,,ii ,calendar ,no4 #bda #aadth ,,congress #ast ,session ,s4 #bjhi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bh1 #bjae ,ms4 ,cantwell 7for herself1 ,mr4 ,reid1 ,mr4 ,wyden1 ,mr4 ,durbin1 ,mr4 ,schumer1 ,ms4 ,stabenow1 ,mr4 ,heinrich1 ,mr4 ,franken1 ,ms4 ,hirono1 ,ms4 ,warren1 ,mrs4 ,shaheen1 ,ms4 ,mikulski1 ,mr4 ,coons1 ,mr4 ,bennet1 ,mr4 ,murphy1 ,mr4 ,markey1 ,mrs4 ,feinstein1 ,mr4 ,blumenthal1 ,mr4 ,peters1 ,mr4 ,schatz1 ,mr4 ,reed1 ,mrs4 ,murray1 ,mr4 ,cardin1 ,mr4 ,carper1 ,mr4 ,king1 ,mr4 ,merkley1 ,mr4 ,booker1 ,mrs4 ,boxer1 ,ms4 ,klobuchar1 and ,mrs4 ,gillibrand7 introduced the following bill2 which was read the first time ,september #bi1 #bjae,read the second time and placed on the calendar ,a ,,bill ,to provide for investment in clean energy1 to empower and protect consumers1 to modernize energy infrastructure1 to cut pollution and waste1 to invest in research and development1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,american ,energy ,innovation ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,definitions4 ,,title ,i--,empowering and protecting consumers ,subtitle ,a--,access to consumer energy information ,sec4 #ajja4 ,consumer access to electric energy information4 ,subtitle ,b--,unfair trade practices prohibition in distributed generation ,sec4 #ajaa4 ,investigation of distributed generation4 ,subtitle ,c--,enhanced grid security ,sec4 #ajba4 ,cybersecurity threats4 ,sec4 #ajbb4 ,enhanced grid security4 ,subtitle ,d--,capacity markets study ,sec4 #ajca4 ,,gao capacity market impact study4 ,subtitle ,e--,severe coal supply emergency response ,sec4 #ajda4 ,severe coal supply emergency response4 ,subtitle ,f--,energy markets ,sec4 #ajea4 ,enhanced information on critical energy supplies4 ,sec4 #ajeb4 ,working ,group on ,energy ,markets4 ,sec4 #ajec4 ,study of regulatory framework for energy markets4 ,subtitle ,g--,transmission ,sec4 #ajfa4 ,report by transmission organizations on distributed energy resources and microgrid systems4 ,sec4 #ajfb4 ,net metering study guidance4 ,,title ,,ii--,modernizing infrastructure ,subtitle ,a--,,qer recommendations ,sec4 #bjja4 ,natural gas distribution system improvement program4 ,sec4 #bjjb4 ,strategy for managing the risks associated with the loss or disruption of power from large power transformers4 ,sec4 #bjjc4 ,consolidation of release authorities4 ,sec4 #bjjd4 ,modernization of ,strategic ,petroleum ,reserve release authorities4 ,sec4 #bjje4 ,optimization of emergency response capability of ,strategic ,petroleum ,reserve4 ,subtitle ,b--,grid modernization and storage ,sec4 #bjaa4 ,definition of ,secretary4 ,sec4 #bjab4 ,grid storage program4 ,sec4 #bjac4 ,technology demonstration and the distribution system4 ,sec4 #bjad4 ,microgrid systems for isolated and resilient communities4 ,sec4 #bjae4 ,electric system grid architecture1 scenario development1 and modeling4 ,sec4 #bjaf4 ,voluntary model pathways4 ,sec4 #bjag4 ,performance metrics for electricity infrastructure providers4 ,sec4 #bjah4 ,state and regional distribution planning4 ,sec4 #bjai4 ,authorization of appropriations4 ,sec4 #bjbj4 ,state consideration of resilience4 ,subtitle ,c--,advanced manufacturing ,sec4 #bjba4 ,advanced ,manufacturing ,office4 ,sec4 #bjbb4 ,national ,advanced ,manufacturing ,plan4 ,sec4 #bjbc4 ,advanced manufacturing supply chain report4 ,sec4 #bjbd4 ,leveraging existing agency programs to assist small and medium manufacturers4 ,sec4 #bjbe4 ,advanced ,manufacturing ,innovation ,hubs4 ,sec4 #bjbf4 ,advanced ,materials ,prize ,competition ,pilot ,program4 ,sec4 #bjbg4 ,pilot program with original equipment manufacturers and public utilities4 ,subtitle ,d--,building better trucks ,sec4 #bjca4 ,advanced technology vehicles manufacturing incentive program4 ,subtitle ,e--,vehicle innovation ,sec4 #bjda4 ,findings4 ,sec4 #bjdb4 ,objectives4 ,sec4 #bjdc4 ,vehicle research and development program4 ,sec4 #bjdd4 ,medium- and heavy-duty commercial and transit vehicles program4 ,sec4 #bjde4 ,authorization of appropriations4 ,subtitle ,f--,carbon fiber recycling ,sec4 #bjea4 ,recycled carbon fiber study4 ,sec4 #bjeb4 ,carbon fiber recycling demonstration project4 ,sec4 #bjec4 ,authorization of appropriations4 ,subtitle ,g--,job creation through energy efficient manufacturing ,sec4 #bjfa4 ,purpose4 ,sec4 #bjfb4 ,definitions4 ,sec4 #bjfc4 ,financing ,energy ,efficient ,manufacturing ,program4 ,sec4 #bjfd4 ,authorization of appropriations4 ,subtitle ,h--#bast ,century energy workforce ,sec4 #baja4 ,findings4 ,sec4 #bajb4 ,definitions4 ,sec4 #bajc4 ,national ,center of ,excellence for the #bast ,century ,workforce4 ,sec4 #bajd4 ,energy workforce pilot grant program4 ,subtitle ,i--,solar installations ,sec4 #baaa4 ,loan and grant program for solar installations in low-income and underserved areas4 ,subtitle ,j--,local ,energy ,supply and ,resiliency ,act ,sec4 #baba4 ,definitions4 ,sec4 #babb4 ,distributed energy loan program4 ,sec4 #babc4 ,technical assistance and grant program4 ,subtitle ,k--,geothermal energy opportunities ,sec4 #baca4 ,national goals for production and site identification4 ,sec4 #bacb4 ,priority areas for development on ,federal land4 ,sec4 #bacc4 ,facilitation of coproduction of geothermal energy on oil and gas leases4 ,sec4 #bacd4 ,cost-shared exploration4 ,sec4 #bace4 ,use of geothermal lease revenues4 ,sec4 #bacf4 ,noncompetitive leasing of adjoining areas for development of geothermal resources4 ,sec4 #bacg4 ,large-scale geothermal energy4 ,sec4 #bach4 ,report to ,congress4 ,sec4 #baci4 ,authorization of appropriations4 ,subtitle ,l--,clean coal technology research ,sec4 #bada4 ,fossil energy4 ,subtitle ,m--,long-term contracts ,sec4 #baea4 ,contracts for ,federal purchases of energy4 ,subtitle ,n--,promoting renewable energy with shared solar ,sec4 #bafa4 ,provision of interconnection service and net billing service for community solar facilities4 ,subtitle ,o--,report on ,low- and ,no-,carbon ,energy ,technologies ,sec4 #baga4 ,report4 ,subtitle ,p--,loan programs ,sec4 #baha4 ,terms and conditions for incentives for innovative technologies4 ,sec4 #bahb4 ,state loan eligibility4 ,,title ,,iii--,cutting pollution and waste ,subtitle ,a--,carbon savings goal ,sec4 #cjja4 ,policy of ,united ,states on addressing climate change4 ,subtitle ,b--,american energy efficiency ,sec4 #cjaa4 ,energy efficiency resource standard for retail electricity and natural gas suppliers4 ,subtitle ,c--,energy efficiency retrofit program ,sec4 #cjba4 ,energy efficiency retrofit pilot program4 ,subtitle ,d--,weatherization enhancement and local energy efficiency investment and accountability ,sec4 #cjca4 ,findings4 ,sec4 #cjcb4 ,reauthorization of ,weatherization ,assistance ,program4 ,sec4 #cjcc4 ,grants for new1 self-sustaining low-income1 single-family1 and multifamily housing energy retrofit model programs to eligible multi-,state housing and energy nonprofit organizations4 ,sec4 #cjcd4 ,standards program4 ,sec4 #cjce4 ,reauthorization of ,state energy program4 ,subtitle ,e--,utility energy service contracts improvement ,sec4 #cjda4 ,findings4 ,sec4 #cjdb4 ,utility energy service contracts4 ,subtitle ,f--,state residential building energy efficiency loan pilot program ,sec4 #cjea4 ,state residential building energy efficiency upgrades loan pilot program4 ,subtitle ,g--,smart energy and water efficiency ,sec4 #cjfa4 ,smart energy and water efficiency pilot program4 ,subtitle ,h--,regional energy partnerships ,sec4 #cjga4 ,definitions4 ,sec4 #cjgb4 ,regional energy partnerships4 ,sec4 #cjgc4 ,authorization of appropriations4 ,subtitle ,i--,energy ,productivity ,innovation ,challenge ,sec4 #cjha4 ,definitions4 ,sec4 #cjhb4 ,phase #a3 ,initial allocation of grants to ,states4 ,sec4 #cjhc4 ,phase #b3 ,subsequent allocation of grants to ,states4 ,sec4 #cjhd4 ,allocation of grants to ,indian tribes4 ,sec4 #cjhe4 ,administration4 ,sec4 #cjhf4 ,authorization of appropriations4 ,subtitle ,j--,smart buildings ,sec4 #cjia4 ,definitions4 ,subtitle ,k--,energy ,study ,sec4 #caja4 ,energy information study4 ,sec4 #cajb4 ,grants to utilities4 ,sec4 #cajc4 ,grants to ,states and units of local government4 ,sec4 #cajd4 ,input ,from ,stakeholders4 ,sec4 #caje4 ,report4 ,subtitle ,l--,alternative fueled vehicles ,sec4 #caaa4 ,alternative fueled vehicle fleets and infrastructure4 ,subtitle ,m--,outer ,continental ,shelf ,sec4 #caba4 ,repeal of outer ,continental ,shelf deep water and deep gas royalty relief4 ,sec4 #cabb4 ,disposition of qualified outer ,continental ,shelf revenues from #aha ,area1 #aha ,south ,area1 and #bjjb-bjjg planning areas of ,gulf of ,mexico4 ,subtitle ,n--,venting and flaring of gas ,sec4 #caca4 ,regulations to prevent or minimize venting and flaring of gas4 ,sec4 #cacb4 ,assessment of venting and flaring of gas in production operations in ,united ,states4 ,sec4 #cacc4 ,regulations4 ,subtitle ,o--,production ,incentive ,fee ,sec4 #cada4 ,production incentive fee4 ,subtitle ,p--,reauthorization of ,desalination ,act ,sec4 #caea4 ,reauthorization of ,desalination ,act4 ,sec4 #caeb4 ,promoting water efficiency with ,water,sense4 ,sec4 #caec4 ,increasing opportunities for agricultural conservation4 ,sec4 #caed4 ,support for innovative water supply and conservation technologies4 ,,title ,,iv--,investing in ,research and ,development ,sec4 #djja4 ,basic research4 ,sec4 #djjb4 ,advanced ,research ,projects ,agency-,energy4 ,,title ,v--,investing in clean energy ,sec4 #ejja4 ,amendment of #aihf ,code4 ,subtitle ,a--,clean energy tax credits ,sec4 #ejaa4 ,clean energy production credit4 ,sec4 #ejab4 ,clean energy investment credit4 ,sec4 #ejac4 ,extensions and modifications of various energy provisions4 ,subtitle ,b--,clean fuel tax credits ,sec4 #ejba4 ,clean fuel production credit4 ,sec4 #ejbb4 ,temporary extension of existing fuel incentives4 ,subtitle ,c--,energy ,efficiency ,incentives ,sec4 #ejca4 ,credit for new energy efficient residential buildings4 ,sec4 #ejcb4 ,energy efficiency credit for existing residential buildings4 ,sec4 #ejcc4 ,deduction for new energy efficient commercial buildings4 ,sec4 #ejcd4 ,energy efficiency deduction for existing commercial buildings4 ,subtitle ,d--,clean ,electricity and ,fuel ,bonds ,sec4 #ejda4 ,clean ,energy ,bonds4 ,subtitle ,e--,treatment of tar sands under excise taxes ,sec4 #ejea4 ,clarification of tar sands as crude oil for excise tax purposes4 ,subtitle ,f--,closing big oil tax loopholes ,sec4 #ejfa4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers4 ,sec4 #ejfb4 ,limitation on section #aii deduction attributable to oil1 natural gas1 or primary products thereof4 ,sec4 #ejfc4 ,limitation on deduction for intangible drilling and development costs2 amortization of disallowed amounts4 ,sec4 #ejfd4 ,limitation on percentage depletion allowance for oil and gas wells4 ,sec4 #ejfe4 ,limitation on deduction for tertiary injectants4 ,,title ,,vi--,conservation reauthorization ,sec4 #fjja4 ,national ,park ,service ,centennial ,fund4 ,sec4 #fjjb4 ,land and ,water ,conservation ,fund4 ,sec4 #fjjc4 ,historic preservation fund4 #b4 ,definitions ,in this ,act3 7#a7 ,department ,the term ,department means the ,department of ,energy4 7#b7 ,secretary ,except as otherwise provided in this ,act1 the term ,secretary means the ,secretary of ,energy4 ,i ,empowering and protecting consumers ,a ,access to consumer energy information #ajja4 ,consumer access to electric energy information 7a7 ,in general ,the ,secretary shall encourage and support the adoption of policies that allow electricity consumers access to their own electricity data4 7b7 ,eligibility for ,state energy plans ,section #cfb7;d7 of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcbb7;d77 is amended-- 7#a7 in paragraph 7#af71 by striking and after the semicolon at the end2 7#b7 by redesignating paragraph 7#ag7 as paragraph 7#ah72 and 7#c7 by inserting after paragraph 7#af7 the following3 7#ag7 programs-- 7,a7 to enhance consumer access to and understanding of energy usage and price information1 including consumers' own residential and commercial electricity information2 and 7,b7 to allow for the development and adoption of innovative products and services to assist consumers in managing energy consumption and expenditures2 and 4 7c7 ,voluntary guidelines for electric consumer access 7#a7 ,definitions ,in this subsection3 7,a7 ,retail electric energy information ,the term retail electric energy information means-- 7i7 the electric energy consumption of an electric consumer over a defined time period2 7ii7 the retail electric energy prices or rates applied to the electricity usage for the defined time period described in clause 7i7 for the electric consumer2 7iii7 the estimated cost of service by the consumer1 including 7if smart meter usage information is available7 the estimated cost of service since the last billing cycle of the consumer2 and 7iv7 in the case of nonresidential electric meters1 any other electrical information that the meter is programmed to record 7such as demand measured in kilowatts1 voltage1 frequency1 current1 and power factor74 7,b7 ,smart meter ,the term smart meter means the device used by an electric utility that-- 7i7 7,i7 measures electric energy consumption by an electric consumer at the home or facility of the electric consumer in intervals of #a hour or less2 and 7,,ii7 is capable of sending electric energy usage information through a communications network to the electric utility2 or 7ii7 meets the guidelines issued under paragraph 7#b74 7#b7 ,voluntary guidelines for electric consumer access 7,a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 subject to subparagraph 7,b71 the ,secretary shall issue voluntary guidelines that establish model standards for implementation of retail electric energy information access in ,states4 7,b7 ,consultation ,before issuing the voluntary guidelines1 the ,secretary shall-- 7i7 consult with-- 7,i7 ,state and local regulatory authorities1 including the ,national ,association of ,regulatory ,utility ,commissioners2 7,,ii7 other appropriate ,federal agencies1 including the ,national ,institute of ,standards and ,technology2 7,,iii7 consumer and privacy advocacy groups2 7,,iv7 utilities2 7,v7 the ,national ,association of ,state ,energy ,officials2 and 7,,vi7 other appropriate entities1 including groups representing commercial and residential building owners and groups that represent demand response and electricity data devices and services2 and 7ii7 provide notice and opportunity for comment4 7,c7 ,state and local regulatory action ,in issuing the voluntary guidelines1 the ,secretary shall1 to the maximum extent practicable1 be guided by actions taken by ,state and local regulatory authorities to ensure electric consumer access to retail electric energy information1 including actions taken after consideration of the standard established under section #aaa7;d77#ag7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77#ag774 7,d7 ,contents 7i7 ,in general ,the voluntary guidelines shall provide guidance on issues necessary to carry out this subsection1 including-- 7,i7 the timeliness and specificity of retail electric energy information2 7,,ii7 appropriate nationally recognized open standards for data2 7,,iii7 the protection of data security and electric consumer privacy1 including consumer consent requirements2 and 7,,iv7 issues relating to access of electric energy information for owners and managers of multitenant commercial and residential buildings4 7ii7 ,inclusions ,the voluntary guidelines shall include guidance that-- 7,i7 retail electric energy information should be made available to electric consumers 7and third-party designees of the electric consumers7 in the ,united ,states-- 7aa7 in an electronic machine readable form1 without additional charge1 in conformity with standards developed through a voluntary1 consensus-based1 multistakeholder process2 7bb7 as timely as is reasonably practicable2 7cc7 at the level of specificity that the data is transmitted by the meter or as is reasonably practicable2 and 7dd7 in a manner that provides adequate protections for the security of the information and the privacy of the electric consumer2 7,,ii7 in the case of an electric consumer that is served by a smart meter that can also communicate energy usage information to a device or network of an electric consumer or a device or network of a third party authorized by the consumer1 considers providing to the consumer or third-party designee1 at a minimum1 access to usage information 7not including price information7 of the consumer directly from the smart meter2 7,,iii7 retail electric energy information should be provided by the electric utility of the consumer or such other entity as may be designated by the applicable electric retail regulatory authority2 7,,iv7 retail electric energy information of the consumer should be made available to the consumer through a website or other electronic access authorized by the electric consumer1 for a period of at least #ac months after the date on which the usage occurred2 7,v7 consumer access to data1 including data provided to owners and managers of commercial and multifamily buildings with multiple tenants1 should not interfere with or compromise the integrity1 security1 or privacy of the operations of a utility and the electric consumer2 7,,vi7 electric energy information relating to usage information generated by devices in or on the property of the consumer that is transmitted to the electric utility should be made available to the electric consumer or the third-party agent designated by the electric consumer2 and 7,,vii7 the same privacy and security requirements applicable to the contracting utility under subclause 7,i77dd7 should apply to third-party agents contracting with a utility to process the customer data of that utility4 7,e7 ,revisions ,the ,secretary shall periodically review and1 as necessary1 revise the voluntary guidelines to reflect changes in technology1 privacy needs1 and the market for electric energy and services4 7d7 ,verification and implementation 7#a7 ,in general ,a ,state may submit to the ,secretary a description of the data sharing policies of the ,state relating to consumer access to electric energy information for certification by the ,secretary that the policies meet the voluntary guidelines issued under subsection 7c77#b74 7#b7 ,assistance ,subject to the availability of funds under paragraph 7#c71 the ,secretary shall make ,federal amounts available to any ,state that has data sharing policies described in paragraph 7#a7 that the ,secretary certifies meets the voluntary guidelines issued under subsection 7c77#b7 to assist the ,state in implementing section #cfb7;d77#ag7 of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcbb7;d77#ag774 7#c7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this subsection #aj1jjj1jjj for fiscal year #bjaf1 to remain available until expended4 ,b ,unfair trade practices prohibition in distributed generation #ajaa4 ,investigation of distributed generation 7a7 ,definitions ,in this section3 7#a7 ,distributed generation ,the term distributed generation means the generation of electric energy for use at or near the point of generation4 7#b7 ,electric consumer ,the term electric consumer means any person to whom electric energy is sold for purposes other than resale4 7#c7 ,electric utility ,the term electric utility means any person that sells electric energy4 7#d7 ,interconnection practice ,the term interconnection practice means any rate1 charge1 fee1 requirement1 or contractual term required by an electric utility-- 7,a7 to connect a distributed energy facility owned or operated by an electric consumer to facilities of the electric utility2 7,b7 to purchase from an electric consumer electric energy generated by a distributed generation facility2 or 7,c7 to sell electric energy to an electric consumer that owns or operates a distributed generation facility4 7b7 ,investigation ,the ,federal ,trade ,commission shall conduct an investigation to determine the extent to which interconnection practices impede the use of distributed generation4 7c7 ,report ,on completion of the investigation under subsection 7b71 the ,federal ,trade ,commission shall-- 7#a7 identify any interconnection practice that substantially injures electric consumers and violates public policies promoting the development of distributed generation2 7#b7 determine whether any interconnection practice identified under paragraph 7#a7 is an unfair act or practice in or affecting commerce in violation of section #e of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #de72 and 7#c7 report to ,congress the findings and conclusions of the investigation 7including the determinations under paragraphs 7#a7 and 7#b77 and any recommendations for additional legislation that the ,commission determines is needed to remove unfair impediments to the development of distributed generation4 ,c ,enhanced grid security #ajba4 ,cybersecurity threats ,part ,,ii of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbd et seq47 is amended by adding at the end the following3 #bbd4 ,cybersecurity threats 7a7 ,definitions ,in this section3 7#a7 ,bulk-power system ,the term bulk-power system has the meaning given the term in section #bae4 7#b7 ,cybersecurity threat ,the term cybersecurity threat means the imminent danger of an act that severely disrupts1 attempts to severely disrupt1 or poses a significant risk of severely disrupting the operation of programmable electronic devices or communications networks 7including hardware1 software1 and data7 essential to the reliable operation of the bulk-power system4 7#c7 ,electric reliability organization ,the term ,electric ,reliability ,organization has the meaning given the term in section #bae4 7#d7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 7b7 ,emergency ,authority of ,secretary 7#a7 ,in general ,if the ,president notifies the ,secretary that the ,president has made a determination that immediate action is necessary to protect the bulk-power system from a cybersecurity threat1 the ,secretary may require1 by order and with or without notice1 any entity that is registered with the ,electric ,reliability ,organization as an owner1 operator1 or user of the bulk-power system to take such actions as the ,secretary determines will best avert or mitigate the cybersecurity threat4 7#b7 ,written explanation ,as soon as practicable after notifying the ,secretary under paragraph 7#a71 the ,president shall-- 7,a7 provide to the ,secretary1 in writing1 a record of the determination and an explanation of the reasons for the determination2 and 7,b7 promptly notify1 in writing1 congressional committees of relevant jurisdiction1 including the ,committee on ,energy and ,natural ,resources of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives1 of the contents of1 and justification for1 the directive or determination4 7#c7 ,coordination with ,canada and ,mexico ,in exercising the authority pursuant to this subsection1 the ,secretary is encouraged to consult and coordinate with the appropriate officials in ,canada and ,mexico responsible for the protection of cybersecurity of the interconnected ,north ,american electricity grid4 7#d7 ,consultation ,before exercising authority pursuant to this subsection1 to the maximum extent practicable1 taking into consideration the nature of an identified cybersecurity threat and the urgency of need for action1 the ,secretary shall consult regarding implementation of actions that will effectively address the cybersecurity threat with-- 7,a7 any entities potentially subject to the cybersecurity threat that own1 control1 or operate bulk-power system facilities2 7,b7 the ,electric ,reliability ,organization2 7,c7 the ,electricity ,sub-sector ,coordinating ,council 7as established by the ,electric ,reliability ,organization72 and 7,d7 officials of other ,federal departments and agencies1 as appropriate4 7#e7 ,cost recovery 7,a7 ,in general ,the ,commission shall adopt regulations that permit entities subject to an order under paragraph 7#a7 to seek recovery of prudently incurred costs required to implement actions ordered by the ,secretary under this subsection4 7,b7 ,requirements ,any rate or charge approved under regulations adopted pursuant to this paragraph-- 7i7 shall be just and reasonable2 and 7ii7 shall not be unduly discriminatory or preferential4 7c7 ,duration of emergency orders ,an order issued by the ,secretary pursuant to subsection 7b7 shall remain in effect for not longer than the #cj-;day period beginning on the effective date of the order1 unless1 during that #cj day-period1 the ,secretary-- 7#a7 provides to interested persons an opportunity to submit written data1 recommendations1 and arguments2 and 7#b7 affirms1 amends1 or repeals the order1 subject to the condition that an amended order shall not exceed a total duration of #ij days4 4 #ajbb4 ,enhanced grid security 7a7 ,definitions ,in this section3 7#a7 ,electric utility ,the term electric utility has the meaning given the term in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif74 7#b7 ,,es-,,isac ,the term ,,es-,,isac means the ,electricity ,sector ,information ,sharing and ,analysis ,center4 7#c7 ,national laboratory ,the term ,national ,laboratory has the meaning given the term in section #b of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja74 7#d7 ,sector-specific agency ,the term ,sector-,specific ,agency has the meaning given the term in the ,presidential policy directive entitled ,critical ,infrastructure ,security and ,resilience1 numbered #ba1 and dated ,february #ab1 #bjac4 7b7 ,sector-specific agency for cybersecurity for the energy sector 7#a7 ,in general ,the ,department shall be the lead ,sector-,specific ,agency for cybersecurity for the energy sector4 7#b7 ,duties ,as the designated ,sector-,specific ,agency for cybersecurity1 the duties of the ,department shall include-- 7,a7 coordinating with the ,department of ,homeland ,security and other relevant ,federal departments and agencies2 7,b7 collaborating with-- 7i7 critical infrastructure owners and operators2 and 7ii7 as appropriate-- 7,i7 independent regulatory agencies2 and 7,,ii7 ,state1 local1 tribal and territorial entities2 7,c7 serving as a day-to-day ,federal interface for the dynamic prioritization and coordination of sector-specific activities2 7,d7 carrying out incident management responsibilities consistent with applicable law 7including regulations7 and other appropriate policies or directives2 7,e7 providing1 supporting1 or facilitating technical assistance and consultations for the energy sector to identify vulnerabilities and help mitigate incidents1 as appropriate2 and 7,f7 supporting the reporting requirements of the ,department of ,homeland ,security under applicable law by providing1 on an annual basis1 sector-specific critical infrastructure information4 7c7 ,cybersecurity for the energy sector research1 development1 and demonstration program 7#a7 ,in general ,the ,secretary1 in consultation with appropriate ,federal agencies1 the energy sector1 the ,states1 and other stakeholders1 shall carry out a program-- 7,a7 to develop advanced cybersecurity applications and technologies for the energy sector-- 7i7 to identify and mitigate vulnerabilities1 including-- 7,i7 dependencies on other critical infrastructure2 and 7,,ii7 impacts from weather and fuel supply2 and 7ii7 to advance the security of field devices1 third-party control systems1 and applications1 including-- 7,i7 systems for generation1 transmission1 distribution1 end use1 and market functions2 7,,ii7 specific electric grid elements including advanced metering1 demand response1 distributed generation1 