established by the Office of 
        Management and Budget and published at 67 Federal Register 
        8,452 (Feb. 22, 2002). When calculating the costs and benefits 
        of an amendment, the Secretary shall use climate zone weighted 
        averages for equipment efficiency for heating, cooling, 
        ventilation, and water heating systems, using equipment that is 
        actually installed.
  ``(e) Analysis Methodology.--The Secretary shall make publicly 
available the entire calculation methodology (including input 
assumptions and data) used by the Secretary to estimate the energy 
savings of code or standard proposals and revisions.
  ``(f) Methodology Development.--The Secretary shall establish a 
methodology for evaluating cost effectiveness of energy code changes in 
multifamily buildings that incorporates economic parameters 
representative of typical multifamily buildings.
  ``(g) Determination.--
          ``(1) Revision of model building energy codes.--If the 
        provisions of the IECC or ASHRAE Standard 90.1 regarding 
        building energy use are revised, the Secretary shall make a 
        preliminary determination not later than 90 days after the date 
        of the revision, and a final determination not later than 15 
        months after the date of the revision, on whether or not the 
        revision--
                  ``(A) improves energy efficiency in buildings 
                compared to the existing IECC or ASHRAE Standard 90.1, 
                as applicable;
                  ``(B) meets the applicable targets under subsection 
                (b)(2); and
                  ``(C) is technically feasible and cost-effective.
          ``(2) Codes or standards not meeting criteria.--
                  ``(A) In general.--If the Secretary makes a 
                preliminary determination under paragraph (1)(B) that a 
                revised IECC or ASHRAE Standard 90.1 does not meet the 
                targets established under subsection (b)(2), is not 
                technically feasible, or is not cost-effective, the 
                Secretary may at the same time provide technical 
                assistance, as described in subsection (c), to the 
                International Code Council or ASHRAE, as applicable, 
                with proposed changes that would result in a model 
                building energy code or standard that meets the 
                criteria, and with supporting evidence. Proposed 
                changes submitted by the Secretary shall be published 
                in the Federal Register and made available on the 
                Department of Energy website 90 days prior to any 
                submittal to a code development body, and shall be 
                subject to a public comment period of not less than 60 
                days. Information provided by the Secretary, attendant 
                to submission of any amendment proposals, is 
                influential information and shall satisfy the 
                guidelines established by the Office of Management and 
                Budget and published at 67 Federal Register 8,452 (Feb. 
                22, 2002).
                  ``(B) Incorporation of changes.--
                          ``(i) In general.--On receipt of the 
                        technical assistance, as described in 
                        subsection (c), the International Code Council 
                        or ASHRAE, as applicable, shall, prior to the 
                        Secretary making a final determination under 
                        paragraph (1), have an additional 270 days to 
                        accept or reject the proposed changes made by 
                        the Secretary to the model building energy code 
                        or standard.
                          ``(ii) Final determination.--A final 
                        determination under paragraph (1) shall be on 
                        the final revised model building energy code or 
                        standard.
  ``(h) Administration.--In carrying out this section, the Secretary 
shall--
          ``(1) publish notice of targets, amendment proposals and 
        supporting analysis and determinations under this section in 
        the Federal Register to provide an explanation of and the basis 
        for such actions, including any supporting modeling, data, 
        assumptions, protocols, and cost-benefit analysis, including 
        return on investment;
          ``(2) provide an opportunity for public comment on targets 
        and supporting analysis and determinations under this section, 
        in accordance with section 553 of title 5, United States Code; 
        and
          ``(3) provide an opportunity for public comment on amendment 
        proposals.
  ``(i) Voluntary Codes and Standards.--Not withstanding any other 
provision of this section, any model building code or standard 
established under this section shall not be binding on a State, local 
government, or Indian tribe as a matter of Federal law.''.
          (2) Conforming amendment.--The item relating to section 307 
        in the table of contents for the Energy Conservation and 
        Production Act is amended to read as follows:

``Sec. 307. Support for model building energy codes.''.

SEC. 4152. VOLUNTARY NATURE OF BUILDING ASSET RATING PROGRAM.

  (a) In General.--Any program of the Secretary of Energy that may 
enable the owner of a commercial building or a residential building to 
obtain a rating, score, or label regarding the actual or anticipated 
energy usage or performance of a building shall be made available on a 
voluntary, optional, and market-driven basis.
  (b) Disclaimer as to Regulatory Intent.--Information disseminated by 
the Secretary of Energy regarding the program described in subsection 
(a), including any information made available by the Secretary on a 
website, shall include language plainly stating that such program is 
not developed or intended to be the basis for a regulatory program by a 
Federal, State, local, or municipal government body.

        CHAPTER 6--EPCA TECHNICAL CORRECTIONS AND CLARIFICATIONS

SEC. 4161. MODIFYING PRODUCT DEFINITIONS.

  (a) Authority To Modify Definitions.--
          (1) Covered products.--Section 322 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6292) is amended by adding at the 
        end the following:
  ``(c) Modifying Definitions of Covered Products.--
          ``(1) In general.--For any covered product for which a 
        definition is provided in section 321, the Secretary may, by 
        rule, unless prohibited herein, modify such definition in order 
        to--
                  ``(A) address significant changes in the product or 
                the market occurring since the definition was 
                established; and
                  ``(B) better enable improvements in the energy 
                efficiency of the product as part of an energy using 
                system.
          ``(2) Antibacksliding exemption.--Section 325(o)(1) shall not 
        apply to adjustments to covered product definitions made 
        pursuant to this subsection.
          ``(3) Procedure for modifying definition.--
                  ``(A) In general.--Notice of any adjustment to the 
                definition of a covered product and an explanation of 
                the reasons therefor shall be published in the Federal 
                Register and opportunity provided for public comment.
                  ``(B) Consensus required.--Any amendment to the 
                definition of a covered product under this subsection 
                must have consensus support, as reflected in--
                          ``(i) the outcome of negotiations conducted 
                        in accordance with the subchapter III of 
                        chapter 5 of title 5, United States Code 
                        (commonly known as the `Negotiated Rulemaking 
                        Act of 1990'); or
                          ``(ii) the Secretary's receipt of a statement 
                        that is submitted jointly by interested persons 
                        that are fairly representative of relevant 
                        points of view (including representatives of 
                        manufacturers of covered products, States, and 
                        efficiency advocates), as determined by the 
                        Secretary, which contains a recommended 
                        modified definition for a covered product.
          ``(4) Effect of a modified definition.--
                  ``(A) In general.--For any type or class of consumer 
                product which becomes a covered product pursuant to 
                this subsection--
                          ``(i) the Secretary may establish test 
                        procedures for such type or class of covered 
                        product pursuant to section 323 and energy 
                        conservation standards pursuant to section 
                        325(l);
                          ``(ii) the Commission may prescribe labeling 
                        rules pursuant to section 324 if the Commission 
                        determines that labeling in accordance with 
                        that section is technologically and 
                        economically feasible and likely to assist 
                        consumers in making purchasing decisions;
                          ``(iii) section 327 shall begin to apply to 
                        such type or class of covered product in 
                        accordance with section 325(ii)(1); and
                          ``(iv) standards previously promulgated under 
                        section 325 shall not apply to such type or 
                        class of product.
                  ``(B) Applicability.--For any type or class of 
                consumer product which ceases to be a covered product 
                pursuant to this subsection, the provisions of this 
                part shall no longer apply to the type or class of 
                consumer product.''.
          (2) Covered equipment.--Section 341 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6312) is amended by adding at the 
        end the following:
  ``(d) Modifying Definitions of Covered Equipment.--
          ``(1) In general.--For any covered equipment for which a 
        definition is provided in section 340, the Secretary may, by 
        rule, unless prohibited herein, modify such definition in order 
        to--
                  ``(A) address significant changes in the product or 
                the market occurring since the definition was 
                established; and
                  ``(B) better enable improvements in the energy 
                efficiency of the equipment as part of an energy using 
                system.
          ``(2) Antibacksliding exemption.--Section 325(o)(1) shall not 
        apply to adjustments to covered equipment definitions made 
        pursuant to this subsection.
          ``(3) Procedure for modifying definition.--
                  ``(A) In general.--Notice of any adjustment to the 
                definition of a type of covered equipment and an 
                explanation of the reasons therefor shall be published 
                in the Federal Register and opportunity provided for 
                public comment.
                  ``(B) Consensus required.--Any amendment to the 
                definition of a type of covered equipment under this 
                subsection must have consensus support, as reflected 
                in--
                          ``(i) the outcome of negotiations conducted 
                        in accordance with the subchapter III of 
                        chapter 5 of title 5, United States Code 
                        (commonly known as the `Negotiated Rulemaking 
                        Act of 1990'); or
                          ``(ii) the Secretary's receipt of a statement 
                        that is submitted jointly by interested persons 
                        that are fairly representative of relevant 
                        points of view (including representatives of 
                        manufacturers of covered equipment, States, and 
                        efficiency advocates), as determined by the 
                        Secretary, which contains a recommended 
                        modified definition for a type of covered 
                        equipment.
          ``(4) Effect of a modified definition.--
                  ``(A) For any type or class of equipment which 
                becomes covered equipment pursuant to this subsection--
                          ``(i) the Secretary may establish test 
                        procedures for such type or class of covered 
                        equipment pursuant to section 343 and energy 
                        conservation standards pursuant to section 
                        325(l);
                          ``(ii) the Secretary may prescribe labeling 
                        rules pursuant to section 344 if the Secretary 
                        determines that labeling in accordance with 
                        that section is technologically and 
                        economically feasible and likely to assist 
                        purchasers in making purchasing decisions;
                          ``(iii) section 327 shall begin to apply to 
                        such type or class of covered equipment in 
                        accordance with section 325(ii)(1); and
                          ``(iv) standards previously promulgated under 
                        section 325, 342, or 346 shall not apply to 
                        such type or class of covered equipment.
                  ``(B) For any type or class of equipment which ceases 
                to be covered equipment pursuant to this subsection the 
                provisions of this part shall no longer apply to the 
                type or class of equipment.''.
  (b) Conforming Amendments Providing for Judicial Review.--
          (1) Section 336 of the Energy Policy and Conservation Act (42 
        U.S.C. 6306) is amended by striking ``section 323,'' each place 
        it appears and inserting ``section 322, 323,''; and
          (2) Section 345(a)(1) of the Energy Policy and Conservation 
        Act (42 U.S.C. 6316(a)(1)) is amended to read as follows:
          ``(1) the references to sections 322, 323, 324, and 325 of 
        this Act shall be considered as references to sections 341, 
        343, 344, and 342 of this Act, respectively;''.

SEC. 4162. CLARIFYING RULEMAKING PROCEDURES.

  (a) Covered Products.--Section 325(p) of the Energy Policy and 
Conservation Act (42 U.S.C. 6295(p)) is amended--
          (1) by redesignating paragraphs (1), (2), (3), and (4) as 
        paragraphs (2), (3), (5), and (6), respectively;
          (2) by inserting before paragraph (2) (as so redesignated by 
        paragraph (1) of this subsection) the following:
          ``(1) The Secretary shall provide an opportunity for public 
        input prior to the issuance of a proposed rule, seeking 
        information--
                  ``(A) identifying and commenting on design options;
                  ``(B) on the existence of and opportunities for 
                voluntary nonregulatory actions; and
                  ``(C) identifying significant subgroups of consumers 
                and manufacturers that merit analysis.'';
          (3) in paragraph (3) (as so redesignated by paragraph (1) of 
        this subsection)--
                  (A) in subparagraph (C), by striking ``and'' after 
                ``adequate;'';
                  (B) in subparagraph (D), by striking ``standard.'' 
                and inserting ``standard;''; and
                  (C) by adding at the end the following new 
                subparagraphs:
                  ``(E) whether the technical and economic analytical 
                assumptions, methods, and models used to justify the 
                standard to be prescribed are--
                          ``(i) justified; and
                          ``(ii) available and accessible for public 
                        review, analysis, and use; and
                  ``(F) the cumulative regulatory impacts on the 
                manufacturers of the product, taking into account--
                          ``(i) other government standards affecting 
                        energy use; and
                          ``(ii) other energy conservation standards 
                        affecting the same manufacturers.''; and
          (4) by inserting after paragraph (3) (as so redesignated by 
        paragraph (1) of this subsection) the following:
          ``(4) Restriction on test procedure amendments.--
                  ``(A) In general.--Any proposed energy conservation 
                standards rule shall be based on the final test 
                procedure which shall be used to determine compliance, 
                and the public comment period on the proposed standards 
                shall conclude no sooner than 180 days after the date 
                of publication of a final rule revising the test 
                procedure.
                  ``(B) Exception.--The Secretary may propose or 
                prescribe an amendment to the test procedures issued 
                pursuant to section 323 for any type or class of 
                covered product after the issuance of a notice of 
                proposed rulemaking to prescribe an amended or new 
                energy conservation standard for that type or class of 
                covered product, but before the issuance of a final 
                rule prescribing any such standard, if--
                          ``(i) the amendments to the test procedure 
                        have consensus support achieved through a 
                        rulemaking conducted in accordance with the 
                        subchapter III of chapter 5 of title 5, United 
                        States Code (commonly known as the `Negotiated 
                        Rulemaking Act of 1990'); or
                          ``(ii) the Secretary receives a statement 
                        that is submitted jointly by interested persons 
                        that are fairly representative of relevant 
                        points of view (including representatives of 
                        manufacturers of the type or class of covered 
                        product, States, and efficiency advocates), as 
                        determined by the Secretary, which contains a 
                        recommendation that a supplemental notice of 
                        proposed rulemaking is not necessary for the 
                        type or class of covered product.''.
  (b) Conforming Amendment.--Section 345(b)(1) of the Energy Policy and 
Conservation Act (42 U.S.C. 6316(b)(1)) is amended by striking 
``section 325(p)(4),'' and inserting ``section 325(p)(3), (4), and 
(6),''.

                 CHAPTER 7--ENERGY AND WATER EFFICIENCY

SEC. 4171. SMART ENERGY AND WATER EFFICIENCY PILOT PROGRAM.

  (a) Definitions.--In this section:
          (1) Eligible entity.--The term ``eligible entity'' means--
                  (A) a utility;
                  (B) a municipality;
                  (C) a water district; and
                  (D) any other authority that provides water, 
                wastewater, or water reuse services.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.
          (3) Smart energy and water efficiency pilot program.--The 
        term ``smart energy and water efficiency pilot program'' or 
        ``pilot program'' means the pilot program established under 
        subsection (b).
  (b) Smart Energy and Water Efficiency Pilot Program.--
          (1) In general.--The Secretary shall establish and carry out 
        a smart energy and water efficiency management pilot program in 
        accordance with this section.
          (2) Purpose.--The purpose of the smart energy and water 
        efficiency pilot program is to award grants to eligible 
        entities to demonstrate advanced and innovative technology-
        based solutions that will--
                  (A) increase and improve the energy efficiency of 
                water, wastewater, and water reuse systems to help 
                communities across the United States make significant 
                progress in conserving water, saving energy, and 
                reducing costs;
                  (B) support the implementation of innovative 
                processes and the installation of advanced automated 
                systems that provide real-time data on energy and 
                water; and
                  (C) improve energy and water conservation, water 
                quality, and predictive maintenance of energy and water 
                systems, through the use of Internet-connected 
                technologies, including sensors, intelligent gateways, 
                and security embedded in hardware.
          (3) Project selection.--
                  (A) In general.--The Secretary shall make 
                competitive, merit-reviewed grants under the pilot 
                program to not less than 3, but not more than 5, 
                eligible entities.
                  (B) Selection criteria.--In selecting an eligible 
                entity to receive a grant under the pilot program, the 
                Secretary shall consider--
                          (i) energy and cost savings anticipated to 
                        result from the project;
                          (ii) the innovative nature, commercial 
                        viability, and reliability of the technology to 
                        be used;
                          (iii) the degree to which the project 
                        integrates next-generation sensors, software, 
                        hardware, analytics, and management tools;
                          (iv) the anticipated cost effectiveness of 
                        the pilot project in terms of energy efficiency 
                        savings, water savings or reuse, and 
                        infrastructure costs averted;
                          (v) whether the technology can be deployed in 
                        a variety of geographic regions and the degree 
                        to which the technology can be implemented on a 
                        smaller or larger scale, including whether the 
                        technology can be implemented by each type of 
                        eligible entity;
                          (vi) whether the technology has been 
                        successfully deployed elsewhere;
                          (vii) whether the technology is sourced from 
                        a manufacturer based in the United States; and
                          (viii) whether the project will be completed 
                        in 5 years or less.
                  (C) Applications.--
                          (i) In general.--Subject to clause (ii), an 
                        eligible entity seeking a grant under the pilot 
                        program shall submit to the Secretary an 
                        application at such time, in such manner, and 
                        containing such information as the Secretary 
                        determines to be necessary.
                          (ii) Contents.--An application under clause 
                        (i) shall, at a minimum, include--
                                  (I) a description of the project;
                                  (II) a description of the technology 
                                to be used in the project;
                                  (III) the anticipated results, 
                                including energy and water savings, of 
                                the project;
                                  (IV) a comprehensive budget for the 
                                project;
                                  (V) the names of the project lead 
                                organization and any partners;
                                  (VI) the number of users to be served 
                                by the project; and
                                  (VII) any other information that the 
                                Secretary determines to be necessary to 
                                complete the review and selection of a 
                                grant recipient.
          (4) Administration.--
                  (A) In general.--Not later than 300 days after the 
                date of enactment of this Act, the Secretary shall 
                select grant recipients under this section.
                  (B) Evaluations.--The Secretary shall annually carry 
                out an evaluation of each project for which a grant is 
                provided under this section that--
                          (i) evaluates the progress and impact of the 
                        project; and
                          (ii) assesses the degree to which the project 
                        is meeting the goals of the pilot program.
                  (C) Technical and policy assistance.--On the request 
                of a grant recipient, the Secretary shall provide 
                technical and policy assistance to the grant recipient 
                to carry out the project.
                  (D) Best practices.--The Secretary shall make 
                available to the public--
                          (i) a copy of each evaluation carried out 
                        under subparagraph (B); and
                          (ii) a description of any best practices 
                        identified by the Secretary as a result of 
                        those evaluations.
                  (E) Report to congress.--The Secretary shall submit 
                to Congress a report containing the results of each 
                evaluation carried out under subparagraph (B).
  (c) Funding.--
          (1) In general.--To carry out this section, the Secretary 
        shall use not more than $15,000,000 of amounts made available 
        to the Secretary.
          (2) Prioritization.--In funding activities under this 
        section, the Secretary shall prioritize funding in the 
        following manner:
                  (A) The Secretary shall first use any unobligated 
                amounts made available to the Secretary to carry out 
                the activities of the Energy Efficiency and Renewable 
                Energy Office.
                  (B) After any amounts described in subparagraph (A) 
                have been used, the Secretary shall then use any 
                unobligated amounts (other than those described in 
                subparagraph (A)) made available to the Secretary.

SEC. 4172. WATERSENSE.

  (a) In General.--The Energy Policy and Conservation Act (42 U.S.C. 
6201 et seq.) is amended by adding after section 324A the following:

``SEC. 324B. WATERSENSE.

  ``(a) WaterSense.--
          ``(1) In general.--There is established within the 
        Environmental Protection Agency a voluntary program, to be 
        entitled `WaterSense', to identify water efficient products, 
        buildings, landscapes, facilities, processes, and services that 
        sensibly--
                  ``(A) reduce water use;
                  ``(B) reduce the strain on public and community water 
                systems and wastewater and stormwater infrastructure;
                  ``(C) conserve energy used to pump, heat, transport, 
                and treat water; and
                  ``(D) preserve water resources for future 
                generations, through voluntary labeling of, or other 
                forms of communications about, products, buildings, 
                landscapes, facilities, processes, and services while 
                still meeting strict performance criteria.
          ``(2) Duties.--The Administrator, coordinating as appropriate 
        with the Secretary of Energy, shall--
                  ``(A) establish--
                          ``(i) a WaterSense label to be used for items 
                        meeting the certification criteria established 
                        in this section; and
                          ``(ii) the procedure, including the methods 
                        and means, by which an item may be certified to 
                        display the WaterSense label;
                  ``(B) conduct a public awareness education campaign 
                regarding the WaterSense label;
                  ``(C) preserve the integrity of the WaterSense label 
                by--
                          ``(i) establishing and maintaining feasible 
                        performance criteria so that products, 
                        buildings, landscapes, facilities, processes, 
                        and services labeled with the WaterSense label 
                        perform as well or better than less water-
                        efficient counterparts;
                          ``(ii) overseeing WaterSense certifications 
                        made by third parties;
                          ``(iii) using testing protocols, from the 
                        appropriate, applicable, and relevant consensus 
                        standards, for the purpose of determining 
                        standards compliance; and
                          ``(iv) auditing the use of the WaterSense 
                        label in the marketplace and preventing cases 
                        of misuse; and
                  ``(D) not more often than every six years, review 
                and, if appropriate, update WaterSense criteria for the 
                defined categories of water-efficient product, 
                building, landscape, process, or service, including--
                          ``(i) providing reasonable notice to 
                        interested parties and the public of any such 
                        changes, including effective dates, and an 
                        explanation of the changes;
                          ``(ii) soliciting comments from interested 
                        parties and the public prior to any such 
                        changes;
                          ``(iii) as appropriate, responding to 
                        comments submitted by interested parties and 
                        the public; and
                          ``(iv) providing an appropriate transition 
                        time prior to the applicable effective date of 
                        any such changes, taking into account the 
                        timing necessary for the manufacture, 
                        marketing, training, and distribution of the 
                        specific water-efficient product, building, 
                        landscape, process, or service category being 
                        addressed.
  ``(b) Use of Science.--In carrying out this section, and, to the 
degree that an agency action is based on science, the Administrator 
shall use--
          ``(1) the best available peer-reviewed science and supporting 
        studies conducted in accordance with sound and objective 
        scientific practices; and
          ``(2) data collected by accepted methods or best available 
        methods (if the reliability of the method and the nature of the 
        decision justify use of the data).
  ``(c) Distinction of Authorities.--In setting or maintaining 
standards for Energy Star pursuant to section 324A, and WaterSense 
under this section, the Secretary and Administrator shall coordinate to 
prevent duplicative or conflicting requirements among the respective 
programs.
  ``(d) Definitions.--In this section:
          ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
          ``(2) Feasible.--The term `feasible' means feasible with the 
        use of the best technology, treatment techniques, and other 
        means that the Administrator finds, after examination for 
        efficacy under field conditions and not solely under laboratory 
        conditions, are available (taking cost into consideration).
          ``(3) Secretary.--The term `Secretary' means the Secretary of 
        Energy.
          ``(4) Water-efficient product, building, landscape, process, 
        or service.--The term `water-efficient product, building, 
        landscape, process, or service' means a product, building, 
        landscape, process, or service for a residence or a commercial 
        or institutional building, or its landscape, that is rated for 
        water efficiency and performance, the covered categories of 
        which are--
                  ``(A) irrigation technologies and services;
                  ``(B) point-of-use water treatment devices;
                  ``(C) plumbing products;
                  ``(D) reuse and recycling technologies;
                  ``(E) landscaping and gardening products, including 
                moisture control or water enhancing technologies;
                  ``(F) xeriscaping and other landscape conversions 
                that reduce water use; and
                  ``(G) new water efficient homes certified under the 
                WaterSense program.''.
  (b) Conforming Amendment.--The table of contents for the Energy 
Policy and Conservation Act (Public Law 94-163; 42 U.S.C. 6201 et seq.) 
is amended by inserting after the item relating to section 324A the 
following new item:

``Sec. 324B. WaterSense.''.

                       Subtitle B--Accountability

      CHAPTER 1--MARKET MANIPULATION, ENFORCEMENT, AND COMPLIANCE

SEC. 4211. FERC OFFICE OF COMPLIANCE ASSISTANCE AND PUBLIC 
                    PARTICIPATION.

  Section 319 of the Federal Power Act (16 U.S.C. 825q-1) is amended to 
read as follows:

``SEC. 319. OFFICE OF COMPLIANCE ASSISTANCE AND PUBLIC PARTICIPATION.

  ``(a) Establishment.--There is established within the Commission an 
Office of Compliance Assistance and Public Participation (referred to 
in this section as the `Office'). The Office shall be headed by a 
Director.
  ``(b) Duties of Director.--
          ``(1) In general.--The Director of the Office shall promote 
        improved compliance with Commission rules and orders by--
                  ``(A) making recommendations to the Commission 
                regarding--
                          ``(i) the protection of consumers;
                          ``(ii) market integrity and support for the 
                        development of responsible market behavior;
                          ``(iii) the application of Commission rules 
                        and orders in a manner that ensures that--
                                  ``(I) rates and charges for, or in 
                                connection with, the transmission or 
                                sale of electric energy subject to the 
                                jurisdiction of the Commission shall be 
                                just and reasonable and not unduly 
                                discriminatory or preferential; and
                                  ``(II) markets for such transmission 
                                and sale of electric energy are not 
                                impaired and consumers are not damaged; 
                                and
                          ``(iv) the impact of existing and proposed 
                        Commission rules and orders on small entities, 
                        as defined in section 601 of title 5, United 
                        States Code (commonly known as the Regulatory 
                        Flexibility Act);
                  ``(B) providing entities subject to regulation by the 
                Commission the opportunity to obtain timely guidance 
                for compliance with Commission rules and orders; and
                  ``(C) providing information to the Commission and 
                Congress to inform policy with respect to energy issues 
                under the jurisdiction of the Commission.
          ``(2) Reports and guidance.--The Director shall, as the 
        Director determines appropriate, issue reports and guidance to 
        the Commission and to entities subject to regulation by the 
        Commission, regarding market practices, proposing improvements 
        in Commission monitoring of market practices, and addressing 
        potential improvements to both industry and Commission 
        practices.
          ``(3) Outreach.--The Director shall promote improved 
        compliance with Commission rules and orders through outreach, 
        publications, and, where appropriate, direct communication with 
        entities regulated by the Commission.''.

                       CHAPTER 2--MARKET REFORMS

SEC. 4221. GAO STUDY ON WHOLESALE ELECTRICITY MARKETS.

  (a) Study and Report.--Not later than 1 year after the date of 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Energy and Natural Resources of the Senate a report 
describing the results of a study of whether and how the current market 
rules, practices, and structures of each regional transmission entity 
produce rates that are just and reasonable by--
          (1) facilitating fuel diversity, the availability of 
        generation resources during emergency and severe weather 
        conditions, resource adequacy, and reliability, including the 
        cost-effective retention and development of needed generation;
          (2) promoting the equitable treatment of business models, 
        including different utility types, the integration of diverse 
        generation resources, and advanced grid technologies;
          (3) identifying and addressing regulatory barriers to entry, 
        market-distorting incentives, and artificial constraints on 
        competition;
          (4) providing transparency regarding dispatch decisions, 
        including the need for out-of-market actions and payments, and 
        the accuracy of day-ahead unit commitments;
          (5) facilitating the development of necessary natural gas 
        pipeline and electric transmission infrastructure;
          (6) ensuring fairness and transparency in governance 
        structures and stakeholder processes, including meaningful 
        participation by both voting and nonvoting stakeholder 
        representatives;
          (7) ensuring the proper alignment of the energy and 
        transmission markets by including both energy and financial 
        transmission rights in the day-ahead markets;
          (8) facilitating the ability of load-serving entities to 
        self-supply their service territory load;
          (9) considering, as appropriate, State and local resource 
        planning; and
          (10) mitigating, to the extent practicable, the disruptive 
        effects of tariff revisions on the economic decisionmaking of 
        market participants.
  (b) Definitions.--In this section:
          (1) Load-serving entity.--The term ``load-serving entity'' 
        has the meaning given that term in section 217 of the Federal 
        Power Act (16 U.S.C. 824q).
          (2) Regional transmission entity.--The term ``regional 
        transmission entity'' means a Regional Transmission 
        Organization or an Independent System Operator, as such terms 
        are defined in section 3 of the Federal Power Act (16 U.S.C. 
        796).

SEC. 4222. CLARIFICATION OF FACILITY MERGER AUTHORIZATION.

  Section 203(a)(1)(B) of the Federal Power Act (16 U.S.C. 
824b(a)(1)(B)) is amended by striking ``such facilities or any part 
thereof'' and inserting ``such facilities, or any part thereof, of a 
value in excess of $10,000,000''.

                      CHAPTER 3--CODE MAINTENANCE

SEC. 4231. REPEAL OF OFF-HIGHWAY MOTOR VEHICLES STUDY.

  (a) Repeal.--Part I of title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6373) is repealed.
  (b) Conforming Amendment.--The table of contents for the Energy 
Policy and Conservation Act (Public Law 94-163; 89 Stat. 871) is 
amended--
          (1) by striking the item relating to part I of title III; and
          (2) by striking the item relating to section 385.

SEC. 4232. REPEAL OF METHANOL STUDY.

  Section 400EE of the Energy Policy and Conservation Act (42 U.S.C. 
6374d) is amended--
          (1) by striking subsection (a); and
          (2) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively.

SEC. 4233. REPEAL OF RESIDENTIAL ENERGY EFFICIENCY STANDARDS STUDY.

  (a) Repeal.--Section 253 of the National Energy Conservation Policy 
Act (42 U.S.C. 8232) is repealed.
  (b) Conforming Amendment.--The table of contents for the National 
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206) is 
amended by striking the item relating to section 253.

SEC. 4234. REPEAL OF WEATHERIZATION STUDY.

  (a) Repeal.--Section 254 of the National Energy Conservation Policy 
Act (42 U.S.C. 8233) is repealed.
  (b) Conforming Amendment.--The table of contents for the National 
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206) is 
amended by striking the item relating to section 254.

SEC. 4235. REPEAL OF REPORT TO CONGRESS.

  (a) Repeal.--Section 273 of the National Energy Conservation Policy 
Act (42 U.S.C. 8236b) is repealed.
  (b) Conforming Amendment.--The table of contents for the National 
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206) is 
amended by striking the item relating to section 273.

SEC. 4236. REPEAL OF REPORT BY GENERAL SERVICES ADMINISTRATION.

  (a) Repeal.--Section 154 of the Energy Policy Act of 1992 (42 U.S.C. 
8262a) is repealed.
  (b) Conforming Amendments.--
          (1) The table of contents for the Energy Policy Act of 1992 
        (Public Law 102-486; 106 Stat. 2776) is amended by striking the 
        item relating to section 154.
          (2) Section 159 of the Energy Policy Act of 1992 (42 U.S.C. 
        8262e) is amended by striking subsection (c).

SEC. 4237. REPEAL OF INTERGOVERNMENTAL ENERGY MANAGEMENT PLANNING AND 
                    COORDINATION WORKSHOPS.

  (a) Repeal.--Section 156 of the Energy Policy Act of 1992 (42 U.S.C. 
8262b) is repealed.
  (b) Conforming Amendment.--The table of contents for the Energy 
Policy Act of 1992 (Public Law 102-486; 106 Stat. 2776) is amended by 
striking the item relating to section 156.

SEC. 4238. REPEAL OF INSPECTOR GENERAL AUDIT SURVEY AND PRESIDENT'S 
                    COUNCIL ON INTEGRITY AND EFFICIENCY REPORT TO 
                    CONGRESS.

  (a) Repeal.--Section 160 of the Energy Policy Act of 1992 (42 U.S.C. 
8262f) is amended by striking the section designation and heading and 
all that follows through ``(c) Inspector General Review.--Each 
Inspector General'' and inserting the following:

``SEC. 160. INSPECTOR GENERAL REVIEW.

  ``Each Inspector General''.
  (b) Conforming Amendment.--The table of contents for the Energy 
Policy Act of 1992 (Public Law 102-486; 106 Stat. 2776) is amended by 
striking the item relating to section 160 and inserting the following:

``Sec. 160. Inspector General review.''.

SEC. 4239. REPEAL OF PROCUREMENT AND IDENTIFICATION OF ENERGY EFFICIENT 
                    PRODUCTS PROGRAM.

  (a) Repeal.--Section 161 of the Energy Policy Act of 1992 (42 U.S.C. 
8262g) is repealed.
  (b) Conforming Amendment.--The table of contents for the Energy 
Policy Act of 1992 (Public Law 102-486; 106 Stat. 2776) is amended by 
striking the item relating to section 161.

SEC. 4240. REPEAL OF NATIONAL ACTION PLAN FOR DEMAND RESPONSE.

  (a) Repeal.--Part 5 of title V of the National Energy Conservation 
Policy Act (42 U.S.C. 8279) is repealed.
  (b) Conforming Amendment.--The table of contents for the National 
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206; 121 
Stat. 1665) is amended--
          (1) by striking the item relating to part 5 of title V; and
          (2) by striking the item relating to section 571.

SEC. 4241. REPEAL OF NATIONAL COAL POLICY STUDY.

  (a) Repeal.--Section 741 of the Powerplant and Industrial Fuel Use 
Act of 1978 (42 U.S.C. 8451) is repealed.
  (b) Conforming Amendment.--The table of contents for the Powerplant 
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289) 
is amended by striking the item relating to section 741.

SEC. 4242. REPEAL OF STUDY ON COMPLIANCE PROBLEM OF SMALL ELECTRIC 
                    UTILITY SYSTEMS.

  (a) Repeal.--Section 744 of the Powerplant and Industrial Fuel Use 
Act of 1978 (42 U.S.C. 8454) is repealed.
  (b) Conforming Amendment.--The table of contents for the Powerplant 
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289) 
is amended by striking the item relating to section 744.

SEC. 4243. REPEAL OF STUDY OF SOCIOECONOMIC IMPACTS OF INCREASED COAL 
                    PRODUCTION AND OTHER ENERGY DEVELOPMENT.

  (a) Repeal.--Section 746 of the Powerplant and Industrial Fuel Use 
Act of 1978 (42 U.S.C. 8456) is repealed.
  (b) Conforming Amendment.--The table of contents for the Powerplant 
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289) 
is amended by striking the item relating to section 746.

SEC. 4244. REPEAL OF STUDY OF THE USE OF PETROLEUM AND NATURAL GAS IN 
                    COMBUSTORS.

  (a) Repeal.--Section 747 of the Powerplant and Industrial Fuel Use 
Act of 1978 (42 U.S.C. 8457) is repealed.
  (b) Conforming Amendment.--The table of contents for the Powerplant 
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289) 
is amended by striking the item relating to section 747.

SEC. 4245. REPEAL OF SUBMISSION OF REPORTS.

  (a) Repeal.--Section 807 of the Powerplant and Industrial Fuel Use 
Act of 1978 (42 U.S.C. 8483) is repealed.
  (b) Conforming Amendment.--The table of contents for the Powerplant 
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289) 
is amended by striking the item relating to section 807.

SEC. 4246. REPEAL OF ELECTRIC UTILITY CONSERVATION PLAN.

  (a) Repeal.--Section 808 of the Powerplant and Industrial Fuel Use 
Act of 1978 (42 U.S.C. 8484) is repealed.
  (b) Conforming Amendments.--
          (1) Table of contents.--The table of contents for the 
        Powerplant and Industrial Fuel Use Act of 1978 (Public Law 95-
        620; 92 Stat. 3289) is amended by striking the item relating to 
        section 808.
          (2) Report on implementation.--Section 712 of the Powerplant 
        and Industrial Fuel Use Act of 1978 (42 U.S.C. 8422) is 
        amended--
                  (A) by striking ``(a) Generally.--''; and
                  (B) by striking subsection (b).

SEC. 4247. TECHNICAL AMENDMENT TO POWERPLANT AND INDUSTRIAL FUEL USE 
                    ACT OF 1978.

  The table of contents for the Powerplant and Industrial Fuel Use Act 
of 1978 (Public Law 95-620; 92 Stat. 3289) is amended by striking the 
item relating to section 742.

SEC. 4248. EMERGENCY ENERGY CONSERVATION REPEALS.

  (a) Repeals.--
          (1) Section 201 of the Emergency Energy Conservation Act of 
        1979 (42 U.S.C. 8501) is amended--
                  (A) in the section heading, by striking ``findings 
                and'';
                  (B) by striking subsection (a); and
                  (C) by striking ``(b) Purposes.--''.
          (2) Section 221 of the Emergency Energy Conservation Act of 
        1979 (42 U.S.C. 8521) is repealed.
          (3) Section 222 of the Emergency Energy Conservation Act of 
        1979 (42 U.S.C. 8522) is repealed.
          (4) Section 241 of the Emergency Energy Conservation Act of 
        1979 (42 U.S.C. 8531) is repealed.
  (b) Conforming Amendment.--The table of contents for the Emergency 
Energy Conservation Act of 1979 (Public Law 96-102; 93 Stat. 749) is 
amended--
          (1) by striking the item relating to section 201 and 
        inserting the following:

``Sec. 201. Purposes.''; and

          (2) by striking the items relating to sections 221, 222, and 
        241.

SEC. 4249. REPEAL OF STATE UTILITY REGULATORY ASSISTANCE.

  (a) Repeal.--Section 207 of the Energy Conservation and Production 
Act (42 U.S.C. 6807) is repealed.
  (b) Conforming Amendment.--The table of contents for the Energy 
Conservation and Production Act (Public Law 94-385; 90 Stat. 1125) is 
amended by striking the item relating to section 207.

SEC. 4250. REPEAL OF SURVEY OF ENERGY SAVING POTENTIAL.

  (a) Repeal.--Section 550 of the National Energy Conservation Policy 
Act (42 U.S.C. 8258b) is repealed.
  (b) Conforming Amendments.--
          (1) The table of contents for the National Energy 
        Conservation Policy Act (Public Law 95-619; 92 Stat. 3206; 106 
        Stat. 2851) is amended by striking the item relating to section 
        550.
          (2) Section 543(d)(2) of the National Energy Conservation 
        Policy Act (42 U.S.C. 8253(d)(2)) is amended by striking ``, 
        incorporating any relevant information obtained from the survey 
        conducted pursuant to section 550''.

SEC. 4251. REPEAL OF PHOTOVOLTAIC ENERGY PROGRAM.

  (a) Repeal.--Part 4 of title V of the National Energy Conservation 
Policy Act (42 U.S.C. 8271 et seq.) is repealed.
  (b) Conforming Amendments.--The table of contents for the National 
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206) is 
amended--
          (1) by striking the item relating to part 4 of title V; and
          (2) by striking the items relating to sections 561 through 
        570.

SEC. 4252. REPEAL OF ENERGY AUDITOR TRAINING AND CERTIFICATION.

  (a) Repeal.--Subtitle F of title V of the Energy Security Act (42 
U.S.C. 8285 et seq.) is repealed.
  (b) Conforming Amendment.--The table of contents for the Energy 
Security Act (Public Law 96-294; 94 Stat. 611) is amended by striking 
the items relating to subtitle F of title V.

                    CHAPTER 4--USE OF EXISTING FUNDS

SEC. 4261. USE OF EXISTING FUNDS.

  Amounts required for carrying out this Act, other than section 1201, 
shall be derived from amounts appropriated under authority provided by 
previously enacted law.

                          Purpose and Summary

    H.R. 8, the North American Energy Security and 
Infrastructure Act of 2015, was introduced by Representative 
Fred Upton on September 16, 2015. The legislation would advance 
energy infrastructure development, modernization, and 
protection; foster a 21st century energy and manufacturing 
workforce; bolster America's energy security and diplomacy; and 
promote energy efficiency and government accountability.

                  Background and Need for Legislation


  A LEGISLATIVE FRAMEWORK TO MODERNIZE U.S. ENERGY INFRASTRUCTURE AND 
               CAPITALIZE ON THE U.S. ENERGY RENAISSANCE

    America is experiencing an energy renaissance. Modern 
technology and American ingenuity have unlocked a wealth of 
energy resources, and with the right policies, this energy 
abundance can help fuel the nation's economy for years to come. 
H.R. 8 seeks to maximize the nation's energy potential, 
strengthen energy security, and keep prices affordable. The 
legislation establishes a framework for a targeted, solutions-
based energy package. Specifically, H.R. 8 focuses on four 
general areas:
    Modernizing Infrastructure. America faces different energy 
challenges today than it did a decade ago. Chief among them is 
a lack of modern energy infrastructure to carry abundant new 
supplies of energy to consumers. These challenges threaten 
energy reliability and affordability. For example, delays and 
red tape in the permitting process often discourage the safest, 
most efficient and reliable, and often most environmentally 
sound, modes of energy delivery. The nation's electricity 
sector also continues to evolve. Its challenges include 
changing market dynamics and technological advances, aggressive 
environmental regulations, increased integration of 
intermittent resources, and a growing number of grid security 
threats. At the same time, big data and new energy analytics 
technologies offer novel products and services that can improve 
efficiency while helping utilities and software companies meet 
consumer needs.
    21st Century Energy Workforce. An educated, sustainable 
energy and manufacturing workforce is vital to continued 
economic growth, particularly as the U.S. seeks to modernize 
and update its energy infrastructure. In addition to having a 
workforce capable of addressing 21st century challenges, there 
is also a need to ensure that workforce opportunities are 
accessible to all Americans, including under-represented 
minority and low-income communities.
    Energy Diplomacy for a Changing World. There are 
significant geopolitical benefits to be gained from the North 
American energy revolution, including making North America a 
global energy leader and making the U.S. and its allies less 
dependent on OPEC countries and other unstable regions of the 
world.
    Efficiency and Accountability. Harnessing new technologies 
and private sector innovation for more efficient energy usage 
in households, businesses, and the Federal government is a 
critical component of any national energy policy. There are 
many methods available to improve efficiency that do not 
require mandates or taxpayer spending, including the 
establishment of voluntary programs, guidelines, and improved 
data gathering and information. H.R. 8 promotes simple and 
affordable methods to address energy demand and bring down 
costs for consumers and taxpayers. It also seeks to reduce 
government waste and prioritize budget dollars in existing 
programs, as well as provide important regulatory relief for 
U.S. manufacturers from burdensome Federal efficiency mandates.

 OVERVIEW OF H.R. 8, NORTH AMERICAN ENERGY SECURITY AND INFRASTRUCTURE 
                              ACT OF 2015

    Modernizing natural gas pipeline infrastructure. In recent 
years, technological advances have spurred dramatic growth in 
domestic production of oil and natural gas. While these 
developments have been a significant benefit to the American 
economy, further growth and benefits to consumers are 
constrained by a lack of adequate infrastructure. Changing 
supply and demand patterns have left industrial and residential 
consumers, particularly in the Northeast, vulnerable to price 
spikes associated with a lack of adequate natural gas pipeline 
capacity.
    The current Federal and State permitting process for 
constructing new natural gas pipelines and modernizing existing 
pipelines is a significant impediment to infrastructure 
development. Despite increased authority given to the Federal 
Energy Regulatory Commission (FERC) under the Energy Policy Act 
of 2005 (EPACT), there is evidence that FERC lacks the ability 
to enforce agency decisional deadlines related to natural gas 
pipeline applications. H.R. 8 will help to alleviate 
constraints on natural gas pipeline infrastructure development 
by reinforcing FERC's role as the lead agency to coordinate 
concurrent permit reviews, establish timelines, and require 
transparency in the process.
    In addition, H.R. 8 will provide assistance to low income 
households in order to offset rate increases resulting from 
accelerated replacement of natural gas distribution 
infrastructure. The bill also incorporates recommendations of 
the National Petroleum Council's 2014 report on enhancing 
government and industry emergency preparedness for natural 
disasters by enhancing communication mechanisms and leveraging 
existing institutional frameworks.\1\
---------------------------------------------------------------------------
    \1\National Petroleum Council. ``Enhancing Emergency Preparedness 
for Natural Disasters.'' December 18, 2014.
---------------------------------------------------------------------------
    Modernizing and protecting the electricity system. In 
addition to the need to modernize and expand the nation's 
natural gas infrastructure, ensuring the electric grid is 
secure, resilient, and reliable is another top priority. 
Changing market dynamics, new regulations, and emerging threats 
have created new energy security and reliability challenges. 
Disruptions in the delivery of electricity have far-reaching 
economic and public health impacts. The U.S. Energy Information 
Administration estimates that power outages cost Americans at 
least $150 billion annually.\2\ The legislation seeks to meet 
today's energy reliability and security challenges with 
forward-looking, commonsense solutions, including innovative 
and advanced technologies that offer new opportunities to 
improve and bolster electric infrastructure.
---------------------------------------------------------------------------
    \2\U.S. Department of Energy. ``Voices of Experience: Insights into 
Advanced Distribution Management Systems.'' February, 2015.
---------------------------------------------------------------------------
    H.R. 8 would address threats to the electricity system, 
including physical and cyber-attack, electromagnetic pulse, 
geomagnetic disturbances, severe weather, and seismic events 
through enhanced emergency preparedness and utilization of 
advanced technologies. For example, the bill requires an 
evaluation of the feasibility of storing strategically located 
spare large power transformers, which can take up to two years 
to construct, that would reduce the vulnerability of the United 
States to these threats. In addition, H.R. 8 would provide for 
competitive grant programs for States, units of local 
government, and Indian tribe economic development entities to 
enhance the resilience of the electric grid, improve 
preparedness and restoration time to mitigate power 
disruptions, and continue delivery of power to facilities 
critical to public health and electricity-dependent essential 
services.
    As the electric grid becomes more reliant on information 
technology and digital communications devices, new grid access 
points are created, potentially increasing the avenues for 
outside attacks. By establishing a voluntary Cyber Sense 
program to identify and promote cyber-secure products and 
technologies for use in the bulk-power system, the legislation 
provides increased certainty that new technologies are secure. 
H.R. 8 also provides for voluntary sharing and protection of 
critical electric infrastructure information between the 
private sector and the Federal government, to work together to 
anticipate and address electric grid vulnerabilities.
    Modernizing the Strategic Petroleum Reserve. The Strategic 
Petroleum Reserve (SPR or Reserve), a Federal stockpile of oil 
stored at several underground locations in Texas and Louisiana, 
is one of the Nation's most valuable energy security assets; 
however, it is in need of life-extension and modernization in 
order to continue fulfilling its mission. In the event of a 
serious oil supply disruption, the Reserve is designed to 
deliver up to 4.4 million barrels of oil per day from its 
underground network to salt caverns to refineries where it can 
be turned into usable products like gasoline. In its current 
state, the Reserve does not meet its designed performance 
criteria, jeopardizing U.S. national security.
    The SPR currently holds about 695 million barrels of oil or 
the equivalent of about 137 days of import protection, while 
only ninety days are required to meet the U.S. obligation under 
the International Energy Program. Much of the Reserve's 
infrastructure is reaching the end of its design life. In fact, 
some of the facilities are more than seventy-five years old. 
Investment through regular appropriations has not kept pace 
with need, and future obligations are challenging in the 
current fiscal environment. At any given time, a considerable 
volume of oil held within the Reserve is off-line due to 
maintenance issues. In addition, ``cavern creep,'' resulting 
from normal operations and naturally occurring geologic forces, 
eliminates available capacity each year. Compounding the 
structural issues with the Reserve's facilities, the shared 
distribution system of pipelines and waterway infrastructure 
have undergone significant changes since the 1970's, when the 
Reserve was created, degrading its ability to protect the U.S. 
economy during an emergency.
    H.R. 8 directs the Secretary of Energy to develop a 
comprehensive study of the optimal size, location, and 
composition of the Reserve. H.R. 8 also would authorize a 
limited SPR drawdown and sale to provide for the repair and 
replacement of the Reserve's facilities, as well as non-Reserve 
projects needed to enhance energy security by increasing the 
resilience, reliability, safety, and security of energy supply, 
transmission, and distribution infrastructure.
    Hydropower modernization and development. Hydropower is an 
essential component of an ``all of the above'' energy strategy 
for the United States. Hydropower resources, including pumped 
storage facilities, currently provide over six percent of all 
electricity generated in the United States, nearly fifty 
percent of all renewable electricity in the United States, and 
approximately 100,000 megawatts of electric capacity in the 
United States. Tremendous potential exists for new hydropower 
development, including facilities at existing infrastructure 
such as non-powered dams, new hydropower sites, and emerging 
technologies that improve the capture of energy along 
irrigation canals, municipal water supply conduits, and other 
linear infrastructure.
    Despite the inherent benefits of hydropower--energy 
security, stability, and reliability; environmental protection 
and enhancement; and recreation--the outdated authorization 
processes under Part One of the Federal Power Act (FPA), 
together with overlapping and duplicative requirements under 
other Federal laws, disadvantage hydropower as a cost-
competitive resource. One of the primary impediments to greater 
utilization of hydropower resources is the regulatory process, 
which has proven costly, time-consuming, and burdensome, even 
for small hydropower projects. The regulatory process to 
license and construct a hydropower facility remains 
considerably longer than the process for other energy 
resources. For example, the Integrated Licensing Process 
established specifically for hydropower projects is structured 
to be completed in five years, while the development timeline 
for wind and solar projects can be as short as eighteen to 
twenty-four months.
    Although centralized decision-making and administration of 
non-Federal hydropower has been the intent of the FPA since its 
original enactment 95 years ago, weakening of this core 
principle over time has resulted in increased consumer costs, 
reduced availability of renewable energy, capacity, and 
ancillary services provided by hydropower, and lost 
opportunities for new hydropower development. Despite the 
intentions of the EPACT to require better decision-making and 
promote efficiency in the licensing decisions of FERC, the Act 
has not accomplished its full purposes due to inefficient 
implementation and evasion of its requirements by Federal 
resource agencies.
    H.R. 8 would expedite the review of hydropower 
infrastructure development by reinforcing FERC's role as the 
lead agency to coordinate concurrent permit reviews and 
establish enforceable timelines, and streamlining licensing 
study processes. By requiring FERC to develop a collection of 
existing studies and data that could be used to inform 
licensing proceedings, H.R. 8 prevents unnecessary, expensive, 
and duplicative environmental studies that significantly 
prolong the duration of application reviews. The bill also 
establishes a focused licensing process for the expeditious 
review of license applications for closed loop pumped storage 
projects, and of license amendment applications that would 
provide a public benefit (e.g., recreation, environmental 
enhancement, or increased renewable energy development) with 
insignificant or minimal environmental effects. The bill also 
would facilitate the development of new hydropower 
infrastructure at existing non-powered dams by authorizing FERC 
to issue exemptions to facilities that meet certain conditions. 
H.R. 8 also provides the U.S. courts of appeals jurisdiction to 
rule on agency requests for extensions in the event FERC's 
schedule for review would prevent it from complying with its 
own statutory mandates.
    Energy and manufacturing workforce development. DOE has in 
place a number of programs to provide training for careers in 
the energy sector and related fields. However, the rapid growth 
of domestic oil and natural gas production and the related 
expansion of energy-intensive manufacturing have significantly 
changed the employment market and the skills most in demand. In 
addition, certain groups, including religious, ethnic 
minorities, women, veterans, individuals with disabilities, and 
socioeconomically disadvantaged individuals, historically have 
been underrepresented in many of these jobs, due in part to a 
lack of training. Furthermore, while overall energy sector job 
growth has been robust, certain fields, such as coal mining, 
have been in decline. H.R. 8 seeks to redirect DOE workforce 
training programs to increase the number of skilled workers 
trained to work in energy and manufacturing-related fields. It 
also would provide re-training to displaced energy and 
manufacturing sector workers.
    Energy security and diplomacy. America has emerged as the 
world's leading energy-producing nation and is projected to 
become a net energy exporter.\3\ Beyond the economic benefits 
of this energy abundance, there are also important 
opportunities to enhance the nation's energy security and help 
advance its foreign policy goals. However, existing energy laws 
are based on assumptions of energy scarcity and are ill-suited 
to take advantage of these opportunities. In particular, there 
is no formalized process to incorporate the geopolitical 
benefits of increased domestic energy production into 
government decision-making. This includes the benefits of 
reduced reliance on energy imports, as well as the potential 
opportunities for energy exports to allies and trading 
partners. H.R. 8 creates an interagency task force to 
coordinate with Canada and Mexico on mutually-beneficial energy 
policy decisions affecting North America, as well as Trans-
Atlantic and Trans-Pacific forums reaching out to allies on 
energy matters. It also would expedite the Federal approval of 
liquefied natural gas (LNG) export projects.
---------------------------------------------------------------------------
    \3\Energy Information Administration, ``Annual Energy Outlook 
2015,'' http://www.eia.gov/forecasts/AEO.section__energyprod.cfm.
---------------------------------------------------------------------------
    Energy efficiency. America's energy policy addresses demand 
as well as supply. The Federal government has a host of 
programs that seek to improve energy efficiency at Federal 
facilities and throughout the economy. These programs 
occasionally need to be revised to reflect technological 
change, address emerging problems, and improve accountability 
and transparency. For example, there are a host of unexplored 
opportunities to save energy at Federal facilities, as well as 
a number of efficiency standards and voluntary measures facing 
implementation challenges. H.R. 8 contains a number of 
provisions applicable to Federal facilities, such as those 
reducing energy use at data centers and expanding the use of 
energy savings performance contracts. It also clarifies the 
role of DOE in advising States on building codes, provides a 
resolution to concerns about residential gas furnace efficiency 
standards, and takes steps to encourage wider participation in 
voluntary energy savings programs.
    Accountability. H.R. 8 seeks to promote government 
accountability and transparency in regulatory decision-making. 
The legislation requires FERC to establish an Office of 
Compliance Assistance and Public Participation to be 
responsible for promoting improved compliance with Commission 
regulations, make recommendations on energy market behavior and 
enforcement, and perform outreach to the regulated community. 
The legislation also requires the Government Accountability 
Office to study whether and how market rules, practices, and 
structures of regional transmission organizations produce rates 
that are just and reasonable.