and electricity storage2 7,,iii7 forensic analysis of infected systems2 and 7,,iv7 secure communications2 7,b7 to leverage electric grid architecture as a means to assess risks to the energy sector1 including by implementing an all-hazards approach to communications infrastructure1 control systems architecture1 and power systems architecture2 7,c7 to perform pilot demonstration projects with the energy sector to gain experience with new technologies2 and 7,d7 to develop workforce development curricula for energy sector-related cybersecurity4 7#b7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this subsection #fe1jjj1jjj for each of fiscal years #bjag through #bjbe4 7d7 ,energy sector component testing for cyberresilience program 7#a7 ,in general ,the ,secretary shall carry out a program-- 7,a7 to establish a cybertesting and mitigation program to identify vulnerabilities of energy sector supply chain products to known threats2 7,b7 to oversee third-party cybertesting2 and 7,c7 to develop procurement guidelines for energy sector supply chain components4 7#b7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this subsection #ae1jjj1jjj for each of fiscal years #bjag through #bjbe4 7e7 ,energy sector operational support for cyberresilience program 7#a7 ,in general ,the ,secretary may carry out a program-- 7,a7 to enhance and periodically test-- 7i7 the emergency response capabilities of the ,department2 and 7ii7 the coordination of the ,department with other agencies1 the ,national ,laboratories1 and private industry2 7,b7 to expand cooperation of the ,department with the public sector and intelligence communities for energy sector-related threat collection and analysis2 7,c7 to enhance the tools of the ,department and ,,es-,,isac for monitoring the status of the energy sector2 7,d7 to expand industry participation in ,,es-,,isac2 and 7,e7 to provide technical assistance to small electric utilities for purposes of assessing cybermaturity level4 7#b7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this subsection #aj1jjj1jjj for each of fiscal years #bjag through #bjbe4 7f7 ,modeling and assessing energy infrastructure risk 7#a7 ,in general ,the ,secretary shall develop an advanced energy security program to secure energy networks and applications1 including electric1 natural gas1 and oil exploration1 transmission1 and delivery4 7#b7 ,security and resiliency objective ,the objective of the program developed under paragraph 7#a7 is to increase the functional preservation of the electric grid operations or natural gas and oil operations in the face of natural and human-made threats and hazards1 including electric magnetic pulse and geomagnetic disturbances4 7#c7 ,eligible activities ,in carrying out the program developed under paragraph 7#a71 the ,secretary may-- 7,a7 develop capabilities to identify vulnerabilities and critical components that pose major risks to grid security if destroyed or impaired2 7,b7 provide modeling at the national level to predict impacts from natural or human-made events2 7,c7 develop a maturity model for physical security and cybersecurity2 7,d7 conduct exercises and assessments to identify and mitigate vulnerabilities to the electric grid1 including providing mitigation recommendations2 7,e7 conduct research hardening solutions for critical components of the electric grid2 7,f7 conduct research mitigation and recovery solutions for critical components of the electric grid2 and 7,g7 provide technical assistance to ,states and other entities for standards and risk analysis4 7#d7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this subsection #aj1jjj1jjj for each of fiscal years #bjag through #bjbe4 7g7 ,leveraging existing programs ,the programs established under this section shall be carried out consistent with-- 7#a7 the report of the ,department entitled ,roadmap to ,achieve ,energy ,delivery ,systems ,cybersecurity and dated #bjaa2 7#b7 existing programs of the ,department2 and 7#c7 any associated strategic framework that links together academic and ,national ,laboratory researchers1 electric utilities1 manufacturers1 and any other relevant private industry organizations1 including the ,electricity ,sub-sector ,coordinating ,council4 7h7 ,study 7#a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary1 in consultation with the ,federal ,energy ,regulatory ,commission and the ,north ,american ,electric ,reliability ,corporation1 shall conduct a study to explore alternative management structures and funding mechanisms to expand industry membership and participation in ,,es-,,isac4 7#b7 ,report ,the ,secretary shall submit to the appropriate committees of ,congress a report describing the results of the study conducted under paragraph 7#a74 ,d ,capacity markets study #ajca4 ,,gao capacity market impact study ,not later than #ahj days after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall-- 7#a7 conduct a study of the effects of forward capacity auctions or other capacity mechanisms that have been established by ,independent ,system ,operators or ,regional ,transmission ,organizations on-- 7,a7 consumer prices for electricity2 7,b7 the installation of new electrical generation systems2 7,c7 the preservation of existing electrical generation systems2 and 7,d7 competition in energy markets1 including the potential for the use of undue market power or manipulation in the auctions2 and 7#b7 submit to the appropriate committees of ,congress a report describing the results of the study conducted under paragraph 7#a71 including an assessment of whether the auctions or capacity mechanisms are producing rates that are just and reasonable4 ,e ,severe coal supply emergency response #ajda4 ,severe coal supply emergency response 7a7 ,definitions ,in this section3 7#a7 ,board ,the term ,board means the ,surface ,transportation ,board4 7#b7 ,electric reliability organization ,the term ,electric ,reliability ,organization has the meaning given the term in section #bae of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdo74 7#c7 ,form ,,oe-#dag ,the term ,form ,,oe-#dag means the form entitled ,electric ,emergency ,incident and ,disturbance ,report 7or a successor form7 and filed in accordance with the ,federal ,energy ,administration ,act of #aigd 7#ae ,u4,s4,c4 #gfa et seq474 7#d7 ,severe coal supply emergency ,the term severe coal supply emergency means a coal supply deficiency reported to the ,department on ,form ,,oe-#dag4 7b7 ,coordination and report 7#a7 ,reporting duty ,on the filing of a ,form ,,oe-#dag that reports a severe coal supply emergency1 the ,secretary shall notify the ,board and the ,federal ,energy ,regulatory ,commission4 7#b7 ,consultation and coordination ,the ,secretary1 the ,board1 the ,federal ,energy ,regulatory ,commission1 and1 as appropriate1 the ,electric ,reliability ,organization1 shall1 to the maximum extent practicable1 consult and coordinate with each other to alleviate and prevent recurrences of a severe coal supply emergency4 7#c7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,secretary1 in consultation with the ,board1 the ,commission1 and1 as appropriate1 the ,electric ,reliability ,organization1 shall submit a report to ,congress that analyzes and includes recommendations with respect to-- 7,a7 the effects of rail congestion on the flow of energy commodities such as coal2 7,b7 the effects of rail congestion on the reliability of the bulk-power system 7as that term is defined in section #bae of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdo772 7,c7 the advisability of creating a minimum coal stockpile requirement2 and 7,d7 other appropriate measures that could prevent the development or recurrence of severe coal supply emergencies4 ,f ,energy markets #ajea4 ,enhanced information on critical energy supplies 7a7 ,in general ,section #bje of the ,department of ,energy ,organization ,act 7#db ,u4,s4,c4 #gace7 is amended by adding at the end the following3 7n7 ,collection of information on critical energy supplies 7#a7 ,in general ,to ensure transparency of information relating to energy infrastructure and product ownership in the ,united ,states and improve the ability to evaluate the energy security of the ,united ,states1 the ,administrator1 in consultation with other ,federal agencies 7as necessary71 shall-- 7,a7 not later than #abj days after the date of enactment of this subsection1 develop and provide notice of a plan to collect1 in cooperation with the ,commodity ,futures ,trade ,commission1 information identifying all oil inventories1 and other physical oil assets 7including all petroleum-based products and the storage of such products in off-shore tankers71 that are owned by the #ej largest traders of oil contracts 7including derivative contracts71 as determined by the ,commodity ,futures ,trade ,commission2 and 7,b7 not later than #ij days after the date on which notice is provided under subparagraph 7,a71 implement the plan described in that subparagraph4 7#b7 ,information ,the plan required under paragraph 7#a7 shall include a description of the plan of the ,administrator for collecting company-specific data1 including-- 7,a7 volumes of product under ownership2 and 7,b7 storage and transportation capacity 7including owned and leased