                                Hearings

    The Subcommittee on Energy and Power held a hearing 
entitled ``Title II: 21st Century Workforce'' on April 23, 
2015. The Subcommittee received testimony from:
           Tracy Brundage, Vice President, Workforce 
        Development and Continuing Education, Pennsylvania 
        College of Technology, on behalf of ShaleNET;
           Rick Jarvis, Vice President of Field 
        Construction, morrow-Meadows Corporation, on behalf of 
        National Electrical Contractors Association;
           Ramanan Krishnamoorti, Chief Energy Officer, 
        University of Houston;
           Monica Martinez, President, Hispanics in 
        Energy;
           Felix W. Ortiz, Founder, Chairman and CEO, 
        Viridis Learning; and
           Charles Wilson, Senior Reactor Operator 
        Trainer and Managing Partner, CW Consulting Group, LLC.
    The Subcommittee on Energy and Power held a hearing 
entitled ``Strategic Petroleum Reserve Discussion Draft and 
Title IV Energy Efficiency'' on April 30, 2015. The 
Subcommittee received testimony from:
           Christopher A. Smith, Assistant Secretary 
        for Fossil Energy, U.S. Department of Energy;
           Christopher Peel, Corporate Senior Vice 
        President and COO, Rheem Manufacturing Company, on 
        behalf of the Air-Conditioning, Heating, and 
        Refrigeration Institute;
           Kateri Callahan, President, Alliance to Save 
        Energy;
           Frank Thompson, President, Sweetwater 
        Builders, Inc., on behalf of the National Association 
        of Home Builders;
           Elizabeth Noll, Energy Efficiency Advocate, 
        Natural Resources Defense Council;
           John W. Somerhalder II, Chairman, President, 
        and CEO, on behalf of the American Gas Association;
           Rona Newmark, Vice President, Intelligent 
        Efficiency Strategy, EMC Corp., on behalf of the 
        Information Technology Council; and
           Mark Wagner, Vice President, U.S. Government 
        Relations, Johnson Controls, Inc., on behalf of the 
        Federal Performance Contracting Coalition.
    The Subcommittee on Energy and Power held a hearing 
entitled ``Discussion Drafts Addressing Hydropower Regulatory 
Modernization and FERC Process Coordination under the Natural 
Gas Act'' on May 13, 2015. The Subcommittee received testimony 
from:
           Paul R. LePage, Governor of Maine;
           Ann F. Miles, Director, Office of Energy 
        Projects, Federal Energy Regulatory Commission;
           Donald F. Santa, President and CEO, 
        Interstate Natural Gas Association of America;
           Carolyn Elefant, Member of the Board, The 
        Pipeline Safety Coalition and Principal, The Law 
        Offices of Carolyn Elefant;
           Randy Livingston, Vice President, Power 
        Generation, Pacific Gas and Electric Company;
           John J. Suloway, Board Member, National 
        Hydropower Association;
           John Collins, Managing Director of Business 
        Development, Cube Hydro Partners; and
           Richard Roos-Collins, General Counsel, The 
        Hydropower Reform Coalition and Principal, Water and 
        Power Law Group, PC, on behalf of The Hydropower Reform 
        Coalition.
    The Subcommittee on Energy and Power held a hearing 
entitled ``Discussion Draft Addressing Energy Reliability and 
Security'' on May 19, 2015. The Subcommittee received testimony 
from:
           Michael Bardee, Director, Office of Electric 
        Reliability, Federal Energy Regulatory Commission;
           Gerry W. Cauley, President and CEO, North 
        American Electric Reliability Corporation;
           Thomas Fanning, Chairman, President, and 
        CEO, Southern Company;
           Elinor Haider, Vice President, Market 
        Development, Veolia Energy North America, on behalf of 
        the Alliance for Industrial Efficiency;
           Joseph Dominguez, Executive Vice President, 
        Governmental and Regulatory Affairs and Public Policy, 
        Exelon Corporation;
           Mike Bergey, President and CEO, Bergey Wind 
        Power and Board President, Distributed Wind Energy 
        Association, on behalf of the Distributed Wind Energy 
        Association;
           John Di Stasio, President, Large Public 
        Power Council;
           Emily Heitman, Vice President and General 
        Manager, Demand Side Organization Power Transformers, 
        ABB, Inc., on behalf of the National Electrical 
        Manufacturers Association; and
           Elgie Holstein, Senior Director for 
        Strategic Planning, Environmental Defense Fund.
    The Subcommittee on Energy and Power held a hearing 
entitled ``Quadrennial Energy Review and Related Discussion 
Drafts'' on June 2, 2015. The Subcommittee received testimony 
from:
           Ernest J. Moniz, Secretary, U.S. Department 
        of Energy;
           Rudolf Dolzer, Advisory Board Member, 
        Association of International Petroleum Negotiators and 
        Professor of International Law, University of Bonn;
           Jason Grumet, President, Bipartisan Policy 
        Center;
           Scott Martin, Commissioner, Lancaster 
        County, PA;
           Gerald Keeps, Vice President, Upstream 
        Research and Consulting, HIS;
           Alison Cassady, Director of Domestic Energy 
        Policy, Center for American Progress; and
           Emily Hammond, Professor of Law, George 
        Washington University Law School.
    The Subcommittee on Energy and Power held a hearing 
entitled ``Discussion Draft on Accountability and Department of 
Energy Perspectives on Title IV: Energy Efficiency'' on June 4, 
2015. The Subcommittee received testimony from:
           Kathleen Hogan, Deputy Assistant Secretary 
        for Energy Efficiency, U.S. Department of Energy;
           J. Arnold Quinn, Director, Office of Energy 
        Policy and Innovation, Federal Energy Regulatory 
        Commission;
           Larry R. Parkinson, Director, Office of 
        Enforcement, Federal Energy Regulatory Commission;
           Sue Kelly, President and CEO, American 
        Public Power Association;
           John E. Shelk, President and CEO, Electric 
        Power Supply Association;
           Christopher Cook, President and General 
        Counsel, Solar Grid Storage LLC;
           Jonathan M. Weisgall, Vice President, 
        Legislative and Regulatory Affairs, Berkshire Hathaway 
        Energy;
           William S. Scherman, Partner, Gibson, Dunn & 
        Crutcher LLP; and
           Peter Gaibraith Kelly, Senior Vice 
        President, External Affairs, Competitive Power 
        Ventures, Inc.

                        Committee Consideration

    On July 22, 2015, the Subcommittee on Energy and Power met 
in open markup session and forwarded the Committee Print 
entitled ``To modernize energy infrastructure, build a 21st 
century workforce, bolster America's energy security and 
diplomacy, and promote energy efficiency and government 
accountability'' to the full Committee by a voice vote. On 
September 29 and 30, 2015, the full Committee on Energy and 
Commerce met in open markup session and ordered H.R. 8 reported 
to the House, as amended, by a recorded vote of 32 yeas and 20 
nays.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The following reflects the recorded votes taken during 
the Committee consideration:
T7649.001

T7649.002

T7649.003

T7649.004

T7649.005

T7649.006

T7649.007

T7649.008

T7649.009

T7649.010

T7649.011

T7649.012

T7649.013

T7649.014

T7649.015

T7649.016

T7649.017

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held hearings and made 
findings that are reflected in this report.

         Statement of General Performance Goals and Objectives

    The goal of this legislation is to modernize energy 
infrastructure, build a 21st century workforce, bolster 
America's energy security and diplomacy, and promote energy 
efficiency and government accountability.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
8 would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

      Earmarks, Limited Tax Benefits, and Limited Tariff Benefits

    In compliance with clause 9(e), 9(f), and 9(g) of rule XXI 
of the Rules of the House of Representatives, the Committee 
finds that H.R. 8 contains no earmarks, limited tax benefits, 
or limited tariff benefits.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:
                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 19, 2015.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 8, the North 
American Energy Security and Infrastructure Act of 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 8--North American Energy Security and Infrastructure Act of 2015

    Summary: H.R. 8 would amend current law and authorize 
activities--to be administered primarily by the Department of 
Energy (DOE)--to promote energy efficiency and enhance the 
reliability and security of energy-related infrastructure. The 
bill also would expand and extend federal agencies' authority 
to use certain types of long-term contracts to invest in energy 
conservation measures and related services and specify various 
energy-related goals and requirements for federal agencies.
    CBO estimates that enacting H.R. 8 would increase direct 
spending by $414 million over the 2016-2025 period. In 
addition, CBO estimates that implementing the legislation 
would, on net, reduce spending subject to appropriation by $411 
million over the 2016-2020 period, assuming appropriation 
actions consistent with the legislation. Enacting H.R. 8 could 
affect revenues, but CBO estimates that any such effects would 
total less than $500,000 in any year.
    Because H.R. 8 would affect direct spending and revenues, 
pay-as-you-go procedures apply.
    CBO estimates that enacting H.R. 8 would not increase net 
direct spending or on-budget deficits by more than $5 billion 
in any of the four consecutive 10-year periods beginning in 
2026.
    H.R. 8 would impose intergovernmental and private-sector 
mandates, as defined in the Unfunded Mandates Reform Act 
(UMRA). CBO estimates that the aggregate cost of complying with 
the intergovernmental mandates would fall below the annual 
threshold established in UMRA ($77 million in 2015, adjusted 
annually for inflation). CBO cannot determine whether the 
aggregate cost of the private-sector mandates would exceed the 
annual threshold established in UMRA ($154 million, adjusted 
annually for inflation).
    CBO has not reviewed some provisions of sections 1102 and 
1104 for mandates because section 4 of UMRA excludes from the 
application of that act any legislative provisions that are 
necessary for national security; CBO has determined that those 
provisions fall within that exclusion.
    Estimated Cost to the Federal Government: The estimated 
budgetary effects of this legislation are shown in the 
following table. The costs of this legislation primarily fall 
within budget function 270 (energy).

                                                                      TABLE 1--SUMMARY OF THE BUDGETARY EFFECTS OF H.R. 8\a\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                              2016-      2016-
                                                                 2016       2017       2018       2019       2020       2021       2022       2023       2024       2025       2020       2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   CHANGES IN DIRECT SPENDING
 
Estimated Budget Authority..................................         46         46         46         46         46         46         46         46         46         46        230        460
Estimated Outlays...........................................         14         32         46         46         46         46         46         46         46         46        184        414
 
                                                                          CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level...............................         33         14          8          5          0         -4         -8        -12        -16        -21         60         -1
Estimated Outlays...........................................          6       -204       -149        -49        -15        185        136         59         14        -12       -411        -29
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a\The estimates presented in this table reflect CBO's view of how cash flows related to energy savings performance contracts (ESPCs) should be reflected in the federal budget. Since ESPCs
  were first implemented in 1998, however, the Administration has not recorded the full extent of federal obligations under ESPCs upfront when contracts were signed. Instead, the
  Administration records ongoing contract payments to vendors under ESPCs on a year-by-year basis as appropriations for such payments are provided. If the Administration was to continue
  following that practice for executing ESPCs under H.R. 8, agencies' total energy-related costs would be largely unchanged during the contract period, when savings from reduced energy costs
  would go toward making contractual payments to vendors. As a result, CBO estimates that there would be no significant reduction in appropriations from implementing H.R. 8 in the 10-year
  period covered by this estimate. If expected reductions in energy use continued beyond the contract period, budgetary savings would accrue to the federal government if annual appropriations
  for agencies' energy-related spending were reduced accordingly.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
8 will be enacted near the start of fiscal year 2016.

Changes in direct spending

    Estimated increases in direct spending under H.R. 8 stem 
from provisions that would modify agencies' authority to enter 
into energy savings performance contracts (ESPCs), a specific 
type of long-term contract used to procure equipment and 
services to conserve energy in federal buildings. The bill also 
would specify a variety of energy-related goals and 
requirements for federal agencies, but CBO estimates such 
provisions would not significantly affect direct spending.
    Expanded Authority To Use ESPCs. Under current law, a 
variety of statutory provisions and executive orders direct 
federal agencies to meet certain goals to reduce the amount of 
energy used, increase the consumption of electricity that is 
generated from renewable sources, reduce emissions of 
greenhouse gases, and ensure that federal facilities meet 
certain standards related to sustainable resource use. To 
support investments in energy-efficiency and renewable 
technologies necessary to achieve those goals, federal agencies 
sometimes use ESPCs--a specific type of long-term contract that 
enables a nonfederal vendor to finance energy-related 
investments on behalf of the government.
    CBO generally considers that implementing ESPCs will affect 
both direct spending and spending subject to appropriation. The 
rationale for CBO's longstanding budgetary treatment of ESPCs 
and similar contracts, and differences between CBO's view and 
the Administration's, are discussed in depth in a recent CBO 
report on that topic.\1\ In brief, upon entering into an ESPC, 
the government effectively commits to making payments to a 
vendor in future years before having appropriations to cover 
all of the resulting costs; in CBO's view, the authority to 
enter into such contractually binding agreements without 
appropriations is a form of direct spending. ESPCs permit 
agencies to pay vendors for energy conservation measures and 
related financing costs over time on the basis of anticipated 
and realized reductions in energy costs, which are generally 
paid from annual discretionary appropriations. Thus, proposals 
that affect agencies' use of such contracts also affect 
spending subject to appropriation.
---------------------------------------------------------------------------
    \1\See Congressional Budget Office, Using ESPCs to Finance Federal 
Investments in Energy-Efficient Equipment, (February 2015), https://
www.cbo.gov/publication/49869.
---------------------------------------------------------------------------
    H.R. 8 would modify federal agencies' authority to use 
ESPCs to finance necessary capital investments. Key changes 
would:
           Permit agencies to use, sell, or transfer 
        energy incentives, rebates, or credits (such as 
        renewable energy certificates) as a means of making 
        payments to vendors under ESPCs;\2\
---------------------------------------------------------------------------
    \2\Renewable energy certificates represent the right to the 
nonpower renewable and environmental attributes of electricity 
generated from renewable resources. Such certificates, and other 
similar incentives and rebates, can be sold separately from the 
underlying units of physical electricity. For purposes of complying 
with certain energy-related requirements, the purchase of a renewable 
energy certificate is equal to purchasing the renewable attributes of 
the underlying electricity without consuming or purchasing the energy 
itself.
---------------------------------------------------------------------------
           Expand the definition of an ``energy 
        conservation measure'' to include the acquisition of 
        energy-consuming devices and support structures (such 
        as appliances located within federal buildings); and,
           Require federal agencies to include, in 
        estimating the value of energy savings attributable to 
        an ESPC, any anticipated reduction in operation and 
        maintenance expenses related to energy conservation 
        measures financed under the contract.
    CBO expects that those proposed changes to agencies' 
authority to use ESPCs would enable agencies to pursue new 
projects that are otherwise unlikely to be undertaken under 
current law. In particular, we expect that authorizing agencies 
to use incentives such as renewable energy certificates to 
finance contract payments would enable greater investments in 
renewable technologies. Under current law, agencies' authority 
to use such incentives to pay for ESPC costs is uncertain in 
light of a 2013 decision by a federal contract appeals 
board.\3\ As a result of that decision and based on information 
from DOE, CBO expects that, under current law, federal agencies 
are unlikely to pursue ESPCs that involve renewable energy 
technologies as a significant component.
---------------------------------------------------------------------------
    \3\Honeywell International Inc., Armed Services Board of Contract 
Appeals No. 57779 (August 7, 2013).
---------------------------------------------------------------------------
    Thus, CBO anticipates that allowing agencies to use such 
incentives would lead them to make larger investments in 
renewable projects than would otherwise occur. CBO estimates 
that, under H.R. 8, agencies would use ESPCs to adopt 
additional energy conservation measures with an investment 
value of about $35 million annually. That estimate is based on 
historical information from DOE on the potential magnitude of 
renewable energy projects that are likely to be pursued through 
ESPCs if agencies were explicitly permitted to use incentives 
such as renewable energy certificates to fund contracts. The 
estimate represents a relatively modest incremental increase in 
anticipated spending for energy-related investments. By 
comparison, since 2003 overall spending by federal agencies for 
such investments has averaged nearly $1.5 billion annually, 
with roughly one-third of energy conservation measures--or 
about $500 million annually--acquired through ESPCs or similar 
long-term contracts.
    It is possible that incremental commitments through ESPCs 
would be even greater under H.R. 8 to the extent that agencies 
that currently plan to undertake projects using appropriated 
funds for the upfront costs shift instead toward using such 
contracts, given the expanded flexibility under the bill. 
However, based on information from DOE about the multi-billion 
dollar pipeline of energy-related improvements that agencies 
intend to pursue under current law over the next several years, 
CBO does not expect that increased use of contracts to finance 
projects would reduce the need for future appropriations for 
energy-related investments. Rather, our estimate reflects the 
expectation that, under the bill, overall levels of investment 
would increase relative to current law.
    Under H.R. 8, CBO estimates that increased direct spending 
for the upfront cost of contractual commitments to acquire 
additional energy conservation measures through ESPCs would 
total $46 million annually. CBO's estimate of direct spending 
reflects an amount equal to the annual cost of energy 
conservation measures as installed (about $35 million), plus 
the net present value of the portion of borrowing costs 
attributable to contract interest rates that would exceed U.S. 
Treasury interest rates (about $11 million). (Borrowing costs 
equivalent to the amount of Treasury interest that would be 
paid if projects were financed with appropriated funds are not 
included in our estimate because, for the enforcement of 
Congressional budget rules, changes in Treasury interest costs 
are not counted as a cost or savings related to any particular 
legislative provision.) CBO's estimate of spending reflects its 
judgment as to when equipment or services would be provided--
typically over a three-year period for equipment.
    In addition, CBO estimates that projects financed through 
ESPCs would, on net, reduce federal agencies' energy costs, 
which are typically paid for using annual discretionary 
appropriations. (See the subsequent discussion on changes in 
spending subject to appropriation for details on such effects.)
    Energy-Related Goals and Requirements for Federal Agencies. 
As previously mentioned, existing statutory provisions and 
executive orders direct federal agencies to meet certain 
energy-related goals and requirements. According to DOE, 
federal agencies have identified a multi-billion dollar 
pipeline of additional energy-related improvements that they 
intend to pursue under current law over the next several years 
in order to comply with existing energy-related goals and 
requirements. Under current law, CBO expects that agencies will 
pursue some of those improvements through ESPCs and similar 
arrangements involving an increase in estimated direct 
spending.
    H.R. 8 would extend statutory goals for federal agencies to 
reduce energy consumption, expand requirements for federal 
buildings to meet certain standards related to sustainable 
resource use, and broaden definitions of the types of energy 
that can be considered renewable for purposes of complying with 
an existing requirement related to federal agencies' use of 
renewable electricity. According to DOE, the goals and 
requirements specified by those provisions are largely 
consistent with existing statutory and administrative policy, 
and CBO expects that they would not significantly affect the 
timing or magnitude of federal spending on energy-related 
technologies.

Spending subject to appropriation

    Assuming appropriation action consistent with the 
legislation, CBO estimates that implementing H.R. 8 would, on 
net, reduce spending subject to appropriation by $411 million 
over the 2016-2020 period (see Table 2). That estimate includes 
$74 million in increased costs for DOE and other agencies to 
pursue activities related to energy infrastructure and energy 
efficiency that would be more than offset by estimated 
reductions in spending subject to appropriation totaling $485 
million. Those reductions include the effects of a provision 
that would establish an Energy Security and Infrastructure 
Modernization Fund with proceeds from the sale of oil in the 
Strategic Petroleum Reserve, estimated reductions in energy-
related spending attributable to increased use of ESPCs under 
the bill, and forgone costs to comply with an existing 
requirement for federal agencies to reduce their use of fossil 
fuels.
    In addition, several provisions--particularly those related 
to the security of the nation's electricity transmission grid 
and other aspects of the nation's energy infrastructure--would 
specify a variety of new procedural and analytical requirements 
for the Federal Energy Regulatory Commission (FERC), which 
regulates the interstate transmission of electricity, natural 
gas, and oil and plays a role in approving and licensing 
certain energy projects. Such provisions could affect FERC's 
workload; however, because FERC recovers 100 percent of its 
costs through user fees, any change in that agency's costs 
(which are controlled through annual appropriation acts) would 
be offset by an equal change in fees that the commission 
charges, resulting in no net change in federal spending.

                       TABLE 2--CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 8
----------------------------------------------------------------------------------------------------------------
                                                              By Fiscal year, in millions of dollars--
                                                  --------------------------------------------------------------
                                                    2016      2017       2018       2019       2020    2016-2020
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Energy-Related Infrastructure and Energy
 Efficiency
    Estimated Authorization Level................      34         18         17         17         17        103
    Estimated Outlays............................       7         14         17         18         18         74
Energy Security and Infrastructure Modernization
 Fund
    Estimated Authorization Level................       0          0          0          0          0          0
    Estimated Outlays............................       0       -214       -157        -55        -16       -442
Net Reductions in Energy and Energy-Related Costs
 Attributable to ESPCs
    Estimated Authorization Level................      -1         -3         -6         -9        -12        -31
    Estimated Outlays............................      -1         -3         -6         -9        -12        -31
Repeal of Requirement to Reduce Fossil Fuel Use
    Estimated Authorization Level................       0         -1         -3         -3         -5        -12
    Estimated Outlays............................       0         -1         -3         -3         -5        -12
    Total Changes
        Estimated Authorization Level............      33         14          8          5          0         60
        Estimated Outlays........................       6       -204       -149        -49        -15       -411
----------------------------------------------------------------------------------------------------------------
Note: ESPCs = energy savings performance contracts.

    Energy-Related Infrastructure and Energy Efficiency. H.R. 8 
would authorize DOE and other agencies to pursue activities to 
modernize and improve the security of energy-related 
infrastructure and promote the development and use of energy-
efficient technologies in buildings, appliances, and industrial 
processes. The bill also would direct DOE, in collaboration 
with the Department of State, to undertake a variety of 
analytical and diplomatic efforts related to energy security.
    According to DOE, many of the requirements specified in 
H.R. 8 are consistent with ongoing efforts and likely to be 
achieved within existing levels of funding; as a result, CBO 
estimates that implementing such provisions would not 
significantly affect the agency's costs. Based on information 
from DOE, CBO estimates that fully funding those activities 
would require appropriations totaling $103 million over the 
2016-2020 period (and $85 million in later years). That five-
year total includes:
           $50 million in specified authorizations for 
        incentive payments to certain producers of 
        hydroelectricity;
           $25 million in estimated authorizations for 
        a new program to identify and promote technologies to 
        enhance the cybsersecurity of the nation's bulk-power 
        system;
           $15 million in specified authorizations for 
        grants to utilities and local governments to 
        demonstrate advanced and innovative technologies 
        related to efficient use of energy and water; and
           $13 million in estimated authorizations for 
        a variety of energy-related studies, reports, and other 
        activities.
    Assuming appropriation of the amounts authorized and 
estimated to be necessary, CBO estimates resulting outlays 
would total $74 million over the 2016-2020 period and $114 
million in later years. That estimate is based on historical 
spending patterns for existing and similar activities carried 
out by DOE.
    That estimate includes the costs for DOE to develop, in 
consultation with other federal agencies and owners and 
operators of critical electric infrastructure and military 
installations, a plan to establish a national storage system 
for spare large power transformers and other equipment that 
could be used to replace critically damaged components of the 
bulk-power system; however, our estimate does not include any 
costs that DOE might incur to subsequently implement such a 
plan because we have no basis for predicting what it might 
recommend. Based on information from DOE, CBO expects the 
agency would need about two years to collaborate and develop 
the proposed plan, which would assess the need for such a 
storage system and options for covering its costs, which CBO 
expects could cost up to a few hundred million dollars to 
establish. Any federal spending for such a system would be 
subject to appropriation, and could be offset by fees paid by 
users depending on the details of the plan.
    Energy Security and Infrastructure Modernization Fund. 
Section 1201 would authorize the appropriation of $850 million 
over the 2017-2020 period for certain infrastructure projects 
and establish the terms and conditions under which those costs 
would be offset during that period by authorizing the sale of 
oil from the Strategic Petroleum Reserve (SPR) for that 
purpose. Any amounts appropriated or collected from the sale of 
oil would be deposited in a new Energy Security and 
Infrastructure Modernization Fund. Such oil sales would be in 
amounts specified in the bill and would be contingent on 
authority provided in future appropriation acts. Other 
provisions would direct DOE to deposit proceeds in the year the 
oil is sold and would preclude sales if the sale price would be 
lower than the average price paid to acquire the oil for the 
SPR or if the oil was needed to meet certain emergency 
conditions.
    For this estimate, CBO assumes that future appropriation 
acts would appropriate the amounts authorized in the bill and 
authorize DOE to sell volumes of oil from the SPR as necessary 
to generate proceeds equivalent to those amounts. CBO also 
assumes that DOE would ensure that the net proceeds from the 
sales would equal or exceed the amounts required by those 
acts.\4\ Because of differences in the timing of such 
collections and spending, CBO estimates that implementing the 
program would reduce discretionary spending by about $442 
million over the 2016-2020 period, but increase it by the same 
amount after 2021 as projects are completed, resulting in no 
net cost over the 2016-2025 period.
---------------------------------------------------------------------------
    \4\Given the volatility of oil prices, it may be difficult for DOE 
to match sales proceeds with appropriated amounts. CBO expects that DOE 
would deposit any excess proceeds in the SPR Petroleum Account, which 
is available to be spent without further appropriation for certain 
purposes.
---------------------------------------------------------------------------
    Net Reductions in Energy and Energy-Related Costs 
Attributable to ESPCs. As previously discussed, CBO expects 
that changes to the ESPC statute under H.R. 8 would increase 
agencies' use of ESPCs to finance energy-related investments, 
which also would affect energy-related spending subject to 
appropriation. ESPCs allow agencies to pay for energy-related 
investments over time on the basis of anticipated and realized 
reductions in energy costs, which are generally paid from 
annual appropriations. CBO estimates that reductions in such 
costs attributable to contracts entered into under H.R. 8 would 
occur gradually over the period of time covered by such 
contracts--up to 25 years. As a result, most anticipated 
savings attributable to increased ESPCs would occur beyond the 
period covered by this estimate. CBO estimates that such 
savings would total $41 million over the 2016-2020 period and 
$182 million over the 2016-2025 period.
    Those estimated savings would be partially offset by 
increased spending for certain services related to ESPCs 
entered into under the bill. Typically, when using such a 
contract, an agency agrees to make payments for services 
related to the operation and maintenance of newly installed 
equipment. Such agreements include measurement and verification 
activities to confirm that projects reduce energy consumption 
as guaranteed by the contract. Because the government can opt 
out of those services at any time, such contract-related costs 
are considered discretionary. For this estimate, CBO estimates 
that the cost of such services would total about 2.5 percent of 
the value of energy conservation measures acquired through 
ESPCs. Assuming appropriation of the necessary amounts, CBO 
estimates that discretionary spending for optional ESPC 
contract-related services would total $10 million over the 
2016-2020 period and gradually increase as new contracts are 
entered into each year and payments on older contracts 
continue, totaling $45 million over the 2016-2025 period.
    Repeal of Requirement to Reduce Fossil Fuel Use. H.R. 8 
would eliminate section 433 of the Energy Independence and 
Security Act of 2007 (EISA), which requires federal agencies to 
gradually phase out, and eliminate by 2030, the use of energy 
generated from fossil fuel in newly constructed federal 
buildings and buildings undergoing major renovations. Under 
current law, that provision is one of several energy-related 
requirements with which federal agencies must comply; for 
example, other statutory provisions and executive orders direct 
agencies to reduce overall consumption of energy and water, 
reduce greenhouse gas emissions, increase use of energy 
generated from renewable sources, and meet certain 
sustainability-related standards. According to DOE, agencies 
are expected, under current law, to make significant 
investments in energy-related technologies, many of which will 
help agencies simultaneously achieve multiple requirements.
    For that reason, CBO estimates that repealing any single 
energy-related requirement would not necessarily change the 
overall amount of federal investments in energy-related 
technologies. In particular, during the 2016-2020 period 
covered by this estimate, agencies must also ensure that newly 
constructed buildings and major renovations are designed to 
achieve certain energy-efficiency standards; according to DOE, 
many investments that agencies pursue to comply with such 
standards are likely to simultaneously fulfill the requirement 
under section 433 of EISA. After 2020, CBO expects that 
incremental spending attributable to federal agencies' efforts 
to comply with the standard would increase as it becomes more 
stringent.
    Nevertheless, CBO expects that repealing section 433 of 
EISA would, on the margin, reduce agencies' near-term costs. 
Although DOE has not yet finalized a rule to implement that 
provision, the department expects that, as an alternative to 
reducing the use of energy generated by fossil fuels, agencies 
will be allowed to achieve compliance by purchasing renewable 
energy certificates from firms that generate electricity from 
renewable resources. (Under current law, federal agencies 
purchase such certificates to comply with certain other energy-
related requirements.)
    Based on information from DOE, CBO estimates that under 
current law, agencies will use discretionary appropriations to 
purchase renewable energy certificates worth as much as $12 
million over the next five years and $52 million over the 2016-
2025 period in order to comply with section 433 of EISA. Thus, 
CBO estimates that repealing that provision would lead to 
discretionary savings of those amounts, assuming future 
appropriations for compliance costs are reduced accordingly.

Revenues

    H.R. 8 would amend existing law regarding actions taken by 
electric utilities when DOE determines that the electric power 
system is experiencing emergency conditions. Under current law, 
during a designated emergency, DOE can require firms to produce 
or supply electricity to avoid or resolve blackouts or other 
risks to the electric power system. If those actions violate 
other regulatory requirements, such as air pollution limits, 
the affected firms may be liable for penalties under those 
laws. H.R. 8 would revise this framework by establishing new 
procedures for ensuring compliance with environmental standards 
during designated emergencies. The bill also would exempt firms 
from certain civil and criminal liability if the actions taken 
to comply with DOE's emergency orders violate environmental or 
other regulatory standards.
    According to DOE, it has issued emergency orders to 
electric utilities six times since 1978, and none of those 
transactions resulted in the payment of penalties. Based on 
that historical experience, CBO estimates that revenues from 
such penalties would not be significant over the next 10 years 
under current law; as a result, CBO estimates that reducing 
firms' liability for such penalties would not result in any 
significant loss of federal revenues.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in Table 3.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           By fiscal year, in millions of dollars--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                 2016       2017       2018       2019       2020       2021       2022       2023       2024       2025    2016-2020  2016-2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NET INCREASE OR DECREASE (-) IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact..............................         14         32         46         46         46         46         46         46         46         46        184        414
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term deficit and net direct spending: CBO 
estimates that enacting the legislation would not increase net 
on-budget deficits or net direct spending by $5 billion or more 
in any of the four consecutive 10-year periods beginning in 
2026.
    Intergovernmental and private-sector impact: H.R. 8 would 
impose intergovernmental and private-sector mandates as defined 
in UMRA. Based on information from DOE, feedback from state 
agencies and industry sources, and analyses of similar 
requirements, CBO estimates that the aggregate cost of 
complying with the intergovernmental mandates would fall below 
the annual threshold established in UMRA ($77 million in 2015, 
adjusted annually for inflation). The cost of most of the 
private-sector mandates would be small. However, because the 
cost of one of the mandates would depend on future action by 
DOE, CBO cannot determine whether the aggregate cost of the 
mandates would exceed the annual threshold established in UMRA 
($154 million, adjusted annually for inflation).

Mandates that apply to public and private entities

    The bill could impose an intergovernmental and private-
sector mandate on entities that are required to pay fees to 
FERC. If FERC increases those fees to offset the costs of 
implementing the bill, the bill would increase the cost of an 
existing mandate on entities required to pay those fees. The 
amount of fees collected would depend on the level of future 
appropriations. Based on incremental changes in past 
appropriations following other energy legislation, CBO 
estimates that any change in fees collected would not be 
substantial.
    The bill would require state utility commissions and 
nonregulated electric utilities to consider the adoption of new 
standards related to electric grid resiliency and reliability, 
and the use of new energy technologies. The requirement to 
consider those standards would be an intergovernmental and 
private-sector mandate because it would increase those 
entities' responsibilities under existing mandates in the 
Public Utilities Regulatory Policies Act. Based on information 
from public utility commissions and industry sources, CBO 
expects that state utility commissions and nonregulated 
utilities would comply with the mandate using existing 
resources so that the incremental costs would be small.

Mandates that apply to public entities only

    The bill also would impose an intergovernmental mandate by 
requiring state, local, and tribal agencies involved in the 
federal review process for natural gas and hydropower projects 
licensed by FERC to comply with new administrative requirements 
for expediting those reviews. Based on information from FERC 
and public utility commissions about workloads associated with 
those activities, CBO estimates that the costs of those 
mandates would be small.
    In addition, H.R. 8 contains several preemptions of state 
and local authority. Because preemptions limit the authority of 
state and local governments, they are considered 
intergovernmental mandates under UMRA, but CBO estimates that 
those preemptions would not impose any duty that would result 
in additional spending or a loss of revenues by state, local, 
or tribal governments:
           Section 1102 would exempt electric utilities 
        from complying with state and local environmental and 
        liability laws if those laws would conflict with an 
        emergency order by FERC to maintain grid reliability.
           Section 1106 would exempt companies from 
        state and local laws that otherwise would require them 
        to disclose vulnerabilities in cybersecurity products 
        that the companies discover as part of the 
        certification process in DOE's Cyber Sense program.
           Section 4125 would preempt state and local 
        consumer protection laws by stating that the inclusion 
        of an Energy Star label on a product does not create an 
        express or implied warranty and shall not give rise to 
        any private claims or rights of action.
           Section 4161 would preempt state disclosure 
        laws relating to appliance energy use labels in cases 
        where DOE revises definitions of covered appliances.

Mandates that apply to private entities only

    The bill would impose private-sector mandates on electric 
transmission organizations, manufacturers of consumer products 
and equipment, and exporters of liquefied natural gas. The bill 
also would impose a private-sector mandate to the extent that 
it eliminates an existing right to seek compensation for 
damages under environmental laws.
    Reporting requirement for electric transmission 
organizations. The bill would impose mandates on electric 
transmission organizations (Regional Transmission Organizations 
and Independent System Operators) that operate capacity 
markets. In capacity markets, power plants receive compensation 
for their capacity, or the power that they will provide at some 
point in the future. Under the bill the electric transmission 
organizations would be required to submit an analysis to FERC 
concerning the structure of each market that operates as a 
capacity market. Those organizations also would have to submit 
an analysis with each filing to establish a new capacity market 
or to substantially modify the design of an existing capacity 
market. Based on information from FERC, CBO anticipates that 
about 30 analyses would be submitted annually by electric 
transmission organizations. Based on the cost of similar types 
of reports, CBO estimates that the cost of completing each 
report could total a few million dollars.
    Energy efficiency standards and labeling requirements. The 
bill would authorize DOE to modify the definitions of consumer 
products and equipment that are subject to energy efficiency 
standards if there is consensus among interested parties, 
including manufacturers. If DOE modifies a definition so that 
products or equipment are subject to more stringent standards 
for energy efficiency, the bill would impose a mandate on 
manufacturers of those products or equipment. The cost of the 
mandate would depend on future action by DOE. As such, CBO has 
no basis to estimate the cost of the mandate.
    The bill also would allow the Federal Trade Commission 
(FTC) to issue labeling requirements for consumer products or 
equipment covered by a modified definition. Additionally, the 
bill would require FTC to consider including information about 
Smart Grid capability in product labels. Based on analyses of 
other labeling requirements, CBO expects that the cost to 
comply with any such changes to labeling requirements would not 
be substantial.
    Disclosure requirement for exports of liquefied natural 
gas. The bill would impose a private-sector mandate on entities 
seeking DOE approval to export liquefied natural gas (LNG). The 
Natural Gas Act requires entities seeking to export natural gas 
to obtain approval from DOE. The bill would require that 
applicants, as a condition for approval, publicly disclose the 
countries that would receive the exports. Exporters currently 
report information about destination countries to DOE on a 
monthly basis. According to DOE, close to 100 applications have 
been approved or are pending for export of LNG. Because the 
number of applications for export is small and the cost to 
disclose destination countries is low, CBO estimates that the 
cost of this mandate would be small.
    Elimination of a right of action. The bill would impose a 
private-sector mandate to the extent that it eliminates an 
existing right to seek compensation for damages under 
environmental laws from utilities operating in compliance with 
certain federal emergency orders issued by FERC. The cost of 
the mandate would be the forgone value of awards and 
settlements in such claims. Because FERC has issued emergency 
orders infrequently, CBO expects that such claims would be 
uncommon in the future. Consequently, CBO expects that the cost 
of the mandate would be small.
    Previous CBO estimate: On October 15, 2015, CBO transmitted 
a cost estimate for S. 2012, the Energy Policy Modernization 
Act of 2015, as reported by the Senate Committee on Energy and 
Natural Resources on September 9, 2015. Title I of that 
legislation contains several provisions that are substantively 
similar to provisions of H.R. 8. In particular, both bills 
would authorize funding for activities to increase the energy-
efficiency of buildings and appliances and eliminate the 
existing requirement (under section 433 of EISA) for federal 
agencies to reduce consumption of energy generated from fossil 
fuels. Our cost estimates of those provisions are the same for 
both bills.
    In addition, both H.R. 8 and S. 2012 contain substantively 
similar provisions that would modify federal agencies' 
authority to use ESPCs to finance energy-related investments, 
and our estimates of additional direct spending and changes in 
spending subject to appropriation attributable to those 
provisions are the same. However, S. 2012 would make additional 
changes--by modifying certain energy-related requirements for 
federal agencies and expanding agencies' authority to use 
utility service energy contracts--that CBO expects would result 
in higher levels of direct spending and larger changes in 
spending subject to appropriation than H.R. 8.
    Estimate prepared by: Federal Costs: Megan Carroll, 
Kathleen Gramp, and Jon Sperl; Impact on State, Local, and 
Tribal Governments: Jon Sperl; Impact on the Private Sector: 
Amy Petz.
    Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                    Duplication of Federal Programs

    No provision of H.R. 8 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting H.R. 8 specifically 
directs to be completed no rule makings within the meaning of 5 
U.S.C. 551.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


           TITLE I--MODERNIZING AND PROTECTING INFRASTRUCTURE


Sec. 1101. FERC process coordination

    This section would reinforce the FERC's role as the lead 
agency for siting interstate natural gas pipelines. This 
section would require FERC to identify all agencies considering 
an aspect of an application and set the schedule for review, 
including a deadline for a final decision. Cooperating agencies 
should carry out reviews concurrently, identifying any issues 
of concern that may delay or prevent an agency from meeting the 
schedule established by FERC, and defer to FERC on the scope of 
the environmental review when appropriate and in accordance 
with applicable Federal law. If issues arise, the Commission 
could forward them to the heads of the relevant agency for 
resolution. In cases where there is a failure to meet the 
schedule that is established by FERC, the head of the relevant 
agency would notify Congress and set forth a recommended 
implementation plan to ensure a final decision is reached. 
Clarification also is provided to ensure that if a Federal or 
State agency considering an aspect of an application for 
Federal authorization requires the applicant to submit 
environmental data, the agency shall consider data gathered by 
aerial or other remote means that the applicant submits and may 
grant conditional approval for Federal authorization, 
conditioned on the verification of such data by subsequent 
onsite inspection. FERC also would be directed to track, and 
make available to the public on its website, information 
related to the review of applications requiring multiple 
Federal authorizations.

Sec. 1102. Resolving environmental and grid reliability conflicts

    This section would resolve conflicts between the Federal 
Power Act and environmental laws and regulations in order to 
avoid forcing electric generators from choosing between 
complying with an emergency order from the Department of Energy 
(DOE) or violating an environmental obligation. Under current 
law, if DOE orders a generating unit to operate pursuant to 
section 202(c), such operation could conflict with 
environmental requirements, and the owner of the unit would 
have to choose between violating an order from DOE and 
violating the environmental requirement. If the owner of the 
generating unit chooses to comply with the section 202(c) order 
to address the DOE-identified reliability emergency, the owner 
could be fined or sued for non-compliance with an environmental 
regulation, even though the party would not have violated the 
regulation but for its compliance with the DOE order. Left 
unresolved, the current statutory structure creates the 
potential for conflicting legal mandates that could threaten 
the reliability of the grid.
    To ensure that the tools needed to maintain the reliability 
of the grid are available and effective despite potentially 
conflicting environmental requirements, H.R. 8 amends section 
202(c) of the FPA to clarify that when a party is under an 
emergency directive to operate pursuant to section 202(c), it 
will not be deemed in violation of environmental laws or 
regulations or subject to civil or criminal liability, or 
citizen enforcement actions, as a result of actions taken that 
are necessary to comply with a DOE-issued emergency order.

Sec. 1103. Emergency preparedness for energy supply disruptions

    This section would include the finding that recent natural 
disasters have underscored the importance of having resilient 
oil and natural gas infrastructure and effective ways for 
industry and government to communicate to address energy supply 
disruptions. This section also would direct the Secretary of 
Energy to develop and adopt procedures to enhance communication 
and coordination between the DOE, Federal partners, State and 
local government, and the private sector to improve emergency 
response and recovery.

Sec. 1104. Critical electric infrastructure security

    This section would establish a new section 215A of the 
Federal Power Act that:
           Provides the Secretary of Energy the 
        authority to address grid security emergencies if the 
        President provides a written directive or determination 
        identifying a grid security emergency. The Secretary is 
        authorized to take emergency measures to protect the 
        bulk power system or defense critical electric 
        infrastructure, including ordering critical electric 
        infrastructure owners and operators to take appropriate 
        actions, with such measures to expire no later than 
        fifteen days from issuance; and
           Facilitates the protection and voluntary 
        sharing of critical electric infrastructure information 
        between private sector asset owners and the Federal 
        government by: (1) exempting designated Critical 
        Electric Infrastructure Information from certain 
        Federal and State disclosure laws for a period up to 
        five years; (2) requiring FERC to facilitate voluntary 
        information sharing between Federal, State, local and 
        tribal authorities, the Electric Reliability 
        Organization, regional entities, and owners, operators 
        and users of the bulk-power system in the U.S.; and (3) 
        establishing sanctions for the unauthorized disclosure 
        of shared information.

Sec. 1105. Strategic transformer reserve

    This section would require DOE to submit a plan to Congress 
evaluating the feasibility of establishing a Strategic 
Transformer Reserve for the storage, in strategically-located 
facilities, of spare large power transformers and emergency 
mobile substations in sufficient numbers to temporarily replace 
critically damaged large power transformers and substations. 
Strategically-located spare large power transformers and 
emergency mobile substations will diminish the vulnerability of 
the United States to multiple risks facing electric grid 
reliability, including physical attack, cyber-attack, 
electromagnetic pulse, geomagnetic disturbances, severe 
weather, and seismic events.

Sec. 1106. Cyber sense

    This section would direct DOE to establish a voluntary 
Cyber Sense program to identify and promote cyber-secure 
products and technologies intended for use in the bulk-power 
system, including products relating to industrial control 
systems, such as supervisory control and data acquisition 
systems.

Sec. 1107. State coverage and consideration of PURPA standards for 
        electric utilities

    This section would direct electric utilities and State 
public utility commissions to consider:
           Increasing the utilization of, and cost 
        recovery for, resiliency-related technologies designed 
        to improve the resilience of electric infrastructure, 
        mitigate power outages, continue delivery of vital 
        services, and maintain the flow of power to facilities 
        critical to public health, safety, and welfare;
           Promoting investments in advanced energy 
        analytics technology for the purposes of realizing 
        operational efficiencies, cost savings, enhanced energy 
        management and customer engagement, improvements in 
        system reliability, safety, and cybersecurity, or other 
        benefits to ratepayers. For the purposes of financial 
        accounting, the Financial Accounting Standards Board 
        has recognized the changing technology landscape of 
        Internet-based and cloud-based computing solution and 
        subscription licensing models, and issued a new 
        standard entitled ``Customer's Accounting for Fees Paid 
        in a Cloud Computing Arrangement'' (ASU No. 2015-05). 
        This subsection recognizes the need for State 
        regulatory authorities to update their regulatory 
        accounting to provide appropriately for recovery and a 
        reasonable rate of return for such technologies, 
        solutions, and models. Regulatory accounting practices 
        differ from financial accounting practices, but there 
        is a clear interest in updating both practices;
           Adopting or modifying policies to ensure the 
        incorporation of sufficient reliable generation into 
        integrated resource plans to assure the reliable 
        availability of electric energy over a ten-year 
        planning period; and
           Impacts of subsidizing the deployment, 
        construction, maintenance, or operation of a customer-
        side technology; including costs and benefits, resource 
        utilization, fuel diversity, and grid security.

Sec. 1108. Reliability analysis for certain rules that affect electric 
        generating facilities

    This section would require the FERC, in coordination with 
the Electric Reliability Organization, to complete an 
independent reliability analysis of any proposed or final 
``billion dollar'' Federal rule that affects electric 
generating units. The reliability analysis must evaluate the 
potential impacts of the rule on: (1) electric reliability and 
resource adequacy; (2) the electricity generation portfolio of 
the United States; (3) the operation of wholesale electricity 
markets; and (4) energy delivery and infrastructure, including 
electric transmission facilities and natural gas pipelines.

Section 1109. Carbon capture, utilization, and sequestration 
        technologies

    This section would permit the continued cost-competitive 
use of coal by advancing clean coal research and technology--
specifically carbon capture, utilization, and sequestration 
(CCUS) technologies--towards large scale demonstration and 
commercial use. This section also would increase accountability 
at DOE with respect to CCUS research by directing the agency to 
evaluate all CCUS projects that have been awarded funds by DOE 
every two years.
    Section 1110. Reliability and Performance Assurance in 
Regional Transmission Organizations:
    This section would amend the Federal Power Act to require 
each regional transmission organization (RTO) and independent 
system operator (ISO) that operates a capacity market to 
provide to FERC an analysis of: (1) how such market utilizes 
competitive market forces in procuring capacity resources, and 
(2) whether the structure of such market includes resource-
neutral performance criteria that ensure the procurement of 
sufficient capacity from physical generation facilities that 
have certain reliability attributes, such as fuel on-site, dual 
fuel capability, and contractual obligations that ensure 
adequate fuel supply to enable operation for an extended period 
of time. After such an analysis is submitted, FERC is required 
to submit to Congress a report containing an evaluation of 
whether the structure of such market, as detailed in the 
analysis, meets the required criteria and, if it does not, 
provide recommendations with respect to the procurement of 
sufficient capacity meeting the identified reliability 
attributes.

      Subtitle B--Energy Security and Infrastructure Modernization


Sec. 1201. Energy Security and Infrastructure Modernization Fund

    This section would establish a budget-neutral Energy 
Security and Infrastructure Modernization Fund to (1) provide 
for the construction, maintenance, repair, and replacement of 
Strategic Petroleum Reserve facilities; (2) establish a grant 
program to States to offset rate increases to low income 
customers for upgrades the natural gas distribution system; and 
(3) establish a competitive grant program to provide grants to 
States, units of local government, and Indian tribe economic 
development entities to enhance the resilience and reliability 
of the electric grid. The Secretary of Energy would be 
authorized to drawdown and sell crude oil from the Strategic 
Petroleum Reserve to reinvest in energy security for the United 
States.

            Subtitle C--Hydropower Regulatory Modernization


Sec. 1301. Hydroelectric production and efficiency incentives

    This section would amend the Energy Policy Act of 2005 to 
reauthorize through fiscal year (FY) 2025 the program of 
hydroelectric production incentives and incentive payments to 
the owners or operators of hydroelectric facilities at existing 
dams to make capital improvements directly related to improving 
efficiency.

Sec. 1302. Protection of private property rights in hydropower 
        licensing

    This section would amend the Federal Power Act to require 
FERC to minimize infringement on the exercise and enjoyment of 
property rights in issuing hydropower licenses. It also 
requires the licensee, in developing any recreational resource 
within the project boundary, to consider private landownership 
as a means to encourage and facilitate private investment, 
increased tourism, and recreational use.

Sec. 1303. Extension of time for FERC project involving W. Kerr Scott 
        Dam

    This section would authorize FERC to extend the project 
start time for construction of the W. Kerr Scott Dam in North 
Carolina for six years.

Sec. 1304. Hydropower licensing and process improvement

    This section would designate the Federal Energy Regulatory 
Commission as the lead agency for purposes of compliance with 
the National Environmental Policy Act, with respect to all 
Federal licenses, permits, and other approvals needed for non-
Federal hydropower projects under Federal law. It requires FERC 
to develop a schedule, in consultation with Federal and State 
agencies and Indian tribes, with respect to such Federal 
authorizations, and it directs agencies and tribes to comply 
with the schedule. Under this section, FERC is required to 
promulgate regulations, after notice and opportunity for public 
comment, governing the procedures for developing the schedule 
for Federal authorizations in each individual proceeding, 
including measures for dispute resolution. The section also 
authorizes (but does not require) applicants for a FERC license 
to provide direct funding to third party contractors to assist 
agencies and tribes in their review of license applications.
    The new section 34(f) of the Federal Power Act would 
authorize, but not require, applicants for a Federal 
authorization to fund a third party contractor selected by the 
permitting agency or tribe to assist in reviewing the 
application. This provision is intended to facilitate the 
timely processing of applications in cases where the permitting 
agency or tribe may otherwise have difficulty meeting the 
deadlines set forth in FERC's schedule and the applicant is 
willing and able to provide additional funding. It is intended 
to supplement, not supplant, agency budgets. The bill provides 
that costs directly funded by the applicant shall not also be 
collected through annual charges under section 10(e) of the 
FPA, to prevent collecting twice for the same costs.

Sec. 1305. Judicial review of delayed federal authorizations

    This section would add a new section 313(b)(2) to the 
Federal Power Act to extend jurisdiction to the U.S. courts of 
appeals to rule upon petitions, filed by a Federal, State, or 
local government agency or Indian tribe, for additional time to 
complete their final disposition of a Federal authorization 
required for the licensing, construction, operation, or 
maintenance of a jurisdictional non-Federal hydropower project. 
New section 313(b)(2) would authorize the court to grant 
extensions of up to ninety days for the agency or tribe to 
complete its disposition of a Federal authorization. If the 
court denies the extension, or if the agency or tribe fails to 
file for an extension and also fails to complete a timely 
disposition of the Federal authorization, the bill provides 
that the Commission and the applicant may move forward with the 
proposed action. This is intended to allow the Commission to 
issue a license in a case where a Federal authorization that 
would otherwise have been a prerequisite for Commission action 
was not issued in a timely manner, thus preventing unreasonable 
delay of the Commission license. In such cases, as well as 
circumstances in which a Federal authorization is not a 
prerequisite to Commission action, but would otherwise be 
required for the applicant to construct, operate, or maintain 
the project, the applicant will be able to proceed based 
exclusively on the FERC license and any timely Federal 
authorizations.

Sec. 1306. Licensing study improvements

    This section would make the licensing study process more 
efficient by requiring FERC to compile current and accepted 
best practices for licensing studies, and to develop a 
collection of existing studies and data that could be used to 
inform licensing proceedings. This section also requires FERC 
and other agencies to use current, accepted science in support 
of their Federal authorizations concerning hydropower 
applications, and to demonstrate that any requested new studies 
is not duplicative of current, existing studies that could be 
used. Finally, this section establishes a voluntary program for 
reviewing hydropower projects on a basin-wide scale.

Sec. 1307. Closed loop pumped storage projects

    Section 1307 would add a new section 36 to the Federal 
Power Act, which recognizes that closed-loop pumped storage 
projects are essential to energy storage and grid reliability 
and, as specialized facilities serving a specific purpose, 
should not be subjected to the comprehensive development 
licensing standards and requirements of the Federal Power Act 
that apply to conventional hydropower projects. In lieu of such 
standards and requirements, section 1307 authorizes the 
inclusion in any license or Federal authorization for a closed-
loop pumped storage project only such measures that are 
necessary to protect public safety, or to prevent or mitigate 
adverse effects to fish and wildlife resources caused by the 
construction and operation of the project. Section 1307 would 
also facilitate the development of closed-loop pumped storage 
projects, which are often large, capital intensive projects 
that may benefit from public-private partnerships and other 
creative financing mechanisms by creating an exception to 
FERC's policy regarding ``abuse of municipal preference.'' 
Pursuant to this provision, where the preliminary permittee or 
the licensee has claimed municipal preference under section 
7(a) of the Act, section 1307 would authorize the Commission to 
approve the addition of joint permittees to an existing 
preliminary permit or transfer a license to one or more 
entities as co-licensee with a municipality, regardless of 
whether the partnering entities are municipalities or non-
municipalities.

Sec. 1308. License amendment improvements:

    This section would establish an expeditious process for 
FERC's review of license amendment applications that would 
provide a public benefit (e.g., recreation, environmental 
enhancement, or increased renewable energy development), with 
insignificant or minimal environmental effects. The program 
establishes deadlines for FERC and agency actions, and it 
focuses conditioning authority to address only impacts related 
to the amendment proposal. In addition, this section requires 
FERC to undertake a rulemaking, following notice and 
opportunity for public comment, to promulgate new standards and 
procedures for license amendment applications generally. The 
new standards and procedures must be commensurate with the 
range of differences in environmental impacts associated with 
various license amendment proposals.

Sec. 1309. Promoting hydropower development at existing non-powered 
        dams

    This section would facilitate the development of new 
hydropower infrastructure at existing non-powered dams by 
authorizing FERC to issue exemptions for qualifying facilities. 
To qualify under this section, a new hydropower facility must 
be located at an existing non-powered dam or similar 
infrastructure and must not, among other criteria, materially 
change release regimes or operations of the existing non-
powered dam or other infrastructure.

                    TITLE II--21st CENTURY WORKFORCE


Sec. 2101. Energy and manufacturing workforce development

    This section would direct the Secretary of Energy to 
establish a comprehensive program to improve education and 
training for energy and manufacturing-related jobs. This 
section would direct the Secretary to collaborate with 
representatives from the energy and manufacturing industry to 
identify the areas of highest need, including operations 
scheduled for closure, and develop guidelines for the skills 
necessary to enter the workforce. The Secretary also would be 
directed to provide direct assistance to schools, community 
colleges, workforce development organizations, non-profit 
organizations, labor organizations, apprenticeship programs, 
and minority serving institutions to carry out the program 
established in this section. This section also would provide 
special consideration for increasing outreach to employers and 
job trainers preparing displaced and unemployed energy and 
manufacturing workers to re-enter the workforce.

                TITLE III--ENERGY SECURITY AND DIPLOMACY


Sec. 3101. Sense of Congress

    This section would provide several findings, including: 1) 
North America's energy revolution has significantly enhanced 
energy security in the United States and fundamentally changed 
the Nation's energy future from that of scarcity to abundance; 
2) North America's energy abundance has increased global energy 
supplies and reduced the price of energy for consumers in the 
United States and abroad; 3) allies and trading partners of the 
United States, including in Europe and Asia, are seeking stable 
and affordable energy supplies from North America to enhance 
their energy security; 4) the United States has an opportunity 
to promote greater stability and affordability of energy 
supplies for its allies and trading partners through a more 
integrated, secure, and competitive North American energy 
system; and 5) the United States also has an opportunity to 
promote such objectives through greater Federal agency 
coordination relating to regulations or agency actions that 
significantly affect the supply, distribution, or use of 
energy.

Sec. 3102. Energy security valuation

    This section would direct the Secretary of Energy, in 
collaboration with the Secretary of State, to establish U.S. 
energy security valuation methods to ensure that energy-related 
actions that significantly affect the supply, distribution, or 
use of energy are evaluated with respect to their potential 
impact on energy security, including their impact on consumers 
and the economy; energy supply, diversity, and resiliency; 
well-functioning and competitive energy markets; United States 
trade balance; and national security objectives.

Sec. 3103. North American energy security plan

    This section would direct the Secretary of Energy, in 
collaboration with the Secretary of State, to report to 
Congress with a plan to improve planning and coordination with 
Canada and Mexico to enhance energy integration, strengthen 
North American energy security, and promote efficiencies; and 
improve collaboration with Caribbean and Central American 
partners on energy security.

Sec. 3104. Collective energy security

    This section would direct the Secretary of Energy, in 
collaboration with the Secretary of State, to convene at least 
one Trans-Atlantic and one Trans-Pacific forum to foster 
dialogue among the governments of U.S. allies and trading 
partners, independent experts, and industry representatives 
with the goal to promote energy security.

Sec. 3105. Strategic Petroleum Reserve mission readiness plan

    In seeking to ensure that the nation's strategic stockpiles 
of petroleum are kept safely and readily accessible in times of 
national emergency, this section would direct DOE to conduct a 
long-range strategic review to specify the near and long-term 
roles of the Strategic Petroleum Reserve and recommend an 
action plan to achieve the optimal 1) capacity, location, and 
composition of petroleum products in the Reserve; and, 2) 
storage and distributional capabilities.

Sec. 3006. Authorization to export natural gas

    This section would streamline the regulatory process for 
authorizing U.S. LNG exports by establishing a thirty day 
deadline for DOE to act on applications at the conclusion of 
the review required by the National Environmental Policy Act.

             TITLE IV--ENERGY EFFICIENCY AND ACCOUNTABILITY


                     Subtitle A--Energy Efficiency


              CHAPTER 1--FEDERAL AGENCY ENERGY EFFICIENCY

Sec. 4111. Energy-efficient and energy-saving information technologies

    This section would require Federal agencies to coordinate 
with the Office of Management and Budget (OMB), DOE, and the 
Environmental Protection Agency (EPA) to develop an 
implementation strategy--including best practices and 
measurement and verification techniques--for the maintenance, 
purchase, and use of energy-efficient and energy saving 
information technologies. OMB would be required to track and 
report on each agency's progress.

Sec. 4112. Energy efficient data centers

    This section would improve the energy efficiency of Federal 
data centers by, among other items, requiring DOE to update a 
2007 report on data center energy efficiency and maintain a 
data center energy practitioner certification program. DOE also 
would establish an open data initiative to help share best 
practices and support further innovation, and develop a metric 
that measures data center energy efficiency.

Sec. 4113. Report on energy and water savings potential from thermal 
        insulation

    This section would direct DOE to submit a report within one 
year on the impact of thermal insulation on both energy and 
water use systems for potable hot and chilled water in Federal 
buildings and on the return on investment of installing the 
insulation. The report must include: (1) an analysis based on 
the cost of municipal or regional water for delivered water and 
the avoided cost of new water; and (2) a summary of energy and 
water savings, including short-term and long-term (twenty 
years) projections of such savings.

Sec. 4114. Federal purchase requirement

    This section would expand the definition of ``renewable 
energy'' in section 203 of the Energy Policy Act of 2005 to 
include thermal energy and qualified waste heat resources. In 
addition, the amendment clarifies that a Federal agency can 
continue to take credit for purchasing energy generated from a 
waste-to-energy facility so long as the waste feedstock used to 
generate electricity is collected separately from recyclable 
paper and processed in a way that keeps the paper segregated 
from non-recyclable waste. In using the term ``collected 
separately'' the Committee intends the term to have the same 
meaning as ``separate collection'' used in 40 C.F.R. 
246.101(z), EPA's guidelines applicable to source separation of 
residential, commercial, and industrial solid wastes. The 
Committee, however, recognizes that even when garbage is 
collected separately from commonly recycled paper, there will 
always be some paper mixed in with garbage. The Committee 
included language to make clear that in cases where garbage and 
recyclable paper are collected and processed separately, the 
separately collected municipal solid waste when used as a 
feedstock for generating electricity is considered renewable 
energy even if it contains incidental commonly recycled paper. 
The Committee also recognizes that in some cases, facilities 
are required under contract to segregate certain types of paper 
such as currency, sensitive legal documents, and medical 
documents for assured destruction through incineration. In such 
cases, the Committee intends that any energy purchased by a 
Federal department, from a facility required to burn such paper 
for assured destruction, is renewable energy. Also, the 
Committee clarifies that this provision does not require any 
community to collect recyclable paper separately from trash or 
change any of its waste collection or processing requirements 
or systems.

Sec. 4115. Energy performance requirement for federal buildings

    This section would, in part, repeal a provision included in 
section 433 of the Energy Independence and Security Act of 2007 
that requires a 100 percent reduction in ``fossil fuel-
generated energy,'' such as coal and natural gas, in all new 
and modified Federal buildings by the year 2030. In addition 
this section would:
           Extend existing Federal building energy 
        efficiency improvement targets;
           Require DOE to review the results of the 
        implementation of the energy performance requirements 
        and to analyze the cost-effectiveness and feasibility 
        of extending the energy savings targets; and
           Require Federal energy managers to provide, 
        as part of their compliance certifications, an 
        explanation regarding any life-cycle cost-effective 
        energy-saving or water-saving measures that have not 
        been implemented.

Sec. 4116. Federal building energy efficiency performance standards; 
        certification system and level for Federal buildings

    This section would expand the scope of existing energy 
standards for new Federal buildings to cover major renovations. 
It also would ensure that significant alterations and additions 
to Federal buildings (i.e., major renovations) meet minimum 
efficiency levels unless demonstrated not to be life-cycle 
cost-effective. Also, it would require the use of commissioning 
of large Federal buildings to ensure that their energy systems 
are operating as designed.

Sec. 4117. Operation of battery recharging stations in parking areas 
        used by Federal employees

    This section would authorize the head of any office of the 
Federal Government, which owns or operates a parking area for 
the use of its employees, to install, construct, operate, and 
maintain a battery recharging station in such area for the use 
of its employees; and shall charge fees to users in amounts 
necessary to ensure that office recovers all costs incurred in 
installing, constructing, operating, and maintaining the 
station.

        CHAPTER 2--ENERGY EFFICIENT TECHNOLOGY AND MANUFACTURING

Sec. 4121. Inclusion of smart grid capability on energy guide labels

    This section would direct the Federal Trade Commission to 
initiate a rulemaking to develop Energy Guide labels that 
promote the smart grid capabilities of certain products.

Sec. 4122. Voluntary verification programs for air conditioning, 
        furnace, boiler, heat pump, and water heater products

    This section requires the DOE to recognize voluntary 
verification programs for air conditioning, furnace, boiler, 
heat pump, and water heating products to demonstrate compliance 
with DOE energy efficiency and conservation standards and the 
Energy Star program.

Sec. 4123. Facilitating consensus furnace standards

    This section would provide gas furnace stakeholders the 
opportunity to continue negotiations to facilitate the proposal 
for adoption of gas furnace standards that enjoy consensus 
support, while not delaying the current rulemaking, except to 
the extent necessary to provide such opportunity.

Sec. 4124. Future of industry program

    This section would direct DOE-funded higher education-based 
Industrial Assessment Centers (IACs) to identify opportunities 
for optimizing energy efficiency and environmental performance, 
including implementation of information technology advancements 
for supply chain analysis, logistics, system monitoring, and 
industrial and manufacturing processes. IACs also would be 
directed to coordinate with the Manufacturing Extension 
Partnership Centers of the National Institute of Standards and 
Technology and DOE's Building Technologies Program to increase 
partnerships with the national laboratories and energy service 
and technology providers to leverage private sector expertise.

Sec. 4125. No warranty for certain certified energy star products

    This section would promote continued development of energy 
efficient appliances through the Energy Star Program by 
deterring class action lawsuits that could undermine 
participation in the program.

Sec. 4126. Clarification to effective date for regional standards

    This section would replace the ``installed by'' date with 
the ``manufactured by'' date for purposes of the enforcement 
scheme for residential heating and cooling appliances subject 
to regional energy efficiency standards. This change would 
minimize inventory and forecasting problems for equipment 
contractors, distributors, and manufacturers if DOE sets 
regional energy conservation standards for furnaces, central 
air conditioners, and heat pumps.

Sec. 4127. Internet of things report

    This section would require the Secretary of Energy to 
report to Congress on the efforts made to take advantage of, 
and promote, the utilization of advanced technologies such as 
``Internet of Things'' end-to-end platform solutions to provide 
real-time actionable analytics and enable predictive 
maintenance and asset management to improve energy efficiency.

               CHAPTER 3--ENERGY PERFORMANCE CONTRACTING

Sec. 4131. Use of energy and water efficiency measures in federal 
        buildings

    This section would:
           Require DOE to report on the status of each 
        Federal agency's energy savings performance contracts 
        and utility energy service contracts, the investment 
        value of such contracts, the guaranteed energy savings 
        for the previous year as compared to the actual energy 
        savings for the previous year, the plan for entering 
        into such contracts in the coming year, and information 
        explaining why any previously submitted plans for such 
        contracts were not implemented;
           Prohibit Federal agencies from limiting the 
        recognition of operation and maintenance savings 
        associated with systems modernized or replaced with the 
        implementation of energy conservation measures, water 
        conservation measures, or any series of energy 
        conservation measures and water conservation measures;
           Clarify that Federal agency payments of 
        energy, water, and wastewater treatment expenses, 
        pursuant to an energy savings performance contract or 
        utility energy service contracts shall include related 
        operation and maintenance expenses; and
           Revise the definition of ``energy savings'' 
        to include (1) the use, sale, or transfer of energy 
        incentives, rebates, or credits (including renewable 
        energy credits) from governments or utilities; and (2) 
        any revenue generated from a reduction in energy or 
        water use, more efficient waste recycling, or 
        additional energy generated from more efficient 
        equipment.

                      CHAPTER 4--SCHOOL BUILDINGS

Sec. 4141. Coordination of energy retrofitting assistance for schools

    This section would amend the Energy Policy and Conservation 
Act (EPCA) to direct DOE to establish a clearinghouse to 
disseminate information regarding available programs and 
financing mechanisms that could be used to help initiate, 
develop, and finance energy efficiency, distributed generation, 
and energy retrofitting projects for schools. DOE would be 
required to: (1) consult with appropriate agencies to develop a 
list of programs and financing mechanisms that are, or may be, 
used for the projects, and (2) coordinate with appropriate 
agencies to develop a collaborative education and outreach 
effort to streamline communications and promote the programs 
and financing mechanisms.

                    CHAPTER 5--BUILDING ENERGY CODES

Sec. 4151. Greater energy efficiency in building codes

    This section would increase transparency and cost-
effectiveness in the development of model building energy 
codes, which set the baseline for energy efficiency in 
buildings, by ensuring that DOE code change proposals: 1) are 
made available to the public, including calculations on costs 
and savings; 2) are subject to the official rulemaking process, 
allowing for public comment; and 3) take into account small 
business concerns. This section also would prohibit DOE from 
advocating for certain technologies, building materials or 
construction practices and requires that any code or proposal 
supported by the DOE has a payback of ten years or less. For 
purposes of the feasibility study, it is the Committee's intent 
that the term ``Zero-Net Energy'' is defined as an energy-
efficient building where the actual annual source energy 
consumption is balanced by on-site energy production.

Sec. 4152. Voluntary nature of building asset rating program

    This section would clarify that any DOE program that may 
enable the owner of a commercial building or a residential 
building to obtain a rating, score, or label regarding the 
actual or anticipated energy usage or performance of a building 
shall be made available on a voluntary, optional, and market-
driven basis.

        CHAPTER 6--EPCA TECHNICAL CORRECTIONS AND CLARIFICATIONS

Sec. 4161. Modifying product definitions

    This section would amend the Energy Policy and Conservation 
Act to permit, if there is stakeholder consensus, DOE to 
prospectively revise product definitions relating to appliance 
energy conservation standards for residential and commercial 
products for purposes of standards, test procedures, labeling 
and preemption. Under current law, certain definitions cannot 
be changed without statutory change.

Sec. 4162. Clarifying rulemaking procedures

           This section would state that all DOE 
        product standards must be based and rationalized on a 
        final revised test procedure, if any, and that the 
        public shall have at least 180 days between the 
        publication of a final revised test procedure and the 
        end of the public comment period for a proposed product 
        standard to analyze, test and comment on its 
        implications. The provision would allow for an 
        exception for consensus developed revised test 
        procedures.
           Consistent with the interest in having early 
        stakeholder input, this section also would require DOE 
        to provide pre-proposed rule public input on design 
        options and voluntary non-regulatory options. In 
        addition, this section would require the identification 
        of significant groups of consumers and manufacturers 
        who merit analysis, among other relevant issues.
           This section also would require DOE, in a 
        notice of proposed rulemaking, to:
                    Seek comment and determine whether its 
                technical and economic assumptions, methods, 
                and models used to justify a standard are 
                justified and available and accessible for 
                public review, analysis, and use; and
                    Take into account the cumulative regulatory 
                impact on product manufacturers of other 
                government standards affecting energy use and 
                other energy conservation standards affecting 
                the same manufacturers.

                 CHAPTER 7--ENERGY AND WATER EFFICIENCY

Sec. 4171. Smart energy and water efficiency pilot program

    This section would authorize a pilot program to increase 
the effectiveness of water distribution networks by delivering 
better quality water while using less energy. Under the pilot 
program, a utility, municipality, water district, or other 
authority that provides drinking water, water recycling, or 
water reuse services would be able to compete for DOE project 
funds. Competitive grant selections for these projects will be 
based on a project's anticipated energy and costs savings; the 
novelty of technology employed; how well it integrates next 
generation sensors, software, analytics, and management tools; 
the predicted cost-effectiveness of the project due to energy 
efficiency savings, water savings or reuse, and averted 
infrastructure costs; and how the technology can be scalable 
and deployed across geographic regions.

Sec. 4172. WaterSense

    This section would codify the voluntary WaterSense program 
at EPA. It specifies the categories of products that are 
eligible for WaterSense listing and also the guidelines for 
developing criteria and reviewing standards. It also clarifies 
the distinction of authorities between the WaterSense and 
Energy Star programs should any product be eligible under both 
programs.

                       Subtitle B--Accountability


      CHAPTER 1--MARKET MANIPULATION, ENFORCEMENT, AND COMPLIANCE

Sec. 4211. FERC Office of Compliance Assistance and Public 
        Participation

    This section would require FERC to establish an Office of 
Compliance Assistance and Public Participation headed by a 
Director who shall be responsible for promoting improved 
compliance with Commission rules and orders by, among other 
things, providing entities regulated by the Commission the 
opportunity to obtain timely compliance guidance; making 
recommendations with respect to market behavior and 
enforcement; issuing reports and guidance; and performing 
outreach to regulated community.

                       CHAPTER 2--MARKET REFORMS

Sec. 4221. GAO Study on wholesale electricity markets

    This section would require the Government Accountability 
Office to study whether and how the market rules, practices, 
and structures of regional transmission organizations produce 
rates that are just and reasonable.

Sec. 4222. Clarification of facility merger authorization

    This section would amend section 203 of the Federal Power 
Act to include a minimum monetary threshold of $10,000,000 for 
merger and consolidation ``acquisitions'' of FERC-
jurisdictional electric transmission facilities. Doing so would 
mirror the existing $10,000,000 minimum monetary threshold set 
forth in the other three subsections of section 203. This 
amendment would require FERC to restore a previous and long-
standing, minimum monetary threshold applied to public 
utilities' acquisitions and dispositions of FERC-jurisdictional 
electric transmission facilities, would correct an apparent 
oversight that resulted in Congress's intent in EPAct 2005 not 
being completely enacted by the Commission, and would increase 
administrative efficiency by ensuring that FERC reviews only 
those proposed transactions concerning FERC-jurisdictional 
facilities that are materially significant.

                      CHAPTER 3--CODE MAINTENANCE

    This chapter would repeal various obsolete statutes.

                    CHAPTER 4--USE OF EXISTING FUNDS

Sec. 4261. Use of existing funds

    This section states that amounts required for carrying out 
this Act, other than section 1201, shall be derived from 
amounts appropriated under authority provided by previously 
enacted law.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

NATURAL GAS ACT

           *       *       *       *       *       *       *



        exportation or importation of natural gas; lng terminals

  Sec. 3. (a) After six months from the date on which this act 
takes effect no person shall export any natural gas from the 
United States to a foreign country or import any natural gas 
from a foreign country without first having secured an order of 
the Commission authorizing it to do so. The Commission shall 
issue such order upon application, unless, after opportunity 
for hearing, it finds that the proposed exportation or 
importation will not be consistent with the public interest. 
The Commission may by its order grant such application, in 
whole or in part, with such modification and upon such terms 
and conditions as the Commission may find necessary or 
appropriate, and may from time to time, after opportunity for 
hearing, and for good cause shown, make such supplemental order 
in the premises as it may find necessary or appropriate.
  (b) With respect to natural gas which is imported into the 
United States from a nation with which there is in effect a 
free trade agreement requiring national treatment for trade in 
natural gas, and with respect to liquefied natural gas--
          (1) the importation of such natural gas shall be 
        treated as a ``first sale'' within the meaning of 
        section 2(21) of the Natural Gas Policy Act of 1978; 
        and
          (2) the Commission shall not, on the basis of 
        national origin, treat any such imported natural gas on 
        an unjust, unreasonable, unduly discriminatory, or 
        preferential basis.
  (c) For purposes of subsection (a), the importation of the 
natural gas referred to in subsection (b), or the exportation 
of natural gas to a nation with which there is in effect a free 
trade agreement requiring national treatment for trade in 
natural gas, shall be deemed to be consistent with the public 
interest, and applications for such importation or exportation 
shall be granted without modification or delay.
  (d) Except as specifically provided in this Act, nothing in 
this Act affects the rights of States under--
          (1) the Coastal Zone Management Act of 1972 (16 
        U.S.C. 1451 et seq.);
          (2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
          (3) the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.).
  (e)(1) The Commission shall have the exclusive authority to 
approve or deny an application for the siting, construction, 
expansion, or operation of an LNG terminal. Except as 
specifically provided in this Act, nothing in this Act is 
intended to affect otherwise applicable law related to any 
Federal agency's authorities or responsibilities related to LNG 
terminals.
  (2) Upon the filing of any application to site, construct, 
expand, or operate an LNG terminal, the Commission shall--
          (A) set the matter for hearing;
          (B) give reasonable notice of the hearing to all 
        interested persons, including the State commission of 
        the State in which the LNG terminal is located and, if 
        not the same, the Governor-appointed State agency 
        described in section 3A;
          (C) decide the matter in accordance with this 
        subsection; and
          (D) issue or deny the appropriate order accordingly.
  (3)(A) Except as provided in subparagraph (B), the Commission 
may approve an application described in paragraph (2), in whole 
or part, with such modifications and upon such terms and 
conditions as the Commission find necessary or appropriate.
  (B) Before January 1, 2015, the Commission shall not--
          (i) deny an application solely on the basis that the 
        applicant proposes to use the LNG terminal exclusively 
        or partially for gas that the applicant or an affiliate 
        of the applicant will supply to the facility; or
          (ii) condition an order on--
                  (I) a requirement that the LNG terminal offer 
                service to customers other than the applicant, 
                or any affiliate of the applicant, securing the 
                order;
                  (II) any regulation of the rates, charges, 
                terms, or conditions of service of the LNG 
                terminal; or
                  (III) a requirement to file with the 
                Commission schedules or contracts related to 
                the rates, charges, terms, or conditions of 
                service of the LNG terminal.
  (C) Subparagraph (B) shall cease to have effect on January 1, 
2030.
  (4) An order issued for an LNG terminal that also offers 
service to customers on an open access basis shall not result 
in subsidization of expansion capacity by existing customers, 
degradation of service to existing customers, or undue 
discrimination against existing customers as to their terms or 
conditions of service at the facility, as all of those terms 
are defined by the Commission.
  (f)(1) In this subsection, the term ``military 
installation''--
          (A) means a base, camp, post, range, station, yard, 
        center, or homeport facility for any ship or other 
        activity under the jurisdiction of the Department of 
        Defense, including any leased facility, that is located 
        within a State, the District of Columbia, or any 
        territory of the United States; and
          (B) does not include any facility used primarily for 
        civil works, rivers and harbors projects, or flood 
        control projects, as determined by the Secretary of 
        Defense.
  (2) The Commission shall enter into a memorandum of 
understanding with the Secretary of Defense for the purpose of 
ensuring that the Commission coordinate and consult with the 
Secretary of Defense on the siting, construction, expansion, or 
operation of liquefied natural gas facilities that may affect 
an active military installation.
  (3) The Commission shall obtain the concurrence of the 
Secretary of Defense before authorizing the siting, 
construction, expansion, or operation of liquefied natural gas 
facilities affecting the training or activities of an active 
military installation.
  (g) Public Disclosure of LNG Export Destinations.--As a 
condition for approval of any authorization to export LNG, the 
Secretary of Energy shall require the applicant to publicly 
disclose the specific destination or destinations of any such 
authorized LNG exports.

           *       *       *       *       *       *       *


           process coordination; hearings; rules of procedure

  Sec. 15. (a) In this section, the term ``Federal 
authorization''--
          (1) means any authorization required under Federal 
        law with respect to an application for authorization 
        under section 3 or a certificate of public convenience 
        and necessity under section 7; and
          (2) includes any permits, special use authorizations, 
        certifications, opinions, or other approvals as may be 
        required under Federal law with respect to an 
        application for authorization under section 3 or a 
        certificate of public convenience and necessity under 
        section 7.
  (b) Designation as Lead Agency.--
          (1) In general.--The Commission shall act as the lead 
        agency for the purposes of coordinating all applicable 
        Federal authorizations and for the purposes of 
        complying with the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.).
          [(2) Other agencies.--Each Federal and State agency 
        considering an aspect of an application for Federal 
        authorization shall cooperate with the Commission and 
        comply with the deadlines established by the 
        Commission.]
          (2) Other agencies.--
                  (A) In general.--Each Federal and State 
                agency considering an aspect of an application 
                for Federal authorization shall cooperate with 
                the Commission and comply with the deadlines 
                established by the Commission.
                  (B) Identification.--The Commission shall 
                identify, as early as practicable after it is 
                notified by a prospective applicant of a 
                potential project requiring Commission 
                authorization, any Federal or State agency, 
                local government, or Indian tribe that may 
                consider an aspect of an application for that 
                Federal authorization.
                  (C) Notification.--
                          (i) In general.--The Commission shall 
                        notify any agency identified under 
                        subparagraph (B) of the opportunity to 
                        cooperate or participate in the review 
                        process.
                          (ii) Deadline.--A notification issued 
                        under clause (i) shall establish a 
                        deadline by which a response to the 
                        notification shall be submitted, which 
                        may be extended by the Commission for 
                        good cause.
  (c) Schedule.--
          (1) Commission authority to set schedule.--The 
        Commission shall establish a schedule for all Federal 
        authorizations. In establishing the schedule, the 
        Commission shall--
                  (A) ensure expeditious completion of all such 
                proceedings; [and]
                  (B) set deadlines for all such Federal 
                authorizations; and
                  [(B)] (C) comply with applicable schedules 
                established by Federal law.
          [(2) Failure to meet schedule.--If a Federal or State 
        administrative agency does not complete a proceeding 
        for an approval that is required for a Federal 
        authorization in accordance with the schedule 
        established by the Commission, the applicant may pursue 
        remedies under section 19(d).]
          (2) Deadline for federal authorizations.--A final 
        decision on a Federal authorization is due no later 
        than 90 days after the Commission issues its final 
        environmental document, unless a schedule is otherwise 
        established by Federal law.
          (3) Concurrent reviews.--Each Federal and State 
        agency considering an aspect of an application for a 
        Federal authorization shall--
                  (A) carry out the obligations of that agency 
                under applicable law concurrently, and in 
                conjunction, with the review required by the 
                National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.), unless doing so would 
                impair the ability of the agency to conduct 
                needed analysis or otherwise carry out those 
                obligations;
                  (B) formulate and implement administrative, 
                policy, and procedural mechanisms to enable the 
                agency to ensure completion of required Federal 
                authorizations no later than 90 days after the 
                Commission issues its final environmental 
                document; and
                  (C) transmit to the Commission a statement--
                          (i) acknowledging receipt of the 
                        schedule established under paragraph 
                        (1); and
                          (ii) setting forth the plan 
                        formulated under subparagraph (B) of 
                        this paragraph.
          (4) Issue identification and resolution.--
                  (A) Identification.--Federal and State 
                agencies that may consider an aspect of an 
                application for Federal authorization shall 
                identify, as early as possible, any issues of 
                concern that may delay or prevent an agency 
                from working with the Commission to resolve 
                such issues and granting such authorization.
                  (B) Issue resolution.--The Commission may 
                forward any issue of concern identified under 
                subparagraph (A) to the heads of the relevant 
                agencies (including, in the case of a failure 
                by the State agency, the Federal agency 
                overseeing the delegated authority) for 
                resolution.
          (5) Failure to meet schedule.--If a Federal or State 
        agency does not complete a proceeding for an approval 
        that is required for a Federal authorization in 
        accordance with the schedule established by the 
        Commission under paragraph (1)--
                  (A) the applicant may pursue remedies under 
                section 19(d); and
                  (B) the head of the relevant Federal agency 
                (including, in the case of a failure by a State 
                agency, the Federal agency overseeing the 
                delegated authority) shall notify Congress and 
                the Commission of such failure and set forth a 
                recommended implementation plan to ensure 
                completion of the proceeding for an approval.
  (d) Remote Surveys.--If a Federal or State agency considering 
an aspect of an application for Federal authorization requires 
the applicant to submit environmental data, the agency shall 
consider any such data gathered by aerial or other remote means 
that the applicant submits. The agency may grant a conditional 
approval for Federal authorization, conditioned on the 
verification of such data by subsequent onsite inspection.
  (e) Application Processing.--The Commission, and Federal and 
State agencies, may allow an applicant seeking Federal 
authorization to fund a third-party contractor to assist in 
reviewing the application.
  (f) Accountability, Transparency, Efficiency.--For 
applications requiring multiple Federal authorizations, the 
Commission, with input from any Federal or State agency 
considering an aspect of an application, shall track and make 
available to the public on the Commission's website information 
related to the actions required to complete permitting, 
reviews, and other actions required. Such information shall 
include the following:
          (1) The schedule established by the Commission under 
        subsection (c)(1).
          (2) A list of all the actions required by each 
        applicable agency to complete permitting, reviews, and 
        other actions necessary to obtain a final decision on 
        the Federal authorization.
          (3) The expected completion date for each such 
        action.
          (4) A point of contact at the agency accountable for 
        each such action.
          (5) In the event that an action is still pending as 
        of the expected date of completion, a brief explanation 
        of the reasons for the delay.
  [(d)] (g) Consolidated Record.--The Commission shall, with 
the cooperation of Federal and State administrative agencies 
and officials, maintain a complete consolidated record of all 
decisions made or actions taken by the Commission or by a 
Federal administrative agency or officer (or State 
administrative agency or officer acting under delegated Federal 
authority) with respect to any Federal authorization. Such 
record shall be the record for--
          (1) appeals or reviews under the Coastal Zone 
        Management Act of 1972 (16 U.S.C. 1451 et seq.), 
        provided that the record may be supplemented as 
        expressly provided pursuant to section 319 of that Act; 
        or
          (2) judicial review under section 19(d) of decisions 
        made or actions taken of Federal and State 
        administrative agencies and officials, provided that, 
        if the Court determines that the record does not 
        contain sufficient information, the Court may remand 
        the proceeding to the Commission for further 
        development of the consolidated record.
  [(e)] (h) Hearings under this act may be held before the 
Commission, any member or members thereof, or any 
representative of the Commission designated by it, and 
appropriate records thereof shall be kept. In any proceeding 
before it, the Commission in accordance with such rules and 
regulations as it may prescribe, may admit as a party any 
interested State, State commission, municipality or any 
representative of interested consumers or security holders, or 
any competitor of a party to such proceeding, or any other 
person whose participation in the proceeding may be in the 
public interest.
  [(f)] (i) All hearings, investigations, and proceedings under 
this act shall be governed by rules of practice and procedure 
to be adopted by the Commission, and in the conduct thereof the 
technical rules of evidence need not be applied. No informality 
in any hearing, investigation, or proceeding or in the manner 
of taking testimony shall invalidate any order, decision, rule, 
or regulation issued under the authority of this act.

           *       *       *       *       *       *       *

                              ----------                              


                           FEDERAL POWER ACT

PART I

           *       *       *       *       *       *       *


  Sec. 4. The Commission is hereby authorized and empowered--
  (a) To make investigations and to collect and record data 
concerning the utilization of the water resources of any region 
to be developed, the water-power industry and its relation to 
other industries and to interstate or foreign commerce, and 
concerning the location, capacity, development cost, and 
relation to markets of power sites, and whether the power from 
Government dams can be advantageously used by the United States 
for its public purposes, and what is a fair value of such 
power, to the extent the Commission may deem necessary or 
useful for the purposes of this Act.
  (b) To determine the actual legitimate original cost of and 
the net investment in a licensed project, and to aid the 
Commission in such determinations, each licensee shall, upon 
oath, within a reasonable period of time to be fixed by the 
Commission, after the construction of the original project or 
any addition thereto or betterment thereof, file with the 
Commission in such detail as the Commission may require, a 
statement in duplicate showing the actual legitimate original 
cost of construction of such project, addition, or betterment, 
and of the price paid for water rights, rights-of-way, lands, 
or interest in lands. The licensee shall grant to the 
Commission or to its duly authorized agent or agents, at all 
reasonable times, free access to such project, addition, or 
betterment, and to all maps, profiles, contracts, reports of 
engineers, accounts, books, records, and all other papers and 
documents relating thereto. The statement of actual legitimate 
original cost of said project, and revisions thereof as 
determined by the Commission, shall be filed with the Secretary 
of the Treasury.
  (c) To cooperate with the executive departments and other 
agencies of State or National Governments in such 
investigations; and for such purpose the several departments 
and agencies of the National Government are authorized and 
directed upon the request of the Commission to furnish such 
records, papers, and information in their possession as may be 
requested by the Commission, and temporarily to detail to the 
Commission such officers or experts as may be necessary in such 
investigations.
  (d) To make public from time to time the information secured 
hereunder and to provide for the publication of its reports and 
investigations in such form and manner as may be best adapted 
for public information and use. The Commission, on or before 
the 3d day of January of each year, shall submit to Congress 
for the fiscal year preceding a classified report showing the 
permits and licenses issued under this Part, and in each case 
the parties thereto, the terms prescribed, and the moneys 
received if any, on account thereof.
  (e) To issue licenses to citizens of the United States, or to 
any association of such citizens, or to any corporation 
organized under the laws of the United States or any State 
thereof, or to any State or municipality for the purpose of 
constructing, operating, and maintaining dams, water conduits, 
reservoirs, power houses, transmission lines, or other project 
works necessary or convenient for the development and 
improvement of navigation and for the development, 
transmission, and utilization of power across, along, from or 
in any of the streams or other bodies of water over which 
Congress has jurisdiction under its authority to regulate 
commerce with foreign nations and among the several States, or 
upon any part of the public lands and reservations of the 
United States (including the Territories), or for the purpose 
of utilizing the surplus water or water power from any 
Government dam, except as herein provided: Provided, That 
licenses shall be issued within any reservation only after a 
finding by the Commission that the license will not interfere 
or be inconsistent with the purpose for which such reservation 
was created or acquired, and shall be subject to and contain 
such conditions as the Secretary of the department under whose 
supervision such reservation falls shall deem necessary for the 
adequate protection and utilization of such 
reservation:Provided further, That no license affecting the 
navigable capacity of any navigable waters of the United States 
shall be issued until the plans of the dam or other structures 
affecting navigation have been approved by the Chief of 
Engineers and the Secretary of the Army. Whenever the 
contemplated improvement is, in the judgment of the Commission, 
desirable and justified in the public interest for the purpose 
of improving or developing a waterway or waterways for the use 
or benefit of interstate or foreign commerce, a finding to that 
effect shall be made by the Commission and shall become a part 
of the records of the Commission: Provided further, That in 
case the Commission shall find that any Government dam may be 
advantageously used by the United States for public purposes in 
addition to navigation, no license therefor shall be issued 
until two years after it shall have reported to Congress the 
facts and conditions relating thereto, except that this 
provision shall not apply to any Government dam constructed 
prior to June 10, 1920: And provided further, That upon the 
filing of any application for a license which has not been 
preceded by a preliminary permit under subsection (f) of this 
section, notice shall be given and published as required by the 
proviso of said subsection. In deciding whether to issue any 
license under this Part for any project, the Commission, in 
addition to the power and development purposes for which 
licenses are issued, shall give equal consideration to the 
purposes of energy conservation, the protection, mitigation of 
damage to, and enhancement of, fish and wildlife (including 
related spawning grounds and habitat), the protection of 
recreational opportunities, [and] the preservation of other 
aspects of environmental quality, and minimizing infringement 
on the useful exercise and enjoyment of property rights held by 
nonlicensees.
  (f) To issue preliminary permits for the purpose of enabling 
applicants for a license hereunder to secure the data and to 
perform the acts required by section 9 hereof: Provided, 
however, That upon the filing of any application for a 
preliminary permit by any person, association or corporation 
the Commission, before granting such application, shall at once 
give notice of such application in writing to any State or 
municipality likely to be interested in or affected by such 
application; and shall also publish notice of such application 
once each week for four weeks in a daily or weekly newspaper 
published in the county or counties in which the project or any 
part thereof or the lands affected thereby are situated.
  (g) Upon its own motion to order an investigation of any 
occupancy of, or evidenced intention to occupy, for the purpose 
of developing electric power, public lands, reservations, or 
streams or other bodies of water over which Congress has 
jurisdiction under its authority to regulate commerce with 
foreign nations and among the several States by any person, 
corporation, state or municipality and to issue such order as 
it may find appropriate, expedient, and in the public interest 
to conserve and utilize the navigation and water-power 
resources of the region.

           *       *       *       *       *       *       *

  Sec. 10. All licenses issued under this Part shall be on the 
following conditions:
  (a)(1) That the project adopted, including the maps, plans, 
and specifications, shall be such as in the judgment of the 
Commission will be best adapted to a comprehensive plan for 
improving or developing a waterway or waterways for the use or 
benefit of interstate or foreign commerce, for the improvement 
and utilization of waterpower development, for the adequate 
protection, mitigation, and enhancement of fish and wildlife 
(including related spawning grounds and habitat), and for other 
beneficial public uses, including irrigation, flood control, 
water supply, and recreational and other purposes referred to 
in section 4(e), including minimizing infringement on the 
useful exercise and enjoyment of property rights held by 
nonlicensees; and if necessary in order to secure such plan the 
Commission shall have authority to require the modification of 
any project and of the plans and specifications of the project 
works before approval.
  (2) In order to ensure that the project adopted will be best 
adapted to the comprehensive plan described in paragraph (1), 
the Commission shall consider each of the following:
          (A) The extent to which the project is consistent 
        with a comprehensive plan (where one exists) for 
        improving, developing, or conserving a waterway or 
        waterways affected by the project that is prepared by--
                  (i) an agency established pursuant to Federal 
                law that has the authority to prepare such a 
                plan; or
                  (ii) the State in which the facility is or 
                will be located.
          (B) The recommendations of Federal and State agencies 
        exercising administration over flood control, 
        navigation, irrigation, recreation, cultural and other 
        relevant resources of the State in which the project is 
        located, and the recommendations (including fish and 
        wildlife recommendations) of Indian tribes affected by 
        the project.
          (C) In the case of a State or municipal applicant, or 
        an applicant which is primarily engaged in the 
        generation or sale of electric power (other than 
        electric power solely from cogeneration facilities or 
        small power production facilities), the electricity 
        consumption efficiency improvement program of the 
        applicant, including its plans, performance and 
        capabilities for encouraging or assisting its customers 
        to conserve electricity cost-effectively, taking into 
        account the published policies, restrictions, and 
        requirements of relevant State regulatory authorities 
        applicable to such applicant.
  (3) Upon receipt of an application for a license, the 
Commission shall solicit recommendations from the agencies and 
Indian tribes identified in subparagraphs (A) and (B) of 
paragraph (2) for proposed terms and conditions for the 
Commission's consideration for inclusion in the license.
  (b) That except when emergency shall require for the 
protection of navigation, life, health, or property, no 
substantial alteration or addition not in conformity with the 
approved plans shall be made to any dam or other project works 
constructed hereunder of an installed capacity in excess of two 
thousand horsepower without the prior approval of the 
Commission; and any emergency alteration or addition so made 
shall thereafter be subject to such modification and change as 
the Commission may direct.
  (c) That the licensee shall maintain the project works in a 
condition or repair adequate for the purposes of navigation and 
for the efficient operation of said works in the development 
and transmission of power, shall make all necessary renewals 
and replacements, shall establish and maintain adequate 
depreciation reserves for such purposes, shall so maintain and 
operate said works as not to impair navigation, and shall 
conform to such rules and regulations as the Commission may 
from time to time prescribe for the protection of life, health, 
and property. Each licensee hereunder shall be liable for all 
damages occasioned to the property of others by the 
construction, maintenance, or operation of the project works or 
of the works appurtenant or accessory thereto, constructed 
under the license, and in no event shall the United States be 
liable therefor.
  (d) That after the first twenty years of operation, out of 
surplus earned thereafter, if any, accumulated in excess of a 
specified reasonable rate of return upon the net investment of 
a licensee in any project or projects, under license, the 
licensee shall establish and maintain amortization reserves, 
which reserves shall, in the discretion of the Commission, be 
held until the termination of the license or be applied from 
time to time in reduction of the net investment. Such specified 
rate of return and the proportion of such surplus earnings to 
be paid into and held in such reserves shall be set forth in 
the license. For any new license issued under section 15, the 
amortization reserves under this subsection shall be maintained 
on and after the effective date of such new license.
  (e)(1) That the licensee shall pay to the United States 
reasonable annual charges in an amount to be fixed by the 
Commission for the purpose of reimbursing the United States for 
the costs of the administration of this Part, including any 
reasonable and necessary costs incurred by Federal and State 
fish and wildlife agencies and other natural and cultural 
resource agencies in connection with studies or other reviews 
carried out by such agencies for purposes of administering 
their responsibilities under this part; for recompensing it for 
the use, occupancy, and enjoyment of its lands or other 
property; and for the expropriation to the Government of 
excessive profits until the respective States shall make 
provision for preventing excessive profits or for the 
expropriation thereof to themselves, or until the period of 
amortization as herein provided is reached, and in fixing such 
charges the Commission shall seek to avoid increasing the price 
to the consumers of power by such charges, and any such charges 
may be adjusted from time to time by the Commission as 
conditions may require: Provided, That, subject to annual 
appropriations Acts, the portion of such annual charges imposed 
by the Commission under this subsection to cover the reasonable 
and necessary costs of such agencies shall be available to such 
agencies (in addition to other funds appropriated for such 
purposes) solely for carrying out such studies and reviews and 
shall remain available until expended: Provided, That when 
licenses are issued involving the use of Government dams or 
other structures owned by the United States or tribal lands 
embraced within Indian reservations the Commission shall, 
subject to the approval of the Secretary of the Interior in the 
case of such dams or structures in reclamation projects and, in 
the case of such tribal lands, subject to the approval of the 
Indian tribe having jurisdiction of such lands as provided in 
section 16 of the Act of June 18, 1934 (48 Stat. 984), fix a 
reasonable annual charge for the use thereof, and such charges 
may with like approval be readjusted by the Commission at the 
end of twenty years after the project is available for service 
and at periods of not less than ten years thereafter upon 
notice and opportunity for hearing: Provided further, That 
licenses for the development, transmission, or distribution of 
power by States or municipalities shall be issued and enjoyed 
without charge to the extent such power is sold to the public 
without profit or is used by such State or municipality for 
State or municipal purposes, except that as to projects 
constructed or to be constructed by States or municipalities 
primarily designed to provide or improve navigation, licenses 
therefor shall be issued without charge; and that licenses for 
the development, transmission, or distribution of power for 
domestic, mining, or other beneficial use in projects of not 
more than two thousand horsepower installed capacity may be 
issued without charges, except on tribal lands within Indian 
reservations; but in no case shall a license be issued free of 
charge for the development and utilization of power created by 
any Government dam and that the amount charged therefor in any 
license shall be such as determined by the Commission : 
Provided however, That no charge shall be assessed for the use 
of any Government dam or structure by any licensee if, before 
January 1, 1985, the Secretary of the Interior has entered into 
a contract with such licensee that meets each of the following 
requirements:
          (A) The contract covers one or more projects for 
        which a license was issued by the Commission before 
        January 1, 1985.
          (B) The contract contains provisions specifically 
        providing each of the following:
                  (i) A powerplant may be built by the licensee 
                utilizing irrigation facilities constructed by 
                the United States.
                  (ii) The powerplant shall remain in the 
                exclusive control, possession, and ownership of 
                the licensee concerned.
                  (iii) All revenue from the powerplant and 
                from the use, sale, or disposal of electric 
                energy from the powerplant shall be, and 
                remain, the property of such licensee.
          (C) The contract is an amendatory, supplemental and 
        replacement contract between the United States and: (i) 
        the Quincy-Columbia Basin Irrigation District (Contract 
        No. 14-06-100-6418); (ii) the East Columbia Basin 
        Irrigation District (Contract No. 14-06-100-6419); or, 
        (iii) the South Columbia Basin Irrigation District 
        (Contract No. 14-06-100-6420).
This paragraph shall apply to any project covered by a contract 
referred to in this paragraph only during the term of such 
contract unless otherwise provided by subsequent Act of 
Congress. In the event an overpayment of any charge due under 
this section shall be made by a licensee, the Commission is 
authorized to allow a credit for such overpayment when charges 
are due for any subsequent period.
  (2) In the case of licenses involving the use of Government 
dams or other structures owned by the United States, the 
charges fixed (or readjusted) by the Commission under paragraph 
(1) for the use of such dams or structures shall not exceed 1 
mill per kilowatt-hour for the first 40 gigawatt-hours of 
energy a project produces in any year, 1\1/2\ mills per 
kilowatt-hour for over 40 up to and including 80 gigawatt-hours 
in any year, and 2 mills per kilowatt-hour for any energy the 
project produces over 80 gigawatt-hours in any year. Except as 
provided in subsection (f), such charge shall be the only 
charge assessed by any agency of the United States for the use 
of such dams or structures.
  (3) The provisions of paragraph (2) shall apply with respect 
to--
          (A) all licenses issued after the date of the 
        enactment of this paragraph; and
          (B) all licenses issued before such date which--
                  (i) did not fix a specific charge for the use 
                of the Government dam or structure involved; 
                and
                  (ii) did not specify that no charge would be 
                fixed for the use of such dam or structure.
  (4) Every 5 years, the Commission shall review the 
appropriateness of the annual charge limitations provided for 
in this subsection and report to Congress concerning its 
recommendations thereon.
  (f) That whenever any licensee hereunder is directly 
benefited by the construction work of another licensee, a 
permittee, or of the United States of a storage reservoir or 
other headwater improvement, the Commission shall require as a 
condition of the license that the licensee so benefited shall 
reimburse the owner of such reservoir or other improvements for 
such part of the annual charges for interest, maintenance, and 
depreciation thereon as the Commission may deem equitable. The 
proportion of such charges to be paid by any licensee shall be 
determined by the Commission. The licensees or permittees 
affected shall pay to the United States the cost of making such 
determination as fixed by the Commission.
  Whenever such reservoir or other improvement is constructed 
by the United States the Commission shall assess similar 
charges against any licensee directly benefited thereby, and 
any amount so assessed shall be paid into the Treasury of the 
United States, to be reserved and appropriated as a part of the 
special fund for headwater improvements as provided in section 
17 hereof.
  Whenever any power project not under license is benefited by 
the construction work of a licensee or permittee, the United 
States or any agency thereof, the Commission, after notice to 
the owner or owners of such unlicensed project, shall determine 
and fix a reasonable and equitable annual charge to be paid to 
the licensee or permittee on account of such benefits, or to 
the United States if it be the owner of such headwater 
improvement.
  (g) Such other conditions not inconsistent with the 
provisions of this Act as the Commission may require.
  (h)(1) That combinations, agreements, arrangements, or 
understandings, express or implied, to limit the output of 
electrical energy, to restrain trade, or to fix, maintain, or 
increase prices for electrical energy or service are hereby 
prohibited.
  (2) That conduct under the license that: (A) results in the 
contravention of the policies expressed in the antitrust laws; 
and (B) is not otherwise justified by the public interest 
considering regulatory policies expressed in other applicable 
law (including but not limited to those contained in Part II of 
this Act) shall be prevented or adequately minimized by means 
of conditions included in the license prior to its issuance. In 
the event it is impossible to prevent or adequately minimize 
the contravention, the Commission shall refuse to issue any 
license to the applicant for the project and, in the case of an 
existing project, shall take appropriate action to provide 
thereafter for the operation and maintenance of the affected 
project and for the issuing of a new license in accordance with 
section 15 of this Part.
  (i) In issuing licenses for a minor part only of a complete 
project, or for a complete project of not more than two 
thousand horsepower installed capacity, the Commission may in 
its discretion waive such conditions, provisions, and 
requirements of this Part, except the license period of fifty 
years, as it may deem to be to the public interest to waive 
under the circumstances: Provided, That the provision hereof 
shall not apply annual charges for use of lands within Indian 
reservations.
  (j)(1) That in order to adequately and equitably protect, 
mitigate damages to, and enhance, fish and wildlife (including 
related spawning grounds and habitat) affected by the 
development, operation, and management of the project, each 
license issued under this Part shall include conditions for 
such protection, mitigation, and enhancement. Subject to 
paragraph (2), such conditions shall be based on 
recommendations received pursuant to the Fish and Wildlife 
Coordination Act (16 U.S.C. 661 et seq.) from the National 
Marine Fisheries Service, the United States Fish and Wildlife 
Service, and State fish and wildlife agencies.
  (2) Whenever the Commission believes that any recommendation 
referred to in paragraph (1) may be inconsistent with the 
purposes and requirements of this Part or other applicable law, 
the Commission and the agencies referred to in paragraph (1) 
shall attempt to resolve any such inconsistency, giving due 
weight to the recommendations, expertise, and statutory 
responsibilities of such agencies. If, after such attempt, the 
Commission does not adopt in whole or in part a recommendation 
of any such agency, the Commission shall publish each of the 
following findings (together with a statement of the basis for 
each of the findings):
          (A) A finding that adoption of such recommendation is 
        inconsistent with the purposes and requirements of this 
        Part or with other applicable provisions of law.
          (B) A finding that the conditions selected by the 
        Commission comply with the requirements of paragraph 
        (1).
Subsection (i) shall not apply to the conditions required under 
this subsection.
  (k) Private Landownership.--In developing any recreational 
resource within the project boundary, the licensee shall 
consider private landownership as a means to encourage and 
facilitate--
          (1) private investment; and
          (2) increased tourism and recreational use.