capacity74 7#c7 ,protection of proprietary information ,section #ab7;f7 of the ,federal ,energy ,administration ,act of #aigd 7#ae ,u4,s4,c4 #gga7;f77 shall apply to information collected under this subsection4 7o7 ,collection of information on storage capacity for oil and natural gas 7#a7 ,in general ,not later than #ij days after the date of enactment of this subsection1 the ,administrator of the ,energy ,information ,administration shall collect information quantifying the commercial storage capacity for oil and natural gas in the ,united ,states4 7#b7 ,updates ,the ,administrator shall update annually the information required under paragraph 7#a74 7#c7 ,protection of proprietary information ,section #ab7;f7 of the ,federal ,energy ,administration ,act of #aigd 7#ae ,u4,s4,c4 #gga7;f77 shall apply to information collected under this subsection4 7p7 ,financial market analysis office 7#a7 ,establishment ,there shall be within the ,energy ,information ,administration a ,financial ,market ,analysis ,office1 headed by a director1 who shall report directly to the ,administrator of the ,energy ,information ,administration4 7#b7 ,duties ,the ,office shall-- 7,a7 be responsible for analysis of the financial aspects of energy markets2 7,b7 review the reports required by section #ajec7;c7 of the ,american ,energy ,innovation ,act1 in advance of the submission of the reports to ,congress2 and 7,c7 not later than #a year after the date of enactment of this subsection-- 7i7 make recommendations to the ,administrator of the ,energy ,information ,administration that identify and quantify any additional resources that are required to improve the ability of the ,energy ,information ,administration to more fully integrate financial market information into the analyses and forecasts of the ,energy ,information ,administration1 including the role of energy futures contracts1 energy commodity swaps1 and derivatives in price formation for oil2 7ii7 conduct a review of implications of policy changes and changes in how crude oil and refined petroleum products are transported with respect to price formation of crude oil and refined petroleum products2 and 7iii7 notify the ,committee on ,energy and ,natural ,resources1 and the ,committee on ,appropriations1 of the ,senate and the ,committee on ,energy and ,commerce1 and the ,committee on ,appropriations1 of the ,house of ,representatives of the recommendations described in clause 7i74 7#c7 ,analyses ,the ,administrator of the ,energy ,information ,administration shall take analyses by the ,office into account in conducting analyses and forecasting of energy prices4 4 7b7 ,conforming amendment ,section #fde of the ,department of ,energy ,organization ,act 7#db ,u4,s4,c4 #gbee7 is amended by inserting 7#ae ,u4,s4,c4 #ccja et seq47 and the ,natural ,gas ,act 7#ae ,u4,s4,c4 #gag et seq47 after ,natural ,gas ,policy ,act of #aigh4 #ajeb4 ,working ,group on ,energy ,markets 7a7 ,establishment ,there is established a ,working ,group on ,energy ,markets 7referred to in this subtitle as the ,working ,group74 7b7 ,composition ,the ,working ,group shall be composed of-- 7#a7 the ,secretary2 7#b7 the ,secretary of the ,treasury2 7#c7 the ,chairman of the ,federal ,energy ,regulatory ,commission2 7#d7 the ,chairman of ,federal ,trade ,commission2 7#e7 the ,chairman of the ,securities and ,exchange ,commission2 7#f7 the ,chairman of the ,commodity ,futures ,trading ,commission2 and 7#g7 the ,administrator of the ,energy ,information ,administration4 7c7 ,chairperson ,the ,secretary shall serve as the ,chairperson of the ,working ,group4 7d7 ,compensation ,a member of the ,working ,group shall serve without additional compensation for the work of the member of the ,working ,group4 7e7 ,purpose and function ,the ,working ,group shall-- 7#a7 investigate the effect of increased financial investment in energy commodities on energy prices and the energy security of the ,united ,states2 7#b7 recommend to the ,president and ,congress laws 7including regulations7 that may be needed to prevent excessive speculation in energy commodity markets in order to prevent or minimize the adverse impact of excessive speculation on energy prices on consumers and the economy of the ,united ,states2 and 7#c7 review energy security implications of developments in international energy markets4 7f7 ,administration ,the ,secretary shall provide the ,working ,group with such administrative and support services as may be necessary for the performance of the functions of the ,working ,group4 7g7 ,cooperation of other agencies ,the heads of ,executive departments1 agencies1 and independent instrumentalities shall1 to the extent permitted by law1 provide the ,working ,group with such information as the ,working ,group requires to carry out this section4 7h7 ,consultation ,the ,working ,group shall consult1 as appropriate1 with representatives of the various exchanges1 clearinghouses1 self-regulatory bodies1 other major market participants1 consumers1 and the general public4 #ajec4 ,study of regulatory framework for energy markets 7a7 ,study ,the ,working ,group shall conduct a study-- 7#a7 to identify the factors that affect the pricing of crude oil and refined petroleum products1 including an examination of the effects of market speculation on prices2 and 7#b7 to review and assess-- 7,a7 existing statutory authorities relating to the oversight and regulation of markets critical to the energy security of the ,united ,states2 and 7,b7 the need for additional statutory authority for the ,federal ,government to effectively oversee and regulate markets critical to the energy security of the ,united ,states4 7b7 ,elements of study ,the study shall include-- 7#a7 an examination of price formation of crude oil and refined petroleum products2 7#b7 an examination of relevant international regulatory regimes2 and 7#c7 an examination of the degree to which changes in energy market transparency1 liquidity1 and structure have influenced or driven abuse1 manipulation1 excessive speculation1 or inefficient price formation4 7c7 ,report and recommendations ,the ,secretary shall submit to the ,committee on ,energy and ,natural ,resources of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives quarterly progress reports during the conduct of the study under this section1 and a final report not later than #a year after the date of enactment of this ,act1 that-- 7#a7 describes the results of the study2 and 7#b7 provides options and the recommendations of the ,working ,group for appropriate ,federal coordination of oversight and regulatory actions to ensure transparency of crude oil and refined petroleum product pricing and the elimination of excessive speculation1 including recommendations on data collection and analysis to be carried out by the ,financial ,market ,analysis ,office established by section #bje7p7 of the ,department of ,energy ,organization ,act 7#db ,u4,s4,c4 #gace7p774 7d7 ,authorization of appropriations ,there are authorized to be appropriated such sums as are necessary to carry out this section4 ,g ,transmission #ajfa4 ,report by transmission organizations on distributed energy resources and microgrid systems 7a7 ,definitions ,in this section3 7#a7 ,distributed energy resource ,the term distributed energy resource means an electricity supply resource that1 as permitted by ,state law-- 7,a7 7i7 is interconnected to the electric system operated by a transmission organization at or below #fik,v2 and 7ii7 is subject to dispatch by the transmission organization2 and 7,b7 7i7 generates electricity using any primary energy source1 including solar energy and other renewable resources2 or 7ii7 stores energy and is capable of supplying electricity to the electric system operated by the transmission organization from the storage reservoir4 7#b7 ,electric generating capacity resource ,the term electric generating capacity resource means an electric generating resource1 as measured by the maximum load-carrying ability of the resource1 exclusive of station use and planned1 unplanned1 or other outage or derating1 that is subject to dispatch by a transmission organization to meet the resource adequacy needs of the systems operated by the transmission organization4 7#c7 ,microgrid system ,the term microgrid system means an electrically distinct system under common control that-- 7,a7 serves an electric load at or below #fik,v from a distributed energy resource or electric generating capacity resource2 and 7,b7 is subject to dispatch by a transmission organization4 7#d7 ,transmission organization ,the term transmission organization has the meaning given the term in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif74 7b7 ,report 7#a7 ,notice ,not later than #ad days after the date of enactment of this section1 the ,commission shall submit to each transmission organization notice that the transmission organization is required to file with the ,commission a report in accordance with paragraph 7#b74 7#b7 ,report ,not later than #ahj days after the date on which a transmission organization receives a notice under paragraph 7#a71 the transmission organization shall submit to the ,commission a report that-- 7,a7 7i7 identifies distributed energy resources and micro-grid systems that are subject to dispatch by the transmission organization as of the date of the report2 and 7ii7 describes the fuel sources and operational characteristics of such distributed energy resources and micro-grid systems1 including1 to the maximum extent practicable1 a discussion of the benefits and costs associated with the distributed energy resources and microgrid systems identified under clause 7i72 7,b7 evaluates1 with due regard for operational and economic benefits and costs1 the potential for distributed energy resources and microgrid systems to be deployed to the transmission organization over the short- and long-term periods in the planning cycle of the transmission organization2 and 7,c7 identifies-- 7i7 over the short- and long-term periods in the planning cycle of the transmission organization1 barriers to the deployment to the transmission organization of distributed energy resources and microgrid systems2 and 7ii7 potential changes to the operational requirements for1 or charges associated with1 the interconnection of distributed energy resources and microgrid systems to the transmission organization that would reduce the barriers identified under clause 7i74 #ajfb4 ,net metering study guidance ,title ,,xviii of ,energy ,policy ,act of #bjje 7,public ,law #aji-eh2 #aai ,stat4 #aabb7 is amended by adding at the end the following3 #ahda4 ,net energy metering study 7a7 ,in general ,not later than #ahj days after the date of enactment of this section1 the ,secretary shall-- 7#a7 issue guidance on criteria required to be included in studies of net metering conducted by the ,department2 and 7#b7 undertake a study of net energy metering4 7b7 ,requirements and contents ,the model guidance issued under subsection 7a7 shall clarify without prejudice to other study criteria that any study of net energy metering1 including the study conducted by the ,department under subsection 7a7 shall-- 7#a7 be publicly available2 and 7#b7 assess benefits and costs of net energy metering1 including-- 7,a7 load data1 including hourly profiles2 7,b7 distributed generation production data2 7,c7 best available technology1 including inverter capability2 and 7,d7 benefits and costs of distributed energy deployment1 including-- 7i7 environmental benefits2 7ii7 changes in electric system reliability2 7iii7 changes in peak power requirements2 7iv7 provision of ancillary services1 including reactive power2 7v7 changes in power quality2 7vi7 changes in land-use effects2 7vii7 changes in right-of-way acquisition costs2 7viii7 changes in vulnerability to terrorism2 and 7ix7 changes in infrastructure resilience4 4 ,,ii ,modernizing infrastructure ,a ,,qer recommendations #bjja4 ,natural gas distribution system improvement program ,part #d of title ,,ii of the ,national ,energy ,conservation ,policy ,act 7#db ,u4,s4,c4 #hbca et seq47 is amended by adding at the end the following3 #bef4 ,establishment of a natural gas distribution system improvement program 7a7 ,definitions ,in this section3 7#a7 ,leak-prone distribution pipeline ,the term leak-prone distribution pipeline means a natural gas distribution system pipeline constructed of leak prone materials1 such as cast iron or bare steel4 7#b7 ,low-income household ,the term low-income household means a household-- 7,a7 the combined income of which is equal to or less than #bjj percent of the poverty level2 or 7,b7 determined to be eligible by the ,state in which the household is located under the low-income home energy assistance program established under the ,low-,income ,home ,energy ,assistance ,act of #aiha 7#db ,u4,s4,c4 #hfba et seq47 using an eligibility standard based on-- 7i7 #aej percent of the poverty level2 or 7ii7 #fj percent of the median income in the ,state4 7b7 ,establishment ,the ,secretary shall make grants to eligible entities on a competitive basis to accelerate or expand utility programs that improve the safety and environmental performance of natural gas distribution systems4 7c7 ,eligibility 7#a7 ,in general ,except as provided in paragraph 7#b71 to be eligible to receive a grant under subsection 7b71 an entity shall be-- 7,a7 a ,state2 7,b7 the ,district of ,columbia2 7,c7 the ,commonwealth of ,puerto ,rico2 7,d7 any other territory or possession of the ,united ,states2 or 7,e7 a tribal organization 7as defined in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #dej;b774 7#b7 ,other entities ,if an entity described in subparagraphs 7,a7 through 7,d7 of paragraph 7#a7 does not apply for a grant under subsection 7b71 units of general purpose local government1 community action agencies1 and other nonprofit agencies located in that entity shall be eligible to apply for a grant4 7d7 ,use of funds ,an eligible entity receiving a grant under subsection 7b7-- 7#a7 shall only use grant amounts for new or expanded programs that are approved by a public utility commission 7or an equivalent entity7 after ,april #ba1 #bjae2 and 7#b7 may use grant amounts-- 7,a7 to accelerate the rate of replacement and repair of leak-prone distribution pipelines2 and 7,b7 for directed inspection and maintenance programs4 7e7 ,low-income assistance ,as a condition of receiving a grant under subsection 7b71 an eligible entity shall ensure that the grant amounts are used to offset the cost to low-income households of incremental increases in household bills associated with system upgrades using grant amounts4 7f7 ,application process ,an eligible entity desiring a grant under subsection 7b7 shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7g7 ,selection ,in selecting grant recipients1 the ,secretary shall-- 7#a7 prioritize eligible entities that emphasize safety over other program benefits2 and 7#b7 with respect to the application proposal of an eligible entity1 consider and estimate the net benefits of the proposed-- 7,a7 magnitude of methane emission reductions2 7,b7 use of innovative technology and policy approaches2 7,c7 number of low-income households estimated to benefit from the proposed program2 and 7,d7 demonstrated coordination with a broad range of stakeholders1 including the public utility commission 7or equivalent entity71 consumer advocates1 and utilities4 7h7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #c1ejj1jjj1jjj for the period of fiscal years #bjaf through #bjai4 4 #bjjb4 ,strategy for managing the risks associated with the loss or disruption of power from large power transformers ,part ,,ii of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbd et seq47 is amended by adding at the end the following3 #bbd4 ,strategy for managing the risks associated with the loss or disruption of power from large power transformers 7a7 ,establishment ,the ,secretary of ,energy 7referred to in this section as the ,secretary71 in coordination with the ,secretary of ,homeland ,security and the heads of other ,federal agencies1 ,states1 and representatives of the electric industry1 shall develop a strategy for identifying and managing the risks associated with the loss of power from large power transformers4 7b7 ,reserve ,in developing the strategy under subsection 7a71 the ,secretary shall evaluate the establishment of #a or more transformer reserves as an approach to mitigating the risks described in subsection 7a74 7c7 ,report ,not later than #a year after the date of enactment of this section1 the ,secretary shall submit to the appropriate committees of ,congress a report that-- 7#a7 describes the findings1 conclusions1 and recommendations of the ,secretary with respect to the strategy required to be developed under subsection 7a72 and 7#b7 includes an implementation plan for that strategy4 7d7 ,strategic ,transformer ,reserve ,on submission of the report under subsection 7c71 the ,secretary may establish a ,strategic ,transformer ,reserve4 4 #bjjc4 ,consolidation of release authorities 7a7 ,northeast ,home ,heating ,oil ,reserve ,the ,energy ,policy and ,conservation ,act is amended by striking section #ahc 7#db ,u4,s4,c4 #fbej;b7 and inserting the following3 #ahc4 ,conditions for release ,the ,secretary may sell products from the ,reserve only after the ,president makes a finding of a severe energy supply interruption in accordance with section #afa7;d71 except that references to petroleum products and the ,strategic ,petroleum ,reserve in that section shall be deemed to be references to petroleum distillate and the ,northeast ,home ,heating ,oil ,reserve1 respectively4 4 7b7 ,northeast ,gasoline ,supply ,reserve ,the ,secretary may sell products from the ,northeast ,gasoline ,supply ,reserve only after making a finding of a severe energy supply interruption in accordance with section #afa7;d7 of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbda7;d771 except that references to petroleum products and the ,strategic ,petroleum ,reserve in that section shall be deemed to be references to gasoline and the ,northeast ,gasoline ,supply ,reserve1 respectively4 #bjjd4 ,modernization of ,strategic ,petroleum ,reserve release authorities ,section #afa7;d77#b7 of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbda7;d77#b77 is amended-- 7#a7 in subparagraph 7,a71 by striking 7,a7 an emergency and inserting the following3 7,a7 7i7 an emergency 2 7#b7 by redesignating