           *       *       *       *       *       *       *


SEC. 34. HYDROPOWER LICENSING AND PROCESS IMPROVEMENTS.

  (a) Definition.--In this section, the term ``Federal 
authorization''--
          (1) means any authorization required under Federal 
        law with respect to an application for a license, 
        license amendment, or exemption under this part; and
          (2) includes any permits, special use authorizations, 
        certifications, opinions, or other approvals as may be 
        required under Federal law to approve or implement the 
        license, license amendment, or exemption under this 
        part.
  (b) Designation as Lead Agency.--
          (1) In general.--The Commission shall act as the lead 
        agency for the purposes of coordinating all applicable 
        Federal authorizations and for the purposes of 
        complying with the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.).
          (2) Other agencies and indian tribes.--
                  (A) In general.--Each Federal, State, and 
                local government agency and Indian tribe 
                considering an aspect of an application for 
                Federal authorization shall coordinate with the 
                Commission and comply with the deadline 
                established in the schedule developed for the 
                project in accordance with the rule issued by 
                the Commission under subsection (c).
                  (B) Identification.--The Commission shall 
                identify, as early as practicable after it is 
                notified by the applicant of a project or 
                facility requiring Commission action under this 
                part, any Federal or State agency, local 
                government, or Indian tribe that may consider 
                an aspect of an application for a Federal 
                authorization.
                  (C) Notification.--
                          (i) In general.--The Commission shall 
                        notify any agency and Indian tribe 
                        identified under subparagraph (B) of 
                        the opportunity to participate in the 
                        process of reviewing an aspect of an 
                        application for a Federal 
                        authorization.
                          (ii) Deadline.--Each agency and 
                        Indian tribe receiving a notice under 
                        clause (i) shall submit a response 
                        acknowledging receipt of the notice to 
                        the Commission within 30 days of 
                        receipt of such notice and request.
                  (D) Issue identification and resolution.--
                          (i) Identification of issues.--
                        Federal, State, and local government 
                        agencies and Indian tribes that may 
                        consider an aspect of an application 
                        for Federal authorization shall 
                        identify, as early as possible, and 
                        share with the Commission and the 
                        applicant, any issues of concern 
                        identified during the pendency of the 
                        Commission's action under this part 
                        relating to any Federal authorization 
                        that may delay or prevent the granting 
                        of such authorization, including any 
                        issues that may prevent the agency or 
                        Indian tribe from meeting the schedule 
                        established for the project in 
                        accordance with the rule issued by the 
                        Commission under subsection (c).
                          (ii) Issue resolution.--The 
                        Commission may forward any issue of 
                        concern identified under clause (i) to 
                        the heads of the relevant State and 
                        Federal agencies (including, in the 
                        case of scheduling concerns identified 
                        by a State or local government agency 
                        or Indian tribe, the Federal agency 
                        overseeing the delegated authority, or 
                        the Secretary of the Interior with 
                        regard to scheduling concerns 
                        identified by an Indian tribe) for 
                        resolution. The Commission and any 
                        relevant agency shall enter into a 
                        memorandum of understanding to 
                        facilitate interagency coordination and 
                        resolution of such issues of concern, 
                        as appropriate.
  (c) Schedule.--
          (1) Commission rulemaking to establish process to set 
        schedule.--Within 180 days of the date of enactment of 
        this section the Commission shall, in consultation with 
        the appropriate Federal agencies, issue a rule, after 
        providing for notice and public comment, establishing a 
        process for setting a schedule following the filing of 
        an application under this part for the review and 
        disposition of each Federal authorization.
          (2) Elements of scheduling rule.--In issuing a rule 
        under this subsection, the Commission shall ensure that 
        the schedule for each Federal authorization--
                  (A) includes deadlines for actions by--
                          (i) any Federal or State agency, 
                        local government, or Indian tribe that 
                        may consider an aspect of an 
                        application for the Federal 
                        authorization;
                          (ii) the applicant;
                          (iii) the Commission; and
                          (iv) other participants in a 
                        proceeding;
                  (B) is developed in consultation with the 
                applicant and any agency and Indian tribe that 
                submits a response under subsection 
                (b)(2)(C)(ii);
                  (C) provides an opportunity for any Federal 
                or State agency, local government, or Indian 
                tribe that may consider an aspect of an 
                application for the applicable Federal 
                authorization to identify and resolve issues of 
                concern, as provided in subsection (b)(2)(D);
                  (D) complies with applicable schedules 
                established under Federal and State law;
                  (E) ensures expeditious completion of all 
                proceedings required under Federal and State 
                law, to the extent practicable; and
                  (F) facilitates completion of Federal and 
                State agency studies, reviews, and any other 
                procedures required prior to, or concurrent 
                with, the preparation of the Commission's 
                environmental document required under the 
                National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.).
  (d) Transmission of Final Schedule.--
          (1) In general.--For each application for a license, 
        license amendment, or exemption under this part, the 
        Commission shall establish a schedule in accordance 
        with the rule issued by the Commission under subsection 
        (c). The Commission shall publicly notice and transmit 
        the final schedule to the applicant and each agency and 
        Indian tribe identified under subsection (b)(2)(B).
          (2) Response.--Each agency and Indian tribe receiving 
        a schedule under this subsection shall acknowledge 
        receipt of such schedule in writing to the Commission 
        within 30 days.
  (e) Adherence to Schedule.--All applicants, other licensing 
participants, and agencies and tribes considering an aspect of 
an application for a Federal authorization shall meet the 
deadlines set forth in the schedule established pursuant to 
subsection (d)(1).
  (f) Application Processing.--The Commission, Federal, State, 
and local government agencies, and Indian tribes may allow an 
applicant seeking a Federal authorization to fund a third-party 
contractor selected by such agency or tribe to assist in 
reviewing the application. All costs of an agency or tribe 
incurred pursuant to direct funding by the applicant, including 
all costs associated with the third party contractor, shall not 
be considered costs of the United States for the administration 
of this part under section 10(e).
  (g) Commission Recommendation on Scope of Environmental 
Review.--For the purposes of coordinating Federal 
authorizations for each project, the Commission shall consult 
with and make a recommendation to agencies and Indian tribes 
receiving a schedule under subsection (d) on the scope of the 
environmental review for all Federal authorizations for such 
project. Each Federal and State agency and Indian tribe shall 
give due consideration and may give deference to the 
Commission's recommendations, to the extent appropriate under 
Federal law.
  (h) Failure To Meet Schedule.--A Federal, State, or local 
government agency or Indian tribe that anticipates that it will 
be unable to complete its disposition of a Federal 
authorization by the deadline set forth in the schedule 
established under subsection (d)(1) may file for an extension 
as provided under section 313(b)(2).
  (i) Consolidated Record.--The Commission shall, with the 
cooperation of Federal, State, and local government agencies 
and Indian tribes, maintain a complete consolidated record of 
all decisions made or actions taken by the Commission or by a 
Federal administrative agency or officer (or State or local 
government agency or officer or Indian tribe acting under 
delegated Federal authority) with respect to any Federal 
authorization. Such record shall constitute the record for 
judicial review under section 313(b).

SEC. 35. LICENSING STUDY IMPROVEMENTS.

  (a) In General.--To facilitate the timely and efficient 
completion of the license proceedings under this part, the 
Commission shall, in consultation with applicable Federal and 
State agencies and interested members of the public--
          (1) compile current and accepted best practices in 
        performing studies required in such license 
        proceedings, including methodologies and the design of 
        studies to assess the full range of environmental 
        impacts of a project that reflect the most recent peer-
        reviewed science;
          (2) compile a comprehensive collection of studies and 
        data accessible to the public that could be used to 
        inform license proceedings under this part; and
          (3) encourage license applicants, agencies, and 
        Indian tribes to develop and use, for the purpose of 
        fostering timely and efficient consideration of license 
        applications, a limited number of open-source 
        methodologies and tools applicable across a wide array 
        of projects, including water balance models and 
        streamflow analyses.
  (b) Use of Studies.--To the extent practicable, the 
Commission and other Federal, State, and local government 
agencies and Indian tribes considering an aspect of an 
application for Federal authorization shall use current, 
accepted science toward studies and data in support of their 
actions. Any participant in a proceeding with respect to a 
Federal authorization shall demonstrate a study requested by 
the party is not duplicative of current, existing studies that 
are applicable to the project.
  (c) Basin-Wide or Regional Review.--The Commission shall 
establish a program to develop comprehensive plans, at the 
request of project applicants, on a regional or basin-wide 
scale, in consultation with the applicants, appropriate Federal 
agencies, and affected States, local governments, and Indian 
tribes, in basins or regions with respect to which there are 
more than one project or application for a project. Upon such a 
request, the Commission, in consultation with the applicants, 
such Federal agencies, and affected States, local governments, 
and Indian tribes, may conduct or commission regional or basin-
wide environmental studies, with the participation of at least 
2 applicants. Any study conducted under this subsection shall 
apply only to a project with respect to which the applicant 
participates.

SEC. 36. CLOSED-LOOP PUMPED STORAGE PROJECTS.

  (a) Definition.--For purposes of this section, a closed-loop 
pumped storage project is a project--
          (1) in which the upper and lower reservoirs do not 
        impound or directly withdraw water from navigable 
        waters; or
          (2) that is not continuously connected to a naturally 
        flowing water feature.
  (b) In General.--As provided in this section, the Commission 
may issue and amend licenses and preliminary permits, as 
appropriate, for closed-loop pumped storage projects.
  (c) Dam Safety.--Before issuing any license for a closed-loop 
pumped storage project, the Commission shall assess the safety 
of existing dams and other structures related to the project 
(including possible consequences associated with failure of 
such structures).
  (d) License Conditions.--With respect to a closed-loop pumped 
storage project, the authority of the Commission to impose 
conditions on a license under sections 4(e), 10(a), 10(g), and 
10(j) shall not apply, and any condition included in or 
applicable to a closed-loop pumped storage project licensed 
under this section, including any condition or other 
requirement of a Federal authorization, shall be limited to 
those that are--
          (1) necessary to protect public safety; or
          (2) reasonable, economically feasible, and essential 
        to prevent loss of or damage to, or to mitigate adverse 
        effects on, fish and wildlife resources directly caused 
        by the construction and operation of the project, as 
        compared to the environmental baseline existing at the 
        time the Commission completes its environmental review.
  (e) Transfers.--Notwithstanding section 5, and regardless of 
whether the holder of a preliminary permit for a closed-loop 
pumped storage project claimed municipal preference under 
section 7(a) when obtaining the permit, the Commission may, to 
facilitate development of a closed-loop pumped storage 
project--
          (1) add entities as joint permittees following 
        issuance of a preliminary permit; and
          (2) transfer a license in part to one or more 
        nonmunicipal entities as co-licensees with a 
        municipality.

SEC. 37. LICENSE AMENDMENT IMPROVEMENTS.

  (a) Qualifying Project Upgrades.--
          (1) In general.--As provided in this section, the 
        Commission may approve an application for an amendment 
        to a license issued under this part for a qualifying 
        project upgrade.
          (2) Application.--A licensee filing an application 
        for an amendment to a project license under this 
        section shall include in such application information 
        sufficient to demonstrate that the proposed change to 
        the project described in the application is a 
        qualifying project upgrade.
          (3) Initial determination.--Not later than 15 days 
        after receipt of an application under paragraph (2), 
        the Commission shall make an initial determination as 
        to whether the proposed change to the project described 
        in the application for a license amendment is a 
        qualifying project upgrade. The Commission shall 
        publish its initial determination and issue notice of 
        the application filed under paragraph (2). Such notice 
        shall solicit public comment on the initial 
        determination within 45 days.
          (4) Public comment on qualifying criteria.--The 
        Commission shall accept public comment regarding 
        whether a proposed license amendment is for a 
        qualifying project upgrade for a period of 45 days 
        beginning on the date of publication of a public notice 
        described in paragraph (3), and shall--
                  (A) if no entity contests whether the 
                proposed license amendment is for a qualifying 
                project upgrade during such comment period, 
                immediately publish a notice stating that the 
                initial determination has not been contested; 
                or
                  (B) if an entity contests whether the 
                proposed license amendment is for a qualifying 
                project upgrade during the comment period, 
                issue a written determination in accordance 
                with paragraph (5).
          (5) Written determination.--If an entity contests 
        whether the proposed license amendment is for a 
        qualifying project upgrade during the comment period 
        under paragraph (4), the Commission shall, not later 
        than 30 days after the date of publication of the 
        public notice of the initial determination under 
        paragraph (3), issue a written determination as to 
        whether the proposed license amendment is for a 
        qualifying project upgrade.
          (6) Public comment on amendment application.--If no 
        entity contests whether the proposed license amendment 
        is for a qualifying project upgrade during the comment 
        period under paragraph (4) or the Commission issues a 
        written determination under paragraph (5) that a 
        proposed license amendment is a qualifying project 
        upgrade, the Commission shall--
                  (A) during the 60-day period beginning on the 
                date of publication of a notice under paragraph 
                (4)(A) or the date on which the Commission 
                issues the written determination under 
                paragraph (5), as applicable, solicit comments 
                from each Federal, State, and local government 
                agency and Indian tribe considering an aspect 
                of an application for Federal authorization (as 
                defined in section 34) with respect to the 
                proposed license amendment, as well as other 
                interested agencies, Indian tribes, and members 
                of the public; and
                  (B) during the 90-day period beginning on the 
                date of publication of a notice under paragraph 
                (4)(A) or the date on which the Commission 
                issues the written determination under 
                paragraph (5), as applicable, consult with--
                          (i) appropriate Federal agencies and 
                        the State agency exercising 
                        administrative control over the fish 
                        and wildlife resources, and water 
                        quality and supply, of the State in 
                        which the qualifying project upgrade is 
                        located;
                          (ii) any Federal department 
                        supervising any public lands or 
                        reservations occupied by the qualifying 
                        project upgrade; and
                          (iii) any Indian tribe affected by 
                        the qualifying project upgrade.
          (7) Federal authorizations.--The schedule established 
        by the Commission under section 34 for any project 
        upgrade under this subsection shall require final 
        disposition on all necessary Federal authorizations (as 
        defined in section 34), other than final action by the 
        Commission, by not later than 120 days after the date 
        on which the Commission issues a notice under paragraph 
        (4)(A) or a written determination under paragraph (5), 
        as applicable.
          (8) Commission action.--Not later than 150 days after 
        the date on which the Commission issues a notice under 
        paragraph (4)(A) or a written determination under 
        paragraph (5), as applicable, the Commission shall take 
        final action on the license amendment application.
          (9) License amendment conditions.--Any condition 
        included in or applicable to a license amendment 
        approved under this subsection, including any condition 
        or other requirement of a Federal authorization, shall 
        be limited to those that are--
                  (A) necessary to protect public safety; or
                  (B) reasonable, economically feasible, and 
                essential to prevent loss of or damage to, or 
                to mitigate adverse effects on, fish and 
                wildlife resources, water supply, and water 
                quality that are directly caused by the 
                construction and operation of the qualifying 
                project upgrade, as compared to the 
                environmental baseline existing at the time the 
                Commission approves the application for the 
                license amendment.
          (10) Proposed license amendments that are not 
        qualifying project upgrades.--If the Commission 
        determines under paragraph (3) or (5) that a proposed 
        license amendment is not for a qualifying project 
        upgrade, the procedures under paragraphs (6) through 
        (9) shall not apply to the application.
          (11) Rulemaking.--Not later than 180 days after the 
        date of enactment of this section, the Commission 
        shall, after notice and opportunity for public comment, 
        issue a rule to implement this subsection.
          (12) Definitions.--For purposes of this subsection:
                  (A) Qualifying project upgrade.--The term 
                ``qualifying project upgrade'' means a change 
                to a project licensed under this part that 
                meets the qualifying criteria, as determined by 
                the Commission.
                  (B) Qualifying criteria.--The term 
                ``qualifying criteria'' means, with respect to 
                a project license under this part, a change to 
                the project that--
                          (i) if carried out, would be unlikely 
                        to adversely affect any species listed 
                        as threatened or endangered under the 
                        Endangered Species Act of 1973 or 
                        result in the destruction or adverse 
                        modification of critical habitat, as 
                        determined in consultation with the 
                        Secretary of the Interior or Secretary 
                        of Commerce, as appropriate, in 
                        accordance with section 7 of the 
                        Endangered Species Act of 1973;
                          (ii) is consistent with any 
                        applicable comprehensive plan under 
                        section 10(a)(2);
                          (iii) includes only changes to 
                        project lands, waters, or operations 
                        that, in the judgment of the 
                        Commission, would result in only 
                        insignificant or minimal cumulative 
                        adverse environmental effects;
                          (iv) would be unlikely to adversely 
                        affect water quality and water supply; 
                        and
                          (v) proposes to implement--
                                  (I) capacity increases, 
                                efficiency improvements, or 
                                other enhancements to 
                                hydropower generation at the 
                                licensed project;
                                  (II) environmental 
                                protection, mitigation, or 
                                enhancement measures to benefit 
                                fish and wildlife resources or 
                                other natural and cultural 
                                resources; or
                                  (III) improvements to public 
                                recreation at the licensed 
                                project.
  (b) Amendment Approval Processes.--
          (1) Rule.--Not later than 1 year after the date of 
        enactment of this section, the Commission shall, after 
        notice and opportunity for public comment, issue a rule 
        establishing new standards and procedures for license 
        amendment applications under this part. In issuing such 
        rule, the Commission shall seek to develop the most 
        efficient and expedient process, consultation, and 
        review requirements, commensurate with the scope of 
        different categories of proposed license amendments. 
        Such rule shall account for differences in 
        environmental effects across a wide range of categories 
        of license amendment applications.
          (2) Capacity.--In issuing a rule under this 
        subsection, the Commission shall take into 
        consideration that a change in generating or hydraulic 
        capacity may indicate the potential environmental 
        effects of a proposed amendment but is not 
        determinative of such effects.
          (3) Process options.--In issuing a rule under this 
        subsection, the Commission shall take into 
        consideration the range of process options available 
        under the Commission's regulations for new and original 
        license applications and adapt such options to 
        amendment applications, where appropriate.

SEC. 38. PROMOTING HYDROPOWER DEVELOPMENT AT EXISTING NONPOWERED DAMS.

  (a) Exemptions for Qualifying Facilities.--
          (1) Exemption qualifications.--Subject to the 
        requirements of this subsection, the Commission may 
        grant an exemption in whole or in part from the 
        requirements of this part, including any license 
        requirements contained in this part, to any facility 
        the Commission determines is a qualifying facility.
          (2) Consultation with federal and state agencies.--In 
        granting any exemption under this subsection, the 
        Commission shall consult with--
                  (A) the United States Fish and Wildlife 
                Service, the National Marine Fisheries Service, 
                and the State agency exercising administrative 
                control over the fish and wildlife resources of 
                the State in which the facility will be 
                located, in the manner provided by the Fish and 
                Wildlife Coordination Act;
                  (B) any Federal department supervising any 
                public lands or reservations occupied by the 
                project; and
                  (C) any Indian tribe affected by the project.
          (3) Exemption conditions.--
                  (A) In general.--The Commission shall include 
                in any exemption granted under this subsection 
                only such terms and conditions that the 
                Commission determines are--
                          (i) necessary to protect public 
                        safety; or
                          (ii) reasonable, economically 
                        feasible, and essential to prevent loss 
                        of or damage to, or to mitigate adverse 
                        effects on, fish and wildlife resources 
                        directly caused by the construction and 
                        operation of the qualifying facility, 
                        as compared to the environmental 
                        baseline existing at the time the 
                        Commission grants the exemption.
                  (B) No changes to release regime.--No Federal 
                authorization required with respect to a 
                qualifying facility described in paragraph (1), 
                including an exemption granted by the 
                Commission under this subsection, may include 
                any condition or other requirement that results 
                in any material change to the storage, control, 
                withdrawal, diversion, release, or flow 
                operations of the associated qualifying 
                nonpowered dam.
          (4) Environmental review.--The Commission's 
        environmental review under the National Environmental 
        Policy Act of 1969 of a proposed exemption under this 
        subsection shall consist only of an environmental 
        assessment, unless the Commission determines, by rule 
        or order, that the Commission's obligations under such 
        Act for granting exemptions under this subsection can 
        be met through a categorical exclusion.
          (5) Violation of terms of exemption.--Any violation 
        of a term or condition of any exemption granted under 
        this subsection shall be treated as a violation of a 
        rule or order of the Commission under this Act.
          (6) Annual charges for enhancement activities.--
        Exemptees under this subsection for any facility 
        located at a non-Federal dam shall pay to the United 
        States reasonable annual charges in an amount to be 
        fixed by the Commission for the purpose of funding 
        environmental enhancement projects in watersheds in 
        which facilities exempted under this subsection are 
        located. Such annual charges shall be equivalent to the 
        annual charges for use of a Government dam under 
        section 10(e), unless the Commission determines, by 
        rule, that a lower charge is appropriate to protect 
        exemptees' investment in the project or avoid 
        increasing the price to consumers of power due to such 
        charges. The proceeds of charges made by the Commission 
        under this paragraph shall be paid into the Treasury of 
        the United States and credited to miscellaneous 
        receipts. Subject to annual appropriation Acts, such 
        proceeds shall be available to Federal and State fish 
        and wildlife agencies for purposes of carrying out 
        specific environmental enhancement projects in 
        watersheds in which one or more facilities exempted 
        under this subsection are located. Not later than 180 
        days after the date of enactment of this section, the 
        Commission shall establish rules, after notice and 
        opportunity for public comment, for the collection and 
        administration of annual charges under this paragraph.
          (7) Effect of jurisdiction.--The jurisdiction of the 
        Commission over any qualifying facility exempted under 
        this subsection shall extend only to the qualifying 
        facility exempted and any associated primary 
        transmission line, and shall not extend to any conduit, 
        dam, impoundment, shoreline or other land, or any other 
        project work associated with the qualifying facility 
        exempted under this subsection.
  (b) Definitions.--For purposes of this section--
          (1) Federal authorization.--The term ``Federal 
        authorization'' has the same meaning as provided in 
        section 34.
          (2) Qualifying criteria.--The term ``qualifying 
        criteria'' means, with respect to a facility--
                  (A) as of the date of enactment of this 
                section, the facility is not licensed under, or 
                exempted from the license requirements 
                contained in, this part;
                  (B) the facility will be associated with a 
                qualifying nonpowered dam;
                  (C) the facility will be constructed, 
                operated, and maintained for the generation of 
                electric power;
                  (D) the facility will use for such generation 
                any withdrawals, diversions, releases, or flows 
                from the associated qualifying nonpowered dam, 
                including its associated impoundment or other 
                infrastructure; and
                  (E) the operation of the facility will not 
                result in any material change to the storage, 
                control, withdrawal, diversion, release, or 
                flow operations of the associated qualifying 
                nonpowered dam.
          (3) Qualifying facility.--The term ``qualifying 
        facility'' means a facility that is determined under 
        this section to meet the qualifying criteria.
          (4) Qualifying nonpowered dam.--The term ``qualifying 
        nonpowered dam'' means any dam, dike, embankment, or 
        other barrier--
                  (A) the construction of which was completed 
                on or before the date of enactment of this 
                section;
                  (B) that is operated for the control, 
                release, or distribution of water for 
                agricultural, municipal, navigational, 
                industrial, commercial, environmental, 
                recreational, aesthetic, or flood control 
                purposes;
                  (C) that, as of the date of enactment of this 
                section, is not equipped with hydropower 
                generating works that are licensed under, or 
                exempted from the license requirements 
                contained in, this part; and
                  (D) that, in the case of a non-Federal dam, 
                has been certified by an independent consultant 
                approved by the Commission as complying with 
                the Commission's dam safety requirements.

PART II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE 
                                COMMERCE

        declaration of policy; application of part; definitions

  Section 201. (a) It is hereby declared that the business of 
transmitting and selling electric energy for ultimate 
distribution to the public is affected with a public interest, 
and that Federal regulation of matters relating to generation 
to the extent provided in this Part and the Part next following 
and of that part of such business which consists of the 
transmission of electric energy in interstate commerce and the 
sale of such energy at wholesale in interstate commerce is 
necessary in the public interest, such Federal regulation, 
however, to extend only to those matters which are not subject 
to regulation by the States.
  (b)(1) The provisions of this Part shall apply to the 
transmission of electric energy in interstate commerce and to 
the sale of electric energy at wholesale in interstate 
commerce, but except as provided in paragraph (2) shall not 
apply to any other sale of electric energy or deprive a State 
or State commission of its lawful authority now exercised over 
the exportation of hydroelectric energy which is transmitted 
across a State line. The Commission shall have jurisdiction 
over all facilities for such transmission or sale of electric 
energy, but shall not have jurisdiction, except as specifically 
provided in this Part and the Part next following, over 
facilities used for the generation of electric energy or over 
facilities used in local distribution or only for the 
transmission of electric energy in intrastate commerce, or over 
facilities for the transmission of electric energy consumed 
wholly by the transmitter.
  (2) Notwithstanding section 201(f), the provisions of 
sections 203(a)(2), 206(e), 210, 211, 211A, 212, 215, 215A, 
216, 217, 218, 219, 220, 221, and 222 shall apply to the 
entities described in such provisions, and such entities shall 
be subject to the jurisdiction of the Commission for purposes 
of carrying out such provisions and for purposes of applying 
the enforcement authorities of this Act with respect to such 
provisions. Compliance with any order of the Commission under 
the provisions of section 203(a)(2), 206(e), 210, 211, 211A, 
212, 215, 215A, 216, 217, 218, 219, 220, 221, or 222, shall not 
make an electric utility or other entity subject to the 
jurisdiction of the Commission for any purposes other than the 
purposes specified in the preceding sentence.
  (c) For the purpose of this Part, electric energy shall be 
held to be transmitted in interstate commerce if transmitted 
from a State and consumed at any point outside thereof: but 
only insofar as such transmission takes place within the United 
States.
  (d) The term ``sale of electric energy at wholesale'' when 
used in this Part means a sale of electric energy to any person 
for resale.
  (e) The term ``public utility'' when used in this Part or in 
the Part next following means any person who owns or operates 
facilities subject to the jurisdiction of the Commission under 
this Part (other than facilities subject to such jurisdiction 
solely by reason of section 206(e), 206(f), 210, 211, 211A, 
212, 215, 215A, 216, 217, 218, 219, 220, 221, or 222).
  (f) No provision in this Part shall apply to, or be deemed to 
include, the United States, a State or any political 
subdivision of a State, an electric cooperative that receives 
financing under the Rural Electrification Act of 1936 (7 U.S.C. 
901 et seq.) or that sells less than 4,000,000 megawatt hours 
of electricity per year, or any agency, authority, or 
instrumentality of any one or more of the foregoing, or any 
corporation which is wholly owned, directly or indirectly, by 
any one or more of the foregoing, or any officer, agent, 
employee of any of the foregoing acting as such in the course 
of his official duty, unless such provision makes specific 
reference thereto.
  (g) Books and Records.--(1) Upon written order of a State 
commission, a State commission may examine the books, accounts, 
memoranda, contracts, and records of--
          (A) an electric utility company subject to its 
        regulatory authority under State law,
          (B) any exempt wholesale generator selling energy at 
        wholesale to such electric utility, and
          (C) any electric utility company, or holding company 
        thereof, which is an associate company or affiliate of 
        an exempt wholesale generator which sells electric 
        energy to an electric utility company referred to in 
        subparagraph (A),
wherever located, if such examination is required for the 
effective discharge of the State commission's regulatory 
responsibilities affecting the provision of electric service.
  (2) Where a State commission issues an order pursuant to 
paragraph (1), the State commission shall not publicly disclose 
trade secrets or sensitive commercial information.
  (3) Any United States district court located in the State in 
which the State commission referred to in paragraph (1) is 
located shall have jurisdiction to enforce compliance with this 
subsection.
  (4) Nothing in this section shall--
          (A) preempt applicable State law concerning the 
        provision of records and other information; or
          (B) in any way limit rights to obtain records and 
        other information under Federal law, contracts, or 
        otherwise.
  (5) As used in this subsection the terms ``affiliate'', 
``associate company'', ``electric utility company'', ``holding 
company'', ``subsidiary company'', and ``exempt wholesale 
generator'' shall have the same meaning as when used in the 
Public Utility Holding Company Act of 2005.

     interconnection and coordination of facilities; emergencies; 
                   transmission to foreign countries

  Sec. 202. (a) For the purpose of assuring an abundant supply 
of electric energy throughout the United States with the 
greatest possible economy and with regard to the proper 
utilization and conservation of natural resources, the 
Commission is empowered and directed to divide the country into 
regional districts for the voluntary interconnection and 
coordination of facilities for the generation, transmission, 
and sale of electric energy, and it may at any time thereafter, 
upon its own motion or upon application, make such 
modifications thereof as in its judgment will promote the 
public interest. Each such district shall embrace an area 
which, in the judgment of the Commission, can economically be 
served by such interconnected and coordinated electric 
facilities. It shall be the duty of the Commission to promote 
and encourage such interconnection and coordination within each 
such district and between such districts. Before establishing 
any such district and fixing or modifying the boundaries 
thereof the Commission shall give notice to the State 
commission of each State situated wholly or in part within such 
district, and shall afford each such State commission 
reasonable opportunity to present its views and 
recommendations, and shall receive and consider such views and 
recommendations.
  (b) Whenever the Commission, upon application of any State 
commission or of any person engaged in the transmission or sale 
of electric energy, and after notice to each State commission 
and public utility affected and after opportunity for hearing, 
finds such action necessary or appropriate in the public 
interest it may by order direct a public utility (if the 
Commission finds that no undue burden will be placed upon such 
public utility thereby) to establish physical connection of its 
transmission facilities with the facilities of one or more 
other persons engaged in the transmission or sale of electric 
energy, to sell energy to or exchange energy with such persons: 
Provided, That the Commission shall have no authority to compel 
the enlargement of generating facilities for such purposes, nor 
to compel such public utility to sell or exchange energy when 
to do so would impair its ability to render adequate service to 
its customers. The Commission may prescribe the terms and 
conditions of the arrangement to be made between the persons 
affected by any such order, including the apportionment of cost 
between them and the compensation or reimbursement reasonably 
due to any of them.
  (c) (1) During the continuance of any war in which the United 
States is engaged, or whenever the Commission determines that 
an emergency exists by reason of a sudden increase in the 
demand for electric energy, or a shortage of electric energy or 
of facilities for the generation or transmission of electric 
energy, or of fuel or water for generating facilities, or other 
causes, the Commission shall have authority, either upon its 
own motion or upon complaint, with or without notice, hearing, 
or report, to require by order such temporary connections of 
facilities and such generation, delivery, interchange, or 
transmission of electric energy as in its judgment will best 
meet the emergency and serve the public interest. If the 
parties affected by such order fail to agree upon the terms of 
any arrangement between them in carrying out such order, the 
Commission, after hearing held either before or after such 
order takes effect, may prescribe by supplemental order such 
terms as it finds to be just and reasonable, including the 
compensation or reimbursement which should be paid to or by any 
such party.
  (2) With respect to an order issued under this subsection 
that may result in a conflict with a requirement of any 
Federal, State, or local environmental law or regulation, the 
Commission shall ensure that such order requires generation, 
delivery, interchange, or transmission of electric energy only 
during hours necessary to meet the emergency and serve the 
public interest, and, to the maximum extent practicable, is 
consistent with any applicable Federal, State, or local 
environmental law or regulation and minimizes any adverse 
environmental impacts.
  (3) To the extent any omission or action taken by a party, 
that is necessary to comply with an order issued under this 
subsection, including any omission or action taken to 
voluntarily comply with such order, results in noncompliance 
with, or causes such party to not comply with, any Federal, 
State, or local environmental law or regulation, such omission 
or action shall not be considered a violation of such 
environmental law or regulation, or subject such party to any 
requirement, civil or criminal liability, or a citizen suit 
under such environmental law or regulation.
  (4)(A) An order issued under this subsection that may result 
in a conflict with a requirement of any Federal, State, or 
local environmental law or regulation shall expire not later 
than 90 days after it is issued. The Commission may renew or 
reissue such order pursuant to paragraphs (1) and (2) for 
subsequent periods, not to exceed 90 days for each period, as 
the Commission determines necessary to meet the emergency and 
serve the public interest.
  (B) In renewing or reissuing an order under subparagraph (A), 
the Commission shall consult with the primary Federal agency 
with expertise in the environmental interest protected by such 
law or regulation, and shall include in any such renewed or 
reissued order such conditions as such Federal agency 
determines necessary to minimize any adverse environmental 
impacts to the extent practicable. The conditions, if any, 
submitted by such Federal agency shall be made available to the 
public. The Commission may exclude such a condition from the 
renewed or reissued order if it determines that such condition 
would prevent the order from adequately addressing the 
emergency necessitating such order and provides in the order, 
or otherwise makes publicly available, an explanation of such 
determination.
  (5) If an order issued under this subsection is subsequently 
stayed, modified, or set aside by a court pursuant to section 
313 or any other provision of law, any omission or action 
previously taken by a party that was necessary to comply with 
the order while the order was in effect, including any omission 
or action taken to voluntarily comply with the order, shall 
remain subject to paragraph (3).
  (d) During the continuance of any emergency requiring 
immediate action, any person or municipality engaged in the 
transmission or sale of electric energy and not otherwise 
subject to the jurisdiction of the Commission may make such 
temporary connections with any public utility subject to the 
jurisdiction of the Commission or may construct such temporary 
facilities for the transmission of electric energy in 
interstate commerce as may be necessary or appropriate to meet 
such emergency, and shall not become subject to the 
jurisdiction of the Commission by reason of such temporary 
connection or temporary construction: Provided, That such 
temporary connection shall be discontinued or such temporary 
construction removed or otherwise disposed of upon the 
termination of such emergency: Provided further, That upon 
approval of the Commission permanent connections for emergency 
use only may be made hereunder.
  (e) After six months from the date on which this Part takes 
effect, no person shall transmit any electric energy from the 
United States to a foreign country without first having secured 
an order of the Commission authorizing it to do so. The 
Commission shall issue such order upon application unless, 
after opportunity for hearing, it finds that the proposed 
transmission would impair the sufficiency of electric supply 
within the United States or would impede or tend to impede the 
coordination in the public interest of facilities subject to 
the jurisdiction of the Commission. The Commission may by its 
order grant such application in whole or in part, with such 
modifications and upon such terms and conditions as the 
Commission may find necessary or appropriate, and may from time 
to time, after opportunity for hearing and for good cause 
shown, make such supplemental orders in the premises as it may 
find necessary or appropriate.
  (f) The ownership or operation of facilities for the 
transmission or sale at wholesale of electric energy which is 
(a) generated within a State and transmitted from that State 
across an international boundary and not thereafter transmitted 
into any other State, or (b) generated in a foreign country and 
transmitted across an international boundary into a State and 
not thereafter transmitted into any other State, shall not make 
a person a public utility subject to regulation as such under 
other provisions of this part. The State within which any such 
facilities are located may regulate any such transaction 
insofar as such State regulation does not conflict with the 
exercise of the Commission's powers under or relating to 
subsection 202(e).
  (g) In order to insure continuity of service to customers of 
public utilities, the Commission shall require by rule, each 
public utility to--
          (1) report promptly to the Commission and any 
        appropriate State regulatory authorities any 
        anticipated shortage of electric energy or capacity 
        which would affect such utility's capability of serving 
        its wholesale customers,
          (2) submit to the Commission, and to any appropriate 
        State regulatory authority, and periodically revise, 
        contingency plans respecting--
                  (A) shortages of electric energy or capacity, 
                and
                  (B) circumstances which may result in such 
                shortages, and
          (3) accommodate any such shortages or circumstances 
        in a manner which shall--
                  (A) give due consideration to the public 
                health, safety, and welfare, and
                  (B) provide that all persons served directly 
                or indirectly by such public utility will be 
                treated, without undue prejudice or 
                disadvantage.

     disposition of property; consolidation; purchase of securities

  Sec. 203. (a)(1) No public utility shall, without first 
having secured an order of the Commission authorizing it to do 
so--
                  (A) sell, lease, or otherwise dispose of the 
                whole of its facilities subject to the 
                jurisdiction of the Commission, or any part 
                thereof of a value in excess of $10,000,000;
                  (B) merge or consolidate, directly or 
                indirectly, [such facilities or any part 
                thereof] such facilities, or any part thereof, 
                of a value in excess of $10,000,000 with those 
                of any other person, by any means whatsoever;
                  (C) purchase, acquire, or take any security 
                with a value in excess of $10,000,000 of any 
                other public utility; or
                  (D) purchase, lease, or otherwise acquire an 
                existing generation facility--
                          (i) that has a value in excess of 
                        $10,000,000; and
                          (ii) that is used for interstate 
                        wholesale sales and over which the 
                        Commission has jurisdiction for 
                        ratemaking purposes.
          (2) No holding company in a holding company system 
        that includes a transmitting utility or an electric 
        utility shall purchase, acquire, or take any security 
        with a value in excess of $10,000,000 of, or, by any 
        means whatsoever, directly or indirectly, merge or 
        consolidate with, a transmitting utility, an electric 
        utility company, or a holding company in a holding 
        company system that includes a transmitting utility, or 
        an electric utility company, with a value in excess of 
        $10,000,000 without first having secured an order of 
        the Commission authorizing it to do so.
          (3) Upon receipt of an application for such approval 
        the Commission shall give reasonable notice in writing 
        to the Governor and State commission of each of the 
        States in which the physical property affected, or any 
        part thereof, is situated, and to such other persons as 
        it may deem advisable.
          (4) After notice and opportunity for hearing, the 
        Commission shall approve the proposed disposition, 
        consolidation, acquisition, or change in control, if it 
        finds that the proposed transaction will be consistent 
        with the public interest, and will not result in cross-
        subsidization of a non-utility associate company or the 
        pledge or encumbrance of utility assets for the benefit 
        of an associate company, unless the Commission 
        determines that the cross-subsidization, pledge, or 
        encumbrance will be consistent with the public 
        interest.
          (5) The Commission shall, by rule, adopt procedures 
        for the expeditious consideration of applications for 
        the approval of dispositions, consolidations, or 
        acquisitions, under this section. Such rules shall 
        identify classes of transactions, or specify criteria 
        for transactions, that normally meet the standards 
        established in paragraph (4). The Commission shall 
        provide expedited review for such transactions. The 
        Commission shall grant or deny any other application 
        for approval of a transaction not later than 180 days 
        after the application is filed. If the Commission does 
        not act within 180 days, such application shall be 
        deemed granted unless the Commission finds, based on 
        good cause, that further consideration is required to 
        determine whether the proposed transaction meets the 
        standards of paragraph (4) and issues an order tolling 
        the time for acting on the application for not more 
        than 180 days, at the end of which additional period 
        the Commission shall grant or deny the application.
          (6) For purposes of this subsection, the terms 
        ``associate company'', ``holding company'', and 
        ``holding company system'' have the meaning given those 
        terms in the Public Utility Holding Company Act of 
        2005.
  (b) The Commission may grant any application for an order 
under this section in whole or in part and upon such terms and 
conditions as it finds necessary or appropriate to secure the 
maintenance of adequate service and the coordination in the 
public interest of facilities subject to the jurisdiction of 
the Commission. The Commission may from time to time for good 
cause shown make such orders supplemental to any order made 
under this section as it may find necessary or appropriate.

           *       *       *       *       *       *       *


SEC. 215A. CRITICAL ELECTRIC INFRASTRUCTURE SECURITY.

  (a) Definitions.--For purposes of this section:
          (1) Bulk-power system; electric reliability 
        organization; regional entity.--The terms ``bulk-power 
        system'', ``Electric Reliability Organization'', and 
        ``regional entity'' have the meanings given such terms 
        in paragraphs (1), (2), and (7) of section 215(a), 
        respectively.
          (2) Critical electric infrastructure.--The term 
        ``critical electric infrastructure'' means a system or 
        asset of the bulk-power system, whether physical or 
        virtual, the incapacity or destruction of which would 
        negatively affect national security, economic security, 
        public health or safety, or any combination of such 
        matters.
          (3) Critical electric infrastructure information.--
        The term ``critical electric infrastructure 
        information'' means information related to critical 
        electric infrastructure, or proposed critical 
        electrical infrastructure, generated by or provided to 
        the Commission or other Federal agency, other than 
        classified national security information, that is 
        designated as critical electric infrastructure 
        information by the Commission under subsection (d)(2). 
        Such term includes information that qualifies as 
        critical energy infrastructure information under the 
        Commission's regulations.
          (4) Defense critical electric infrastructure.--The 
        term ``defense critical electric infrastructure'' means 
        any electric infrastructure located in the United 
        States (including the territories) that serves a 
        facility designated by the Secretary pursuant to 
        subsection (c), but is not owned or operated by the 
        owner or operator of such facility.
          (5) Electromagnetic pulse.--The term 
        ``electromagnetic pulse'' means 1 or more pulses of 
        electromagnetic energy emitted by a device capable of 
        disabling or disrupting operation of, or destroying, 
        electronic devices or communications networks, 
        including hardware, software, and data, by means of 
        such a pulse.
          (6) Geomagnetic storm.--The term ``geomagnetic 
        storm'' means a temporary disturbance of the Earth's 
        magnetic field resulting from solar activity.
          (7) Grid security emergency.--The term ``grid 
        security emergency'' means the occurrence or imminent 
        danger of--
                  (A)(i) a malicious act using electronic 
                communication or an electromagnetic pulse, or a 
                geomagnetic storm event, that could disrupt the 
                operation of those electronic devices or 
                communications networks, including hardware, 
                software, and data, that are essential to the 
                reliability of critical electric infrastructure 
                or of defense critical electric infrastructure; 
                and
                  (ii) disruption of the operation of such 
                devices or networks, with significant adverse 
                effects on the reliability of critical electric 
                infrastructure or of defense critical electric 
                infrastructure, as a result of such act or 
                event; or
                  (B)(i) a direct physical attack on critical 
                electric infrastructure or on defense critical 
                electric infrastructure; and
                  (ii) significant adverse effects on the 
                reliability of critical electric infrastructure 
                or of defense critical electric infrastructure 
                as a result of such physical attack.
          (8) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
  (b) Authority To Address Grid Security Emergency.--
          (1) Authority.--Whenever the President issues and 
        provides to the Secretary a written directive or 
        determination identifying a grid security emergency, 
        the Secretary may, with or without notice, hearing, or 
        report, issue such orders for emergency measures as are 
        necessary in the judgment of the Secretary to protect 
        or restore the reliability of critical electric 
        infrastructure or of defense critical electric 
        infrastructure during such emergency. As soon as 
        practicable but not later than 180 days after the date 
        of enactment of this section, the Secretary shall, 
        after notice and opportunity for comment, establish 
        rules of procedure that ensure that such authority can 
        be exercised expeditiously.
          (2) Notification of congress.--Whenever the President 
        issues and provides to the Secretary a written 
        directive or determination under paragraph (1), the 
        President shall promptly notify congressional 
        committees of relevant jurisdiction, including the 
        Committee on Energy and Commerce of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate, of the contents of, and 
        justification for, such directive or determination.
          (3) Consultation.--Before issuing an order for 
        emergency measures under paragraph (1), the Secretary 
        shall, to the extent practicable in light of the nature 
        of the grid security emergency and the urgency of the 
        need for action, consult with appropriate governmental 
        authorities in Canada and Mexico, entities described in 
        paragraph (4), the Electricity Sub-sector Coordinating 
        Council, the Commission, and other appropriate Federal 
        agencies regarding implementation of such emergency 
        measures.
          (4) Application.--An order for emergency measures 
        under this subsection may apply to--
                  (A) the Electric Reliability Organization;
                  (B) a regional entity; or
                  (C) any owner, user, or operator of critical 
                electric infrastructure or of defense critical 
                electric infrastructure within the United 
                States.
          (5) Expiration and reissuance.--
                  (A) In general.--Except as provided in 
                subparagraph (B), an order for emergency 
                measures issued under paragraph (1) shall 
                expire no later than 15 days after its 
                issuance.
                  (B) Extensions.--The Secretary may reissue an 
                order for emergency measures issued under 
                paragraph (1) for subsequent periods, not to 
                exceed 15 days for each such period, provided 
                that the President, for each such period, 
                issues and provides to the Secretary a written 
                directive or determination that the grid 
                security emergency identified under paragraph 
                (1) continues to exist or that the emergency 
                measure continues to be required.
          (6) Cost recovery.--
                  (A) Critical electric infrastructure.--If the 
                Commission determines that owners, operators, 
                or users of critical electric infrastructure 
                have incurred substantial costs to comply with 
                an order for emergency measures issued under 
                this subsection and that such costs were 
                prudently incurred and cannot reasonably be 
                recovered through regulated rates or market 
                prices for the electric energy or services sold 
                by such owners, operators, or users, the 
                Commission shall, consistent with the 
                requirements of section 205, after notice and 
                an opportunity for comment, establish a 
                mechanism that permits such owners, operators, 
                or users to recover such costs.
                  (B) Defense critical electric 
                infrastructure.--To the extent the owner or 
                operator of defense critical electric 
                infrastructure is required to take emergency 
                measures pursuant to an order issued under this 
                subsection, the owners or operators of a 
                critical defense facility or facilities 
                designated by the Secretary pursuant to 
                subsection (c) that rely upon such 
                infrastructure shall bear the full incremental 
                costs of the measures.
          (7) Temporary access to classified information.--The 
        Secretary, and other appropriate Federal agencies, 
        shall, to the extent practicable and consistent with 
        their obligations to protect classified information, 
        provide temporary access to classified information 
        related to a grid security emergency for which 
        emergency measures are issued under paragraph (1) to 
        key personnel of any entity subject to such emergency 
        measures to enable optimum communication between the 
        entity and the Secretary and other appropriate Federal 
        agencies regarding the grid security emergency.
  (c) Designation of Critical Defense Facilities.--Not later 
than 180 days after the date of enactment of this section, the 
Secretary, in consultation with other appropriate Federal 
agencies and appropriate owners, users, or operators of 
infrastructure that may be defense critical electric 
infrastructure, shall identify and designate facilities located 
in the United States (including the territories) that are--
          (1) critical to the defense of the United States; and
          (2) vulnerable to a disruption of the supply of 
        electric energy provided to such facility by an 
        external provider.
The Secretary may, in consultation with appropriate Federal 
agencies and appropriate owners, users, or operators of defense 
critical electric infrastructure, periodically revise the list 
of designated facilities as necessary.
  (d) Protection and Sharing of Critical Electric 
Infrastructure Information.--
          (1) Protection of critical electric infrastructure 
        information.--Critical electric infrastructure 
        information--
                  (A) shall be exempt from disclosure under 
                section 552(b)(3) of title 5, United States 
                Code; and
                  (B) shall not be made available by any 
                Federal, State, political subdivision or tribal 
                authority pursuant to any Federal, State, 
                political subdivision or tribal law requiring 
                public disclosure of information or records.
          (2) Designation and sharing of critical electric 
        infrastructure information.--Not later than one year 
        after the date of enactment of this section, the 
        Commission, in consultation with the Secretary of 
        Energy, shall promulgate such regulations and issue 
        such orders as necessary to--
                  (A) designate information as critical 
                electric infrastructure information;
                  (B) prohibit the unauthorized disclosure of 
                critical electric infrastructure information;
                  (C) ensure there are appropriate sanctions in 
                place for Commissioners, officers, employees, 
                or agents of the Commission who knowingly and 
                willfully disclose critical electric 
                infrastructure information in a manner that is 
                not authorized under this section; and
                  (D) taking into account standards of the 
                Electric Reliability Organization, facilitate 
                voluntary sharing of critical electric 
                infrastructure information with, between, and 
                by--
                          (i) Federal, State, political 
                        subdivision, and tribal authorities;
                          (ii) the Electric Reliability 
                        Organization;
                          (iii) regional entities;
                          (iv) information sharing and analysis 
                        centers established pursuant to 
                        Presidential Decision Directive 63;
                          (v) owners, operators, and users of 
                        critical electric infrastructure in the 
                        United States; and
                          (vi) other entities determined 
                        appropriate by the Commission.
          (3) Considerations.--In promulgating regulations and 
        issuing orders under paragraph (2), the Commission 
        shall take into consideration the role of State 
        commissions in reviewing the prudence and cost of 
        investments, determining the rates and terms of 
        conditions for electric services, and ensuring the 
        safety and reliability of the bulk-power system and 
        distribution facilities within their respective 
        jurisdictions.
          (4) Protocols.--The Commission shall, in consultation 
        with Canadian and Mexican authorities, develop 
        protocols for the voluntary sharing of critical 
        electric infrastructure information with Canadian and 
        Mexican authorities and owners, operators, and users of 
        the bulk-power system outside the United States.
          (5) No required sharing of information.--Nothing in 
        this section shall require a person or entity in 
        possession of critical electric infrastructure 
        information to share such information with Federal, 
        State, political subdivision, or tribal authorities, or 
        any other person or entity.
          (6) Submission of information to congress.--Nothing 
        in this section shall permit or authorize the 
        withholding of information from Congress, any committee 
        or subcommittee thereof, or the Comptroller General.
          (7) Disclosure of nonprotected information.--In 
        implementing this section, the Commission shall protect 
        from disclosure only the minimum amount of information 
        necessary to protect the security and reliability of 
        the bulk-power system and distribution facilities. The 
        Commission shall segregate critical electric 
        infrastructure information within documents and 
        electronic communications, wherever feasible, to 
        facilitate disclosure of information that is not 
        designated as critical electric infrastructure 
        information.
          (8) Duration of designation.--Information may not be 
        designated as critical electric infrastructure 
        information for longer than 5 years, unless 
        specifically re-designated by the Commission.
          (9) Removal of designation.--The Commission shall 
        remove the designation of critical electric 
        infrastructure information, in whole or in part, from a 
        document or electronic communication if the Commission 
        determines that the unauthorized disclosure of such 
        information could no longer be used to impair the 
        security or reliability of the bulk-power system or 
        distribution facilities.
          (10) Judicial review of designations.--
        Notwithstanding section 313(b), any determination by 
        the Commission concerning the designation of critical 
        electric infrastructure information under this 
        subsection shall be subject to review under chapter 7 
        of title 5, United States Code, except that such review 
        shall be brought in the district court of the United 
        States in the district in which the complainant 
        resides, or has his principal place of business, or in 
        the District of Columbia. In such a case the court 
        shall examine in camera the contents of documents or 
        electronic communications that are the subject of the 
        determination under review to determine whether such 
        documents or any part thereof were improperly 
        designated or not designated as critical electric 
        infrastructure information.
  (e) Security Clearances.--The Secretary shall facilitate and, 
to the extent practicable, expedite the acquisition of adequate 
security clearances by key personnel of any entity subject to 
the requirements of this section, to enable optimum 
communication with Federal agencies regarding threats to the 
security of the critical electric infrastructure. The 
Secretary, the Commission, and other appropriate Federal 
agencies shall, to the extent practicable and consistent with 
their obligations to protect classified and critical electric 
infrastructure information, share timely actionable information 
regarding grid security with appropriate key personnel of 
owners, operators, and users of the critical electric 
infrastructure.
  (f) Clarifications of Liability.--
          (1) Compliance with or violation of this act.--Except 
        as provided in paragraph (4), to the extent any action 
        or omission taken by an entity that is necessary to 
        comply with an order for emergency measures issued 
        under subsection (b)(1), including any action or 
        omission taken to voluntarily comply with such order, 
        results in noncompliance with, or causes such entity 
        not to comply with any rule, order, regulation, or 
        provision of this Act, including any reliability 
        standard approved by the Commission pursuant to section 
        215, such action or omission shall not be considered a 
        violation of such rule, order, regulation, or 
        provision.
          (2)  relation to section 202(c).--Except as provided 
        in paragraph (4), an action or omission taken by an 
        owner, operator, or user of critical electric 
        infrastructure or of defense critical electric 
        infrastructure to comply with an order for emergency 
        measures issued under subsection (b)(1) shall be 
        treated as an action or omission taken to comply with 
        an order issued under section 202(c) for purposes of 
        such section.
          (3) Sharing or receipt of information.--No cause of 
        action shall lie or be maintained in any Federal or 
        State court for the sharing or receipt of information 
        under, and that is conducted in accordance with, 
        subsection (d).
          (4) Rule of construction.--Nothing in this subsection 
        shall be construed to require dismissal of a cause of 
        action against an entity that, in the course of 
        complying with an order for emergency measures issued 
        under subsection (b)(1) by taking an action or omission 
        for which they would be liable but for paragraph (1) or 
        (2), takes such action or omission in a grossly 
        negligent manner.

SEC. 215B. RELIABILITY AND PERFORMANCE ASSURANCE IN REGIONAL 
                    TRANSMISSION ORGANIZATIONS.

  (a) Existing Capacity Markets.--
          (1) Analysis concerning capacity market design.--Not 
        later than 180 days after the date of enactment of this 
        section, each Regional Transmission Organization, and 
        each Independent System Operator, that operates a 
        capacity market, or a comparable market intended to 
        ensure the procurement and availability of sufficient 
        future electric energy resources, that is subject to 
        the jurisdiction of the Commission, shall provide to 
        the Commission an analysis of how the structure of such 
        market meets the following criteria:
                  (A) The structure of such market utilizes 
                competitive market forces to the extent 
                practicable in procuring capacity resources.
                  (B) Consistent with subparagraph (A), the 
                structure of such market includes resource-
                neutral performance criteria that ensure the 
                procurement of sufficient capacity from 
                physical generation facilities that have 
                reliability attributes that include--
                          (i)(I) possession of adequate fuel 
                        on-site to enable operation for an 
                        extended period of time;
                          (II) the operational ability to 
                        generate electric energy from more than 
                        one fuel source; or
                          (III) fuel certainty, through firm 
                        contractual obligations, that ensures 
                        adequate fuel supply to enable 
                        operation, for an extended period of 
                        time, for the duration of an emergency 
                        or severe weather conditions;
                          (ii) operational characteristics that 
                        enable the generation of electric 
                        energy for the duration of an emergency 
                        or severe weather conditions; and
                          (iii) unless procured through other 
                        markets or procurement mechanisms, 
                        essential reliability services, 
                        including frequency support and 
                        regulation services.
          (2) Commission evaluation and report.--Not later than 
        1 year after the date of enactment of this section, the 
        Commission shall make publicly available, and submit to 
        the Committee on Energy and Commerce in the House of 
        Representatives and the Committee on Energy and Natural 
        Resources in the Senate, a report containing--
                  (A) evaluation of whether the structure of 
                each market addressed in an analysis submitted 
                pursuant to paragraph (1) meets the criteria 
                under such paragraph, based on the analysis; 
                and
                  (B) to the extent a market so addressed does 
                not meet such criteria, any recommendations 
                with respect to the procurement of sufficient 
                capacity, as described in paragraph (1)(B).
  (b) Commission Evaluation and Report for New Schedules.--
          (1) Inclusion of analysis in filing.--Except as 
        provided in subsection (a)(2), whenever a Regional 
        Transmission Organization or Independent System 
        Operator files a new schedule under section 205 to 
        establish a market described in subsection (a)(1), or 
        that substantially modifies the capacity market design 
        of a market described in subsection (a)(1), the 
        Regional Transmission Organization or Independent 
        System Operator shall include in any such filing the 
        analysis required by subsection (a)(1).
          (2) Evaluation and report.--Not later than 180 days 
        of receiving an analysis under paragraph (1), the 
        Commission shall make publicly available, and submit to 
        the Committee on Energy and Commerce in the House of 
        Representatives and the Committee on Energy and Natural 
        Resources in the Senate, a report containing--
                  (A) an evaluation of whether the structure of 
                the market addressed in the analysis meets the 
                criteria under subsection (a)(1), based on the 
                analysis; and
                  (B) to the extent the market does not meet 
                such criteria, any recommendations with respect 
                to the procurement of sufficient capacity, as 
                described in subsection (a)(1)(B).
  (c) Effect on Existing Approvals.--Nothing in this section 
shall be considered to--
          (1) require a modification of the Commission's 
        approval of the capacity market design approved 
        pursuant to docket numbers ER15-623-000, EL15-29-000, 
        EL14-52-000, and ER14-2419-000; or
          (2) provide grounds for the Commission to grant 
        rehearing or otherwise modify orders issued in those 
        dockets.

           *       *       *       *       *       *       *


PART III--LICENSEES AND PUBLIC UTILITIES; PROCEDURAL AND ADMINISTRATIVE 
PROVISIONS

           *       *       *       *       *       *       *


                   rehearings; court review of orders

  Sec. 313. (a) Any person, electric utility, State, 
municipality, or State commission aggrieved by an order issued 
by the Commission in a proceeding under this Act to which such 
person, electric utility, State, municipality, or State 
commission is a party may apply for a rehearing within thirty 
days after the issuance of such order. The application for 
rehearing shall set forth specifically the ground or grounds 
upon which such application is based. Upon such application the 
Commission shall have power to grant or deny rehearing or to 
abrogate or modify its order without further hearing. Unless 
the Commission acts upon the application for rehearing within 
thirty days after it is filed, such application may be deemed 
to have been denied. No proceeding to review any orders of the 
Commission shall be brought by any entity unless such entity 
shall have made application to the Commission for a rehearing 
thereon. Until the record in a proceeding shall have been filed 
in a court of appeals, as provided in subsection (b), the 
Commission may at any time, upon reasonable notice and in such 
manner as it shall deem proper, modify or set aside, in whole 
or in part, any finding or order made or issued by it under the 
provisions of this act.
  [(b) Any party]
  (b) Judicial Review.--
          (1) In general.--Any party to a proceeding under this 
        Act aggrieved by an order issued by the Commission in 
        such proceeding may obtain a review of such order in 
        the Circuit Court of Appeals of the United States for 
        any circuit wherein the licensee or public utility to 
        which the order relates is located or has its principal 
        place of business, or in the United States Court of 
        Appeals for the District of Columbia, by filing in such 
        court, within sixty days after the order of the 
        Commission upon the application for rehearing, a 
        written petition praying that the order of the 
        Commission be modified or set aside in whole or in 
        part. A copy of such petition shall forthwith be 
        transmitted by the clerk of the court to any member of 
        the Commission and thereupon the Commission shall file 
        with the court the record upon which the order 
        complained of was entered, as provided in section 2112 
        of title 28, United States Code. Upon the filing of 
        such petition such court shall have jurisdiction, which 
        upon the filing of the record with it shall be 
        exclusive, to affirm, modify, or set aside such order 
        in whole or in part. No objection to the order of the 
        Commission shall be considered by the court unless such 
        objection shall have been urged before the Commission 
        in the application for rehearing unless there is 
        reasonable ground for failure so to do. The finding of 
        the Commission as to the facts, if supported by 
        substantial evidence, shall be conclusive. If any party 
        shall apply to the court for leave to adduce additional 
        evidence, and shall show to the satisfaction of the 
        court that such additional evidence is material and 
        that there were reasonable grounds for failure to 
        adduce such evidence in the proceedings before the 
        Commission, the court may order such additional 
        evidence to be taken before the Commission and to be 
        adduced upon the hearing in such manner and upon such 
        terms and conditions as the court may deem proper. The 
        Commission may modify its findings as to the facts by 
        reason of additional evidence so taken, and it shall 
        file with the court such modified or new findings 
        which, if supported by substantial evidence, shall be 
        conclusive, and its recommendation, if any, for the 
        modification or setting aside of the original order. 
        The judgment and decree of the court, affirming, 
        modifying, or setting aside, in whole or in part, any 
        such order of the Commission, shall be final, subject 
        to review by the Supreme Court of the United States 
        upon certiorari or certification as provided in 
        sections 239 and 240 of the Judicial Code, as amended 
        (U.S.C., title 28, secs. 346 and 347).
          (2) Delay of a federal authorization.--Any Federal, 
        State, or local government agency or Indian tribe that 
        will not complete its disposition of a Federal 
        authorization by the deadline set forth in the schedule 
        by the Commission under section 34 may file for an 
        extension in the United States court of appeals for any 
        circuit wherein the project or proposed project is 
        located, or in the United States Court of Appeals for 
        the District of Columbia. Such petition shall be filed 
        not later than 30 days prior to such deadline. The 
        court shall only grant an extension if the agency or 
        tribe demonstrates, based on the record maintained 
        under section 34, that it otherwise complied with the 
        requirements of section 34 and that complying with the 
        schedule set by the Commission would have prevented the 
        agency or tribe from complying with applicable Federal 
        or State law. If the court grants the extension, the 
        court shall set a reasonable schedule and deadline, not 
        to exceed 90 days, for the agency to act on remand. If 
        the court denies the extension, or if an agency or 
        tribe does not file for an extension as provided in 
        this subsection and does not complete its disposition 
        of a Federal authorization by the applicable deadline, 
        the Commission and applicant may move forward with the 
        proposed action.
  (c) The filing of an application for rehearing under 
subsection (a) shall not, unless specifically ordered by the 
Commission, operate as a stay of the Commission's order. The 
commencement of proceedings under subsection (b) of this 
section shall not, unless specifically ordered by the court, 
operate as a stay of the Commission's order.

           *       *       *       *       *       *       *


                    [office of public participation

  [Sec. 319. (a)(1) There shall be an office in the Commission 
to be known as the Office of Public Participation (hereinafter 
in this section referred to as the ``Office'').
  [(2)(A) The Office shall be administered by a Director. The 
Director shall be appointed by the Chairman with the approval 
of the Commission. The Director may be removed during his term 
of office by the Chairman, with the approval of the Commission, 
only for inefficiency, neglect of duty, or malfeasance in 
office.
  [(B) The term of office of the Director shall be 4 years. The 
Director shall be responsible for the discharge of the 
functions and duties of the Office. He shall be appointed and 
compensated at a rate not in excess of the maximum rate 
prescribed for GS-18 of the General Schedule under section 5332 
of title 5 of the United States Code.
  [(3) The Director may appoint, and assign the duties of, 
employees of such Office, and with the concurrence of the 
Commission he may fix the compensation of such employees and 
procure temporary and intermittent services to the same extent 
as is authorized under section 3109 of title 5, United States 
Code.
  [(b)(1) The Director shall coordinate assistance to the 
public with respect to authorities exercised by the Commission. 
The Director shall also coordinate assistance available to 
persons intervening or participating or proposing to intervene 
or participate in proceedings before the Commission.
  [(2) The Commission may, under rules promulgated by it, 
provide compensation for reasonable attorney's fees, expert 
witness fees, and other costs of intervening or participating 
in any proceeding before the Commission to any person whose 
intervention, or participation substantially contributed to the 
approval, in whole or in part, of a position advocated by such 
person. Such compensation may be paid only if the Commission 
has determined that--
          [(A) the proceeding is significant, and
          [(B) such person's intervention or participation in 
        such proceeding without receipt of compensation 
        constitutes a significant financial hardship to him.
  [(3) Nothing in this subsection affects or restricts any 
rights of any intervenor or participant under any other 
applicable law or rule of law.
  [(4) There are to be appropriated to the Secretary of Energy 
to be used by the Office for purposes of compensation of 
persons under the provisions of this subsection not to exceed 
$500,000 for the fiscal year 1978, not to exceed $2,000,000 for 
the fiscal year 1979, not to exceed $2,200,000 for the fiscal 
year 1980, and not to exceed $2,400,000 for the fiscal year 
1981.]

SEC. 319. OFFICE OF COMPLIANCE ASSISTANCE AND PUBLIC PARTICIPATION.

  (a) Establishment.--There is established within the 
Commission an Office of Compliance Assistance and Public 
Participation (referred to in this section as the ``Office''). 
The Office shall be headed by a Director.
  (b) Duties of Director.--
          (1) In general.--The Director of the Office shall 
        promote improved compliance with Commission rules and 
        orders by--
                  (A) making recommendations to the Commission 
                regarding--
                          (i) the protection of consumers;
                          (ii) market integrity and support for 
                        the development of responsible market 
                        behavior;
                          (iii) the application of Commission 
                        rules and orders in a manner that 
                        ensures that--
                                  (I) rates and charges for, or 
                                in connection with, the 
                                transmission or sale of 
                                electric energy subject to the 
                                jurisdiction of the Commission 
                                shall be just and reasonable 
                                and not unduly discriminatory 
                                or preferential; and
                                  (II) markets for such 
                                transmission and sale of 
                                electric energy are not 
                                impaired and consumers are not 
                                damaged; and
                          (iv) the impact of existing and 
                        proposed Commission rules and orders on 
                        small entities, as defined in section 
                        601 of title 5, United States Code 
                        (commonly known as the Regulatory 
                        Flexibility Act);
                  (B) providing entities subject to regulation 
                by the Commission the opportunity to obtain 
                timely guidance for compliance with Commission 
                rules and orders; and
                  (C) providing information to the Commission 
                and Congress to inform policy with respect to 
                energy issues under the jurisdiction of the 
                Commission.
          (2) Reports and guidance.--The Director shall, as the 
        Director determines appropriate, issue reports and 
        guidance to the Commission and to entities subject to 
        regulation by the Commission, regarding market 
        practices, proposing improvements in Commission 
        monitoring of market practices, and addressing 
        potential improvements to both industry and Commission 
        practices.
          (3) Outreach.--The Director shall promote improved 
        compliance with Commission rules and orders through 
        outreach, publications, and, where appropriate, direct 
        communication with entities regulated by the 
        Commission.

           *       *       *       *       *       *       *

                              ----------                              


PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978

           *       *       *       *       *       *       *


       TITLE I--RETAIL REGULATORY POLICIES FOR ELECTRIC UTILITIES

Subtitle A--General Provisions

           *       *       *       *       *       *       *


SEC. 102. COVERGE.

  (a) Volume of Total Retail Sales.--This title applies to each 
utility in any calendar year, and to each proceeding relating 
to each electric utility in such year, if the total sales of 
electric energy by such utility for purposes other than resale 
exceeded 500 million kilowatt-hours during any calendar year 
beginning after December 31, 1975, and before the immediately 
preceding calendar year.
  (b) Exclusion of Wholesale Sales.--The requirements of this 
title do not apply to the operations of an electric utility, or 
to proceedings respecting such operations, to the extent that 
such operations or proceedings relate to sales of electric 
energy for purposes of resale.
  (c) List of Covered Utilities.--Before the beginning of each 
calendar year, the Secretary shall publish a list identifying 
each electric utility to which this title applies during such 
calendar year. Promptly after publication of such list each 
State regulatory authority shall notify the Secretary of each 
electric utility on the list for which such State regulatory 
authority has ratemaking authority.
  (d) Coverage for Competitive Markets.--The requirements of 
this title do not apply to the operations of an electric 
utility, or to proceedings respecting such operations, to the 
extent that such operations or proceedings, or any portion 
thereof, relate to the competitive sale of retail electric 
energy that is unbundled or separated from the regulated 
provision or sale of distribution service.

           *       *       *       *       *       *       *


              Subtitle B--Standards For Electric Utilities

SEC. 111. CONSIDERATION AND DETERMINATION RESPECTING CERTAIN RATEMAKING 
                    STANDARDS.

  (a) Consideration and Determination.--Each State regulatory 
authority (with respect to each electric utility for which it 
has ratemaking authority) and each nonregulated electric 
utility shall consider each standard established by subsection 
(d) and make a determination concerning whether or not it is 
appropriate to implement such standard to carry out the 
purposes of this title. For purposes of such consideration and 
determination in accordance with subsections (b) and (c), and 
for purposes of any review of such consideration and 
determination in any court in accordance with section 123, the 
purposes of this title supplement otherwise applicable State 
law. Nothing in this subsection prohibits any State regulatory 
authority or nonregulated electric utility from making any 
determination that it is not appropriate to implement any such 
standard, pursuant to its authority under otherwise applicable 
State law.
  (b) Procedural Requirements for Consideration and 
Determination.--(1) The consideration referred to in subsection 
(a) shall be made after public notice and hearing. The 
determination referred to in subsection (a) shall be--
          (A) in writing,
          (B) based upon findings included in such 
        determination and upon the evidence presented at the 
        hearing, and
          (C) available to the public.
  (2) Except as otherwise provided in paragraph (1), in the 
second sentence of section 112(a), and in sections 121 and 122, 
the procedures for the consideration and determination referred 
to in subsection (a) shall be those established by the State 
regulatory authority or the nonregulated electric utility.
  (c) Implementation.--(1) The State regulatory authority (with 
respect to each electric utility for which it has ratemaking 
authority) or nonregulated electric utility may, to the extent 
consistent with otherwise applicable State law--
          (A) implement any such standard determined under 
        subsection (a) to be appropriate to carry out the 
        purposes of this title, or
          (B) decline to implement any such standard.
  (2) If a State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority) or 
nonregulated electric utility declines to implement any 
standard established by subsection (d) which is determined 
under subsection (a) to be appropriate to carry out the 
purposes of this title, such authority or nonregulated electric 
utility shall state in writing the reasons therefor. Such 
statement of reasons shall be available to the public.
          (3) If a State regulatory authority implements a 
        standard established by subsection (d)(7) or (8), such 
        authority shall--
                  (A) consider the impact that implementation 
                of such standard would have on small businesses 
                engaged in the design, sale, supply, 
                installation or servicing of energy 
                conservation, energy efficiency or other demand 
                side management measures, and
                  (B) implement such standard so as to assure 
                that utility actions would not provide such 
                utilities with unfair competitive advantages 
                over such small businesses.
  (d) Establishment.--The following Federal standards are 
hereby established:
          (1) Cost of service.--Rates charged by any electric 
        utility for providing electric service to each class of 
        electric consumers shall be designed, to the maximum 
        extent practicable, to reflect the cost of providing 
        electric service to such class, as determined under 
        section 115(a).
          (2) Declining block rates.--The energy component of a 
        rate, or the amount attributable to the energy 
        component in a rate, charged by any electric utility 
        for providing electric service during any period to any 
        class of electric consumers may not decrease as 
        kilowatt-hour consumption by such class increases 
        during such period except to the extent that such 
        utility demonstrates that the costs to such utility of 
        providing electric service to such class, which costs 
        are attributable to such energy component, decrease as 
        such consumption increases during such period.
          (3) Time-of-day rates.--The rates charged by any 
        electric utility for providing electric service to such 
        class of electric consumers shall be on a time-of-day 
        basis which reflects the costs of providing electric 
        service to such class of electric consumers at 
        different times of the day unless such rates are not 
        cost-effective with respect to such class, as 
        determined under section 115(b).
          (4) Seasonal rates.--The rates charged by an electric 
        utility for providing electric service to each class of 
        electric consumers shall be on a seasonal basis which 
        reflects the costs of providing service to each class 
        of consumers at different seasons of the year to the 
        extent that such costs vary seasonally for such 
        utility.
          (5) Interruptible rates.--Each electric utility shall 
        offer each industrial and commercial electric consumer 
        an interruptible rate which reflects the cost of 
        providing interruptible service to the class of which 
        such consumer is a member.
          (6) Load management techniques.--Each electric 
        utility shall offer to its electric consumers such load 
        management techniques as the State regulatory authority 
        (or the nonregulated electric utility) has determined 
        will--
                  (A) be practicable and cost-effective, as 
                determined under section 115(c),
                  (B) be reliable, and
                  (C) provide useful energy or capacity 
                management advantages to the electric utility.
          (7) Integrated resource planning.--Each electric 
        utility shall employ integrated resource planning. All 
        plans or filings before a State regulatory authority to 
        meet the requirements of this paragraph must be updated 
        on a regular basis, must provide the opportunity for 
        public participation and comment, and contain a 
        requirement that the plan be implemented.
          (8) Investments in conservation and demand 
        management.--The rates allowed to be charged by a State 
        regulated electric utility shall be such that the 
        utility's investment in and expenditures for energy 
        conservation, energy efficiency resources, and other 
        demand side management measures are at least as 
        profitable, giving appropriate consideration to income 
        lost from reduced sales due to investments in and 
        expenditures for conservation and efficiency, as its 
        investments in and expenditures for the construction of 
        new generation, transmission, and distribution 
        equipment. Such energy conservation, energy efficiency 
        resources and other demand side management measures 
        shall be appropriately monitored and evaluated.
          (9) Energy efficiency investments in power generation 
        and supply.--The rates charged by any electric utility 
        shall be such that the utility is encouraged to make 
        investments in, and expenditures for, all cost-
        effective improvements in the energy efficiency of 
        power generation, transmission and distribution. In 
        considering regulatory changes to achieve the 
        objectives of this paragraph, State regulatory 
        authorities and nonregulated electric utilities shall 
        consider the disincentives caused by existing 
        ratemaking policies, and practices, and consider 
        incentives that would encourage better maintenance, and 
        investment in more efficient power generation, 
        transmission and distribution equipment.
          (10) Consideration of the effects of wholesale power 
        purchases on utility cost of capital; effects of 
        leveraged capital structures on the reliability of 
        wholesale power sellers; and assurance of adequate fuel 
        supplies.--(A) To the extent that a State regulatory 
        authority requires or allows electric utilities for 
        which it has ratemaking authority to consider the 
        purchase of long-term wholesale power supplies as a 
        means of meeting electric demand, such authority shall 
        perform a general evaluation of:
                  (i) the potential for increases or decreases 
                in the costs of capital for such utilities, and 
                any resulting increases or decreases in the 
                retail rates paid by electric consumers, that 
                may result from purchases of long-term 
                wholesale power supplies in lieu of the 
                construction of new generation facilities by 
                such utilities;
                  (ii) whether the use by exempt wholesale 
                generators (as defined in section 32 of the 
                Public Utility Holding Company Act of 1935) of 
                capital structures which employ proportionally 
                greater amounts of debt than the capital 
                structures of such utilities threatens 
                reliability or provides an unfair advantage for 
                exempt wholesale generators over such 
                utilities;
                  (iii) whether to implement procedures for the 
                advance approval or disapproval of the purchase 
                of a particular long-term wholesale power 
                supply; and
                  (iv) whether to require as a condition for 
                the approval of the purchase of power that 
                there be reasonable assurances of fuel supply 
                adequacy.
          (B) For purposes of implementing the provisions of 
        this paragraph, any reference contained in this section 
        to the date of enactment of the Public Utility 
        Regulatory Policies Act of 1978 shall be deemed to be a 
        reference to the date of enactment of this paragraph.
          (C) Notwithstanding any other provision of Federal 
        law, nothing in this paragraph shall prevent a State 
        regulatory authority from taking such action, including 
        action with respect to the allowable capital structure 
        of exempt wholesale generators, as such State 
        regulatory authority may determine to be in the public 
        interest as a result of performing evaluations under 
        the standards of subparagraph (A).
          (D) Notwithstanding section 124 and paragraphs (1) 
        and (2) of section 112(a), each State regulatory 
        authority shall consider and make a determination 
        concerning the standards of subparagraph (A) in 
        accordance with the requirements of subsections (a) and 
        (b) of this section, without regard to any proceedings 
        commenced prior to the enactment of this paragraph.
          (E) Notwithstanding subsections (b) and (c) of 
        section 112, each State regulatory authority shall 
        consider and make a determination concerning whether it 
        is appropriate to implement the standards set out in 
        subparagraph (A) not later than one year after the date 
        of enactment of this paragraph.
          (11) Net metering.--Each electric utility shall make 
        available upon request net metering service to any 
        electric consumer that the electric utility serves. For 
        purposes of this paragraph, the term ``net metering 
        service'' means service to an electric consumer under 
        which electric energy generated by that electric 
        consumer from an eligible on-site generating facility 
        and delivered to the local distribution facilities may 
        be used to offset electric energy provided by the 
        electric utility to the electric consumer during the 
        applicable billing period.
          (12) Fuel sources.--Each electric utility shall 
        develop a plan to minimize dependence on 1 fuel source 
        and to ensure that the electric energy it sells to 
        consumers is generated using a diverse range of fuels 
        and technologies, including renewable technologies.
          (13) Fossil fuel generation efficiency.--Each 
        electric utility shall develop and implement a 10-year 
        plan to increase the efficiency of its fossil fuel 
        generation.
          (14) Time-based metering and communications.--(A) Not 
        later than 18 months after the date of enactment of 
        this paragraph, each electric utility shall offer each 
        of its customer classes, and provide individual 
        customers upon customer request, a time-based rate 
        schedule under which the rate charged by the electric 
        utility varies during different time periods and 
        reflects the variance, if any, in the utility's costs 
        of generating and purchasing electricity at the 
        wholesale level. The time-based rate schedule shall 
        enable the electric consumer to manage energy use and 
        cost through advanced metering and communications 
        technology.
          (B) The types of time-based rate schedules that may 
        be offered under the schedule referred to in 
        subparagraph (A) include, among others--
                  (i) time-of-use pricing whereby electricity 
                prices are set for a specific time period on an 
                advance or forward basis, typically not 
                changing more often than twice a year, based on 
                the utility's cost of generating and/or 
                purchasing such electricity at the wholesale 
                level for the benefit of the consumer. Prices 
                paid for energy consumed during these periods 
                shall be pre-established and known to consumers 
                in advance of such consumption, allowing them 
                to vary their demand and usage in response to 
                such prices and manage their energy costs by 
                shifting usage to a lower cost period or 
                reducing their consumption overall;
                  (ii) critical peak pricing whereby time-of-
                use prices are in effect except for certain 
                peak days, when prices may reflect the costs of 
                generating and/or purchasing electricity at the 
                wholesale level and when consumers may receive 
                additional discounts for reducing peak period 
                energy consumption;
                  (iii) real-time pricing whereby electricity 
                prices are set for a specific time period on an 
                advanced or forward basis, reflecting the 
                utility's cost of generating and/or purchasing 
                electricity at the wholesale level, and may 
                change as often as hourly; and
                  (iv) credits for consumers with large loads 
                who enter into pre-established peak load 
                reduction agreements that reduce a utility's 
                planned capacity obligations.
          (C) Each electric utility subject to subparagraph (A) 
        shall provide each customer requesting a time-based 
        rate with a time-based meter capable of enabling the 
        utility and customer to offer and receive such rate, 
        respectively.
          (D) For purposes of implementing this paragraph, any 
        reference contained in this section to the date of 
        enactment of the Public Utility Regulatory Policies Act 
        of 1978 shall be deemed to be a reference to the date 
        of enactment of this paragraph.
          (E) In a State that permits third-party marketers to 
        sell electric energy to retail electric consumers, such 
        consumers shall be entitled to receive the same time-
        based metering and communications device and service as 
        a retail electric consumer of the electric utility.
          (F) Notwithstanding subsections (b) and (c) of 
        section 112, each State regulatory authority shall, not 
        later than 18 months after the date of enactment of 
        this paragraph conduct an investigation in accordance 
        with section 115(i) and issue a decision whether it is 
        appropriate to implement the standards set out in 
        subparagraphs (A) and (C).
          (15) Interconnection.--Each electric utility shall 
        make available, upon request, interconnection service 
        to any electric consumer that the electric utility 
        serves. For purposes of this paragraph, the term 
        ``interconnection service'' means service to an 
        electric consumer under which an on-site generating 
        facility on the consumer's premises shall be connected 
        to the local distribution facilities. Interconnection 
        services shall be offered based upon the standards 
        developed by the Institute of Electrical and 
        Electronics Engineers: IEEE Standard 1547 for 
        Interconnecting Distributed Resources with Electric 
        Power Systems, as they may be amended from time to 
        time. In addition, agreements and procedures shall be 
        established whereby the services are offered shall 
        promote current best practices of interconnection for 
        distributed generation, including but not limited to 
        practices stipulated in model codes adopted by 
        associations of state regulatory agencies. All such 
        agreements and procedures shall be just and reasonable, 
        and not unduly discriminatory or preferential.
          (16) Integrated resource planning.--Each electric 
        utility shall--
                  (A) integrate energy efficiency resources 
                into utility, State, and regional plans; and
                  (B) adopt policies establishing cost-
                effective energy efficiency as a priority 
                resource.
          (17) Rate design modifications to promote energy 
        efficiency investments.--
                  (A) In general.--The rates allowed to be 
                charged by any electric utility shall--
                          (i) align utility incentives with the 
                        delivery of cost-effective energy 
                        efficiency; and
                          (ii) promote energy efficiency 
                        investments.
                  (B) Policy options.--In complying with 
                subparagraph (A), each State regulatory 
                authority and each nonregulated utility shall 
                consider--
                          (i) removing the throughput incentive 
                        and other regulatory and management 
                        disincentives to energy efficiency;
                          (ii) providing utility incentives for 
                        the successful management of energy 
                        efficiency programs;
                          (iii) including the impact on 
                        adoption of energy efficiency as 1 of 
                        the goals of retail rate design, 
                        recognizing that energy efficiency must 
                        be balanced with other objectives;
                          (iv) adopting rate designs that 
                        encourage energy efficiency for each 
                        customer class;
                          (v) allowing timely recovery of 
                        energy efficiency-related costs; and
                          (vi) offering home energy audits, 
                        offering demand response programs, 
                        publicizing the financial and 
                        environmental benefits associated with 
                        making home energy efficiency 
                        improvements, and educating homeowners 
                        about all existing Federal and State 
                        incentives, including the availability 
                        of low-cost loans, that make energy 
                        efficiency improvements more 
                        affordable.
          (18) Consideration of smart grid investments.--
                  (A) In general.--Each State shall consider 
                requiring that, prior to undertaking 
                investments in nonadvanced grid technologies, 
                an electric utility of the State demonstrate to 
                the State that the electric utility considered 
                an investment in a qualified smart grid system 
                based on appropriate factors, including--
                          (i) total costs;
                          (ii) cost-effectiveness;
                          (iii) improved reliability;
                          (iv) security;
                          (v) system performance; and
                          (vi) societal benefit.
                  (B) Rate recovery.--Each State shall consider 
                authorizing each electric utility of the State 
                to recover from ratepayers any capital, 
                operating expenditure, or other costs of the 
                electric utility relating to the deployment of 
                a qualified smart grid system, including a 
                reasonable rate of return on the capital 
                expenditures of the electric utility for the 
                deployment of the qualified smart grid system.
                  (C) Obsolete equipment.--Each State shall 
                consider authorizing any electric utility or 
                other party of the State to deploy a qualified 
                smart grid system to recover in a timely manner 
                the remaining book-value costs of any equipment 
                rendered obsolete by the deployment of the 
                qualified smart grid system, based on the 
                remaining depreciable life of the obsolete 
                equipment.
          (19) Smart grid information.--
                  (A) Standard.--All electricity purchasers 
                shall be provided direct access, in written or 
                electronic machine-readable form as 
                appropriate, to information from their 
                electricity provider as provided in 
                subparagraph (B).
                  (B) Information.--Information provided under 
                this section, to the extent practicable, shall 
                include:
                          (i) Prices.--Purchasers and other 
                        interested persons shall be provided 
                        with information on--
                                  (I) time-based electricity 
                                prices in the wholesale 
                                electricity market; and
                                  (II) time-based electricity 
                                retail prices or rates that are 
                                available to the purchasers.
                          (ii) Usage.--Purchasers shall be 
                        provided with the number of electricity 
                        units, expressed in kwh, purchased by 
                        them.
                          (iii) Intervals and projections.--
                        Updates of information on prices and 
                        usage shall be offered on not less than 
                        a daily basis, shall include hourly 
                        price and use information, where 
                        available, and shall include a day-
                        ahead projection of such price 
                        information to the extent available.
                          (iv) Sources.--Purchasers and other 
                        interested persons shall be provided 
                        annually with written information on 
                        the sources of the power provided by 
                        the utility, to the extent it can be 
                        determined, by type of generation, 
                        including greenhouse gas emissions 
                        associated with each type of 
                        generation, for intervals during which 
                        such information is available on a 
                        cost-effective basis.
                  (C) Access.--Purchasers shall be able to 
                access their own information at any time 
                through the Internet and on other means of 
                communication elected by that utility for Smart 
                Grid applications. Other interested persons 
                shall be able to access information not 
                specific to any purchaser through the Internet. 
                Information specific to any purchaser shall be 
                provided solely to that purchaser.
          (20) Improving the resilience of electric 
        infrastructure.--
                  (A) In general.--Each electric utility shall 
                develop a plan to use resiliency-related 
                technologies, upgrades, measures, and other 
                approaches designed to improve the resilience 
                of electric infrastructure, mitigate power 
                outages, continue delivery of vital services, 
                and maintain the flow of power to facilities 
                critical to public health, safety, and welfare, 
                to the extent practicable using the most 
                current data, metrics, and frameworks related 
                to current and future threats, including 
                physical and cyber attacks, electromagnetic 
                pulse attacks, geomagnetic disturbances, 
                seismic events, and severe weather and other 
                environmental stressors.
                  (B) Resiliency-related technologies.--For 
                purposes of this paragraph, examples of 
                resiliency-related technologies, upgrades, 
                measures, and other approaches include--
                          (i) hardening, or other enhanced 
                        protection, of utility poles, wiring, 
                        cabling, and other distribution 
                        components, facilities, or structures;
                          (ii) advanced grid technologies 
                        capable of isolating or repairing 
                        problems remotely, such as advanced 
                        metering infrastructure, high-tech 
                        sensors, grid monitoring and control 
                        systems, and remote reconfiguration and 
                        redundancy systems;
                          (iii) cybersecurity products and 
                        components;
                          (iv) distributed generation, 
                        including back-up generation to power 
                        critical facilities and essential 
                        services, and related integration 
                        components, such as advanced inverter 
                        technology;
                          (v) microgrid systems, including 
                        hybrid microgrid systems for isolated 
                        communities;
                          (vi) combined heat and power;
                          (vii) waste heat resources;
                          (viii) non-grid-scale energy storage 
                        technologies;
                          (ix) wiring, cabling, and other 
                        distribution components, including 
                        submersible distribution components, 
                        and enclosures;
                          (x) electronically controlled 
                        reclosers and similar technologies for 
                        power restoration, including emergency 
                        mobile substations, as defined in 
                        section 1105 of the North American 
                        Energy Security and Infrastructure Act 
                        of 2015;
                          (xi) advanced energy analytics 
                        technology, such as Internet-based and 
                        cloud-based computing solutions and 
                        subscription licensing models;
                          (xii) measures that enhance 
                        resilience through planning, 
                        preparation, response, and recovery 
                        activities;
                          (xiii) operational capabilities to 
                        enhance resilience through rapid 
                        response recovery; and
                          (xiv) measures to ensure availability 
                        of key critical components through 
                        contracts, cooperative agreements, 
                        stockpiling and prepositioning, or 
                        other measures.
                  (C) Rate recovery.--Each State regulatory 
                authority (with respect to each electric 
                utility for which it has ratemaking authority) 
                shall consider authorizing each such electric 
                utility to recover any capital, operating 
                expenditure, or other costs of the electric 
                utility related to the procurement, deployment, 
                or use of resiliency-related technologies, 
                including a reasonable rate of return on the 
                capital expenditures of the electric utility 
                for the procurement, deployment, or use of 
                resiliency-related technologies.
          (21) Promoting investments in advanced energy 
        analytics technology.--
                  (A) In general.--Each electric utility shall 
                develop and implement a plan for deploying 
                advanced energy analytics technology.
                  (B) Rate recovery.--Each State regulatory 
                authority (with respect to each electric 
                utility for which it has ratemaking authority) 
                shall consider confirming and clarifying, if 
                necessary, that each such electric utility is 
                authorized to recover the costs of the electric 
                utility relating to the procurement, 
                deployment, or use of advanced energy analytics 
                technology, including a reasonable rate of 
                return on all such costs incurred by the 
                electric utility for the procurement, 
                deployment, or use of advanced energy analytics 
                technology, provided such technology is used by 
                the electric utility for purposes of realizing 
                operational efficiencies, cost savings, 
                enhanced energy management and customer 
                engagement, improvements in system reliability, 
                safety, and cybersecurity, or other benefits to 
                ratepayers.
                  (C) Advanced energy analytics technology.--
                For purposes of this paragraph, examples of 
                advanced energy analytics technology include 
                Internet-based and cloud-based computing 
                solutions and subscription licensing models, 
                including software as a service that uses 
                cyber-physical systems to allow the correlation 
                of data aggregated from appropriate data 
                sources and smart grid sensor networks, employs 
                analytics and machine learning, or employs 
                other advanced computing solutions and models.
          (22) Assuring electric reliability with reliable 
        generation.--
                  (A) Assurance of electric reliability.--Each 
                electric utility shall adopt or modify policies 
                to ensure that such electric utility 
                incorporates reliable generation into its 
                integrated resource plan to assure the 
                availability of electric energy over a 10-year 
                planning period.
                  (B) Reliable generation.--For purposes of 
                this paragraph, ``reliable generation'' means 
                electric generation facilities with reliability 
                attributes that include--
                          (i)(I) possession of adequate fuel 
                        on-site to enable operation for an 
                        extended period of time;
                          (II) the operational ability to 
                        generate electric energy from more than 
                        one source; or
                          (III) fuel certainty, through firm 
                        contractual obligations, that ensures 
                        adequate fuel supply to enable 
                        operation, for an extended period of 
                        time, for the duration of an emergency 
                        or severe weather conditions;
                          (ii) operational characteristics that 
                        enable the generation of electric 
                        energy for the duration of an emergency 
                        or severe weather conditions; and
                          (iii) unless procured through other 
                        procurement mechanisms, essential 
                        reliability services, including 
                        frequency support and regulation 
                        services.
          (23) Subsidization of customer-side technology.--
                  (A) Consideration.--To the extent that a 
                State regulatory authority may require or allow 
                rates charged by any electric utility for which 
                it has ratemaking authority to electric 
                consumers that do not use a customer-side 
                technology to include any cost, fee, or charge 
                that directly or indirectly cross-subsidizes 
                the deployment, construction, maintenance, or 
                operation of that customer-side technology, 
                such authority shall evaluate whether 
                subsidizing the deployment, construction, 
                maintenance, or operation of a customer-side 
                technology would--
                          (i) result in benefits predominately 
                        enjoyed by only the users of that 
                        customer-side technology;
                          (ii) shift costs of a customer-side 
                        technology to electricity consumers 
                        that do not use that customer-side 
                        technology, particularly where 
                        disparate economic or resource 
                        conditions exist among the electricity 
                        consumers cross-subsidizing the 
                        costumer-side technology;
                          (iii) negatively affect resource 
                        utilization, fuel diversity, or grid 
                        security;
                          (iv) provide any unfair competitive 
                        advantage to market the customer-side 
                        technology; and
                          (v) be necessary to fulfill an 
                        obligation to serve electric consumers.
                  (B) Public notice.--Each State regulatory 
                authority shall make available to the public 
                the evaluation completed under subparagraph (A) 
                at least 90 days prior to any proceedings in 
                which such authority considers the cross-
                subsidization of a customer-side technology.
                  (C) Customer-side technology.--For purposes 
                of this paragraph, the term ``customer-side 
                technology'' means a device connected to the 
                electricity distribution system--
                          (i) at, or on the customer side of, 
                        the meter; or
                          (ii) that, if owned or operated by or 
                        on behalf of an electric utility, would 
                        otherwise be at, or on the customer 
                        side of, the meter.

SEC. 112. OBLIGATIONS TO CONSIDER AND DETERMINE.

  (a) Request for Consideration and Determination.--Each State 
regulatory authority (with respect to each electric utility for 
which it has ratemaking authority) and each nonregulated 
electric utility may undertake the consideration and make the 
determination referred to in section 111 with respect to any 
standard established by section 111(d) in any proceeding 
respecting the rates of the electric utility. Any participant 
or intervenor (including an intervenor referred to in section 
121) in such a proceeding may request, and shall obtain, such 
consideration and determination in such proceeding. In 
undertaking such consideration and making such determination in 
any such proceeding with respect to the application to any 
electric utility of any standard established by section 111(d), 
a State regulatory authority (with respect to an electric 
utility for which it has ratemaking authority) or nonregulated 
electric utility may take into account in such proceeding--
          (1) any appropriate prior determination with respect 
        to such standard--
                  (A) which is made in a proceeding which takes 
                place after the date of the enactment of this 
                Act, or
                  (B) which was made before such date (or is 
                made in a proceeding pending on such date) and 
                complies, as provided in section 124, with the 
                requirements of this title; and
          (2) the evidence upon which such prior determination 
        was based (if such evidence is referenced in such 
        proceeding).
  (b) Time Limitations.--(1) Not later than 2 years after the 
date of the enactment of this Act (or after the enactment of 
the Comprehensive National Energy Policy Act in the case of 
standards under paragraphs (7), (8), and (9) of section 
111(d)), each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority) and 
each nonregulated electric utility shall commence the 
consideration referred to in section 111, or set a hearing date 
for such consideration, with respect to each standard 
established by section 111(d).
  (2) Not later than three years after the date of the 
enactment of this Act (or after the enactment of the 
Comprehensive National Energy Policy Act in the case of 
standards under paragraphs (7), (8), and (9) of section 
111(d)), each State regulatory authority (with respect to each 
electric utility for which it has ratemaking authority), and 
each nonregulated electric utility, shall complete the 
consideration, and shall make the determination, referred to in 
section 111 with respect to each standard established by 
section 111(d).
  (3)(A) Not later than 2 years after the enactment of this 
paragraph, each State regulatory authority (with respect to 
each electric utility for which it has ratemaking authority) 
and each nonregulated electric utility shall commence the 
consideration referred to in section 111, or set a hearing date 
for such consideration, with respect to each standard 
established by paragraphs (11) through (13) of section 111(d).
  (B) Not later than 3 years after the date of the enactment of 
this paragraph, each State regulatory authority (with respect 
to each electric utility for which it has ratemaking 
authority), and each nonregulated electric utility, shall 
complete the consideration, and shall make the determination, 
referred to in section 111 with respect to each standard 
established by paragraphs (11) through (13) of section 111(d).
          (4)(A) Not later than 1 year after the enactment of 
        this paragraph, each State regulatory authority (with 
        respect to each electric utility for which it has 
        ratemaking authority) and each nonregulated electric 
        utility shall commence the consideration referred to in 
        section 111, or set a hearing date for such 
        consideration, with respect to the standard established 
        by paragraph (14) of section 111(d).
          (B) Not later than 2 years after the date of the 
        enactment of this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority), and each 
        nonregulated electric utility, shall complete the 
        consideration, and shall make the determination, 
        referred to in section 111 with respect to the standard 
        established by paragraph (14) of section 111(d).
          (5)(A) Not later than 1 year after the enactment of 
        this paragraph, each State regulatory authority (with 
        respect to each electric utility for which it has 
        ratemaking authority) and each nonregulated utility 
        shall commence the consideration referred to in section 
        111, or set a hearing date for consideration, with 
        respect to the standard established by paragraph (15) 
        of section 111(d).
          (B) Not later than two years after the date of the 
        enactment of the this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority), and each 
        nonregulated electric utility, shall complete the 
        consideration, and shall make the determination, 
        referred to in section 111 with respect to each 
        standard established by paragraph (15) of section 
        111(d).
          (6)(A) Not later than 1 year after the enactment of 
        this paragraph, each State regulatory authority (with 
        respect to each electric utility for which it has 
        ratemaking authority) and each nonregulated utility 
        shall commence the consideration referred to in section 
        111, or set a hearing date for consideration, with 
        respect to the standards established by paragraphs (16) 
        through (19) of section 111(d).
          (B) Not later than 2 years after the date of the 
        enactment of this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority), and each 
        nonregulated electric utility, shall complete the 
        consideration, and shall make the determination, 
        referred to in section 111 with respect to each 
        standard established by paragraphs (16) through (19) of 
        section 111(d).
          (7)(A) Not later than 1 year after the date of 
        enactment of this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority) and each 
        nonregulated electric utility, as applicable, shall 
        commence the consideration referred to in section 111, 
        or set a hearing date for consideration, with respect 
        to the standards established by paragraphs (20), (22), 
        and (23) of section 111(d).
          (B) Not later than 2 years after the date of the 
        enactment of this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority) and each 
        nonregulated electric utility, as applicable, shall 
        complete the consideration, and shall make the 
        determination, referred to in section 111 with respect 
        to each standard established by paragraphs (20), (22), 
        and (23) of section 111(d).
          (8)(A) Not later than 6 months after the date of 
        enactment of this paragraph, each State regulatory 
        authority (with respect to each electric utility for 
        which it has ratemaking authority) and each 
        nonregulated electric utility shall commence the 
        consideration referred to in section 111, or set a 
        hearing date for consideration, with respect to the 
        standard established by paragraph (21) of section 
        111(d).
          (B) Not later than 1 year after the date of enactment 
        of this paragraph, each State regulatory authority 
        (with respect to each electric utility for which it has 
        ratemaking authority) and each nonregulated electric 
        utility shall complete the consideration, and shall 
        make the determination, referred to in section 111 with 
        respect to the standard established by paragraph (21) 
        of section 111(d).
  (c) Failure To Comply.--Each State regulatory authority (with 
respect to each electric utility for which it has ratemaking 
authority) and each nonregulated electric utility shall 
undertake the consideration, and make the determination, 
referred to in section 111 with respect to each standard 
established by section 111(d) in the first rate proceeding 
commenced after the date three years after the date of 
enactment of this Act respecting the rates of such utility if 
such State regulatory authority or nonregulated electric 
utility has not, before such date, complied with subsection 
(b)(2) with respect to such standard. In the case of each 
standard established by paragraphs (11) through (13) 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 paragraphs (11) through (13). In 
the case of the standard established by paragraph (14) 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 (14). In 
the case of the standard established by paragraph (15), the 
reference contained in this subsection to the date of enactment 
of this Act shall be deemed to be a reference to the date of 
enactment of paragraph (15). In the case of the standards 
established by paragraphs (16) through (19) 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 paragraphs. In the case of the 
standards established by paragraphs (20) through (23) 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 paragraphs.
  (d) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standards established by 
paragraphs (11) through (13) and paragraphs (16) through (19) 
of section 111(d) in the case of any electric utility in a 
State if, before the enactment of this subsection--
          (1) the State has implemented for such utility the 
        standard concerned (or a comparable standard);
          (2) the State regulatory authority for such State or 
        relevant nonregulated electric utility has conducted a 
        proceeding to consider implementation of the standard 
        concerned (or a comparable standard) for such utility; 
        or
          (3) the State legislature has voted on the 
        implementation of such standard (or a comparable 
        standard) for such utility.
  (e) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standard established by 
paragraph (14) of section 111(d) in the case of any electric 
utility in a State if, before the enactment of this 
subsection--
          (1) the State has implemented for such utility the 
        standard concerned (or a comparable standard);
          (2) the State regulatory authority for such State or 
        relevant nonregulated electric utility has conducted a 
        proceeding to consider implementation of the standard 
        concerned (or a comparable standard) for such utility 
        within the previous 3 years; or
          (3) the State legislature has voted on the 
        implementation of such standard (or a comparable 
        standard) for such utility within the previous 3 years.
  (f) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standard established by 
paragraph (15) of section 111(d) in the case of any electric 
utility in a State if, before the enactment of this 
subsection--
          (1) the State has implemented for such utility the 
        standard concerned (or a comparable standard);
          (2) the State regulatory authority for such State or 
        relevant nonregulated electric utility has conducted a 
        proceeding to consider implementation of the standard 
        concerned (or a comparable standard) for such utility; 
        or
          (3) the State legislature has voted on the 
        implementation of such standard (or a comparable 
        standard) for such utility.
  (g) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to a standard established by paragraph 
(20), (21), (22), or (23) of section 111(d) in the case of any 
electric utility in a State if--
          (1) before the date of enactment of this subsection, 
        the State has implemented for such utility the standard 
        concerned (or a comparable standard);
          (2) the State regulatory authority for such State or 
        relevant nonregulated electric utility has conducted a 
        proceeding to consider implementation of the standard 
        concerned (or a comparable standard) for such utility 
        during the 3-year period ending on the date of 
        enactment of this subsection; or
          (3) the State legislature has voted on the 
        implementation of the standard concerned (or a 
        comparable standard) for such utility during the 3-year 
        period ending on the date of enactment of this 
        subsection.

           *       *       *       *       *       *       *

                              ----------                              


ENERGY POLICY ACT OF 2005

           *       *       *       *       *       *       *


                       TITLE II--RENEWABLE ENERGY

Subtitle A--General Provisions

           *       *       *       *       *       *       *


SEC. 203. FEDERAL PURCHASE REQUIREMENT.

  (a) Requirement.--The President, acting through the 
Secretary, shall seek to ensure that, to the extent 
economically feasible and technically practicable, of the total 
amount of electric energy the Federal Government consumes 
during any fiscal year, the following amounts shall be 
renewable energy:
          (1) Not less than 3 percent in fiscal years 2007 
        through 2009.
          (2) Not less than 5 percent in fiscal years 2010 
        through 2012.
          (3) Not less than 7.5 percent in fiscal year 2013 and 
        each fiscal year thereafter.
  (b) Definitions.--In this section:
          (1) Biomass.--The term ``biomass'' means any lignin 
        waste material that is segregated from other waste 
        materials and is determined to be nonhazardous by the 
        Administrator of the Environmental Protection Agency 
        and any solid, nonhazardous, cellulosic material that 
        is derived from--
                  (A) any of the following forest-related 
                resources: mill residues, precommercial 
                thinnings, slash, and brush, or nonmerchantable 
                material;
                  (B) solid wood waste materials, including 
                waste pallets, crates, dunnage, manufacturing 
                and construction wood wastes (other than 
                pressure-treated, chemically-treated, or 
                painted wood wastes), and landscape or right-
                of-way tree trimmings, but not including 
                municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or 
                paper that is commonly recycled;
                  (C) agriculture wastes, including orchard 
                tree crops, vineyard, grain, legumes, sugar, 
                and other crop by-products or residues, and 
                livestock waste nutrients; or
                  (D) a plant that is grown exclusively as a 
                fuel for the production of electricity.
          [(2) Renewable energy.--The term ``renewable energy'' 
        means electric energy generated from solar, wind, 
        biomass, landfill gas, ocean (including tidal, wave, 
        current, and thermal), geothermal, municipal solid 
        waste, or new hydroelectric generation capacity 
        achieved from increased efficiency or additions of new 
        capacity at an existing hydroelectric project.]
          (2) Renewable energy.--The term ``renewable energy'' 
        means electric energy, or thermal energy if resulting 
        from a thermal energy project placed in service after 
        December 31, 2014, generated from, or avoided by, 
        solar, wind, biomass, landfill gas, ocean (including 
        tidal, wave, current, and thermal), geothermal, 
        municipal solid waste (in accordance with subsection 
        (e)), qualified waste heat resource, or new 
        hydroelectric generation capacity achieved from 
        increased efficiency or additions of new capacity at an 
        existing hydroelectric project.
          (3) Qualified waste heat resource.--The term 
        ``qualified waste heat resource'' means--
                  (A) exhaust heat or flared gas from any 
                industrial process;
                  (B) waste gas or industrial tail gas that 
                would otherwise be flared, incinerated, or 
                vented;
                  (C) a pressure drop in any gas for an 
                industrial or commercial process; or
                  (D) such other forms of waste heat as the 
                Secretary determines appropriate.
  (c) Calculation.--For purposes of determining compliance with 
the requirement of this section, the amount of renewable energy 
shall be doubled if--
          (1) the renewable energy is produced and used on-site 
        at a Federal facility;
          (2) the renewable energy is produced on Federal lands 
        and used at a Federal facility; or
          (3) the renewable energy is produced on Indian land 
        as defined in title XXVI of the Energy Policy Act of 
        1992 (25 U.S.C. 3501 et seq.) and used at a Federal 
        facility.
  (d) Report.--Not later than April 15, 2007, and every 2 years 
thereafter, the Secretary shall provide a report to Congress on 
the progress of the Federal Government in meeting the goals 
established by this section.
  (e) Paper Recycling.--
          (1) Separate collection.--For purposes of this 
        section, any Federal agency may consider electric 
        energy generation purchased from a facility to be 
        renewable energy if the municipal solid waste used by 
        the facility to generate the electricity is--
                  (A) separately collected (within the meaning 
                of section 246.101(z) of title 40, Code of 
                Federal Regulations, as in effect on the date 
                of enactment of the North American Energy 
                Security and Infrastructure Act of 2015) from 
                paper that is commonly recycled; and
                  (B) processed in a way that keeps paper that 
                is commonly recycled segregated from non-
                recyclable solid waste.
          (2) Incidental inclusion.--Municipal solid waste used 
        to generate electric energy that meets the conditions 
        described in paragraph (1) shall be considered 
        renewable energy even if the municipal solid waste 
        contains incidental commonly recycled paper.
          (3) No effect on existing processes.--Nothing in 
        paragraph (1) shall be interpreted to require a State 
        or political subdivision of a State, directly or 
        indirectly, to change the systems, processes, or 
        equipment it uses to collect, treat, dispose of, or 
        otherwise use municipal solid waste, within the meaning 
        of the Solid Waste Disposal Act (42 U.S.C. 6901 et 
        seq.), nor require a change to the regulations that 
        implement subtitle D of such Act (42 U.S.C. 6941 et 
        seq.).