subparagraphs 7,b7 and 7,c7 as clauses 7ii7 and 7iii71 respectively2 7#c7 in clause 7ii7 7as so redesignated71 by striking has resulted and inserting will likely result2 7#d7 in clause 7iii7 7as so redesignated71 by striking the period at the end and inserting 2 or2 and 7#e7 by adding at the end the following3 7,b7 an interruption in the global oil supply exists that is likely to cause a severe increase in the price of domestic petroleum products1 regardless of whether the interruption results in a loss of oil imports to the ,united ,states4 4 #bjje4 ,optimization of emergency response capability of ,strategic ,petroleum ,reserve 7a7 ,in general ,part ,b of title ,i of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbca et seq47 is amended by adding at the end the following3 #agj4 ,optimization of emergency response capability of ,strategic ,petroleum ,reserve 7a7 ,analysis ,the ,secretary shall carry out an analysis1 including detailed engineering studies1 of the appropriate size and configuration of the ,strategic ,petroleum ,reserve4 7b7 ,funding for ,,spr infrastructure and distribution systems ,after performing the analysis under subsection 7a7 and subject to the availability of funds1 the ,secretary may provide funds for ,strategic ,petroleum ,reserve infrastructure and distribution systems in order to optimize the ability of the ,strategic ,petroleum ,reserve to protect the economy of the ,united ,states in an emergency supply situation4 7c7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #b1jjj1jjj1jjj for the period of fiscal years #bjaf through #bjai4 4 7b7 ,conforming amendment ,the table of contents for the ,energy ,policy and ,conservation ,act is amended by inserting after the item relating to section #afi the following3 ,sec4 #agj4 ,optimization of emergency response capability of ,strategic ,petroleum ,reserve4 4 ,b ,grid modernization and storage #bjaa4 ,definition of ,secretary ,in this subtitle 7other than section #bjab71 the term ,secretary means the ,secretary1 acting through the ,assistant ,secretary of the ,office of ,electricity ,delivery and ,energy ,reliability4 #bjab4 ,grid storage program 7a7 ,in general ,the ,secretary shall conduct a program of research1 development1 and demonstration of electric grid energy storage that addresses the principal challenges identified in the #bjac ,department of ,energy ,strategic ,plan for ,grid ,energy ,storage4 7b7 ,areas of focus ,the program under this section shall focus on-- 7#a7 materials and electrochemical systems research2 7#b7 power conversion technologies research2 7#c7 developing-- 7,a7 empirical and science-based industry standards to compare the storage capacity1 cycle length and capabilities1 and reliability of different types of electricity storage2 and 7,b7 validation and testing techniques2 7#d7 other fundamental and applied research critical to widespread deployment of electricity storage2 7#e7 device development that builds on results from research described in paragraphs 7#a71 7#b71 and 7#d71 including combinations of power electronics1 advanced optimizing controls1 and energy storage as a general purpose element of the electric grid2 7#f7 grid-scale testing and analysis of storage devices1 including test-beds and field trials2 7#g7 cost-benefit analyses that inform capital expenditure planning for regulators and owners and operators of components of the electric grid2 7#h7 electricity storage device safety and reliability1 including potential failure modes1 mitigation measures1 and operational guidelines2 7#i7 standards for storage device performance1 control interface1 grid interconnection1 and interoperability2 and 7#aj7 maintaining a public database of energy storage projects1 policies1 codes1 standards1 and regulations4 7c7 ,assistance to states ,the ,secretary may provide technical and financial assistance to ,states1 ,indian tribes1 or units of local government to participate in or use research1 development1 or deployment of technology developed under this section4 7d7 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out this section #ej1jjj1jjj for each of fiscal years #bjag through #bjbf4 #bjac4 ,technology demonstration and the distribution system 7a7 ,in general ,the ,secretary shall establish a grant program to carry out eligible projects relating to the modernization of the electric grid1 including the application of technologies to improve observability1 advanced controls1 and prediction of system performance on the distribution system4 7b7 ,eligible projects ,to be eligible for a grant under subsection 7a71 a project shall-- 7#a7 be designed to improve the performance and efficiency of the future electric grid1 while ensuring the continued provision of safe1 secure1 reliable1 and affordable power2 and 7#b7 demonstrate-- 7,a7 secure integration and management of #b or more energy resources1 including distributed energy generation1 combined heat and power1 microgrids1 energy storage1 electric vehicles1 energy efficiency1 demand response1 and intelligent loads2 and 7,b7 secure integration and interoperability of communications and information technologies4 7c7 ,participation ,projects conducted under subsection 7a7 shall include the participation of a partnership consisting of #b or more entities that-- 7#a7 may include-- 7,a7 any institution of higher education2 7,b7 a ,national ,laboratory2 7,c7 a representative of a ,state or local government2 7,d7 a representative of an ,indian tribe2 or 7,e7 a ,federal power marketing administration2 and 7#b7 shall include not fewer than #a of any of-- 7,a7 an investor-owned electric utility2 7,b7 a publicly owned utility2 7,c7 a technology provider2 7,d7 a rural electric cooperative2 7,e7 a regional transmission organization2 or 7,f7 an independent system operator4 7d7 ,select areas of focus 7#a7 ,in general ,the ,secretary shall ensure that not fewer than #a project conducted under subsection 7a7 is-- 7,a7 a transactive energy project that implements a system of economic or control mechanisms that optimizes the dynamic balance of supply and demand across the electrical infrastructure1 using economic value as a key operational parameter2 and 7,b7 a valuation innovation project that evaluates or implements markets1 rates1 and other ways of appropriately valuing the grid services provided by demand response1 energy efficiency1 electric vehicles1 storage1 distributed generation1 and other generation technologies to ensure-- 7i7 appropriate cost-recovery2 7ii7 reliability of the distribution grid2 and 7iii7 increased penetration of demand response1 energy efficiency1 electric vehicles1 storage1 distributed generation1 and other generation technologies4 7e7 ,cybersecurity plan ,each project conducted under subsection 7a7 shall include the development of a cybersecurity plan approved by the ,secretary4 7f7 ,privacy best practices ,in carrying out this section1 the ,secretary shall identify best practices for the implementation of the #e core concepts of the ,department relating to the collection1 use1 disclosure1 and retention of information1 as described in the ,voluntary ,code of ,conduct of the ,department4 7g7 ,working groups 7#a7 ,in general ,the ,secretary shall establish #a or more working groups1 to be composed of representatives of projects conducted under subsection 7a71 that shall-- 7,a7 meet periodically to discuss implementation of the projects1 including challenges and potential solutions held in common by the projects2 and 7,b7 submit to the ,secretary such information resulting from the meetings as the ,secretary may require4 7#b7 ,reports ,the ,secretary shall periodically publish reports and other appropriate materials based on the information provided by the working groups under paragraph 7#a77;,b74 #bjad4 ,microgrid systems for isolated and resilient communities 7a7 ,definitions ,in this section3 7#a7 ,hybrid microgrid system ,the term hybrid microgrid system means a stand-alone electrical system that-- 7,a7 is comprised of conventional generation and at least #a alternative energy resource2 and 7,b7 may use grid-scale energy storage4 7#b7 ,isolated community ,the term isolated community means a community that is powered by a stand-alone electric generation and distribution system without the economic and reliability benefits of connection to a regional electric grid4 7#c7 ,microgrid system ,the term microgrid system means a standalone electrical system that uses grid-scale energy storage4 7#d7 ,strategy ,the term strategy means the strategy developed under subsection 7b77#b77;,b74 7b7 ,program 7#a7 ,establishment ,the ,secretary shall establish a program to promote the development of-- 7,a7 hybrid microgrid systems for isolated communities2 and 7,b7 microgrid systems to increase the resilience of critical infrastructure4 7#b7 ,phases ,the program established under paragraph 7#a7 shall be carried out in phases1 including-- 7,a7 phase ,i1 which shall consist of the development of a feasibility assessment for-- 7i7 hybrid microgrid systems in isolated communities2 and 7ii7 microgrid systems to enhance the resilience of critical infrastructure2 7,b7 phase ,,ii1 which shall consist of the development of an implementation strategy in accordance with paragraph 7#c7 to