           *       *       *       *       *       *       *


Subtitle C--Hydroelectric

           *       *       *       *       *       *       *


SEC. 242. HYDROELECTRIC PRODUCTION INCENTIVES.

  (a) Incentive Payments.--For electric energy generated and 
sold by a qualified hydroelectric facility during the incentive 
period, the Secretary shall make, subject to the availability 
of appropriations, incentive payments to the owner or operator 
of such facility. The amount of such payment made to any such 
owner or operator shall be as determined under subsection (e) 
of this section. Payments under this section may only be made 
upon receipt by the Secretary of an incentive payment 
application which establishes that the applicant is eligible to 
receive such payment and which satisfies such other 
requirements as the Secretary deems necessary. Such application 
shall be in such form, and shall be submitted at such time, as 
the Secretary shall establish.
  (b) Definitions.--For purposes of this section:
          (1) Qualified hydroelectric facility.--The term 
        ``qualified hydroelectric facility'' means a turbine or 
        other generating device owned or solely operated by a 
        non-Federal entity which generates hydroelectric energy 
        for sale and which is added to an existing dam or 
        conduit.
          (2) Existing dam or conduit.--The term ``existing dam 
        or conduit'' means any dam or conduit the construction 
        of which was completed before the date of the enactment 
        of this section and which does not require any 
        construction or enlargement of impoundment or diversion 
        structures (other than repair or reconstruction) in 
        connection with the installation of a turbine or other 
        generating device.
          (3) Conduit.--The term ``conduit'' has the same 
        meaning as when used in section 30(a)(2) of the Federal 
        Power Act (16 U.S.C. 823a(a)(2)).
The terms defined in this subsection shall apply without regard 
to the hydroelectric kilowatt capacity of the facility 
concerned, without regard to whether the facility uses a dam 
owned by a governmental or nongovernmental entity, and without 
regard to whether the facility begins operation on or after the 
date of the enactment of this section.
  (c) Eligibility Window.--Payments may be made under this 
section only for electric energy generated from a qualified 
hydroelectric facility which begins operation during the period 
of [10] 20 fiscal years beginning with the first full fiscal 
year occurring after the date of enactment of this subtitle.
  (d) Incentive Period.--A qualified hydroelectric facility may 
receive payments under this section for a period of 10 fiscal 
years (referred to in this section as the ``incentive 
period''). Such period shall begin with the fiscal year in 
which electric energy generated from the facility is first 
eligible for such payments.
  (e) Amount of Payment.--
          (1) In general.--Payments made by the Secretary under 
        this section to the owner or operator of a qualified 
        hydroelectric facility shall be based on the number of 
        kilowatt hours of hydroelectric energy generated by the 
        facility during the incentive period. For any such 
        facility, the amount of such payment shall be 1.8 cents 
        per kilowatt hour (adjusted as provided in paragraph 
        (2)), subject to the availability of appropriations 
        under subsection (g), except that no facility may 
        receive more than $750,000 in 1 calendar year.
          (2) Adjustments.--The amount of the payment made to 
        any person under this section as provided in paragraph 
        (1) shall be adjusted for inflation for each fiscal 
        year beginning after calendar year 2005 in the same 
        manner as provided in the provisions of section 
        29(d)(2)(B) of the Internal Revenue Code of 1986, 
        except that in applying such provisions the calendar 
        year 2005 shall be substituted for calendar year 1979.
  (f) Sunset.--No payment may be made under this section to any 
qualified hydroelectric facility after the expiration of the 
period of [20] 30 fiscal years beginning with the first full 
fiscal year occurring after the date of enactment of this 
subtitle, and no payment may be made under this section to any 
such facility after a payment has been made with respect to 
such facility for a period of 10 fiscal years.
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary to carry out the purposes of 
this section $10,000,000 for [each of the fiscal years 2006 
through 2015] each of fiscal years 2016 through 2025.

SEC. 243. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

  (a) Incentive Payments.--The Secretary shall make incentive 
payments to the owners or operators of hydroelectric facilities 
at existing dams to be used to make capital improvements in the 
facilities that are directly related to improving the 
efficiency of such facilities by at least 3 percent.
  (b) Limitations.--Incentive payments under this section shall 
not exceed 10 percent of the costs of the capital improvement 
concerned and not more than 1 payment may be made with respect 
to improvements at a single facility. No payment in excess of 
$750,000 may be made with respect to improvements at a single 
facility.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section not more than 
$10,000,000 for [each of the fiscal years 2006 through 2015] 
each of fiscal years 2016 through 2025.

           *       *       *       *       *       *       *


TITLE IX--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *


                       Subtitle F--Fossil Energy

SEC. 961. FOSSIL ENERGY.

  (a) In General.--The Secretary shall carry out research, 
development, demonstration, and commercial application programs 
in fossil energy, including activities under this subtitle, 
with the goal of improving the efficiency, effectiveness, and 
environmental performance of fossil energy production, 
upgrading, conversion, and consumption. Such programs take into 
consideration the following objectives:
          (1) Increasing the energy conversion efficiency of 
        all forms of fossil energy through improved 
        technologies.
          (2) Decreasing the cost of all fossil energy 
        production, generation, and delivery.
          (3) Promoting diversity of energy supply.
          (4) Decreasing the dependence of the United States on 
        foreign energy supplies.
          (5) Improving United States energy security.
          (6) Decreasing the environmental impact of energy-
        related activities.
          (7) Increasing the export of fossil energy-related 
        equipment, technology, and services from the United 
        States.
          (8) Improving the conversion, use, and storage of 
        carbon dioxide produced from fossil fuels.
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary to carry out fossil energy 
research, development, demonstration, and commercial 
application activities, including activities authorized under 
this subtitle--
          (1) $611,000,000 for fiscal year 2007;
          (2) $626,000,000 for fiscal year 2008; and
          (3) $641,000,000 for fiscal year 2009.
  (c) Allocations.--From amounts authorized under subsection 
(a), the following sums are authorized:
          (1) For activities under section 962--
                  (A) $367,000,000 for fiscal year 2007;
                  (B) $376,000,000 for fiscal year 2008; and
                  (C) $394,000,000 for fiscal year 2009.
          (2) For activities under section 964--
                  (A) $20,000,000 for fiscal year 2007;
                  (B) $25,000,000 for fiscal year 2008; and
                  (C) $30,000,000 for fiscal year 2009.
          (3) For activities under section 966--
                  (A) $1,500,000 for fiscal year 2007; and
                  (B) $450,000 for each of fiscal years 2008 
                and 2009.
          (4) For the Office of Arctic Energy under section 
        3197 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (42 U.S.C. 
        7144d) $25,000,000 for each of fiscal years 2007 
        through 2009.
  (d) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for the Office of Arctic Energy 
established under section 3197 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (42 U.S.C. 
7144d) $25,000,000 for each of fiscal years 2010 through 2012.
  (e) Limitations.--
          (1) Uses.--None of the funds authorized under this 
        section may be used for Fossil Energy Environmental 
        Restoration or Import/Export Authorization.
          (2) Institutions of higher education.--Of the funds 
        authorized under subsection (c)(2), not less than 20 
        percent of the funds appropriated for each fiscal year 
        shall be dedicated to research and development carried 
        out at institutions of higher education.

SEC. 962. COAL AND RELATED TECHNOLOGIES PROGRAM.

  (a) In General.--In addition to the programs authorized under 
title IV, the Secretary shall conduct a program of technology 
research, development, demonstration, and commercial 
application for coal and power systems, including programs to 
facilitate production and generation of coal-based power 
through--
          (1) innovations for existing plants (including 
        mercury removal);
          (2) gasification systems;
          (3) advanced combustion systems;
          (4) turbines for synthesis gas derived from coal;
          (5) carbon capture and sequestration research and 
        development;
          (6) coal-derived chemicals and transportation fuels;
          (7) liquid fuels derived from low rank coal water 
        slurry;
          (8) solid fuels and feedstocks;
          (9) advanced coal-related research;
          (10) advanced separation technologies; and
          (11) fuel cells for the operation of synthesis gas 
        derived from coal.
  (b) Cost and Performance Goals.--
          (1) In general.--In carrying out programs authorized 
        by this section, [during each of calendar years 2008, 
        2010, 2012, and 2016, and during each fiscal year 
        beginning after September 30, 2021,] during each fiscal 
        year beginning after September 30, 2016, the Secretary 
        shall identify cost and performance goals for coal-
        based technologies that would allow for large-scale 
        demonstration and permit the continued cost-competitive 
        use of coal for commercial use, the production of 
        electricity, chemical feedstocks, and transportation 
        fuels.
          (2) Administration.--In establishing the cost and 
        performance goals, the Secretary shall--
                  (A) consider activities and studies 
                undertaken as of the date of enactment of this 
                Act by industry in cooperation with the 
                Department in support of the identification of 
                the goals;
                  (B) consult with interested entities, 
                including--
                          (i) coal producers;
                          (ii) industries using coal;
                          (iii) organizations that promote coal 
                        and advanced coal technologies;
                          (iv) environmental organizations;
                          (v) organizations representing 
                        workers; and
                          (vi) organizations representing 
                        consumers;
                  (C) not later than 120 days after the date of 
                enactment of this Act, publish in the Federal 
                Register proposed draft cost and performance 
                goals for public comments; and
                  (D) not later than 180 days after the date of 
                enactment of this Act and every 4 years 
                thereafter, submit to Congress a report 
                describing the final cost and performance goals 
                for the technologies that includes--
                          (i) a list of technical milestones; 
                        and
                          (ii) an explanation of how programs 
                        authorized in this section will not 
                        duplicate the activities authorized 
                        under the Clean Coal Power Initiative 
                        authorized under title IV.
  (c) Powder River Basin and Fort Union Lignite Coal Mercury 
Removal.--
          (1) In general.--In addition to the programs 
        authorized by subsection (a), the Secretary shall 
        establish a program to test and develop technologies to 
        control and remove mercury emissions from subbituminous 
        coal mined in the Powder River Basin, and Fort Union 
        lignite coals, that are used for the generation of 
        electricity.
          (2) Efficacy of mercury removal technology.--In 
        carrying out the program under paragraph (1), the 
        Secretary shall examine the efficacy of mercury removal 
        technologies on coals described in that paragraph that 
        are blended with other types of coal.
  (d) Fuel Cells.--
          (1) In general.--The Secretary shall conduct a 
        program of research, development, demonstration, and 
        commercial application on fuel cells for low-cost, 
        high-efficiency, fuel-flexible, modular power systems.
          (2) Demonstrations.--The demonstrations referred to 
        in paragraph (1) shall include solid oxide fuel cell 
        technology for commercial, residential, and 
        transportation applications, and distributed generation 
        systems, using improved manufacturing production and 
        processes.

           *       *       *       *       *       *       *

                              ----------                              


              ENERGY INDEPENDENCE AND SECURITY ACT OF 2007

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Energy 
Independence and Security Act of 2007''.
  (b) Table of Contents.--The table of contents of this Act is 
as follows:

     * * * * * * *

           TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

     * * * * * * *

                Subtitle D--Industrial Energy Efficiency

     * * * * * * *
[Sec. 452. Energy-intensive industries program.]
Sec. 452. Future of Industry program.
     * * * * * * *

      TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

     * * * * * * *

            Subtitle C--Energy Efficiency in Federal Agencies

     * * * * * * *
Sec. 530. Energy-efficient and energy-saving information technologies.

           *       *       *       *       *       *       *


TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

           *       *       *       *       *       *       *


Subtitle D--Industrial Energy Efficiency

           *       *       *       *       *       *       *


SEC. 452. [ENERGY-INTENSIVE INDUSTRIES PROGRAM.]  FUTURE OF INDUSTRY 
                    PROGRAM.

  (a) Definitions.--In this section:
          (1) Eligible entity.--The term ``eligible entity'' 
        means--
                  (A) an energy-intensive industry;
                  (B) a national trade association representing 
                an energy-intensive industry; or
                  (C) a person acting on behalf of 1 or more 
                energy-intensive industries or sectors, as 
                determined by the Secretary.
          (2) Energy-intensive industry.--The term ``energy-
        intensive industry'' means an industry that uses 
        significant quantities of energy as part of its primary 
        economic activities, including--
                  (A) information technology, including data 
                centers containing electrical equipment used in 
                processing, storing, and transmitting digital 
                information;
                  (B) consumer product manufacturing;
                  (C) food processing;
                  (D) materials manufacturers, including--
                          (i) aluminum;
                          (ii) chemicals;
                          (iii) forest and paper products;
                          (iv) metal casting;
                          (v) glass;
                          (vi) petroleum refining;
                          (vii) mining; and
                          (viii) steel;
                  (E) other energy-intensive industries, as 
                determined by the Secretary.
          (3) Energy service provider.--The term ``energy 
        service provider'' means any business providing 
        technology or services to improve the energy 
        efficiency, water efficiency, power factor, or load 
        management of a manufacturing site or other industrial 
        process in an energy-intensive industry, or any utility 
        operating under a utility energy service project.
          [(3)] (4) Feedstock.--The term ``feedstock'' means 
        the raw material supplied for use in manufacturing, 
        chemical, and biological processes.
          [(4)] (5) Partnership.--The term ``partnership'' 
        means an energy efficiency partnership established 
        under subsection (c)(1)(A).
          [(5)] (6) Program.--The term ``program'' means the 
        energy-intensive industries program established under 
        subsection (b).
  (b) Establishment of Program.--The Secretary shall establish 
a program under which the Secretary, in cooperation with 
energy-intensive industries and national industry trade 
associations representing the energy-intensive industries, 
shall support, research, develop, and promote the use of new 
materials processes, technologies, and techniques to optimize 
energy efficiency and the economic competitiveness of the 
United States' industrial and commercial sectors.
  (c) Partnerships.--
          (1) In general.--As part of the program, the 
        Secretary shall establish energy efficiency 
        partnerships between the Secretary and eligible 
        entities to conduct research on, develop, and 
        demonstrate new processes, technologies, and operating 
        practices and techniques to significantly improve the 
        energy efficiency of equipment and processes used by 
        energy-intensive industries, including the conduct of 
        activities to--
                  (A) increase the energy efficiency of 
                industrial processes and facilities;
                  (B) research, develop, and demonstrate 
                advanced technologies capable of energy 
                intensity reductions and increased 
                environmental performance; and
                  (C) promote the use of the processes, 
                technologies, and techniques described in 
                subparagraphs (A) and (B).
          (2) Eligible activities.--Partnership activities 
        eligible for funding under this subsection include--
                  (A) feedstock and recycling research, 
                development, and demonstration activities to 
                identify and promote--
                          (i) opportunities for meeting 
                        industry feedstock requirements with 
                        more energy efficient and flexible 
                        sources of feedstock or energy supply;
                          (ii) strategies to develop and deploy 
                        technologies that improve the quality 
                        and quantity of feedstocks recovered 
                        from process and waste streams; and
                          (iii) other methods using recycling, 
                        reuse, and improved industrial 
                        materials;
                  (B) research to develop and demonstrate 
                technologies and processes that utilize 
                alternative energy sources to supply heat, 
                power, and new feedstocks for energy-intensive 
                industries;
                  (C) research to achieve energy efficiency in 
                steam, power, control system, and process heat 
                technologies, and in other manufacturing 
                processes; and
                  (D) industrial and commercial energy 
                efficiency and sustainability assessments to--
                          (i) assist individual industrial and 
                        commercial sectors in developing tools, 
                        techniques, and methodologies to 
                        assess--
                                  (I) the unique processes and 
                                facilities of the sectors;
                                  (II) the energy utilization 
                                requirements of the sectors; 
                                and
                                  (III) the application of new, 
                                more energy efficient 
                                technologies; and
                          (ii) conduct energy savings 
                        assessments;
                  (E) the incorporation of technologies and 
                innovations that would significantly improve 
                the energy efficiency and utilization of 
                energy-intensive commercial applications; and
                  (F) any other activities that the Secretary 
                determines to be appropriate.
          (3) Proposals.--
                  (A) In general.--To be eligible for funding 
                under this subsection, a partnership shall 
                submit to the Secretary a proposal that 
                describes the proposed research, development, 
                or demonstration activity to be conducted by 
                the partnership.
                  (B) Review.--After reviewing the scientific, 
                technical, and commercial merit of a proposals 
                submitted under subparagraph (A), the Secretary 
                shall approve or disapprove the proposal.
                  (C) Competitive awards.--The provision of 
                funding under this subsection shall be on a 
                competitive basis.
          (4) Cost-sharing requirement.--In carrying out this 
        section, the Secretary shall require cost sharing in 
        accordance with section 988 of the Energy Policy Act of 
        2005 (42 U.S.C. 16352).
  (d) Grants.--The Secretary may award competitive grants for 
innovative technology research, development and demonstrations 
to universities, individual inventors, and small companies, 
based on energy savings potential, commercial viability, and 
technical merit.
  (e) Institution of Higher Education-Based Industrial Research 
and Assessment Centers.--[The Secretary]
          (1) In general._The Secretary shall provide funding 
        to institution of higher education-based industrial 
        research and assessment centers, whose purpose shall 
        be--
                  [(1)] (A) to identify opportunities for 
                optimizing energy efficiency and environmental 
                performance, including assessments of 
                sustainable manufacturing goals and the 
                implementation of information technology 
                advancements for supply chain analysis, 
                logistics, system monitoring, industrial and 
                manufacturing processes, and other purposes;
                  [(2)] (B) to promote applications of emerging 
                concepts and technologies in small- and medium-
                sized manufacturers;
                  [(3)] (C) to promote research and development 
                for the use of alternative energy sources to 
                supply heat, power, and new feedstocks for 
                energy-intensive industries;
                  [(4)] (D) to coordinate with appropriate 
                Federal and State research offices, and provide 
                a clearinghouse for industrial process and 
                energy efficiency technical assistance 
                resources; and
                  [(5)] (E) to coordinate with State-accredited 
                technical training centers and community 
                colleges, while ensuring appropriate services 
                to all regions of the United States.
          (2) Coordination.--To increase the value and 
        capabilities of the industrial research and assessment 
        centers, the centers shall--
                  (A) coordinate with Manufacturing Extension 
                Partnership Centers of the National Institute 
                of Standards and Technology;
                  (B) coordinate with the Building Technologies 
                Office of the Department of Energy to provide 
                building assessment services to manufacturers;
                  (C) increase partnerships with the National 
                Laboratories of the Department of Energy to 
                leverage the expertise and technologies of the 
                National Laboratories for national industrial 
                and manufacturing needs; and
                  (D) increase partnerships with energy service 
                providers and technology providers to leverage 
                private sector expertise and accelerate 
                deployment of new and existing technologies and 
                processes for energy efficiency, power factor, 
                and load management.
          (3) Outreach.--The Secretary shall provide funding 
        for--
                  (A) outreach activities by the industrial 
                research and assessment centers to inform 
                small- and medium-sized manufacturers of the 
                information, technologies, and services 
                available; and
                  (B) coordination activities by each 
                industrial research and assessment center to 
                leverage efforts with--
                          (i) Federal and State efforts;
                          (ii) the efforts of utilities and 
                        energy service providers;
                          (iii) the efforts of regional energy 
                        efficiency organizations; and
                          (iv) the efforts of other industrial 
                        research and assessment centers.
          (4) Small business loans.--The Administrator of the 
        Small Business Administration shall, to the maximum 
        extent practicable, expedite consideration of 
        applications from eligible small business concerns for 
        loans under the Small Business Act (15 U.S.C. 631 et 
        seq.) to implement recommendations of industrial 
        research and assessment centers established under 
        paragraph (1).
  (f) Authorization of Appropriations.--
          (1) In general.--There are authorized to be 
        appropriated to the Secretary to carry out this 
        section--
                  (A) $184,000,000 for fiscal year 2008;
                  (B) $190,000,000 for fiscal year 2009;
                  (C) $196,000,000 for fiscal year 2010;
                  (D) $202,000,000 for fiscal year 2011;
                  (E) $208,000,000 for fiscal year 2012; and
                  (F) such sums as are necessary for fiscal 
                year 2013 and each fiscal year thereafter.
          (2) Partnership activities.--Of the amounts made 
        available under paragraph (1), not less than 50 percent 
        shall be used to pay the Federal share of partnership 
        activities under subsection (c).
          (3) Coordination and nonduplication.--The Secretary 
        shall coordinate efforts under this section with other 
        programs of the Department and other Federal agencies 
        to avoid duplication of effort.

SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

  (a) Definitions In this section:
          (1) Data center.--The term ``data center'' means any 
        facility that primarily contains electronic equipment 
        used to process, store, and transmit digital 
        information, which may be--
                  (A) a free-standing structure; or
                  (B) a facility within a larger structure, 
                that uses environmental control equipment to 
                maintain the proper conditions for the 
                operation of electronic equipment.
          (2) Data center operator.--The term ``data center 
        operator'' means any person or government entity that 
        builds or operates a data center or purchases data 
        center services, equipment, and facilities.
  (b) Voluntary National Information Program.--
          (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Secretary and the 
        Administrator of the Environmental Protection Agency 
        shall, after consulting with information technology 
        industry and other interested parties, initiate a 
        voluntary national information program for those types 
        of data centers and data center equipment and 
        facilities that are widely used and for which there is 
        a potential for significant data center energy savings 
        as a result of the program.
          (2) Requirements.--The program described in paragraph 
        (1) shall--
                  (A) address data center efficiency 
                holistically, reflecting the total energy 
                consumption of data centers as whole systems, 
                including both equipment and facilities;
                  (B) consider prior work and studies 
                undertaken in this area, including by the 
                Environmental Protection Agency and the 
                Department of Energy;
                  (C) consistent with the objectives described 
                in paragraph (1), determine the type of data 
                center and data center equipment and facilities 
                to be covered under the program;
                  (D) produce specifications, measurements, 
                best practices, and benchmarks that will enable 
                data center operators to make more informed 
                decisions about the energy efficiency and costs 
                of data centers, and that take into account--
                          (i) the performance and use of 
                        servers, data storage devices, and 
                        other information technology equipment;
                          (ii) the efficiency of heating, 
                        ventilation, and air conditioning, 
                        cooling, and power conditioning 
                        systems, provided that no modification 
                        shall be required of a standard then in 
                        effect under the Energy Policy and 
                        Conservation Act (42 U.S.C. 6201 et 
                        seq.) for any covered heating, 
                        ventilation, air-conditioning, cooling 
                        or power-conditioning product;
                          (iii) energy savings from the 
                        adoption of software and data 
                        management techniques; and
                          (iv) other factors [determined by the 
                        organization] proposed by the 
                        stakeholders described in subsection 
                        (c);
                  (E) allow for creation of separate 
                specifications, measurements, and benchmarks 
                based on data center size and function, as well 
                as other appropriate characteristics;
                  (F) advance the design and implementation of 
                efficiency technologies to the maximum extent 
                economically practical;
                  (G) provide to data center operators in the 
                private sector and the Federal Government 
                information about best practices and purchasing 
                decisions that reduce the energy consumption of 
                data centers; and
                  (H) publish the information described in 
                subparagraph (G), which may be disseminated 
                through catalogs, trade publications, the 
                Internet, or other mechanisms, that will allow 
                data center operators to assess the energy 
                consumption and potential cost savings of 
                alternative data centers and data center 
                equipment and facilities.
          [(3) Procedures.--The program described in paragraph 
        (1) shall be developed in consultation with and 
        coordinated by the organization described in subsection 
        (c) according to commonly accepted procedures for the 
        development of specifications, measurements, and 
        benchmarks.]
  [(c) Data Center Efficiency Organization.--
          [(1) In general.--After the establishment of the 
        program described in subsection (b), the Secretary and 
        the Administrator shall jointly designate an 
        information technology industry organization to consult 
        with and to coordinate the program.
          [(2) Requirements.--The organization designated under 
        paragraph (1), whether preexisting or formed 
        specifically for the purposes of subsection (b), 
        shall--
                  [(A) consist of interested parties that have 
                expertise in energy efficiency and in the 
                development, operation, and functionality of 
                computer data centers, information technology 
                equipment, and software, as well as 
                representatives of hardware manufacturers, data 
                center operators, and facility managers;
                  [(B) obtain and address input from Department 
                of Energy National Laboratories or any college, 
                university, research institution, industry 
                association, company, or public interest group 
                with applicable expertise in any of the areas 
                listed in paragraph (1);
                  [(C) follow commonly accepted procedures for 
                the development of specifications and 
                accredited standards development processes;
                  [(D) have a mission to develop and promote 
                energy efficiency for data centers and 
                information technology; and
                  [(E) have the primary responsibility to 
                consult in the development and publishing of 
                the information, measurements, and benchmarks 
                described in subsection (b) and transmission of 
                the information to the Secretary and the 
                Administrator for consideration under 
                subsection (d).
  [(d) Measurements and Specifications.--
          [(1) In general.--The Secretary and the Administrator 
        shall consider the specifications, measurements, and 
        benchmarks described in subsection (b) for use by the 
        Federal Energy Management Program, the Energy Star 
        Program, and other efficiency programs of the 
        Department of Energy and Environmental Protection 
        Agency, respectively.
          [(2) Rejections.--If the Secretary or the 
        Administrator rejects 1 or more specifications, 
        measurements, or benchmarks described in subsection 
        (b), the rejection shall be made consistent with 
        section 12(d) of the National Technology Transfer and 
        Advancement Act of 1995 (15 U.S.C. 272 note; Public Law 
        104-113).
          [(3) Determination of impracticability.--A 
        determination that a specification, measurement, or 
        benchmark described in subsection (b) is impractical 
        may include consideration of the maximum efficiency 
        that is technologically feasible and economically 
        justified.
  [(e) Monitoring.--The Secretary and the Administrator shall--
          [(1) monitor and evaluate the efforts to develop the 
        program described in subsection (b); and
          [(2) not later than 3 years after the date of 
        enactment of this Act, make a determination as to 
        whether the program is consistent with the objectives 
        of subsection (b).
  [(f) Alternative System.--If the Secretary and the 
Administrator make a determination under subsection (e) that a 
voluntary national information program for data centers 
consistent with the objectives of subsection (b) has not been 
developed, the Secretary and the Administrator shall, after 
consultation with the National Institute of Standards and 
Technology and not later than 2 years after the determination, 
develop and implement the program under subsection (b).
  [(g) Protection of Proprietary Information.--The Secretary, 
the Administrator, or the data center efficiency organization 
shall not disclose any proprietary information or trade secrets 
provided by any individual or company for the purposes of 
carrying out this section or the program established under this 
section.]
  (c) Stakeholder Involvement.--The Secretary and the 
Administrator shall carry out subsection (b) in collaboration 
with the information technology industry and other key 
stakeholders, with the goal of producing results that 
accurately reflect the most relevant and useful information 
available. In such collaboration, the Secretary and the 
Administrator shall pay particular attention to organizations 
that--
          (1) have members with expertise in energy efficiency 
        and in the development, operation, and functionality of 
        data centers, information technology equipment, and 
        software, such as representatives of hardware 
        manufacturers, data center operators, and facility 
        managers;
          (2) obtain and address input from Department of 
        Energy National Laboratories or any college, 
        university, research institution, industry association, 
        company, or public interest group with applicable 
        expertise;
          (3) follow--
                  (A) commonly accepted procedures for the 
                development of specifications; and
                  (B) accredited standards development 
                processes; and
          (4) have a mission to promote energy efficiency for 
        data centers and information technology.
  (d) Measurements and Specifications.--The Secretary and the 
Administrator shall consider and assess the adequacy of the 
specifications, measurements, best practices, and benchmarks 
described in subsection (b) for use by the Federal Energy 
Management Program, the Energy Star Program, and other 
efficiency programs of the Department of Energy or the 
Environmental Protection Agency.
  (e) Study.--The Secretary, in collaboration with the 
Administrator, shall, not later than 18 months after the date 
of enactment of the North American Energy Security and 
Infrastructure Act of 2015, make available to the public an 
update to the Report to Congress on Server and Data Center 
Energy Efficiency published on August 2, 2007, under section 1 
of Public Law 109-431 (120 Stat. 2920), that provides--
          (1) a comparison and gap analysis of the estimates 
        and projections contained in the original report with 
        new data regarding the period from 2008 through 2015;
          (2) an analysis considering the impact of information 
        technologies, including virtualization and cloud 
        computing, in the public and private sectors;
          (3) an evaluation of the impact of the combination of 
        cloud platforms, mobile devices, social media, and big 
        data on data center energy usage;
          (4) an evaluation of water usage in data centers and 
        recommendations for reductions in such water usage; and
          (5) updated projections and recommendations for best 
        practices through fiscal year 2020.
  (f) Data Center Energy Practitioner Program.--The Secretary, 
in collaboration with key stakeholders and the Director of the 
Office of Management and Budget, shall maintain a data center 
energy practitioner program that leads to the certification of 
energy practitioners qualified to evaluate the energy usage and 
efficiency opportunities in Federal data centers. Each Federal 
agency shall consider having the data centers of the agency 
evaluated every 4 years, in accordance with section 543(f) of 
the National Energy Conservation Policy Act (42 U.S.C. 8253), 
by energy practitioners certified pursuant to such program.
  (g) Open Data Initiative.--The Secretary, in collaboration 
with key stakeholders and the Director of the Office of 
Management and Budget, shall establish an open data initiative 
for Federal data center energy usage data, with the purpose of 
making such data available and accessible in a manner that 
encourages further data center innovation, optimization, and 
consolidation. In establishing the initiative, the Secretary 
shall consider the use of the online Data Center Maturity 
Model.
  (h) International Specifications and Metrics.--The Secretary, 
in collaboration with key stakeholders, shall actively 
participate in efforts to harmonize global specifications and 
metrics for data center energy and water efficiency.
  (i) Data Center Utilization Metric.--The Secretary, in 
collaboration with key stakeholders, shall facilitate the 
development of an efficiency metric that measures the energy 
efficiency of a data center (including equipment and 
facilities).
  (j) Protection of Proprietary Information.--The Secretary and 
the Administrator shall not disclose any proprietary 
information or trade secrets provided by any individual or 
company for the purposes of carrying out this section or the 
programs and initiatives established under this section.

           *       *       *       *       *       *       *


TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

           *       *       *       *       *       *       *


Subtitle C--Energy Efficiency in Federal Agencies

           *       *       *       *       *       *       *


SEC. 530. ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION TECHNOLOGIES.

  (a) Definitions.--In this section:
          (1) Director.--The term ``Director'' means the 
        Director of the Office of Management and Budget.
          (2) Information technology.--The term ``information 
        technology'' has the meaning given that term in section 
        11101 of title 40, United States Code.
  (b) Development of Implementation Strategy.--Not later than 1 
year after the date of enactment of this section, each Federal 
agency shall coordinate with the Director, the Secretary, and 
the Administrator of the Environmental Protection Agency to 
develop an implementation strategy (that includes best 
practices and measurement and verification techniques) for the 
maintenance, purchase, and use by the Federal agency of energy-
efficient and energy-saving information technologies, taking 
into consideration the performance goals established under 
subsection (d).
  (c) Administration.--In developing an implementation strategy 
under subsection (b), each Federal agency shall consider--
          (1) advanced metering infrastructure;
          (2) energy-efficient data center strategies and 
        methods of increasing asset and infrastructure 
        utilization;
          (3) advanced power management tools;
          (4) building information modeling, including building 
        energy management;
          (5) secure telework and travel substitution tools; 
        and
          (6) mechanisms to ensure that the agency realizes the 
        energy cost savings brought about through increased 
        efficiency and utilization.
  (d) Performance Goals.--
          (1) In general.--Not later than 180 days after the 
        date of enactment of this section, the Director, in 
        consultation with the Secretary, shall establish 
        performance goals for evaluating the efforts of Federal 
        agencies in improving the maintenance, purchase, and 
        use of energy-efficient and energy-saving information 
        technology.
          (2) Best practices.--The Chief Information Officers 
        Council established under section 3603 of title 44, 
        United States Code, shall recommend best practices for 
        the attainment of the performance goals, which shall 
        include Federal agency consideration of, to the extent 
        applicable by law, the use of--
                  (A) energy savings performance contracting; 
                and
                  (B) utility energy services contracting.
  (e) Reports.--
          (1) Agency reports.--Each Federal agency shall 
        include in the report of the agency under section 527 a 
        description of the efforts and results of the agency 
        under this section.
          (2) OMB government efficiency reports and 
        scorecards.--Effective beginning not later than October 
        1, 2017, the Director shall include in the annual 
        report and scorecard of the Director required under 
        section 528 a description of the efforts and results of 
        Federal agencies under this section.
                              ----------                              


                NATIONAL ENERGY CONSERVATION POLICY ACT

SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``National 
Energy Conservation Policy Act''.
  (b) Table of Contents.--

     * * * * * * *

                TITLE II--RESIDENTIAL ENERGY CONSERVATION

     * * * * * * *

                          Part 4--Miscellaneous

     * * * * * * *
[Sec. 253. Residential energy efficiency standards study.
[Sec. 254. Weatherization study.]
     * * * * * * *

         Part 6--Residential Energy Efficiency Rating Guidelines

     * * * * * * *
[Sec. 273. Report.]
     * * * * * * *

                   TITLE V--FEDERAL ENERGY INITIATIVES

     * * * * * * *

                    part 3--federal energy management

     * * * * * * *
[Sec. 550. Survey of energy saving potential.]
     * * * * * * *

                [Part 4--Federal Photovoltaic Utilization

[Sec. 561. Short title of part.
[Sec. 562. Definitions.
[Sec. 563. Photovoltaic energy program.
[Sec. 564. Purpose of program.
[Sec. 565. Acquisition of systems.
[Sec. 566. Administration.
[Sec. 567. System evaluation and purchase program.
[Sec. 568. Advisory committee.
[Sec. 569. Authorization of appropriations.
[Sec. 570. Use of photovoltaic energy in public buildings.]

           *       *       *       *       *       *       *


                     [Part 5--Peak Demand Reduction

[Sec. 571. National Action Plan for Demand Response.]

           *       *       *       *       *       *       *


TITLE II--RESIDENTIAL ENERGY CONSERVATION

           *       *       *       *       *       *       *


PART 4--MISCELLANEOUS

           *       *       *       *       *       *       *


[SEC. 253. RESIDENTIAL ENERGY EFFICIENCY STANDARDS STUDY.

  [(a) General Authority.--The Secretary of Housing and Urban 
Development (hereinafter in this section referred to as the 
``Secretary'') shall, in coordination with the Secretary of 
Agriculture, the Secretary of the Treasury, the Secretary of 
Veterans Affairs, the Secretary of Energy, and such other 
representatives of Federal, State, and local governments as the 
Secretary shall designate, conduct a study, utilizing the 
services of the National Institute of Building Sciences 
pursuant to appropriate contractual arrangements, for the 
purpose of determining the need for, the feasibility of, and 
the problems of requiring, by mandatory Federal action, that 
all residential dwelling units meet applicable energy efficient 
standards. The subjects to be examined shall include, but not 
be limited to, mandatory notification to purchasers, and 
policies to prohibit exchange or sale, of properties which do 
not conform to such standards.
  [(b) Specific Factors.--In conducting such study, the 
Secretary shall consider at least the following factors--
          [(1) the extent to which such requirement would 
        protect a prospective purchaser from the uncertainty of 
        not knowing the energy efficiency of the property he 
        proposes to purchase;
          [(2) the extent to which such requirement would 
        contribute to the Nation's energy conservation goals;
          [(3) the extent to which such a requirement would 
        affect the real estate, home building, and mortgage 
        banking industries;
          [(4) the sanctions which might be necessary to make 
        such a requirement effective and the administrative 
        impediments there might be to enforcement of such 
        sanctions;
          [(5) the possible impact on sellers and purchasers as 
        a result of the implementation of mandatory Federal 
        actions, taking into account the experience of the 
        Federal Government in imposing mandatory requirements 
        concerning the purchase and sale of real property as 
        occurred under the Real Estate Settlement Procedures 
        Act of 1974 and the Federal Disaster Protection Act of 
        1973;
          [(6) an analysis of the effect of such a requirement 
        on the economy as a whole and on the Nation's security 
        as compared to the impact on the credit and housing 
        markets caused by such a requirement;
          [(7) the effect of such a requirement on availability 
        of credit in the housing industry;
          [(8) the extent to which the imposition of mandatory 
        Federal requirements would temporarily reduce the 
        number of residential dwellings available for sale and 
        the resulting effect of such mandatory actions on the 
        price of those remaining dwelling units eligible for 
        sale; and
          [(9) the possible uncertainty, during the period of 
        developing the standards, as to what standards might be 
        imposed and any resulting effect on major housing 
        rehabilitation efforts and voluntary efforts for energy 
        conservation.
  [(c) Comments and Findings by Secretary of Energy.--The 
Secretary shall incorporate into such study comments by the 
Secretary of Energy on the effects on the economy as a whole 
and on the Nation's security which may result from the 
requirement described in subsection (a) as compared to the 
impact on the credit and housing markets likely to be caused by 
such a requirement. In addition, the Secretary shall 
incorporate into such study the following findings by the 
Secretary of Energy:
          [(1) the savings in energy costs resulting from the 
        requirement described in subsection (a) throughout the 
        estimated remaining useful life of the existing 
        residential buildings to which such requirement would 
        apply; and
          [(2) the total cost per barrel of oil equivalent, in 
        obtaining the energy savings likely to result from such 
        requirement, computed for each class of existing 
        residential buildings to which such requirement would 
        apply.
  [(d) Report Date.--The Secretary shall report, no later than 
one year after the date of enactment of this section, to both 
Houses of the Congress with regard to the findings made as a 
result of such study along with any recommendations for 
legislative proposals which the Secretary determines should be 
enacted with respect to the subject of such study.

[SEC. 254. WEATHERIZATION STUDY.

   [The President shall conduct a study which shall monitor the 
weatherization activities authorized by this Act and amendments 
made thereby and those weatherization activities undertaken, 
independently of this Act and such amendments. The President 
shall report to the Congress within one year from the date of 
enactment of this Act, and annually thereafter, concerning--
          [(1) the extent of progress being made through 
        weatherization activities toward the achievement of 
        national energy conservation goals;
          [(2) adequacy and costs of materials necessary for 
        weatherization activities; and
          [(3) the need for and desirability of modifying 
        weatherization activities authorized by this Act, and 
        amendments made thereby and of extending such 
        activities to a broader range of income groups than are 
        being assisted under this Act and such amendments.]

           *       *       *       *       *       *       *


PART 6--RESIDENTIAL ENERGY EFFICIENCY RATING GUIDELINES

           *       *       *       *       *       *       *


[SEC. 273. REPORT.

   [Not later than 3 years after the date of the enactment of 
the Energy Policy Act of 1992, the Secretary shall transmit to 
the President and the Congress a final report containing--
          [(1) a description of actions taken by the Secretary 
        and other Federal agencies to implement this part;
          [(2) a description of the action taken by States, 
        local governments, and other organizations to implement 
        the voluntary guidelines issued under section 271 and 
        any problems encountered in implementing such 
        guidelines; and
          [(3) recommendations on the feasibility of requiring, 
        as a prerequisite to receiving federally assisted, 
        guaranteed, or insured mortgages, the achievement of a 
        minimum energy efficiency rating.]

           *       *       *       *       *       *       *


TITLE V--FEDERAL ENERGY INITIATIVE

           *       *       *       *       *       *       *


PART 3--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *


SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

  [(a) Energy Performance Requirement for Federal Buildings.--
(1) Subject to paragraph (2), each agency shall apply energy 
conservation measures to, and shall improve the design for the 
construction of, the Federal buildings of the agency (including 
each industrial or laboratory facility) so that the energy 
consumption per gross square foot of the Federal buildings of 
the agency in fiscal years 2006 through 2015 is reduced, as 
compared with the energy consumption per gross square foot of 
the Federal buildings of the agency in fiscal year 2003, by the 
percentage specified in the following table:

[Fiscal Year                                        Percentage Reduction
    2006......................................................       2  
    2007......................................................       4  
    2008......................................................       9  
    2009......................................................      12  
    2010......................................................      15  
    2011......................................................      18  
    2012......................................................      21  
    2013......................................................      24  
    2014......................................................      27  
    2015......................................................     30.  

  [(2) An agency may exclude from the requirements of paragraph 
(1) any building, and the associated energy consumption and 
gross square footage, in which energy intensive activities are 
carried out. Each agency shall identify and list in each report 
made under section 548(a) the buildings designated by it for 
such exclusion.
  [(3) Not later than December 31, 2014, the Secretary shall 
review the results of the implementation of the energy 
performance requirement established under paragraph (1) and 
submit to Congress recommendations concerning energy 
performance requirements for fiscal years 2016 through 2025.]
  (a) Energy Performance Requirement for Federal Buildings.--
          (1) Requirement.--Subject to paragraph (2), each 
        agency shall apply energy conservation measures to, and 
        shall improve the design for the construction of, the 
        Federal buildings of the agency (including each 
        industrial or laboratory facility) so that the energy 
        consumption per gross square foot of the Federal 
        buildings of the agency in fiscal years 2006 through 
        2017 is reduced, as compared with the energy 
        consumption per gross square foot of the Federal 
        buildings of the agency in fiscal year 2003, by the 
        percentage specified in the following table:

Fiscal Year                                         Percentage Reduction
    2006......................................................       2  
    2007......................................................       4  
    2008......................................................       9  
    2009......................................................      12  
    2010......................................................      15  
    2011......................................................      18  
    2012......................................................      21  
    2013......................................................      24  
    2014......................................................      27  
    2015......................................................      30  
    2016......................................................      33  
    2017......................................................     36.  

          (2) Exclusion for buildings with energy intensive 
        activities.--
                  (A) In general.--An agency may exclude from 
                the requirements of paragraph (1) any building 
                (including the associated energy consumption 
                and gross square footage) in which energy 
                intensive activities are carried out.
                  (B) Reports.--Each agency shall identify and 
                list in each report made under section 548(a) 
                the buildings designated by the agency for 
                exclusion under subparagraph (A).
          (3) Review.--Not later than December 31, 2017, the 
        Secretary shall--
                  (A) review the results of the implementation 
                of the energy performance requirements 
                established under paragraph (1); and
                  (B) based on the review conducted under 
                subparagraph (A), submit to Congress a report 
                that addresses the feasibility of requiring 
                each agency to apply energy conservation 
                measures to, and improve the design for the 
                construction of, the Federal buildings of the 
                agency (including each industrial or laboratory 
                facility) so that the energy consumption per 
                gross square foot of the Federal buildings of 
                the agency in each of fiscal years 2018 through 
                2030 is reduced, as compared with the energy 
                consumption per gross square foot of the 
                Federal buildings of the agency in the prior 
                fiscal year, by 3 percent.
  (b) Energy Management Requirement for Federal Agencies.--(1) 
Not later than January 1, 2005, each agency shall, to the 
maximum extent practicable, install in Federal buildings owned 
by the United States all energy and water conservation measures 
with payback periods of less than 10 years, as determined by 
using the methods and procedures developed pursuant to section 
544.
  (2) The Secretary may waive the requirements of this 
subsection for any agency for such periods as the Secretary may 
determine if the Secretary finds that the agency is taking all 
practicable steps to meet the requirements and that the 
requirements of this subsection will pose an unacceptable 
burden upon the agency. If the Secretary waives the 
requirements of this subsection, the Secretary shall, as part 
of the report required under section 548(b), notify the 
Congress in writing with an explanation and a justification of 
the reasons for such waiver.
  (3) This subsection shall not apply to an agency's facilities 
that generate or transmit electric energy or to the uranium 
enrichment facilities operated by the Department of Energy.
  (4) An agency may participate in the Environmental Protection 
Agency's ``Green Lights'' program for purposes of receiving 
technical assistance in complying with the requirements of this 
section.
  (c) Exclusions.--(1)(A) An agency may exclude, from the 
energy performance requirement for a fiscal year established 
under subsection (a) and the energy management requirement 
established under subsection (b), any Federal building or 
collection of Federal buildings, if the head of the agency 
finds that--
          (i) compliance with those requirements would be 
        impracticable;
          (ii) the agency has completed and submitted all 
        federally required energy management reports;
          (iii) the agency has achieved compliance with the 
        energy efficiency requirements of this Act, the Energy 
        Policy Act of 1992, Executive orders, and other Federal 
        law; and
          (iv) the agency has implemented all practicable, life 
        cycle cost-effective projects with respect to the 
        Federal building or collection of Federal buildings to 
        be excluded.
  (B) A finding of impracticability under subparagraph (A)(i) 
shall be based on--
          (i) the energy intensiveness of activities carried 
        out in the Federal building or collection of Federal 
        buildings; or
          (ii) the fact that the Federal building or collection 
        of Federal buildings is used in the performance of a 
        national security function.
  (2) Each agency shall identify and list, in each report made 
under section 548(a), the Federal buildings designated by it 
for such exclusion. The Secretary shall review such findings 
for consistency with the standards for exclusion set forth in 
paragraph (1), and may within 90 days after receipt of the 
findings, reverse the exclusion. In the case of any such 
reversal, the agency shall comply with the requirements of 
subsections (a) and (b)(1) for the building concerned.
  (3) Not later than 180 days after the date of enactment of 
this paragraph, the Secretary shall issue guidelines that 
establish criteria for exclusions under paragraph (1).
  (d) Implementation Steps.--The Secretary shall consult with 
the Secretary of Defense and the Administrator of General 
Services in developing guidelines for the implementation of 
this part. To meet the requirements of this section, each 
agency shall--
          (1) prepare and submit to the Secretary, not later 
        than December 31, 1993, a plan describing how the 
        agency intends to meet such requirements, including how 
        it will--
                  (A) designate personnel primarily responsible 
                for achieving such requirements;
                  (B) identify high priority projects through 
                calculation of payback periods;
                  (C) take maximum advantage of contracts 
                authorized under title VIII of this Act, of 
                financial incentives and other services 
                provided by utilities for efficiency 
                investment, and of other forms of financing to 
                reduce the direct costs to the Government; and
                  (D) otherwise implement this part;
          (2) perform energy surveys of its Federal buildings 
        to the extent necessary and update such surveys as 
        needed[, incorporating any relevant information 
        obtained from the survey conducted pursuant to section 
        550];
          (3) using such surveys, determine the cost and 
        payback period of energy and water conservation 
        measures likely to achieve the requirements of this 
        section;
          (4) install energy and water conservation measures 
        that will achieve the requirements of this section 
        through the methods and procedures established pursuant 
        to section 544; and
          (5) ensure that the operation and maintenance 
        procedures applied under this section are continued.
  (e) Metering of Energy Use.--
          (1) Deadline.--By October 1, 2012, in accordance with 
        guidelines established by the Secretary under paragraph 
        (2), all Federal buildings shall, for the purposes of 
        efficient use of energy and reduction in the cost of 
        electricity used in such buildings, be metered. Each 
        agency shall use, to the maximum extent practicable, 
        advanced meters or advanced metering devices that 
        provide data at least daily and that measure at least 
        hourly consumption of electricity in the Federal 
        buildings of the agency. Not later than October 1, 
        2016, each agency shall provide for equivalent metering 
        of natural gas and steam, in accordance with guidelines 
        established by the Secretary under paragraph (2). Such 
        data shall be incorporated into existing Federal energy 
        tracking systems and made available to Federal facility 
        managers.
          (2) Guidelines.--
                  (A) In general.--Not later than 180 days 
                after the date of enactment of this subsection, 
                the Secretary, in consultation with the 
                Department of Defense, the General Services 
                Administration, representatives from the 
                metering industry, utility industry, energy 
                services industry, energy efficiency industry, 
                energy efficiency advocacy organizations, 
                national laboratories, universities, and 
                Federal facility managers, shall establish 
                guidelines for agencies to carry out paragraph 
                (1).
                  (B) Requirements for guidelines.--The 
                guidelines shall--
                          (i) take into consideration--
                                  (I) the cost of metering and 
                                the reduced cost of operation 
                                and maintenance expected to 
                                result from metering;
                                  (II) the extent to which 
                                metering is expected to result 
                                in increased potential for 
                                energy management, increased 
                                potential for energy savings 
                                and energy efficiency 
                                improvement, and cost and 
                                energy savings due to utility 
                                contract aggregation; and
                                  (III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                          (ii) include recommendations 
                        concerning the amount of funds and the 
                        number of trained personnel necessary 
                        to gather and use the metering 
                        information to track and reduce energy 
                        use;
                          (iii) establish priorities for types 
                        and locations of buildings to be 
                        metered based on cost-effectiveness and 
                        a schedule of one or more dates, not 
                        later than 1 year after the date of 
                        issuance of the guidelines, on which 
                        the requirements specified in paragraph 
                        (1) shall take effect; and
                          (iv) establish exclusions from the 
                        requirements specified in paragraph (1) 
                        based on the de minimis quantity of 
                        energy use of a Federal building, 
                        industrial process, or structure.
          (3) Plan.--Not later than 180 days after the date on 
        which guidelines are established under paragraph (2), 
        in a report submitted by the agency under section 
        548(a), each agency shall submit to the Secretary a 
        plan describing the manner in which the agency will 
        implement the requirements of paragraph (1), 
        including--
                  (A) how the agency will designate personnel 
                primarily responsible for achieving the 
                requirements; and
                  (B) a demonstration by the agency, complete 
                with documentation, of any finding that 
                advanced meters or advanced metering devices 
                (as those terms are used in paragraph (1)), are 
                not practicable.
          (4) Best practices report.--
                  (A) In general.--Not later than 180 days 
                after the date of enactment of this paragraph, 
                the Secretary of Energy, in consultation with 
                the Secretary of Defense and the Administrator 
                of General Services, shall develop, and issue a 
                report on, best practices for the use of 
                advanced metering of energy use in Federal 
                facilities, buildings, and equipment by Federal 
                agencies.
                  (B) Components.--The report shall include, at 
                a minimum--
                          (i) summaries and analysis of the 
                        reports by agencies under paragraph 
                        (3);
                          (ii) recommendations on standard 
                        requirements or guidelines for 
                        automated energy management systems, 
                        including--
                                  (I) potential common 
                                communications standards to 
                                allow data sharing and 
                                reporting;
                                  (II) means of facilitating 
                                continuous commissioning of 
                                buildings and evidence-based 
                                maintenance of buildings and 
                                building systems; and
                                  (III) standards for 
                                sufficient levels of security 
                                and protection against cyber 
                                threats to ensure systems 
                                cannot be controlled by 
                                unauthorized persons; and
                          (iii) an analysis of--
                                  (I) the types of advanced 
                                metering and monitoring systems 
                                being piloted, tested, or 
                                installed in Federal buildings; 
                                and
                                  (II) existing techniques used 
                                within the private sector or 
                                other non-Federal government 
                                buildings.
  (f) Use of Energy and Water Efficiency Measures in Federal 
Buildings.--
          (1) Definitions.--In this subsection:
                  (A) Commissioning.--The term 
                ``commissioning'', with respect to a facility, 
                means a systematic process--
                          (i) of ensuring, using appropriate 
                        verification and documentation, during 
                        the period beginning on the initial day 
                        of the design phase of the facility and 
                        ending not earlier than 1 year after 
                        the date of completion of construction 
                        of the facility, that all facility 
                        systems perform interactively in 
                        accordance with--
                                  (I) the design documentation 
                                and intent of the facility; and
                                  (II) the operational needs of 
                                the owner of the facility, 
                                including preparation of 
                                operation personnel; and
                          (ii) the primary goal of which is to 
                        ensure fully functional systems that 
                        can be properly operated and maintained 
                        during the useful life of the facility.
                  (B) Energy manager.--
                          (i) In general.--The term ``energy 
                        manager'', with respect to a facility, 
                        means the individual who is responsible 
                        for--
                                  (I) ensuring compliance with 
                                this subsection by the 
                                facility; and
                                  (II) reducing energy use at 
                                the facility.
                          (ii) Inclusions.--The term ``energy 
                        manager'' may include--
                                  (I) a contractor of a 
                                facility;
                                  (II) a part-time employee of 
                                a facility; and
                                  (III) an individual who is 
                                responsible for multiple 
                                facilities.
                  (C) Facility.--
                          (i) In general.--The term 
                        ``facility'' means any building, 
                        installation, structure, or other 
                        property (including any applicable 
                        fixtures) owned or operated by, or 
                        constructed or manufactured and leased 
                        to, the Federal Government.
                          (ii) Inclusions.--The term 
                        ``facility'' includes--
                                  (I) a group of facilities at 
                                a single location or multiple 
                                locations managed as an 
                                integrated operation; and
                                  (II) contractor-operated 
                                facilities owned by the Federal 
                                Government.
                          (iii) Exclusions.--The term 
                        ``facility'' does not include any land 
                        or site for which the cost of utilities 
                        is not paid by the Federal Government.
                  (D) Life cycle cost-effective.--The term 
                ``life cycle cost-effective'', with respect to 
                a measure, means a measure, the estimated 
                savings of which exceed the estimated costs 
                over the lifespan of the measure, as determined 
                in accordance with section 544.
                  (E) Ongoing commissioning.--The term 
                ``ongoing commissioning'' means an ongoing 
                process of commissioning using monitored data, 
                the primary goal of which is to ensure 
                continuous optimum performance of a facility, 
                in accordance with design or operating needs, 
                over the useful life of the facility, while 
                meeting facility occupancy requirements.
                  [(E)] (F) Payback period.--
                          (i) In general.--Subject to clause 
                        (ii), the term ``payback period'', with 
                        respect to a measure, means a value 
                        equal to the quotient obtained by 
                        dividing--
                                  (I) the estimated initial 
                                implementation cost of the 
                                measure (other than financing 
                                costs); by
                                  (II) the annual cost savings 
                                resulting from the measure, 
                                including--
                                          (aa) net savings in 
                                        estimated energy and 
                                        water costs; and
                                          (bb) operations, 
                                        maintenance, repair, 
                                        replacement, and other 
                                        direct costs.
                          (ii) Modifications and exceptions.--
                        The Secretary, in guidelines issued 
                        pursuant to paragraph (6), may make 
                        such modifications and provide such 
                        exceptions to the calculation of the 
                        payback period of a measure as the 
                        Secretary determines to be appropriate 
                        to achieve the purposes of this Act.
                  [(F)] (G) Recommissioning.--The term 
                ``recommissioning'' means a process--
                          (i) of commissioning a facility or 
                        system beyond the project development 
                        and warranty phases of the facility or 
                        system; and
                          (ii) the primary goal of which is to 
                        ensure optimum performance of a 
                        facility, in accordance with design or 
                        current operating needs, over the 
                        useful life of the facility, while 
                        meeting building occupancy 
                        requirements.
                  [(G)] (H) Retrocommissioning.--The term 
                ``retrocommissioning'' means a process of 
                commissioning a facility or system that was not 
                commissioned at the time of construction of the 
                facility or system.
          (2) Facility energy managers.--
                  (A) In general.--Each Federal agency shall 
                designate an energy manager responsible for 
                implementing this subsection and reducing 
                energy use at each facility that meets criteria 
                under subparagraph (B).
                  (B) Covered facilities.--The Secretary shall 
                develop criteria, after consultation with 
                affected agencies, energy efficiency advocates, 
                and energy and utility service providers, that 
                cover, at a minimum, Federal facilities, 
                including central utility plants and 
                distribution systems and other energy intensive 
                operations, that constitute at least 75 percent 
                of facility energy use at each agency.
                  (C) Energy management system.--An energy 
                manager designated under subparagraph (A) shall 
                consider use of a system to manage energy use 
                at the facility and certification of the 
                facility in accordance with the International 
                Organization for Standardization standard 
                numbered 50001 and entitled ``Energy Management 
                Systems''.
          [(3) Energy and water evaluations.--
                  [(A) Evaluations.--Effective beginning on the 
                date that is 180 days after the date of 
                enactment of this subsection and annually 
                thereafter, energy managers shall complete, for 
                each calendar year, a comprehensive energy and 
                water evaluation for approximately 25 percent 
                of the facilities of each agency that meet the 
                criteria under paragraph (2)(B) in a manner 
                that ensures that an evaluation of each such 
                facility is completed at least once every 4 
                years.
                  [(B) Recommissioning and 
                retrocommissioning.--As part of the evaluation 
                under subparagraph (A), the energy manager 
                shall identify and assess recommissioning 
                measures (or, if the facility has never been 
                commissioned, retrocommissioning measures) for 
                each such facility.
          [(4) Implementation of identified energy and water 
        efficiency measures.--Not later than 2 years after the 
        completion of each evaluation under paragraph (3), each 
        energy manager may--
                  [(A) implement any energy- or water-saving 
                measure that the Federal agency identified in 
                the evaluation conducted under paragraph (3) 
                that is life cycle cost-effective; and
                  [(B) bundle individual measures of varying 
                paybacks together into combined projects.]
          (3) Energy and water evaluations and commissioning.--
                  (A) Evaluations.--Except as provided in 
                subparagraph (B), effective beginning on the 
                date that is 180 days after the date of 
                enactment of the North American Energy Security 
                and Infrastructure Act of 2015, and annually 
                thereafter, each energy manager shall complete, 
                for each calendar year, a comprehensive energy 
                and water evaluation and recommissioning or 
                retrocommissioning for approximately 25 percent 
                of the facilities of that energy manager's 
                agency that meet the criteria under paragraph 
                (2)(B) in a manner that ensures that an 
                evaluation of each facility is completed at 
                least once every 4 years.
                  (B) Exceptions.--An evaluation and 
                recommissioning or recommissioning shall not be 
                required under subparagraph (A) with respect to 
                a facility that--
                          (i) has had a comprehensive energy 
                        and water evaluation during the 8-year 
                        period preceding the date of the 
                        evaluation;
                          (ii)(I) has been commissioned, 
                        recommissioned, or retrocommissioned 
                        during the 10-year period preceding the 
                        date of the evaluation; or
                          (II) is under ongoing commissioning, 
                        recommissioning, or retrocommissioning;
                          (iii) has not had a major change in 
                        function or use since the previous 
                        evaluation and commissioning, 
                        recommissioning, or retrocommissioning;
                          (iv) has been benchmarked with public 
                        disclosure under paragraph (8) within 
                        the year preceding the evaluation; and
                          (v)(I) based on the benchmarking, has 
                        achieved at a facility level the most 
                        recent cumulative energy savings target 
                        under subsection (a) compared to the 
                        earlier of--
                                  (aa) the date of the most 
                                recent evaluation; or
                                  (bb) the date--
                                          (AA) of the most 
                                        recent commissioning, 
                                        recommissioning, or 
                                        retrocommissioning; or
                                          (BB) on which ongoing 
                                        commissioning, 
                                        recommissioning, or 
                                        retrocommissioning 
                                        began; or
                          (II) has a long-term contract in 
                        place guaranteeing energy savings at 
                        least as great as the energy savings 
                        target under subclause (I).
          (4) Implementation of identified energy and water 
        efficiency measures.--
                  (A) In general.--Not later than 2 years after 
                the date of completion of each evaluation under 
                paragraph (3), each energy manager may--
                          (i) implement any energy- or water-
                        saving measure that the Federal agency 
                        identified in the evaluation conducted 
                        under paragraph (3) that is life-cycle 
                        cost effective; and
                          (ii) bundle individual measures of 
                        varying paybacks together into combined 
                        projects.
                  (B) Measures not implemented.--Each energy 
                manager, as part of the certification system 
                under paragraph (7) and using guidelines 
                developed by the Secretary, shall provide an 
                explanation regarding any life-cycle cost-
                effective measures described in subparagraph 
                (A)(i) that have not been implemented.
          (5) Follow-up on implemented measures.--For each 
        measure implemented under paragraph (4), each energy 
        manager shall ensure that--
                  (A) equipment, including building and 
                equipment controls, is fully commissioned at 
                acceptance to be operating at design 
                specifications;
                  (B) a plan for appropriate operations, 
                maintenance, and repair of the equipment is in 
                place at acceptance and is followed;
                  (C) equipment and system performance is 
                measured during its entire life to ensure 
                proper operations, maintenance, and repair; and
                  (D) energy and water savings are measured and 
                verified.
          (6) Guidelines.--
                  (A) In general.--The Secretary shall issue 
                guidelines and necessary criteria that each 
                Federal agency shall follow for implementation 
                of--
                          (i) paragraphs (2) and (3) not later 
                        than 180 days after the date of 
                        enactment of this subsection; and
                          (ii) paragraphs (4) and (5) not later 
                        than 1 year after the date of enactment 
                        of this subsection.
                  (B) Relationship to funding source.--The 
                guidelines issued by the Secretary under 
                subparagraph (A) shall be appropriate and 
                uniform for measures funded with each type of 
                funding made available under paragraph (10), 
                but may distinguish between different types of 
                measures project size, and other criteria the 
                Secretary determines are relevant.
          (7) Web-based certification.--
                  (A) In general.--For each facility that meets 
                the criteria established by the Secretary under 
                paragraph (2)(B), the energy manager shall use 
                the web-based tracking system under 
                subparagraph (B)--
                          (i) to certify compliance with the 
                        requirements for--
                                  (I) energy and water 
                                evaluations under paragraph 
                                (3);
                                  (II) implementation of 
                                identified energy and water 
                                measures under paragraph (4); 
                                and
                                  (III) follow-up on 
                                implemented measures under 
                                paragraph (5); and
                          (ii) to publish energy and water 
                        consumption data on an individual 
                        facility basis.
                  (B) Deployment.--
                          (i) In general.--Not later than 1 
                        year after the date of enactment of 
                        this subsection, the Secretary shall 
                        develop and deploy a web-based tracking 
                        system required under this paragraph in 
                        a manner that tracks, at a minimum--
                                  (I) the covered facilities;
                                  (II) the status of meeting 
                                the requirements specified in 
                                subparagraph (A);
                                  (III) the estimated cost and 
                                savings for measures required 
                                to be implemented in a 
                                facility;
                                  (IV) the measured savings and 
                                persistence of savings for 
                                implemented measures; and
                                  (V) the benchmarking 
                                information disclosed under 
                                paragraph (8)(C).
                          (ii) Ease of compliance.--The 
                        Secretary shall ensure that energy 
                        manager compliance with the 
                        requirements in this paragraph, to the 
                        maximum extent practicable--
                                  (I) can be accomplished with 
                                the use of streamlined 
                                procedures and templates that 
                                minimize the time demands on 
                                Federal employees; and
                                  (II) is coordinated with 
                                other applicable energy 
                                reporting requirements.
                  (C) Availability.--
                          (i) In general.--Subject to clause 
                        (ii), the Secretary shall make the web-
                        based tracking system required under 
                        this paragraph available to Congress, 
                        other Federal agencies, and the public 
                        through the Internet.
                          (ii) Exemptions.--At the request of a 
                        Federal agency, the Secretary may 
                        exempt specific data for specific 
                        facilities from disclosure under clause 
                        (i) for national security purposes.
                          (iii) Summary report.--The Secretary 
                        shall make publicly available a report 
                        that summarizes the information tracked 
                        under subparagraph (B)(i) by each 
                        agency and, as applicable, by each type 
                        of measure.
          (8) Benchmarking of federal facilities.--
                  (A) In general.--The energy manager shall 
                enter energy use data for each metered building 
                that is (or is a part of) a facility that meets 
                the criteria established by the Secretary under 
                paragraph (2)(B) into a building energy use 
                benchmarking system, such as the Energy Star 
                Portfolio Manager.
                  (B) System and guidance.--Not later than 1 
                year after the date of enactment of this 
                subsection, the Secretary shall--
                          (i) select or develop the building 
                        energy use benchmarking system required 
                        under this paragraph for each type of 
                        building; and
                          (ii) issue guidance for use of the 
                        system.
                  (C) Public disclosure.--Each energy manager 
                shall post the information entered into, or 
                generated by, a benchmarking system under this 
                subsection, on the web-based tracking system 
                under paragraph (7)(B). The energy manager 
                shall update such information each year, and 
                shall include in such reporting previous years' 
                information to allow changes in building 
                performance to be tracked over time.
          (9) Federal agency scorecards.--
                  (A) In general.--The Director of the Office 
                of Management and Budget shall issue semiannual 
                scorecards for energy management activities 
                carried out by each Federal agency that 
                includes--
                          (i) summaries of the status of 
                        implementing the various requirements 
                        of the agency and its energy managers 
                        under this subsection; and
                          (ii) any other means of measuring 
                        performance that the Director considers 
                        appropriate.
                  (B) Availability.--The Director shall make 
                the scorecards required under this paragraph 
                available to Congress, other Federal agencies, 
                and the public through the Internet.
          (10) Funding and implementation.--
                  (A) Authorization of appropriations.--There 
                are authorized to be appropriated such sums as 
                are necessary to carry out this subsection.
                  (B) Funding options.--
                          (i) In general.--To carry out this 
                        subsection, a Federal agency may use 
                        any combination of--
                                  (I) appropriated funds made 
                                available under subparagraph 
                                (A); and
                                  (II) private financing 
                                otherwise authorized under 
                                Federal law, including 
                                financing available through 
                                energy savings performance 
                                contracts or utility energy 
                                service contracts.
                          (ii) Combined funding for same 
                        measure.--A Federal agency may use any 
                        combination of appropriated funds and 
                        private financing described in clause 
                        (i) to carry out the same measure under 
                        this subsection.
                  (C) Implementation.--Each Federal agency may 
                implement the requirements under this 
                subsection itself or may contract out 
                performance of some or all of the requirements.
          (11) Rule of construction.--This subsection shall not 
        be construed to require or to obviate any contractor 
        savings guarantees.
  (g) Large Capital Energy Investments.--
          (1) In general.--Each Federal agency shall ensure 
        that any large capital energy investment in an existing 
        building that is not a major renovation but involves 
        replacement of installed equipment (such as heating and 
        cooling systems), or involves renovation, 
        rehabilitation, expansion, or remodeling of existing 
        space, employs the most energy efficient designs, 
        systems, equipment, and controls that are life-cycle 
        cost effective.
          (2) Process for review of investment decisions.--Not 
        later than 180 days after the date of enactment of this 
        subsection, each Federal agency shall--
                  (A) develop a process for reviewing each 
                decision made on a large capital energy 
                investment described in paragraph (1) to ensure 
                that the requirements of this subsection are 
                met; and
                  (B) report to the Director of the Office of 
                Management and Budget on the process 
                established.
          (3) Compliance report.--Not later than 1 year after 
        the date of enactment of this subsection, the Director 
        of the Office of Management and Budget shall evaluate 
        and report to Congress on the compliance of each agency 
        with this subsection.

           *       *       *       *       *       *       *


SEC. 548. REPORTS.

  (a) Reports to the Secretary.--Each agency shall transmit a 
report to the Secretary, at times specified by the Secretary 
but at least annually, with complete information on its 
activities under this part, including information on--
          (1) the agency's progress in achieving the goals 
        established by section 543; and
          (2) the procedures being used by the agency pursuant 
        to section 546(a)(2), the number of contracts entered 
        into by such agency under title VIII of this Act, the 
        energy and cost savings that have resulted from such 
        contracts and any termination penalty exposure, the use 
        of such cost savings under section 546(c), and any 
        problem encountered in entering into such contracts and 
        otherwise implementing section 546.
  (b) Reports to the President and Congress.--The Secretary 
shall report, not later than April 2 of each year, with respect 
to each fiscal year beginning after the date of the enactment 
of this subsection, to the President and Congress--
          (1) on all activities carried out under this part and 
        on the progress made toward achievement of the 
        objectives of this part, including--
                  (A) a copy of the list of the exclusions made 
                under sections 543(a)(2) and 543(c)(3);
                  (B) the information required under section 
                543(b)(2); and
                  (C) a statement detailing the amount of funds 
                awarded to each agency under section 546(b), 
                the energy and water conservation measures 
                installed with such funds, the projected energy 
                and water savings to be realized from installed 
                measures, and, for each installed measure for 
                which the projected energy and water savings 
                reported in the previous year were not 
                realized, the percentage of such projected 
                savings that was not realized, the reasons such 
                savings were not realized, and proposals for, 
                and projected costs of, achieving such 
                projected savings in the future;
          (2) the number of contracts entered into by all 
        agencies under title VIII of this Act, the difficulties 
        (if any) encountered in attempting to enter into such 
        contracts, and proposed solutions to those 
        difficulties;
          (3) the extent and nature of interagency exchange of 
        information concerning the conservation and efficient 
        utilization of energy; [and]
          (4) the information required under section 161(d) of 
        the Energy Policy Act of 1992[.]; and
          (5) the status of each agency's energy savings 
        performance contracts and utility energy service 
        contracts, the investment value of such contracts, the 
        guaranteed energy savings for the previous year as 
        compared to the actual energy savings for the previous 
        year, the plan for entering into such contracts in the 
        coming year, and information explaining why any 
        previously submitted plans for such contracts were not 
        implemented.
  (c) Other Report.--The Secretary, in consultation with the 
Administrator of General Services, shall--
          (1) conduct a study and evaluate legal, 
        institutional, and other constraints to connecting 
        buildings owned or leased by the Federal Government to 
        district heating and district cooling systems; and
          (2) not later than 18 months after the date of the 
        enactment of this subsection, transmit to the Congress 
        a report containing the findings and conclusions of 
        such study, including recommendations for the 
        development of streamlined processes for the 
        consideration of connecting buildings owned or leased 
        by the Federal Government to district heating and 
        cooling systems.

           *       *       *       *       *       *       *


[SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL.

  [(a) In General.--The Secretary shall, in consultation with 
the Interagency Energy Management Task Force established under 
section 547, carry out an energy survey for the purposes of--
          [(1) determining the maximum potential cost effective 
        energy savings that may be achieved in a representative 
        sample of buildings owned or leased by the Federal 
        Government in different areas of the country;
          [(2) making recommendations for cost effective energy 
        efficiency and renewable energy improvements in those 
        buildings and in other similar Federal buildings; and
          [(3) identifying barriers which may prevent an 
        agency's ability to comply with section 543 and other 
        energy management goals.
  [(b) Implementation.--(1) The Secretary shall transmit to the 
Committee on Energy and Natural Resources and the Committee on 
Governmental Affairs of the Senate and the Committee on Energy 
and Commerce, the Committee on Government Operations, and the 
Committee on Public Works and Transportation of the House of 
Representatives, within 180 days after the date of the 
enactment of the Energy Policy Act of 1992, a plan for 
implementing this section.
  [(2) The Secretary shall designate buildings to be surveyed 
in the project so as to obtain a sample of the buildings of the 
types and in the climates that is representative of buildings 
owned or leased by Federal agencies in the United States that 
consume the major portion of the energy consumed in Federal 
buildings. Such sample shall include, where appropriate, the 
following types of Federal facility space:
          [(A) Housing.
          [(B) Storage.
          [(C) Office.
          [(D) Services.
          [(E) Schools.
          [(F) Research and Development.
          [(G) Industrial.
          [(H) Prisons.
          [(I) Hospitals.
  [(3) For purposes of this section, an improvement shall be 
considered cost effective if the cost of the energy saved or 
displaced by the improvement exceeds the cost of the 
improvement over the remaining life of a Federal building or 
the remaining term of a lease of a building leased by the 
Federal Government as determined by the life cycle costing 
methodology developed under section 544.
  [(c) Personnel.--(1) In carrying out this section, the 
Secretary shall utilize personnel who are--
          [(A) employees of the Department of Energy; or
          [(B) selected by the agencies utilizing the buildings 
        which are being surveyed under this section.
  [(2) Such personnel shall be detailed for the purpose of 
carrying out this section without any reduction of salary or 
benefits.
  [(d) Report.--As soon as practicable after the completion of 
the project carried out under this section, the Secretary shall 
transmit a report of the findings and conclusions of the 
project to the Committee on Energy and Natural Resources and 
the Committee on Governmental Affairs of the Senate, the 
Committee on Energy and Commerce, the Committee on Government 
Operations, and the Committee on Public Works and 
Transportation of the House of Representatives, and the 
agencies who own the buildings involved in such project. Such 
report shall include an analysis of the probability of each 
agency achieving each of the energy reduction goals established 
under section 543(a).]

SEC. 551. DEFINITIONS.

   For the purposes of this part--
          (1) the term ``agency'' has the meaning given it in 
        section 551(1) of title 5, United States Code;
          (2) the term ``construction'' means new construction 
        or substantial rehabilitation of existing structures;
          (3) the term ``cogeneration facilities'' has the same 
        meaning given such term in section 3(18)(A) of the 
        Federal Power Act (16 U.S.C. 796(18)(A));
          (4) the term ``energy conservation measures'' means 
        measures that are applied to a Federal building that 
        improve energy efficiency and are life cycle cost 
        effective and that involve energy conservation, 
        cogeneration facilities, renewable energy sources, 
        improvements in operations and maintenance 
        efficiencies, [or retrofit activities] retrofit 
        activities, or energy consuming devices and required 
        support structures;
          (5) the term ``energy survey'' means a procedure used 
        to determine energy and cost savings likely to result 
        from the use of appropriate energy related maintenance 
        and operating procedures and modifications, including 
        the purchase and installation of particular energy-
        related equipment and the use of renewable energy 
        sources;
          (6) the term ``Federal building'' means any building, 
        structure, or facility, or part thereof, including the 
        associated energy consuming support systems, which is 
        constructed, renovated, leased, or purchased in whole 
        or in part for use by the Federal Government and which 
        consumes energy; such term also means a collection of 
        such buildings, structures, or facilities and the 
        energy consuming support systems for such collection;
          (7) the term ``life cycle cost'' means the total 
        costs of owning, operating, and maintaining a building 
        over its useful life (including such costs as fuel, 
        energy, labor, and replacement components) determined 
        on the basis of a systematic evaluation and comparison 
        of alternative building systems, except that in the 
        case of leased buildings, the life cycle costs shall be 
        calculated over the effective remaining term of the 
        lease;
          (8) the term ``renewable energy sources'' includes, 
        but is not limited to, sources such as agriculture and 
        urban waste, geothermal energy, solar energy, and wind 
        energy; and
          (9) the term ``Secretary'' means the Secretary of 
        Energy.

           *       *       *       *       *       *       *


               [PART 4--FEDERAL PHOTOVOLTAIC UTILIZATION

[SEC. 561. SHORT TITLE OF PART.

  [This part may be cited as the ``Federal Photovoltaic 
Utilization Act''.

[SEC. 562. DEFINITIONS.

   [For purposes of this part--
          [(1) The term ``Federal facility'' means any 
        building, structure, or fixture or part thereof which 
        is owned by the United States or any Federal agency or 
        which is held by the United States or any Federal 
        agency under a lease-acquisition agreement under which 
        the United States or a Federal agency will receive fee 
        simple title under the terms of such agreement without 
        further negotiation. Such term also applies to 
        facilities related to programs administered by Federal 
        agencies.
          [(2) The term ``Secretary'' means the Secretary of 
        Energy.

[SEC. 563. PHOTOVOLTAIC ENERGY PROGRAM.

  [There is hereby established a photovoltaic energy 
commercialization program for the accelerated procurement and 
installation of photovoltaic solar electric systems for 
electric production in Federal facilities.

[SEC. 564. PURPOSE OF PROGRAM.

   [The purpose of the program established by section 563 is 
to--
          [(1) accelerate the growth of a commercially viable 
        and competitive industry to make photovoltaic solar 
        electric systems available to the general public as an 
        option in order to reduce national consumption of 
        fossil fuel;
          [(2) reduce fossil fuel costs to the Federal 
        Government;
          [(3) stimulate the general use within the Federal 
        Government of methods for the minimization of life 
        cycle costs; and
          [(4) develop performance data on the program 
        established by section 563.

[SEC. 565. ACQUISITION OF SYSTEMS.

  [The program established by section 563 shall provide for the 
acquisition of photovoltaic solar electric systems and 
associated storage capability by the Secretary for their use by 
Federal agencies, and for the acquisition of such systems and 
associated capability by Federal agencies for their own use in 
cases where the authority to make such acquisition has been 
delegated to the agency involved by the Secretary. The 
acquisition of photovoltaic solar electric systems shall be at 
an annual level substantial enough to allow use of low-cost 
production techniques by suppliers of such systems. The 
Secretary (or other Federal agency acting under delegation from 
the Secretary) is authorized to make such acquisitions through 
the use of multiyear contracts. Authority under this part to 
enter into acquisition contracts shall be only to the extent as 
may be provided in advance in appropriation Acts.

[SEC. 566. ADMINISTRATION.

   [The Secretary shall administer the program established 
under section 563 and shall--
          [(1) consult with the Secretary of Defense to insure 
        that the installation and purchase of photovoltaic 
        solar electric systems pursuant to this part shall not 
        interfere with defense-related activities;
          [(2) prescribe such requirements as may be 
        appropriate to monitor and assess the performance and 
        operation of photovoltaic electric systems installed 
        pursuant to this part; and
          [(3) report annually to the Congress on the status of 
        the program.
Notwithstanding any other provision of law, the Secretary shall 
not be subject to the requirements of section 553 of title 5, 
United States Code, in the performance of his functions under 
this part.

[SEC. 567. SYSTEM EVALUATION AND PURCHASE PROGRAM.

  [(a) Program.--The Secretary shall establish, within 60 days 
after the date of the enactment of this part, a photovoltaic 
systems evaluation and purchase program to provide such systems 
as are required by the Federal agencies to carry out this part. 
In acquiring photovoltaic solar electric systems under this 
part, the Secretary (or other Federal agency acting under 
delegation from the Secretary) shall insure that such systems 
reflect to the maximum extent practicable the most advanced and 
reliable technologies and shall schedule purchases in a manner 
which will stimulate the early development of a permanent low-
cost private photovoltaic production capability in the United 
States, and to stimulate the private sector market for 
photovoltaic power systems. The Secretary and other Federal 
agencies acting under delegation from the Secretary shall, 
subject to the availability of appropriated funds, procure not 
more than 30 megawatts of photovoltaic solar electric systems 
during fiscal years ending September 30, 1979, September 30, 
1980, and September 30, 1981.
  [(b) Other Procurement.--Nothing in this part shall preclude 
any Federal agency from directly procuring a photovoltaic solar 
electric system (in lieu of obtaining one under the program 
under subsection (a)), except that any such Federal agency 
shall consult with the Secretary before procuring such a 
system.

[SEC. 568. ADVISORY COMMITTEE.

  [(a) Establishment.--There is hereby established an advisory 
committee to assist the Secretary in the establishment and 
conduct of the programs established under this part.
  [(b) Membership.--Such committee shall be composed of the 
Secretary of Defense, the Secretary of Housing and Urban 
Development, the Administrator of the National Aeronautics and 
Space Administration, the Administrator of the General Services 
Administration, the Secretary of Transportation, the 
Administrator of the Small Business Administration, the 
chairman of the Federal Trade Commission, the Postmaster 
General, and such other persons as the Secretary deems 
necessary. The Secretary shall appoint such other 
nongovernmental persons to the extent necessary to assure that 
the membership of the committee will be fairly balanced in 
terms of the point of view represented and the functions to be 
performed by the committee.
  [(c) Termination.--The advisory committee shall terminate 
October 1, 1981.

[SEC. 569. AUTHORIZATION OF APPROPRIATIONS.

  [For the purposes of this part, there is authorized to be 
appropriated to the Secretary not to exceed $98,000,000, for 
the period beginning October 1, 1978, and ending September 30, 
1981.]

                     [PART 5--PEAK DEMAND REDUCTION

[SEC. 571. NATIONAL ACTION PLAN FOR DEMAND RESPONSE.

  [(a) National Assessment and Report.--The Federal Energy 
Regulatory Commission (``Commission'') shall conduct a National 
Assessment of Demand Response. The Commission shall, within 18 
months of the date of enactment of this part, submit a report 
to Congress that includes each of the following:
          [(1) Estimation of nationwide demand response 
        potential in 5 and 10 year horizons, including data on 
        a State-by-State basis, and a methodology for updates 
        of such estimates on an annual basis.
          [(2) Estimation of how much of this potential can be 
        achieved within 5 and 10 years after the enactment of 
        this part accompanied by specific policy 
        recommendations that if implemented can achieve the 
        estimated potential. Such recommendations shall include 
        options for funding and/or incentives for the 
        development of demand response resources.
          [(3) The Commission shall further note any barriers 
        to demand response programs offering flexible, non-
        discriminatory, and fairly compensatory terms for the 
        services and benefits made available, and shall provide 
        recommendations for overcoming such barriers.
          [(4) The Commission shall seek to take advantage of 
        preexisting research and ongoing work, and shall insure 
        that there is no duplication of effort.
  [(b) National Action Plan on Demand Response.--The Commission 
shall further develop a National Action Plan on Demand 
Response, soliciting and accepting input and participation from 
a broad range of industry stakeholders, State regulatory 
utility commissioners, and non-governmental groups. The 
Commission shall seek consensus where possible, and decide on 
optimum solutions to issues that defy consensus. Such Plan 
shall be completed within 1 year after the completion of the 
National Assessment of Demand Response, and shall meet each of 
the following objectives:
          [(1) Identification of requirements for technical 
        assistance to States to allow them to maximize the 
        amount of demand response resources that can be 
        developed and deployed.
          [(2) Design and identification of requirements for 
        implementation of a national communications program 
        that includes broad-based customer education and 
        support.
          [(3) Development or identification of analytical 
        tools, information, model regulatory provisions, model 
        contracts, and other support materials for use by 
        customers, States, utilities and demand response 
        providers.
  [(c) Upon completion, the National Action Plan on Demand 
Response shall be published, together with any favorable and 
dissenting comments submitted by participants in its 
preparation. Six months after publication, the Commission, 
together with the Secretary of Energy, shall submit to Congress 
a proposal to implement the Action Plan, including specific 
proposed assignments of responsibility, proposed budget 
amounts, and any agreements secured for participation from 
State and other participants.
  [(d) Authorization.--There are authorized to be appropriated 
to the Commission to carry out this section not more than 
$10,000,000 for each of the fiscal years 2008, 2009, and 2010.]

           *       *       *       *       *       *       *


            TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS

SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.

  (a) In General.--(1) The head of a Federal agency may enter 
into contracts under this title solely for the purpose of 
achieving energy savings and benefits ancillary to that 
purpose. Each such contract may, notwithstanding any other 
provision of law, be for a period not to exceed 25 years. Such 
contract shall provide that the contractor shall incur costs of 
implementing energy savings measures, including at least the 
cost (if any) incurred in making energy audits, acquiring and 
installing equipment, and training personnel, in exchange for a 
share of any energy savings directly resulting from 
implementation of such measures during the term of the 
contract.
  (2)(A) Contracts under this title shall be energy savings 
performance contracts and shall require an annual energy audit 
and specify the terms and conditions of any Government payments 
and performance guarantees. Any such performance guarantee 
shall provide that the contractor is responsible for 
maintenance and repair services for any energy related 
equipment, including computer software systems.
  (B) Aggregate annual payments by an agency to both utilities 
and energy savings performance contractors, under an energy 
savings performance contract, may not exceed the amount that 
the agency would have paid for utilities without an energy 
savings performance contract (as estimated through the 
procedures developed pursuant to this section) during contract 
years. The contract shall provide for a guarantee of savings to 
the agency, and shall establish payment schedules reflecting 
such guarantee, taking into account any capital costs under the 
contract.
  (C) Federal agencies may incur obligations pursuant to such 
contracts to finance energy conservation measures provided 
guaranteed savings exceed the debt service requirements.
  (D) A Federal agency may enter into a multiyear contract 
under this title for a period not to exceed 25 years beginning 
on the date of the delivery order, without funding of 
cancellation charges before cancellation, if--
          (i) such contract was awarded in a competitive manner 
        pursuant to subsection (b)(2), using procedures and 
        methods established under this title;
          (ii) funds are available and adequate for payment of 
        the costs of such contract for the first fiscal year; 
        and
          (iii) such contract is governed by part 17.1 of the 
        Federal Acquisition Regulation promulgated under 
        section 25 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 421) or the applicable rules promulgated 
        under this title.
          (E) Funding options.--In carrying out a contract 
        under this title, a Federal agency may use any 
        combination of--
                  (i) appropriated funds; and
                  (ii) private financing under an energy 
                savings performance contract.
          (F) Promotion of contracts.--In carrying out this 
        section, a Federal agency shall not--
                  (i) establish a Federal agency policy that 
                limits the maximum contract term under 
                subparagraph (D) to a period shorter than 25 
                years; [or]
                  (ii) limit the total amount of obligations 
                under energy savings performance contracts or 
                other private financing of energy savings 
                measures[.]; or
                  (iii) limit the recognition of operation and 
                maintenance savings associated with systems 
                modernized or replaced with the implementation 
                of energy conservation measures, water 
                conservation measures, or any series of energy 
                conservation measures and water conservation 
                measures.
          (G) Measurement and verification requirements for 
        private financing.--
                  (i) In general.--In the case of energy 
                savings performance contracts, the evaluations 
                and savings measurement and verification 
                required under paragraphs (2) and (4) of 
                section 543(f) shall be used by a Federal 
                agency to meet the requirements for the need 
                for energy audits, calculation of energy 
                savings, and any other evaluation of costs and 
                savings needed to implement the guarantee of 
                savings under this section.
                  (ii) Modification of existing contracts.--Not 
                later than 18 months after the date of 
                enactment of this subparagraph, each Federal 
                agency shall, to the maximum extent 
                practicable, modify any indefinite delivery and 
                indefinite quantity energy savings performance 
                contracts, and other indefinite delivery and 
                indefinite quantity contracts using private 
                financing, to conform to the amendments made by 
                subtitle B of title V of the Energy 
                Independence and Security Act of 2007.
          (H) Miscellaneous authority.--Notwithstanding any 
        other provision of law, a Federal agency may sell or 
        transfer energy savings and apply the proceeds of such 
        sale or transfer to fund a contract under this title.
  (b) Implementation.--(1)(A) The Secretary, with the 
concurrence of the Federal Acquisition Regulatory Council 
established under section 25(a) of the Office of Federal 
Procurement Policy Act, not later than 180 days after the date 
of the enactment of the Energy Policy Act of 1992, shall, by 
rule, establish appropriate procedures and methods for use by 
Federal agencies to select, monitor, and terminate contracts 
with energy service contractors in accordance with laws 
governing Federal procurement that will achieve the intent of 
this section in a cost-effective manner. In developing such 
procedures and methods, the Secretary, with the concurrence of 
the Federal Acquisition Regulatory Council, shall determine 
which existing regulations are inconsistent with the intent of 
this section and shall formulate substitute regulations 
consistent with laws governing Federal procurement.
  (B) The procedures and methods established pursuant to 
subparagraph (A) shall be the procedures and contracting 
methods for selection, by an agency, of a contractor to provide 
energy savings performance services. Such procedures and 
methods shall provide for the calculation of energy savings 
based on sound engineering and financial practices.
  (2) The procedures and methods established pursuant to 
paragraph (1)(A) shall--
          (A) allow the Secretary to--
                  (i) request statements of qualifications, 
                which shall, at a minimum, include prior 
                experience and capabilities of contractors to 
                perform the proposed types of energy savings 
                services and financial and performance 
                information, from firms engaged in providing 
                energy savings services; and
                  (ii) from the statements received, designate 
                and prepare a list, with an update at least 
                annually, of those firms that are qualified to 
                provide energy savings services;
          (B) require each agency to use the list prepared by 
        the Secretary pursuant to subparagraph (A)(ii) unless 
        the agency elects to develop an agency list of firms 
        qualified to provide energy savings performance 
        services using the same selection procedures and 
        methods as are required of the Secretary in preparing 
        such lists; and
          (C) allow the head of each agency to--
                  (i) select firms from the list prepared 
                pursuant to subparagraph (A)(ii) or the list 
                prepared by the agency pursuant to subparagraph 
                (B) to conduct discussions concerning a 
                particular proposed energy savings project, 
                including requesting a technical and price 
                proposal from such selected firms for such 
                project;
                  (ii) select from such firms the most 
                qualified firm to provide energy savings 
                services based on technical and price proposals 
                and any other relevant information;
                  (iii) permit receipt of unsolicited proposals 
                for energy savings performance contracting 
                services from a firm that such agency has 
                determined is qualified to provide such 
                services under the procedures established 
                pursuant to paragraph (1)(A), and require 
                agency facility managers to place a notice in 
                the Commerce Business Daily announcing they 
                have received such a proposal and invite other 
                similarly qualified firms to submit competing 
                proposals; and
                  (iv) enter into an energy savings performance 
                contract with a firm qualified under clause 
                (iii), consistent with the procedures and 
                methods established pursuant to paragraph 
                (1)(A).
  (3) A firm not designated as qualified to provide energy 
savings services under paragraph (2)(A)(i) or paragraph (2)(B) 
may request a review of such decision to be conducted in 
accordance with procedures to be developed by the board of 
contract appeals of the General Services Administration.
  (c) Task or Delivery Orders.--(1) The head of a Federal 
agency may issue a task or delivery order under an energy 
savings performance contract by--
          (A) 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 and, following a reasonable 
        period of time to provide a proposal in response to the 
        notice, soliciting from such contractors the submission 
        of expressions of interest in, and contractor 
        qualifications for, performing site surveys or 
        investigations and feasibility designs and studies, and 
        including in the notice summary information concerning 
        energy use for any facilities that the agency has 
        specific interest in including in such task or delivery 
        order;
          (B) reviewing all expressions of interest and 
        qualifications submitted pursuant to the notice under 
        subparagraph (A);
          (C) selecting two or more contractors (from among 
        those reviewed under subparagraph (B)) to conduct 
        discussions concerning the contractors' respective 
        qualifications to implement potential energy 
        conservation measures, including--
                  (i) requesting references and specific 
                detailed examples with respect to similar 
                efforts and the resulting energy savings of 
                such similar efforts; and
                  (ii) requesting an explanation of how such 
                similar efforts relate to the scope and content 
                of the task or delivery order concerned;
          (D) selecting and authorizing--
                  (i) more than one contractor (from among 
                those selected under subparagraph (C)) 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 subparagraph (C)) to conduct a 
                site survey, investigation, feasibility design 
                and study, or similar assessment for the 
                purpose of allowing the contractor to submit a 
                firm, fixed-price proposal to implement 
                specific energy conservation measures;
          (E) providing a debriefing to any contractor not 
        selected under subparagraph (D);
          (F) negotiating a task or delivery order for energy 
        savings performance contracting services with the 
        contractor or contractors selected under subparagraph 
        (D) based on the energy conservation measures 
        identified; and
          (G) issuing a task or delivery order for energy 
        savings performance contracting services to such 
        contractor or contractors.
  (2) The issuance of a task or delivery order for energy 
savings performance contracting services pursuant to paragraph 
(1) 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)).
  (3) The Secretary may issue guidance as necessary to agencies 
issuing task or delivery orders pursuant to paragraph (1).

SEC. 802. PAYMENT OF COSTS.

  Any amount paid by a Federal agency pursuant to any contract 
entered into under this title may be paid only from funds 
appropriated or otherwise made available to the agency for 
fiscal year 1986 or any fiscal year thereafter for the payment 
of energy, water, or wastewater treatment expenses [(and 
related operation and maintenance expenses)], including related 
operations and maintenance expenses.

           *       *       *       *       *       *       *


SEC. 804. DEFINITIONS.

   For purposes of this title, the following definitions apply:
          (1) The term ``Federal agency'' means each authority 
        of the Government of the United States, whether or not 
        it is within or subject to review by another agency.
          (2) The term ``energy savings'' means--
                  (A) a reduction in the cost of energy, water, 
                or wastewater treatment, from a base cost 
                established through a methodology set forth in 
                the contract, used in an existing [federally 
                owned building or buildings or other federally 
                owned facilities] Federal building (as defined 
                in section 551 (42 U.S.C. 8259)) as a result 
                of--
                          (i) the lease or purchase of 
                        operating equipment, improvements, 
                        altered operation and maintenance, or 
                        technical services;
                          (ii) the increased efficient use of 
                        existing energy sources by cogeneration 
                        or heat recovery, excluding any 
                        cogeneration process for other than a 
                        [federally owned building or buildings 
                        or other federally owned facilities] 
                        Federal building (as defined in section 
                        551 (42 U.S.C. 8259)); or
                          (iii) the increased efficient use of 
                        existing water sources in either 
                        interior or exterior applications;
                  (B) the increased efficient use of an 
                existing energy source by cogeneration or heat 
                recovery;
                  (C) if otherwise authorized by Federal or 
                State law (including regulations), the sale or 
                transfer of electrical or thermal energy 
                generated on-site from renewable energy sources 
                or cogeneration, but in excess of Federal 
                needs, to utilities or non-Federal energy 
                users[; and];
                  (D) the increased efficient use of existing 
                water sources in interior or exterior 
                applications[.];
                  (E) the use, sale, or transfer of energy 
                incentives, rebates, or credits (including 
                renewable energy credits) from Federal, State, 
                or local governments or utilities; and
                  (F) any revenue generated from a reduction in 
                energy or water use, more efficient waste 
                recycling, or additional energy generated from 
                more efficient equipment.
          (3) The terms ``energy savings contract'' and 
        ``energy savings performance contract'' mean a contract 
        that provides for the performance of services for the 
        design, acquisition, installation, testing, and, where 
        appropriate, operation, maintenance, and repair, of an 
        identified energy or water conservation measure or 
        series of measures at 1 or more locations. Such 
        contracts shall, with respect to an agency facility 
        that is a public building (as such term is defined in 
        section 3301 of title 40, United States Code), be in 
        compliance with the prospectus requirements and 
        procedures of section 3307 of title 40, United States 
        Code.
          (4) The term ``energy or water conservation measure'' 
        means--
                  (A) an energy conservation measure, as 
                defined in section 551; or
                  (B) a water conservation measure that 
                improves the efficiency of water use, is life-
                cycle cost-effective, and involves water 
                conservation, water recycling or reuse, more 
                efficient treatment of wastewater or 
                stormwater, improvements in operation or 
                maintenance efficiencies, retrofit activities, 
                or other related activities, not at a Federal 
                hydroelectric facility.
                              ----------                              


                 ENERGY CONSERVATION AND PRODUCTION ACT

   Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Energy Conservation and Production 
Act''.

     * * * * * * *

          TITLE II--ELECTRIC UTILITIES RATE DESIGN INITIATIVES

     * * * * * * *
[Sec. 207. State utility regulatory assistance.]
     * * * * * * *

       TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS

     * * * * * * *
[Sec. 307. Support for voluntary building energy codes.]
Sec. 307. Support for model building energy codes.

           *       *       *       *       *       *       *


TITLE II--ELECTRIC UTILITY RATE DESIGN INITIATIVES

           *       *       *       *       *       *       *


                  [state utility regulatory assistance

  [Sec. 207. (a) The Secretary may make grants to State utility 
regulatory commissions and nonregulated electric utilities (as 
defined in the Public Utility Regulatory Policies Act of 1978) 
to carry out duties and responsibilities under titles I and 
III, and section 210, of the Public Utility Regulatory Policies 
Act of 1978. No grant may be made under this section to any 
Federal agency.
  [(b) Any requirements established by the Secretary with 
respect to grants under this section may be only such 
requirements as are necessary to assure that such grants are 
expended solely to carry out duties and responsibilities 
referred to in subsection (a) or such as are otherwise required 
by law.
  [(c) No grant may be made under this section unless an 
application for such grant is submitted to the Secretary in 
such form and manner as the Secretary may require. The 
Secretary may not approve an application of a State utility 
regulatory commission or nonregulated electric utility unless 
such commission or nonregulated electric utility assures the 
Secretary that funds made available under this section will be 
in addition to, and not in substitution for, funds made 
available to such commission or nonregulated electric utility 
from other governmental sources.
  [(d) The funds appropriated for purposes of this section 
shall be apportioned among the States in such manner that 
grants made under this section in each State shall not exceed 
the lesser of--
          [(1) the amount determined by dividing equally among 
        all States the total amount available under this 
        section for such grants, or
          [(2) the amount which the Secretary is authorized to 
        provide pursuant to subsections (b) and (c) of this 
        section for such State.]

           *       *       *       *       *       *       *


TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS

           *       *       *       *       *       *       *


                              definitions

  Sec. 303. As used in this title:
          (1) The term ``Administrator'' means the 
        Administrator of the Federal Energy Administration; 
        except that after such Administration ceases to exist, 
        such term means any officer of the United States 
        designated by the President for purposes of this title.
          (2) The term ``building'' means any structure to be 
        constructed which includes provision for a heating or 
        cooling system, or both, or for a hot water system.
          (3) The term ``building code'' means a legal 
        instrument which is in effect in a State or unit of 
        general purpose local government, the provisions of 
        which must be adhered to if a building is to be 
        considered to be in conformance with law and suitable 
        for occupancy and use.
          (4) The term ``commercial building'' means any 
        building other than a residential building, including 
        any building developed for industrial or public 
        purposes.
          (5) The term ``Federal agency'' means any department, 
        agency, corporation, or other entity or instrumentality 
        of the executive branch of the Federal Government, 
        including the United States Postal Service, the Federal 
        National Mortgage Association, and the Federal Home 
        Loan Mortgage Corporation.
          (6) The term ``Federal building'' means any building 
        [to be constructed] constructed or altered by, or for 
        the use of, any Federal agency. Such term shall include 
        buildings built for the purpose of being leased by a 
        Federal agency, and privatized military housing.
          (7) The term ``Federal financial assistance'' means 
        (A) any form of loan, grant, guarantee, insurance, 
        payment, rebate, subsidy, or any other form of direct 
        or indirect Federal assistance (other than general or 
        special revenue sharing or formula grants made to 
        States) approved by any Federal officer or agency; or 
        (B) any loan made or purchased by any bank, savings and 
        loan association, or similar institution subject to 
        regulation by the Board of Governors of the Federal 
        Reserve System, the Federal Deposit Insurance 
        Corporation, the Comptroller of the Currency, the 
        Federal Home Loan Bank Board, the Federal Savings and 
        Loan Insurance Corporation, or the National Credit 
        Union Administration.
          (8) The term ``National Institute of Building 
        Sciences'' means the institute established by section 
        809 of the Housing and Community Development Act of 
        1974.
          (9) The term ``residential building'' means any 
        structure which is constructed and developed for 
        residential occupancy.
          (10) The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
          (11) The term ``State'' includes each of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and any territory and possession of the 
        United States.
          (12) The term ``unit of general purpose local 
        government'' means any city, county, town, 
        municipality, or other political subdivision of a State 
        (or any combination thereof), which has a building code 
        or similar authority over a particular geographic area.
          (13) The term ``Federal building energy standards'' 
        means energy consumption objectives to be met without 
        specification of the methods, materials, or equipment 
        to be employed in achieving those objectives, but 
        including statements of the requirements, criteria, and 
        evaluation methods to be used, and any necessary 
        commentary.
          [(14) The term ``voluntary building energy code'' 
        means a building energy code developed and updated 
        through a consensus process among interested persons, 
        such as that used by the Council of American Building 
        Officials; the American Society of Heating, 
        Refrigerating, and Air-Conditioning Engineers; or other 
        appropriate organizations.]
          (14) Model building energy code.--The term ``model 
        building energy code'' means a voluntary building 
        energy code or standard developed and updated through a 
        consensus process among interested persons, such as the 
        IECC or ASHRAE Standard 90.1 or a code used by other 
        appropriate organizations regarding which the Secretary 
        has issued a determination that buildings subject to it 
        would achieve greater energy efficiency than under a 
        previously developed code.
          (15) The term ``CABO'' means the Council of American 
        Building Officials.
          (16) The term ``ASHRAE'' means the American Society 
        of Heating, Refrigerating, and Air-Conditioning 
        Engineers.
          (17) Major renovation.--The term ``major renovation'' 
        means a modification of building energy systems 
        sufficiently extensive that the whole building can meet 
        energy standards for new buildings, based on criteria 
        to be established by the Secretary through notice and 
        comment rulemaking.
          (18) ASHRAE standard 90.1.--The term ``ASHRAE 
        Standard 90.1'' means the American Society of Heating, 
        Refrigerating and Air-Conditioning Engineers ANSI/
        ASHRAE/IES Standard 90/1 Energy Standard for Buildings 
        Except Low-Rise Residential Buildings.
          (19) Cost-effective.--The term ``cost-effective'' 
        means having a simple payback of 10 years or less.
          (20) IECC.--The term ``IECC'' means the International 
        Energy Conservation Code as published by the 
        International Code Council.
          (21) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Native 
        American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4103).
          (22) Simple payback.--The term ``simple payback'' 
        means the time in years that is required for energy 
        savings to exceed the incremental first cost of a new 
        requirement or code.
          (23) Technically feasible.--The term ``technically 
        feasible'' means capable of being achieved, based on 
        widely available appliances, equipment, technologies, 
        materials, and construction practices.

[SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

  [(a) Consideration and Determination Respecting Residential 
Building Energy Codes.--(1) Not later than 2 years after the 
date of the enactment of the Energy Policy Act of 1992, each 
State shall certify to the Secretary that it has reviewed the 
provisions of its residential building code regarding energy 
efficiency and made a determination as to whether it is 
appropriate for such State to revise such residential building 
code provisions to meet or exceed CABO Model Energy Code, 1992.
  [(2) The determination referred to in paragraph (1) shall 
be--
          [(A) made after public notice and hearing;
          [(B) in writing;
          [(C) based upon findings included in such 
        determination and upon the evidence presented at the 
        hearing; and
          [(D) available to the public.
  [(3) Each State may, to the extent consistent with otherwise 
applicable State law, revise the provisions of its residential 
building code regarding energy efficiency to meet or exceed 
CABO Model Energy Code, 1992, or may decline to make such 
revisions.
  [(4) If a State makes a determination under paragraph (1) 
that it is not appropriate for such State to revise its 
residential building code, such State shall submit to the 
Secretary, in writing, the reasons for such determination, and 
such statement shall be available to the public.
  [(5)(A) Whenever CABO Model Energy Code, 1992, (or any 
successor of such code) is revised, the Secretary shall, not 
later than 12 months after such revision, determine whether 
such revision would improve energy efficiency in residential 
buildings. The Secretary shall publish notice of such 
determination in the Federal Register.
  [(B) If the Secretary makes an affirmative determination 
under subparagraph (A), each State shall, not later than 2 
years after the date of the publication of such determination, 
certify that it has reviewed the provisions of its residential 
building code regarding energy efficiency and made a 
determination as to whether it is appropriate for such State to 
revise such residential building code provisions to meet or 
exceed the revised code for which the Secretary made such 
determination.
  [(C) Paragraphs (2), (3), and (4) shall apply to any 
determination made under subparagraph (B).
  [(b) Certification of Commercial Building Energy Code 
Updates.--(1) Not later than 2 years after the date of the 
enactment of the Energy Policy Act of 1992, each State shall 
certify to the Secretary that it has reviewed and updated the 
provisions of its commercial building code regarding energy 
efficiency. Such certification shall include a demonstration 
that such State's code provisions meet or exceed the 
requirements of ASHRAE Standard 90.1-1989.
  [(2)(A) Whenever the provisions of ASHRAE Standard 90.1-1989 
(or any successor standard) regarding energy efficiency in 
commercial buildings are revised, the Secretary shall, not 
later than 12 months after the date of such revision, determine 
whether such revision will improve energy efficiency in 
commercial buildings. The Secretary shall publish a notice of 
such determination in the Federal Register.
  [(B)(i) If the Secretary makes an affirmative determination 
under subparagraph (A), each State shall, not later than 2 
years after the date of the publication of such determination, 
certify that it has reviewed and updated the provisions of its 
commercial building code regarding energy efficiency in 
accordance with the revised standard for which such 
determination was made. Such certification shall include a 
demonstration that the provisions of such State's commercial 
building code regarding energy efficiency meet or exceed such 
revised standard.
  [(ii) If the Secretary makes a determination under 
subparagraph (A) that such revised standard will not improve 
energy efficiency in commercial buildings, State commercial 
building code provisions regarding energy efficiency shall meet 
or exceed ASHRAE Standard 90.1-1989, or if such standard has 
been revised, the last revised standard for which the Secretary 
has made an affirmative determination under subparagraph (A).
  [(c) Extensions.--The Secretary shall permit extensions of 
the deadlines for the certification requirements under 
subsections (a) and (b) if a State can demonstrate that it has 
made a good faith effort to comply with such requirements and 
that it has made significant progress in doing so.
  [(d) Technical Assistance.--The Secretary shall provide 
technical assistance to States to implement the requirements of 
this section, and to improve and implement State residential 
and commercial building energy efficiency codes or to otherwise 
promote the design and construction of energy efficient 
buildings.
  [(e) Availability of Incentive Funding.--(1) The Secretary 
shall provide incentive funding to States to implement the 
requirements of this section, and to improve and implement 
State residential and commercial building energy efficiency 
codes, including increasing and verifying compliance with such 
codes. In determining whether, and in what amount, to provide 
incentive funding under this subsection, the Secretary shall 
consider the actions proposed by the State to implement the 
requirements of this section, to improve and implement 
residential and commercial building energy efficiency codes, 
and to promote building energy efficiency through the use of 
such codes.
  [(2) Additional funding shall be provided under this 
subsection for implementation of a plan to achieve and document 
at least a 90 percent rate of compliance with residential and 
commercial building energy efficiency codes, based on energy 
performance--
          [(A) to a State that has adopted and is implementing, 
        on a statewide basis--
                  [(i) a residential building energy efficiency 
                code that meets or exceeds the requirements of 
                the 2004 International Energy Conservation 
                Code, or any succeeding version of that code 
                that has received an affirmative determination 
                from the Secretary under subsection (a)(5)(A); 
                and
                  [(ii) a commercial building energy efficiency 
                code that meets or exceeds the requirements of 
                the ASHRAE Standard 90.1-2004, or any 
                succeeding version of that standard that has 
                received an affirmative determination from the 
                Secretary under subsection (b)(2)(A); or
          [(B) in a State in which there is no statewide energy 
        code either for residential buildings or for commercial 
        buildings, to a local government that has adopted and 
        is implementing residential and commercial building 
        energy efficiency codes, as described in subparagraph 
        (A).
  [(3) Of the amounts made available under this subsection, the 
Secretary may use $500,000 for each fiscal year to train State 
and local officials to implement codes described in paragraph 
(2).
  [(4)(A) There are authorized to be appropriated to carry out 
this subsection--
          [(i) $25,000,000 for each of fiscal years 2006 
        through 2010; and
          [(ii) such sums as are necessary for fiscal year 2011 
        and each fiscal year thereafter.
  [(B) Funding provided to States under paragraph (2) for each 
fiscal year shall not exceed one-half of the excess of funding 
under this subsection over $5,000,000 for the fiscal year.]

SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.

  (a) In General.--The Secretary shall provide technical 
assistance, as described in subsection (e), for the purposes 
of--
          (1) implementation of building energy codes by 
        States, Indian tribes, and, as appropriate, by local 
        governments, that are technically feasible and cost-
        effective; and
          (2) supporting full compliance with the State, 
        tribal, and local codes.
  (b) State and Indian Tribe Certification of Building Energy 
Code Updates.--
          (1) Review and updating of codes by each state and 
        indian tribe.--
                  (A) In general.--Not later than 3 years after 
                the date on which a model building energy code 
                is published, each State or Indian tribe shall 
                certify whether or not the State or Indian 
                tribe, respectively, has reviewed and updated 
                the energy provisions of the building code of 
                the State or Indian tribe, respectively.
                  (B) Demonstration.--The certification shall 
                include a statement of whether or not the 
                energy savings for the code provisions that are 
                in effect throughout the State or Indian tribal 
                territory meet or exceed--
                          (i) the energy savings of the most 
                        recently published model building 
                        energy code; or
                          (ii) the targets established under 
                        section 307(b)(2).
                  (C) No model building energy code update.--If 
                a model building energy code is not updated by 
                a target date established under section 
                307(b)(2)(D), each State or Indian tribe shall, 
                not later than 3 years after the specified 
                date, certify whether or not the State or 
                Indian tribe, respectively, has reviewed and 
                updated the energy provisions of the building 
                code of the State or Indian tribe, 
                respectively, to meet or exceed the target in 
                section 307(b)(2).
          (2) Validation by secretary.--Not later than 90 days 
        after a State or Indian tribe certification under 
        paragraph (1), the Secretary shall--
                  (A) determine whether the code provisions of 
                the State or Indian tribe, respectively, meet 
                the criteria specified in paragraph (1);
                  (B) determine whether the certification 
                submitted by the State or Indian tribe, 
                respectively, is complete; and
                  (C) if the requirements of subparagraph (B) 
                are satisfied, validate the certification.
          (3) Limitation.--Nothing in this section shall be 
        interpreted to require a State or Indian tribe to adopt 
        any building code or provision within a code.
  (c) Improvements in Compliance With Building Energy Codes.--
          (1) Requirement.--
                  (A) In general.--Not later than 3 years after 
                the date of a certification under subsection 
                (b), each State and Indian tribe shall certify 
                whether or not the State or Indian tribe, 
                respectively, has--
                          (i) achieved full compliance under 
                        paragraph (3) with the applicable 
                        certified State or Indian tribe 
                        building energy code or with the 
                        associated model building energy code; 
                        or
                          (ii) made significant progress under 
                        paragraph (4) toward achieving 
                        compliance with the applicable 
                        certified State or Indian tribe 
                        building energy code or with the 
                        associated model building energy code.
                  (B) Repeat certifications.--If the State or 
                Indian tribe certifies progress toward 
                achieving compliance, the State or Indian tribe 
                shall repeat the certification until the State 
                or Indian tribe certifies that the State or 
                Indian tribe has achieved full compliance.
          (2) Measurement of compliance.--A certification under 
        paragraph (1) shall include documentation of the rate 
        of compliance based on--
                  (A) inspections of a random sample of the 
                buildings covered by the code in the preceding 
                year; or
                  (B) an alternative method that yields an 
                accurate measure of compliance.
          (3) Achievement of compliance.--A State or Indian 
        tribe shall be considered to achieve full compliance 
        under paragraph (1) if--
                  (A) at least 90 percent of building space 
                covered by the code in the preceding year 
                substantially meets all the requirements of the 
                applicable code specified in paragraph (1), or 
                achieves equivalent or greater energy savings 
                level; or
                  (B) the estimated excess energy use of 
                buildings that did not meet the applicable code 
                specified in paragraph (1) in the preceding 
                year, compared to a baseline of comparable 
                buildings that meet this code, is not more than 
                5 percent of the estimated energy use of all 
                buildings covered by this code during the 
                preceding year.
          (4) Significant progress toward achievement of 
        compliance.--A State or Indian tribe shall be 
        considered to have made significant progress toward 
        achieving compliance for purposes of paragraph (1) if 
        the State or Indian tribe--
                  (A) has developed and is implementing a plan 
                for achieving compliance during the 8-year 
                period beginning on the date of enactment of 
                this paragraph, including annual targets for 
                compliance and active training and enforcement 
                programs; and
                  (B) has met the most recent target under 
                subparagraph (A).
          (5) Validation by secretary.--Not later than 90 days 
        after a State or Indian tribe certification under 
        paragraph (1), the Secretary shall--
                  (A) determine whether the State or Indian 
                tribe has demonstrated meeting the criteria of 
                this subsection, including accurate measurement 
                of compliance;
                  (B) determine whether the certification 
                submitted by the State or Indian tribe is 
                complete; and
                  (C) if the requirements of subparagraph (B) 
                are satisfied, validate the certification.
          (6) Limitation.--Nothing in this section shall be 
        interpreted to require a State or Indian tribe to adopt 
        any building code or provision within a code.
  (d) States or Indian Tribes That Do Not Achieve Compliance.--
          (1) Reporting.--A State or Indian tribe that has not 
        made a certification required under subsection (b) or 
        (c) by the applicable deadline shall submit to the 
        Secretary a report on the status of the State or Indian 
        tribe with respect to meeting the requirements and 
        submitting the certification.
          (2) State sovereignty.--Nothing in this section shall 
        be interpreted to require a State or Indian tribe to 
        adopt any building code or provision within a code.
          (3) Local government.--In any State or Indian tribe 
        for which the Secretary has not validated a 
        certification under subsection (b) or (c), a local 
        government may be eligible for Federal support by 
        meeting the certification requirements of subsections 
        (b) and (c).
          (4) Annual reports by secretary.--
                  (A) In general.--The Secretary shall annually 
                submit to Congress, and publish in the Federal 
                Register, a report on--
                          (i) the status of model building 
                        energy codes;
                          (ii) the status of code adoption and 
                        compliance in the States and Indian 
                        tribes;
                          (iii) implementation of this section; 
                        and
                          (iv) improvements in energy savings 
                        over time as a result of the targets 
                        established under section 307(b)(2).
                  (B) Impacts.--The report shall include 
                estimates of impacts of past action under this 
                section, and potential impacts of further 
                action, on--
                          (i) upfront financial and 
                        construction costs, cost benefits and 
                        returns (using a return on investment 
                        analysis), and lifetime energy use for 
                        buildings;
                          (ii) resulting energy costs to 
                        individuals and businesses; and
                          (iii) resulting overall annual 
                        building ownership and operating costs.
  (e) Technical Assistance to States and Indian Tribes.--
          (1) In general.--The Secretary shall, upon request, 
        provide technical assistance to States and Indian 
        tribes to implement the goals and requirements of this 
        section--
                  (A) to implement State residential and 
                commercial building energy codes; and
                  (B) to document the rate of compliance with a 
                building energy code.
          (2) Technical assistance.--The assistance shall 
        include, as requested by the State or Indian tribe, 
        technical assistance in--
                  (A) evaluating the energy savings of building 
                energy codes;
                  (B) assessing the economic considerations, 
                referenced in section 307(b)(4), of 
                implementing building energy codes;
                  (C) building energy analysis and design 
                tools;
                  (D) energy simulation models;
                  (E) building demonstrations;
                  (F) developing the definitions of energy use 
                intensity and building types for use in model 
                building energy codes to evaluate the 
                efficiency impacts of the model building energy 
                codes; and
                  (G) complying with a performance-based 
                pathway referenced in the model code.
          (3) Exclusion.--For purposes of this section, 
        ``technical assistance'' shall not include actions that 
        promote or discourage the adoption of a particular 
        building energy code, code provision, or energy savings 
        target to a State or Indian tribe.
          (4) Information quality and transparency.--For 
        purposes of this section, information provided by the 
        Secretary, attendant to any technical assistance 
        provided to a State or Indian tribe, is ``influential 
        information'' and shall satisfy the guidelines 
        established by the Office of Management and Budget and 
        published at 67 Federal Register 8,452 (Feb. 22, 2002).
  (f) Federal Support.--
          (1) In general.--The Secretary shall provide support 
        to States and Indian tribes--
                  (A) to implement the reporting requirements 
                of this section; and
                  (B) to implement residential and commercial 
                building energy codes, including increasing and 
                verifying compliance with the codes and 
                training of State, tribal, and local building 
                code officials to implement and enforce the 
                codes.
          (2) Exclusion.--Support shall not be given to support 
        adoption and implementation of model building energy 
        codes for which the Secretary has made a determination 
        under section 307(g)(1)(C) that the code is not cost-
        effective.
          (3) Training.--Support shall be offered to States to 
        train State and local building code officials to 
        implement and enforce codes described in paragraph 
        (1)(B).
          (4) Local governments.--States may work under this 
        subsection with local governments that implement and 
        enforce codes described in paragraph (1)(B).
  (g) Voluntary Programs to Exceed Model Building Energy 
Code.--
          (1) In general.--The Secretary shall provide 
        technical assistance, as described in subsection (e), 
        for the development of voluntary programs that exceed 
        the model building energy codes for residential and 
        commercial buildings for use as--
                  (A) voluntary incentive programs adopted by 
                local, tribal, or State governments; and
                  (B) nonbinding guidelines for energy-
                efficient building design.
          (2) Targets.--The voluntary programs described in 
        paragraph (1) shall be designed--
                  (A) to achieve substantial energy savings 
                compared to the model building energy codes; 
                and
                  (B) to meet targets under section 307(b), if 
                available, up to 3 to 6 years in advance of the 
                target years.
  (h) Studies.--
          (1) GAO study.--
                  (A) In general.--The Comptroller General of 
                the United States shall conduct a study of the 
                impacts of updating the national model building 
                energy codes for residential and commercial 
                buildings. In conducting the study, the 
                Comptroller General shall consider and report, 
                at a minimum--
                          (i) the actual energy consumption 
                        savings stemming from updated energy 
                        codes compared to the energy 
                        consumption savings predicted during 
                        code development;
                          (ii) the actual consumer cost savings 
                        stemming from updated energy codes 
                        compared to predicted consumer cost 
                        savings; and
                          (iii) an accounting of expenditures 
                        of the Federal funds under each program 
                        authorized by this title.
                  (B) Report to congress.--Not later than 3 
                years after the date of enactment of the North 
                American Energy Security and Infrastructure Act 
                of 2015, the Comptroller General of the United 
                States shall submit a report to the Committee 
                on Energy and Natural Resources of the Senate 
                and the Committee on Energy and Commerce of the 
                House of Representatives including the study 
                findings and conclusions.
          (2) Feasibility study.--The Secretary, in 
        consultation with building science experts from the 
        National Laboratories and institutions of higher 
        education, designers and builders of energy-efficient 
        residential and commercial buildings, code officials, 
        and other stakeholders, shall undertake a study of the 
        feasibility, impact, economics, and merit of--
                  (A) code improvements that would require that 
                buildings be designed, sited, and constructed 
                in a manner that makes the buildings more 
                adaptable in the future to become zero-net-
                energy after initial construction, as advances 
                are achieved in energy-saving technologies;
                  (B) code procedures to incorporate a ten-year 
                payback, not just first-year energy use, in 
                trade-offs and performance calculations; and
                  (C) legislative options for increasing energy 
                savings from building energy codes, including 
                additional incentives for effective State and 
                local verification of compliance with and 
                enforcement of a code.
          (3) Energy data in multitenant buildings.--The 
        Secretary, in consultation with appropriate 
        representatives of the utility, utility regulatory, 
        building ownership, and other stakeholders, shall--
                  (A) undertake a study of best practices 
                regarding delivery of aggregated energy 
                consumption information to owners and managers 
                of residential and commercial buildings with 
                multiple tenants and uses; and
                  (B) consider the development of a memorandum 
                of understanding between and among affected 
                stakeholders to reduce barriers to the delivery 
                of aggregated energy consumption information to 
                such owners and managers.
  (i) Effect on Other Laws.--Nothing in this section or section 
307 supersedes or modifies the application of sections 321 
through 346 of the Energy Policy and Conservation Act (42 
U.S.C. 6291 et seq.).
  (j) Funding Limitations.--No Federal funds shall be--
          (1) used to support actions by the Secretary, or 
        States, to promote or discourage the adoption of a 
        particular building energy code, code provision, or 
        energy saving target to a State or Indian tribe; or
          (2) provided to private third parties or non-
        governmental organizations to engage in such 
        activities.

SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.

  (a)(1) In General.--Not later than 2 years after the date of 
the enactment of the Energy Policy Act of 1992, the Secretary, 
after consulting with appropriate Federal agencies, CABO, 
ASHRAE, the National Association of Home Builders, the 
Illuminating Engineering Society, the American Institute of 
Architects, the National Conference of the States on Building 
Codes and Standards, and other appropriate persons, shall 
establish, by rule, Federal building energy standards that 
require in new Federal buildings those energy efficiency 
measures that are technologically feasible and economically 
justified. Such standards shall become effective no later than 
1 year after such rule is issued.
  (2) The standards established under paragraph (1) shall--
          (A) contain energy saving and renewable energy 
        specifications that meet or exceed the energy saving 
        and renewable energy specifications of the 2004 
        International Energy Conservation Code (in the case of 
        residential buildings) or ASHRAE Standard 90.1-2004 (in 
        the case of commercial buildings);
          (B) to the extent practicable, use the same format as 
        the appropriate [voluntary building energy code] model 
        building energy code; and
          (C) consider, in consultation with the Environmental 
        Protection Agency and other Federal agencies, and where 
        appropriate contain, measures with regard to radon and 
        other indoor air pollutants.
  [(3)][(A) Not later than 1 year after the date of enactment 
of this paragraph, the Secretary shall establish, by rule, 
revised Federal building energy efficiency performance 
standards that require that--
          [(i) if life-cycle cost-effective for new Federal 
        buildings--
                  [(I) the buildings be designed to achieve 
                energy consumption levels that are at least 30 
                percent below the levels established in the 
                version of the ASHRAE Standard or the 
                International Energy Conservation Code, as 
                appropriate, that is in effect as of the date 
                of enactment of this paragraph; and
                  [(II) sustainable design principles are 
                applied to the siting, design, and construction 
                of all new and replacement buildings;
          [(ii) if water is used to achieve energy efficiency, 
        water conservation technologies shall be applied to the 
        extent that the technologies are life-cycle cost-
        effective; and
                  [(iii) if lifecycle cost-effective, as 
                compared to other reasonably available 
                technologies, not less than 30 percent of the 
                hot water demand for each new Federal building 
                or Federal building undergoing a major 
                renovation be met through the installation and 
                use of solar hot water heaters.]
  [(B) Not later than 1 year after the date of approval of each 
subsequent revision of the ASHRAE Standard or the International 
Energy Conservation Code, as appropriate, the Secretary shall 
determine, based on the cost-effectiveness of the requirements 
under the amendment, whether the revised standards established 
under this paragraph should be updated to reflect the 
amendment.]
          (3) Revised federal building energy efficiency 
        performance standards; certification for green 
        buildings.--
                  (A) Revised federal building energy 
                efficiency performance standards.--
                          (i) In general.--Not later than 1 
                        year after the date of enactment of the 
                        North American Energy Security and 
                        Infrastructure Act of 2015, the 
                        Secretary shall establish, by rule, 
                        revised Federal building energy 
                        efficiency performance standards that 
                        require that--
                                  (I) new Federal buildings and 
                                alterations and additions to 
                                existing Federal buildings--
                                          (aa) meet or exceed 
                                        the most recent 
                                        revision of the IECC 
                                        (in the case of 
                                        residential buildings) 
                                        or ASHRAE Standard 90.1 
                                        (in the case of 
                                        commercial buildings) 
                                        as of the date of 
                                        enactment of the North 
                                        American Energy 
                                        Security and 
                                        Infrastructure Act of 
                                        2015; and
                                          (bb) meet or exceed 
                                        the energy provisions 
                                        of State and local 
                                        building codes 
                                        applicable to the 
                                        building, if the codes 
                                        are more stringent than 
                                        the IECC or ASHRAE 
                                        Standard 90.1, as 
                                        applicable;
                                  (II) unless demonstrated not 
                                to be life-cycle cost effective 
                                for new Federal buildings and 
                                Federal buildings with major 
                                renovations--
                                          (aa) the buildings be 
                                        designed to achieve 
                                        energy consumption 
                                        levels that are at 
                                        least 30 percent below 
                                        the levels established 
                                        in the version of the 
                                        ASHRAE Standard or the 
                                        IECC, as appropriate, 
                                        that is applied under 
                                        subclause (I)(aa), 
                                        including updates under 
                                        subparagraph (B); and
                                          (bb) sustainable 
                                        design principles are 
                                        applied to the 
                                        location, siting, 
                                        design, and 
                                        construction of all new 
                                        Federal buildings and 
                                        replacement Federal 
                                        buildings;
                                  (III) if water is used to 
                                achieve energy efficiency, 
                                water conservation technologies 
                                shall be applied to the extent 
                                that the technologies are life-
                                cycle cost effective; and
                                  (IV) if life-cycle cost 
                                effective, as compared to other 
                                reasonably available 
                                technologies, not less than 30 
                                percent of the hot water demand 
                                for each new Federal building 
                                or Federal building undergoing 
                                a major renovation be met 
                                through the installation and 
                                use of solar hot water heaters.
                          (ii) Limitation.--Clause (i)(I) shall 
                        not apply to unaltered portions of 
                        existing Federal buildings and systems 
                        that have been added to or altered.
                  (B) Updates.--Not later than 1 year after the 
                date of approval of each subsequent revision of 
                ASHRAE Standard 90.1 or the IECC, as 
                appropriate, the Secretary shall determine 
                whether the revised standards established under 
                subparagraph (A) should be updated to reflect 
                the revisions, based on the energy savings and 
                life-cycle cost effectiveness of the revisions.
                  [(C) In the budget request]
                  (C) Budget request._In the budget request of 
                the Federal agency for each fiscal year and 
                each report submitted by the Federal agency 
                under section 548(a) of the National Energy 
                Conservation Policy Act (42 U.S.C. 8258(a)), 
                the head of each Federal agency shall include--
          (i) a list of all new Federal buildings owned, 
        operated, or controlled by the Federal agency; and
          (ii) a statement specifying whether the Federal 
        buildings meet or exceed the revised standards 
        established under this paragraph.
  [(D) Not later than 1 year after the date of enactment of the 
Energy Independence and Security Act of 2007, the Secretary 
shall establish, by rule, revised Federal building energy 
efficiency performance standards that require that:]
          [(i) For new Federal buildings and Federal buildings 
        undergoing major renovations, 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, in the case of public 
        buildings (as defined in section 3301 of title 40, 
        United States Code), or of at least $2,500,000 in costs 
        adjusted annually for inflation for other buildings:]
                  [(I) The buildings shall be designed so that 
                the fossil fuel-generated energy consumption of 
                the buildings is reduced, as compared with such 
                energy consumption by a similar building in 
                fiscal year 2003 (as measured by Commercial 
                Buildings Energy Consumption Survey or 
                Residential Energy Consumption Survey data from 
                the Energy Information Agency), by the 
                percentage specified in the following table:


 
                  [
 
[Fiscal Year                             Percentage Reduction
   2010................................  55
   2015................................  65
   2020................................  80
   2025................................  90
   2030................................  100.

                  [(II) Upon petition by an agency subject to 
                this subparagraph, the Secretary may adjust the 
                applicable numeric requirement under subclause 
                (I) downward with respect to a specific 
                building, if the head of the agency designing 
                the building certifies in writing that meeting 
                such requirement would be technically 
                impracticable in light of the agency's 
                specified functional needs for that building 
                and the Secretary concurs with the agency's 
                conclusion. This subclause shall not apply to 
                the General Services Administration.
                  [(III) Sustainable design principles shall be 
                applied to the siting, design, and construction 
                of such buildings.]
                  (D) Certification for green buildings.--
                          (i) In general.--Not later than 90 
                        days after the date of enactment of the 
                        Energy Independence and Security Act of 
                        2007, the Secretary, after reviewing 
                        the findings of the Federal Director 
                        under section 436(h) of that Act, in 
                        consultation with the Administrator of 
                        General Services, and in consultation 
                        with the Secretary of Defense for 
                        considerations relating to those 
                        facilities under the custody and 
                        control of the Department of Defense, 
                        shall identify a certification system 
                        and level for green buildings that the 
                        Secretary determines to be the most 
                        likely to encourage a comprehensive and 
                        environmentally-sound approach to 
                        certification of green buildings. The 
                        identification of the certification 
                        system and level shall be based on a 
                        review of the Federal Director's 
                        findings under section 436(h) of the 
                        Energy Independence and Security Act of 
                        2007 and the criteria specified in 
                        clause (iii), shall identify the 
                        highest level the Secretary determines 
                        is appropriate above the minimum level 
                        required for certification under the 
                        system selected, and shall achieve 
                        results at least comparable to the 
                        system used by and highest level 
                        referenced by the General Services 
                        Administration as of the date of 
                        enactment of the Energy Independence 
                        and Security Act of 2007. Within 90 
                        days of the completion of each study 
                        required by clause (iv), the Secretary, 
                        in consultation with the Administrator 
                        of General Services, and in 
                        consultation with the Secretary of 
                        Defense for considerations relating to 
                        those facilities under the custody and 
                        control of the Department of Defense, 
                        shall review and update the 
                        certification system and level, taking 
                        into account the conclusions of such 
                        study.
          [(ii) In establishing criteria for identifying major 
        renovations that are subject to the requirements of 
        this subparagraph, the Secretary shall take into 
        account the scope, degree, and types of renovations 
        that are likely to provide significant opportunities 
        for substantial improvements in energy efficiency.]
          [(iii) In identifying]
          (ii) Considerations._In identifying the green 
        building certification system and level, the Secretary 
        shall take into consideration--
                  (I) the ability and availability of assessors 
                and auditors to independently verify the 
                criteria and measurement of metrics at the 
                scale necessary to implement this subparagraph;
                  (II) the ability of the applicable 
                certification organization to collect and 
                reflect public comment;
                  (III) the ability of the standard to be 
                developed and revised through a consensus-based 
                process;
                  (IV) an evaluation of the robustness of the 
                criteria for a high-performance green building, 
                which shall give credit for promoting--
                          (aa) efficient and sustainable use of 
                        water, energy, and other natural 
                        resources;
                          (bb) use of renewable energy sources;
                          (cc) improved indoor environmental 
                        quality through enhanced indoor air 
                        quality, thermal comfort, acoustics, 
                        day lighting, pollutant source control, 
                        and use of low-emission materials and 
                        building system controls; and
                          (dd) such other criteria as the 
                        Secretary determines to be appropriate; 
                        and
                  (V) national recognition within the building 
                industry.
          [(iv) At least once]
          (iii) Study._At least once every 5 years, and in 
        accordance with section 436 of the Energy Independence 
        and Security Act of 2007, the Administrator of General 
        Services shall conduct a study to evaluate and compare 
        available third-party green building certification 
        systems and levels, taking into account the criteria 
        listed in [clause (iii)] clause (ii).
          [(v) The Secretary may]
          (iv) Internal certification processes._The Secretary 
        may by rule allow Federal agencies to develop internal 
        certification processes, using certified professionals, 
        in lieu of certification by the certification entity 
        identified under [clause (i)(III)] clause (i). The 
        Secretary shall include in any such rule guidelines to 
        ensure that the certification process results in 
        buildings meeting the applicable certification system 
        and level identified under [clause (i)(III)] clause 
        (i). An agency employing an internal certification 
        process must continue to obtain external certification 
        by the certification entity identified under [clause 
        (i)(III)] clause (i) for at least 5 percent of the 
        total number of buildings certified annually by the 
        agency.
          [(vi) With respect]
          (v) Privatized military housing._With respect to 
        privatized military housing, the Secretary of Defense, 
        after consultation with the Secretary may, through 
        rulemaking, [develop alternative criteria to those 
        established by subclauses (I) and (III) of clause (i) 
        that achieve an equivalent result in terms of energy 
        savings, sustainable design, and] develop alternative 
        certification systems and levels than the systems and 
        levels identified under clause (i) that achieve an 
        equivalent result in terms of green building 
        performance.
          [(vii) In addition to]
          (vi) Water conservation technologies._In addition to 
        any use of water conservation technologies otherwise 
        required by this section, water conservation 
        technologies shall be applied to the extent that the 
        technologies are life-cycle cost-effective.
  (b) Report on Comparative Standards.--The Secretary shall 
identify and describe, in the report required under section 
308, the basis for any substantive difference between the 
Federal building energy standards established under this 
section (including differences in treatment of energy 
efficiency and renewable energy) and the appropriate [voluntary 
building energy code] model building energy code.
  [(c) Periodic Review.--The Secretary shall periodically, but 
not less than once every 5 years, review the Federal building 
energy standards established under this section and shall, if 
significant energy savings would result, upgrade such standards 
to include all new energy efficiency and renewable energy 
measures that are technologically feasible and economically 
justified.
  [(d) Interim Standards.--Interim energy performance standards 
for new Federal buildings issued by the Secretary under this 
title as it existed before the date of the enactment of the 
Energy Policy Act of 1992 shall remain in effect until the 
standards established under subsection (a) become effective.]
  (c) Periodic Review.--The Secretary shall--
          (1) every 5 years, review the Federal building energy 
        standards established under this section; and
          (2) on completion of a review under paragraph (1), if 
        the Secretary determines that significant energy 
        savings would result, upgrade the standards to include 
        all new energy efficiency and renewable energy measures 
        that are technologically feasible and economically 
        justified.

           *       *       *       *       *       *       *


[SEC. 307. SUPPORT FOR VOLUNTARY BUILDING ENERGY CODES.

  [(a) In General.--Not later than 1 year after the date of the 
enactment of the Energy Policy Act of 1992, the Secretary, 
after consulting with the Secretary of Housing and Urban 
Development, the Secretary of Veterans Affairs, other 
appropriate Federal agencies, CABO, ASHRAE, the National 
Conference of States on Building Codes and Standards, and any 
other appropriate building codes and standards organization, 
shall support the upgrading of voluntary building energy codes 
for new residential and commercial buildings. Such support 
shall include--
          [(1) a compilation of data and other information 
        regarding building energy efficiency standards and 
        codes in the possession of the Federal Government, 
        State and local governments, and industry 
        organizations;
          [(2) assistance in improving the technical basis for 
        such standards and codes;
          [(3) assistance in determining the cost-effectiveness 
        and the technical feasibility of the energy efficiency 
        measures included in such standards and codes; and
          [(4) assistance in identifying appropriate measures 
        with regard to radon and other indoor air pollutants.
  [(b) Review.--The Secretary shall periodically review the 
technical and economic basis of voluntary building energy codes 
and, based upon ongoing research activities--
          [(1) recommend amendments to such codes including 
        measures with regard to radon and other indoor air 
        pollutants;
          [(2) seek adoption of all technologically feasible 
        and economically justified energy efficiency measures; 
        and
          [(3) otherwise participate in any industry process 
        for review and modification of such codes.]

SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES.

  (a) In General.--The Secretary shall provide technical 
assistance, as described in subsection (c), for updating of 
model building energy codes.
  (b) Targets.--
          (1) In general.--The Secretary shall provide 
        technical assistance, for updating the model building 
        energy codes.
          (2) Targets.--
                  (A) In general.--The Secretary shall provide 
                technical assistance to States, Indian tribes, 
                local governments, nationally recognized code 
                and standards developers, and other interested 
                parties for updating of model building energy 
                codes by establishing one or more aggregate 
                energy savings targets through rulemaking in 
                accordance with section 553 of title 5, United 
                States Code, to achieve the purposes of this 
                section.
                  (B) Separate targets.--Separate targets may 
                be established for commercial and residential 
                buildings.
                  (C) Baselines.--The baseline for updating 
                model building energy codes shall be the 2009 
                IECC for residential buildings and ASHRAE 
                Standard 90.1-2010 for commercial buildings.
                  (D) Specific years.--
                          (i) In general.--Targets for specific 
                        years shall be established and revised 
                        by the Secretary through rulemaking in 
                        accordance with section 553 of title 5, 
                        United States Code, and coordinated 
                        with nationally recognized code and 
                        standards developers at a level that--
                                  (I) is at the maximum level 
                                of energy efficiency that is 
                                technically feasible and cost 
                                effective, while accounting for 
                                the economic considerations 
                                under paragraph (4); and
                                  (II) promotes the achievement 
                                of commercial and residential 
                                high performance buildings 
                                through high performance energy 
                                efficiency (within the meaning 
                                of section 401 of the Energy 
                                Independence and Security Act 
                                of 2007 (42 U.S.C. 17061)).
                          (ii) Initial targets.--Not later than 
                        1 year after the date of enactment of 
                        this clause, the Secretary shall 
                        establish initial targets under this 
                        subparagraph.
                          (iii) Different target years.--
                        Subject to clause (i), prior to the 
                        applicable year, the Secretary may set 
                        a later target year for any of the 
                        model building energy codes described 
                        in subparagraph (A) if the Secretary 
                        determines that a target cannot be met.
                  (E) Small business.--When establishing 
                targets under this paragraph through 
                rulemaking, the Secretary shall ensure 
                compliance with the Small Business Regulatory 
                Enforcement Fairness Act of 1996 (5 U.S.C. 601 
                note; Public Law 104-121) for any indirect 
                economic effect on small entities that is 
                reasonably foreseeable and a result of such 
                rule.
          (3) Appliance standards and other factors affecting 
        building energy use.--In establishing energy savings 
        targets under paragraph (2), the Secretary shall 
        develop and adjust the targets in recognition of 
        potential savings and costs relating to--
                  (A) efficiency gains made in appliances, 
                lighting, windows, insulation, and building 
                envelope sealing;
                  (B) advancement of distributed generation and 
                on-site renewable power generation 
                technologies;
                  (C) equipment improvements for heating, 
                cooling, and ventilation systems and water 
                heating systems;
                  (D) building management systems and smart 
                grid technologies to reduce energy use; and
                  (E) other technologies, practices, and 
                building systems regarding building plug load 
                and other energy uses.
        In developing and adjusting the targets, the Secretary 
        shall use climate zone weighted averages for equipment 
        efficiency for heating, cooling, ventilation, and water 
        heating systems, using equipment that is actually 
        installed.
          (4) Economic considerations.--In establishing and 
        revising energy savings targets under paragraph (2), 
        the Secretary shall consider the economic feasibility 
        of achieving the proposed targets established under 
        this section and the potential costs and savings for 
        consumers and building owners, by conducting a return 
        on investment analysis, using a simple payback 
        methodology over a 3-, 5-, and 7-year period. The 
        Secretary shall not propose or provide technical or 
        financial assistance for any code, provision in the 
        code, or energy target, or amendment thereto, that has 
        a payback greater than 10 years.
  (c) Technical Assistance to Model Building Energy Code-
setting and Standard Development Organizations.--
          (1) In general.--The Secretary shall, on a timely 
        basis, provide technical assistance to model building 
        energy code-setting and standard development 
        organizations consistent with the goals of this 
        section.
          (2) Technical assistance.--The assistance shall 
        include, as requested by the organizations, technical 
        assistance in--
                  (A) evaluating the energy savings of building 
                energy codes;
                  (B) assessing the economic considerations, 
                under subsection (b)(4), of code or standards 
                proposals or revisions;
                  (C) building energy analysis and design 
                tools;
                  (D) energy simulation models;
                  (E) building demonstrations;
                  (F) developing definitions of energy use 
                intensity and building types for use in model 
                building energy codes to evaluate the 
                efficiency impacts of the model building energy 
                codes;
                  (G) developing a performance-based pathway 
                for compliance;
                  (H) developing model building energy codes by 
                Indian tribes in accordance with tribal law; 
                and
                  (I) code development meetings, including 
                through direct Federal employee participation 
                in committee meetings, hearings and online 
                communication, voting, and presenting research 
                and technical or economic analyses during such 
                meetings.
          (3) Exclusion.--Except as provided in paragraph 
        (2)(I), for purposes of this section, ``technical 
        assistance'' shall not include actions that promote or 
        discourage the adoption of a particular building energy 
        code, code provision, or energy savings target.
          (4) Information quality and transparency.--For 
        purposes of this section, information provided by the 
        Secretary, attendant to development of any energy 
        savings targets, is influential information and shall 
        satisfy the guidelines established by the Office of 
        Management and Budget and published at 67 Federal 
        Register 8,452 (Feb. 22, 2002).
  (d) Amendment Proposals.--
          (1) In general.--The Secretary may submit timely 
        model building energy code amendment proposals that are 
        technically feasible, cost-effective, and technology-
        neutral to the model building energy code-setting and 
        standard development organizations, with supporting 
        evidence, sufficient to enable the model building 
        energy codes to meet the targets established under 
        subsection (b)(2).
          (2) Process and factors.--All amendment proposals 
        submitted by the Secretary shall be published in the 
        Federal Register and made available on the Department 
        of Energy website 90 days prior to any submittal to a 
        code development body, and shall be subject to a public 
        comment period of not less than 60 days. Information 
        provided by the Secretary, attendant to submission of 
        any amendment proposals, is influential information and 
        shall satisfy the guidelines established by the Office 
        of Management and Budget and published at 67 Federal 
        Register 8,452 (Feb. 22, 2002). When calculating the 
        costs and benefits of an amendment, the Secretary shall 
        use climate zone weighted averages for equipment 
        efficiency for heating, cooling, ventilation, and water 
        heating systems, using equipment that is actually 
        installed.
  (e) Analysis Methodology.--The Secretary shall make publicly 
available the entire calculation methodology (including input 
assumptions and data) used by the Secretary to estimate the 
energy savings of code or standard proposals and revisions.
  (f) Methodology Development.--The Secretary shall establish a 
methodology for evaluating cost effectiveness of energy code 
changes in multifamily buildings that incorporates economic 
parameters representative of typical multifamily buildings.
  (g) Determination.--
          (1) Revision of model building energy codes.--If the 
        provisions of the IECC or ASHRAE Standard 90.1 
        regarding building energy use are revised, the 
        Secretary shall make a preliminary determination not 
        later than 90 days after the date of the revision, and 
        a final determination not later than 15 months after 
        the date of the revision, on whether or not the 
        revision--
                  (A) improves energy efficiency in buildings 
                compared to the existing IECC or ASHRAE 
                Standard 90.1, as applicable;
                  (B) meets the applicable targets under 
                subsection (b)(2); and
                  (C) is technically feasible and cost-
                effective.
          (2) Codes or standards not meeting criteria.--
                  (A) In general.--If the Secretary makes a 
                preliminary determination under paragraph 
                (1)(B) that a revised IECC or ASHRAE Standard 
                90.1 does not meet the targets established 
                under subsection (b)(2), is not technically 
                feasible, or is not cost-effective, the 
                Secretary may at the same time provide 
                technical assistance, as described in 
                subsection (c), to the International Code 
                Council or ASHRAE, as applicable, with proposed 
                changes that would result in a model building 
                energy code or standard that meets the 
                criteria, and with supporting evidence. 
                Proposed changes submitted by the Secretary 
                shall be published in the Federal Register and 
                made available on the Department of Energy 
                website 90 days prior to any submittal to a 
                code development body, and shall be subject to 
                a public comment period of not less than 60 
                days. Information provided by the Secretary, 
                attendant to submission of any amendment 
                proposals, is influential information and shall 
                satisfy the guidelines established by the 
                Office of Management and Budget and published 
                at 67 Federal Register 8,452 (Feb. 22, 2002).
                  (B) Incorporation of changes.--
                          (i) In general.--On receipt of the 
                        technical assistance, as described in 
                        subsection (c), the International Code 
                        Council or ASHRAE, as applicable, 
                        shall, prior to the Secretary making a 
                        final determination under paragraph 
                        (1), have an additional 270 days to 
                        accept or reject the proposed changes 
                        made by the Secretary to the model 
                        building energy code or standard.
                          (ii) Final determination.--A final 
                        determination under paragraph (1) shall 
                        be on the final revised model building 
                        energy code or standard.
  (h) Administration.--In carrying out this section, the 
Secretary shall--
          (1) publish notice of targets, amendment proposals 
        and supporting analysis and determinations under this 
        section in the Federal Register to provide an 
        explanation of and the basis for such actions, 
        including any supporting modeling, data, assumptions, 
        protocols, and cost-benefit analysis, including return 
        on investment;
          (2) provide an opportunity for public comment on 
        targets and supporting analysis and determinations 
        under this section, in accordance with section 553 of 
        title 5, United States Code; and
          (3) provide an opportunity for public comment on 
        amendment proposals.
  (i) Voluntary Codes and Standards.--Not withstanding any 
other provision of this section, any model building code or 
standard established under this section shall not be binding on 
a State, local government, or Indian tribe as a matter of 
Federal law.

           *       *       *       *       *       *       *

                              ----------                              


                   ENERGY POLICY AND CONSERVATION ACT

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act 
may be cited as the ``Energy Policy and Conservation Act''.

                            TABLE OF CONTENTS

     * * * * * * *

                 TITLE III--IMPROVING ENERGY EFFICIENCY

  Part B--Energy Conservation Program for Consumer Products Other Than 
                               Automobiles

     * * * * * * *
Sec. 324B. WaterSense.
     * * * * * * *

                   [Part I--Off-Highway Motor Vehicles

[Sec. 385. Off-Highway motor vehicle conservation study.]
     * * * * * * *

TITLE III--IMPROVING ENERGY EFFICIENCY

           *       *       *       *       *       *       *


 Part B--Energy Conservation Program for Consumer Products Other Than 
Automobiles

           *       *       *       *       *       *       *


                                coverage

  Sec. 322. (a) In General.--The following consumer products, 
excluding those consumer products designed solely for use in 
recreational vehicles and other mobile equipment, are covered 
products:
          (1) Refrigerators, refrigerator-freezers, and 
        freezers which can be operated by alternating current 
        electricity, excluding--
                  (A) any type designed to be used without 
                doors; and
                  (B) any type which does not include a 
                compressor and condenser unit as an integral 
                part of the cabinet assembly.
          (2) Room air conditioners.
          (3) Central air conditioners and central air 
        conditioning heat pumps.
          (4) Water heaters.
          (5) Furnaces.
          (6) Dishwashers.
          (7) Clothes washers.
          (8) Clothes dryers.
          (9) Direct heating equipment.
          (10) Kitchen ranges and ovens.
          (11) Pool heaters.
          (12) Television sets.
          (13) Fluorescent lamp ballasts.
          (14) General service fluorescent lamps, general 
        service incandescent lamps, and incandescent reflector 
        lamps.
          (15) Showerheads, except safety shower showerheads.
          (16) Faucets.
          (17) Water closets.
          (18) Urinals.
          (19) Metal halide lamp fixtures.
          (20) Any other type of consumer product which the 
        Secretary classifies as a covered product under 
        subsection (b).
  (b) Special Classification of Consumer Product.--(1) The 
Secretary may classify a type of consumer product as a covered 
product if he determines that--
          (A) classifying products of such type as covered 
        products is necessary or appropriate to carry out the 
        purposes of this Act, and
          (B) average annual per-household energy use by 
        products of such type is likely to exceed 100 kilowatt-
        hours (or its Btu equivalent) per year.
  (2) For purposes of this subsection:
          (A) The term ``average annual per-household energy 
        use with respect to a type of product'' means the 
        estimated aggregate annual energy use (in kilowatt-
        hours or the Btu equivalent) of consumer products of 
        such type which are used by households in the United 
        States, divided by the number of such households which 
        use products of such type.
          (B) The Btu equivalent of one kilowatt-hour is 3,412 
        British thermal units.
          (C) The term ``household'' shall be defined under 
        rules of the Secretary.
  (c) Modifying Definitions of Covered Products.--
          (1) In general.--For any covered product for which a 
        definition is provided in section 321, the Secretary 
        may, by rule, unless prohibited herein, modify such 
        definition in order to--
                  (A) address significant changes in the 
                product or the market occurring since the 
                definition was established; and
                  (B) better enable improvements in the energy 
                efficiency of the product as part of an energy 
                using system.
          (2) Antibacksliding exemption.--Section 325(o)(1) 
        shall not apply to adjustments to covered product 
        definitions made pursuant to this subsection.
          (3) Procedure for modifying definition.--
                  (A) In general.--Notice of any adjustment to 
                the definition of a covered product and an 
                explanation of the reasons therefor shall be 
                published in the Federal Register and 
                opportunity provided for public comment.
                  (B) Consensus required.--Any amendment to the 
                definition of a covered product under this 
                subsection must have consensus support, as 
                reflected in--
                          (i) the outcome of negotiations 
                        conducted in accordance with the 
                        subchapter III of chapter 5 of title 5, 
                        United States Code (commonly known as 
                        the ``Negotiated Rulemaking Act of 
                        1990''); or
                          (ii) the Secretary's receipt of a 
                        statement that is submitted jointly by 
                        interested persons that are fairly 
                        representative of relevant points of 
                        view (including representatives of 
                        manufacturers of covered products, 
                        States, and efficiency advocates), as 
                        determined by the Secretary, which 
                        contains a recommended modified 
                        definition for a covered product.
          (4) Effect of a modified definition.--
                  (A) In general.--For any type or class of 
                consumer product which becomes a covered 
                product pursuant to this subsection--
                          (i) the Secretary may establish test 
                        procedures for such type or class of 
                        covered product pursuant to section 323 
                        and energy conservation standards 
                        pursuant to section 325(l);
                          (ii) the Commission may prescribe 
                        labeling rules pursuant to section 324 
                        if the Commission determines that 
                        labeling in accordance with that 
                        section is technologically and 
                        economically feasible and likely to 
                        assist consumers in making purchasing 
                        decisions;
                          (iii) section 327 shall begin to 
                        apply to such type or class of covered 
                        product in accordance with section 
                        325(ii)(1); and
                          (iv) standards previously promulgated 
                        under section 325 shall not apply to 
                        such type or class of product.
                  (B) Applicability.--For any type or class of 
                consumer product which ceases to be a covered 
                product pursuant to this subsection, the 
                provisions of this part shall no longer apply 
                to the type or class of consumer product.

           *       *       *       *       *       *       *


                                labeling

  Sec. 324. (a) In General.--(1) The Commission shall prescribe 
labeling rules under this section applicable to all covered 
products of each of the types specified in paragraphs (1), (2), 
(4), (6), and (8) through (12) of section 322(a), except to the 
extent that, with respect to any such type (or class thereof), 
the Commission determines under the second sentence of 
subsection (b)(5) that labeling in accordance with this section 
is not technologically or economically feasible.
  (2)(A) The Commission shall prescribe labeling rules under 
this section applicable to all covered products of each of the 
types specified in paragraphs (3), (5), and (7) of section 
322(a), except to the extent that with respect to any such type 
(or class thereof), the Commission determines under the second 
sentence of subsection (b)(5) that labeling in accordance with 
this section is not technologically or economically feasible or 
is not likely to assist consumers in making purchasing 
decisions.
  (B) The Commission shall prescribe labeling rules under this 
section applicable to the covered product specified in 
paragraph (13) of section 322(a) and to which standards are 
applicable under section 325. Such rules shall provide that the 
labeling of any fluorescent lamp ballast manufactured on or 
after January 1, 1990, will indicate conspicuously, in a manner 
prescribed by the Commission under subsection (b) by July 1, 
1989, a capital letter ``E'' printed within a circle on the 
ballast and on the packaging of the ballast or of the luminaire 
into which the ballast has been incorporated.
          (C) Metal halide lamp fixtures.--
                  (i) In general.--The Commission shall issue 
                labeling rules under this section applicable to 
                the covered product specified in section 
                322(a)(19) and to which standards are 
                applicable under section 325.
                  (ii) Labeling.--The rules shall provide that 
                the labeling of any metal halide lamp fixture 
                manufactured on or after the later of January 
                1, 2009, or the date that is 270 days after the 
                date of enactment of this subparagraph, shall 
                indicate conspicuously, in a manner prescribed 
                by the Commission under subsection (b) by July 
                1, 2008, a capital letter ``E'' printed within 
                a circle on the packaging of the fixture, and 
                on the ballast contained in the fixture.
  (D)(i) Not later than 18 months after the date of the 
enactment of the Energy Policy Act of 1992, the Commission 
shall prescribe labeling rules under this section applicable to 
general service fluorescent lamps, medium base compact 
fluorescent lamps, and general service incandescent lamps. 
Except as provided in clause (ii), such rules shall provide 
that the labeling of any general service fluorescent lamp, 
medium base compact fluorescent lamp, and general service 
incandescent lamp manufactured after the 12-month period 
beginning on the date of the publication of such rule shall 
indicate conspicuously on the packaging of the lamp, in a 
manner prescribed by the Commission under subsection (b), such 
information as the Commission deems necessary to enable 
consumers to select the most energy efficient lamps which meet 
their requirements. Labeling information for incandescent lamps 
shall be based on performance when operated at 120 volts input, 
regardless of the rated lamp voltage.
  (ii) If the Secretary determines that compliance with the 
standards specified in section 325(i) for any lamp will result 
in the discontinuance of the manufacture of such lamp, the 
Commission may exempt such lamp from the labeling rules 
prescribed under clause (i).
          (iii) Rulemaking to consider effectiveness of lamp 
        labeling.--
                  (I) In general.--Not later than 1 year after 
                the date of enactment of this clause, the 
                Commission shall initiate a rulemaking to 
                consider--
                          (aa) the effectiveness of current 
                        lamp labeling for power levels or 
                        watts, light output or lumens, and lamp 
                        lifetime; and
                          (bb) alternative labeling approaches 
                        that will help consumers to understand 
                        new high-efficiency lamp products and 
                        to base the purchase decisions of the 
                        consumers on the most appropriate 
                        source that meets the requirements of 
                        the consumers for lighting level, light 
                        quality, lamp lifetime, and total 
                        lifecycle cost.
                  (II) Completion.--The Commission shall--
                          (aa) complete the rulemaking not 
                        later than the date that is 30 months 
                        after the date of enactment of this 
                        clause; and
                          (bb) consider reopening the 
                        rulemaking not later than 180 days 
                        before the effective dates of the 
                        standards for general service 
                        incandescent lamps established under 
                        section 325(i)(1)(A), if the Commission 
                        determines that further labeling 
                        changes are needed to help consumers 
                        understand lamp alternatives.
  (E)(i) Not later than one year after the date of the 
enactment of the Energy Policy Act of 1992, the Commission 
shall prescribe labeling rules under this section for 
showerheads and faucets to which standards are applicable under 
subsection (j) of section 325. Such rules shall provide that 
the labeling of any showerhead or faucet manufactured after the 
12-month period beginning on the date of the publication of 
such rule shall be consistent with the marking and labeling 
requirements of ASME A112.18.1M-1989, except that each 
showerhead and flow restricting or controlling spout-end device 
shall bear a permanent legible marking indicating the flow 
rate, expressed in gallons per minute (gpm) or gallons per 
cycle (gpc), and the flow rate value shall be the actual flow 
rate or the maximum flow rate specified by the standards 
established in subsection (j) of section 325.
  (ii) If the marking and labeling requirements of ASME 
A112.18.1M-1989 are revised at any time and approved by ANSI, 
the Commission shall amend the labeling rules established 
pursuant to clause (i) to be consistent with such revised ASME/
ANSI requirements unless such requirements are inconsistent 
with the purposes of this Act or the requirement specified in 
clause (i) requiring each showerhead and flow restricting or 
controlling spout-end device to bear a permanent legible 
marking indicating the flow rate of such product.
  (F)(i) Not later than one year after the date of the 
enactment of the Energy Policy Act of 1992, the Commission 
shall prescribe labeling rules under this section for water 
closets and urinals to which standards are applicable under 
subsection (k) of section