promote the development of hybrid microgrid systems for isolated communities1 particularly for those communities exposed to extreme weather conditions and high energy costs1 including electricity1 space heating and cooling1 and transportation2 7,c7 phase ,,iii1 which shall-- 7i7 be carried out simultaneously with phase ,,ii2 and 7ii7 consist of the development of an implementation strategy to promote the development of microgrid systems that increase the resilience of critical infrastructure2 7,d7 phase ,,iv1 which shall consist of cost-shared demonstration projects that-- 7i7 are based on the strategies developed under subparagraph 7,b72 and 7ii7 include the development of physical and cybersecurity plans to take appropriate measures to protect and secure the electric grid2 and 7,e7 phase ,v1 which shall establish a benefits analysis plan to help inform regulators1 policymakers1 and industry stakeholders about the affordability1 environmental1 and resilience benefits associated with phases ,,ii1 ,,iii1 and ,,iv4 7#c7 ,requirements for strategy ,in developing the strategy under paragraph 7#b77;,b71 the ,secretary shall consider-- 7,a7 establishing future targets for the economic displacement of conventional generation using hybrid microgrid systems1 including displacement of conventional generation used for electric power generation1 heating and cooling1 and transportation2 7,b7 the potential for renewable resources1 including wind1 solar1 and hydropower1 to be integrated into a hybrid microgrid system2 7,c7 opportunities for improving the efficiency of existing hybrid microgrid systems2 7,d7 the capacity of the local workforce to operate1 maintain1 and repair a hybrid microgrid system2 7,e7 opportunities to develop the capacity of the local workforce to operate1 maintain1 and repair a hybrid microgrid system2 7,f7 leveraging existing capacity within local or regional research organizations1 such as organizations based at institutions of higher education1 to support development of hybrid microgrid systems1 including by testing novel components and systems prior to field deployment2 7,g7 the need for basic infrastructure to develop1 deploy1 and sustain a hybrid microgrid system2 7,h7 input of traditional knowledge from local leaders of isolated communities in the development of a hybrid microgrid system2 7,i7 the impact of hybrid microgrid systems on defense1 homeland security1 economic development1 and environmental interests2 7,j7 opportunities to leverage existing interagency coordination efforts and recommendations for new interagency coordination efforts to minimize unnecessary overhead1 mobilization1 and other project costs2 and 7,k7 any other criteria the ,secretary determines appropriate4 7c7 ,collaboration ,the program established under subsection 7b77#a7 shall be carried out in collaboration with relevant stakeholders1 including1 as appropriate-- 7#a7 ,states2 7#b7 ,indian tribes2 7#c7 regional entities and regulators2 7#d7 units of local government2 7#e7 institutions of higher education2 and 7#f7 private sector entities4 7d7 ,report ,not later than #ahj days after the date of enactment of this ,act1 and annually thereafter1 the ,secretary shall submit to the ,committee on ,energy and ,natural ,resources of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report on-- 7#a7 the efforts to implement the program established under subsection 7b77#a72 and 7#b7 the status of the strategy developed under subsection 7b77#b77;,b74 #bjae4 ,electric system grid architecture1 scenario development1 and modeling 7a7 ,grid architecture and scenario development 7#a7 ,in general ,subject to paragraph 7#b71 the ,secretary shall establish and facilitate a collaborative process to develop model grid architecture and a set of future scenarios for the electric system to examine the impacts of different combinations of resources 7including different quantities of distributed energy resources and large-scale1 central generation7 on the electric grid4 7#b7 ,market structure ,the grid architecture and scenarios developed under paragraph 7#a7 shall account for differences in market structure1 including an examination of the potential for stranded costs in each type of market structure4 7#c7 ,findings ,based on the findings of grid architecture developed under paragraph 7#a71 the ,secretary shall-- 7,a7 determine whether any additional standards are necessary to ensure the interoperability of grid systems and associated communications networks2 and 7,b7 if the ,secretary makes a determination that additional standards are necessary under subparagraph 7,a71 make recommendations for additional standards4 7b7 ,modeling ,subject to subsection 7c71 the ,secretary shall-- 7#a7 conduct modeling based on the scenarios developed under subsection 7a72 and 7#b7 analyze and evaluate the technical and financial impacts of the models to assist ,states1 utilities1 and other stakeholders in-- 7,a7 enhancing strategic planning efforts2 7,b7 avoiding stranded costs2 and 7,c7 maximizing the cost-effectiveness of future grid-related investments4 7c7 ,input ,the ,secretary shall develop the scenarios and conduct the modeling and analysis under subsections 7a7 and 7b7 with participation or input1 as appropriate1 from-- 7#a7 the ,national ,laboratories2 7#b7 ,states2 7#c7 ,state regulatory authorities2 7#d7 transmission organizations2 7#e7 representatives of the electric industry2 7#f7 academic institutions2 7#g7 independent research institutes2 and 7#h7 other entities4 #bjaf4 ,voluntary model pathways 7a7 ,establishment of voluntary model pathways 7#a7 ,establishment ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall initiate the development of voluntary model pathways for modernizing the electric grid through a collaborative1 public-private effort that-- 7,a7 produces illustrative policy pathways that can be adapted for ,state and regional applications by regulators and policymakers2 7,b7 facilitates the modernization of the electric grid to achieve the objectives described in paragraph 7#b72 7,c7 ensures a reliable1 resilient1 affordable1 safe1 and secure electric system2 and 7,d7 acknowledges and provides for different priorities1 electric systems1 and rate structures across ,states and regions4 7#b7 ,objectives ,the pathways established under paragraph 7#a7 shall facilitate achievement of the following objectives3 7,a7 ,near real-time situational awareness of the electric system4 7,b7 ,data visualization4 7,c7 ,advanced monitoring and control of the advanced electric grid4 7,d7 ,enhanced certainty for private investment in the electric system4 7,e7 ,increased innovation4 7,f7 ,greater consumer empowerment4 7,g7 ,enhanced grid resilience1 reliability1 and robustness4 7,h7 ,improved-- 7i7 integration of distributed energy resources2 7ii7 interoperability of the electric system2 and 7iii7 predictive modeling and capacity forecasting4 7#c7 ,steering committee ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall establish a steering committee to facilitate the development of the pathways under paragraph 7#a71 to be composed of members appointed by the ,secretary1 consisting of persons with appropriate expertise representing a diverse range of interests in the public1 private1 and academic sectors1 including representatives of-- 7,a7 the ,smart ,grid ,task ,force2 and 7,b7 the ,smart ,grid ,advisory ,committee4 7b7 ,technical assistance ,the ,secretary may provide technical assistance to ,states1 ,indian tribes1 or units of local government to adopt #a or more elements of the pathways developed under subsection 7a77#a74 #bjag4 ,performance metrics for electricity infrastructure providers 7a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,secretary shall submit to the appropriate committees of ,congress a report that includes-- 7#a7 an evaluation of the performance of the electric grid as of the date of the report2 and 7#b7 a description of the quantified costs and benefits associated with the changes evaluated under the scenarios developed under section #bjae4 7b7 ,considerations for development of metrics ,in developing metrics for evaluating and quantifying the electric grid under subsection 7a71 the ,secretary shall consider-- 7#a7 standard methodologies for calculating improvements or deteriorations in the performance metrics1 such as reliability1 grid efficiency1 power quality1 consumer satisfaction1 sustainability1 and financial incentives2 7#b7 standard methodologies for calculating value to ratepayers1 including broad economic and related impacts from improvements to the performance metrics2 7#c7 appropriate ownership and operating roles for electric utilities that would enable improved performance through the adoption of emerging1 commercially available or advanced grid technologies or solutions1 including-- 7,a7 multicustomer microgrids2 7,b7 distributed energy resources2 7,c7 energy storage2 7,d7 electric vehicles2 7,e7 electric vehicle charging infrastructure2 7,f7 integrated information and communications systems2 7,g7 transactive energy systems2 and 7,h7 advanced demand management systems2 and 7#d7 with respect to ,states1 the role of the grid operator in enabling a robust future electric system to ensure that-- 7,a7 electric utilities remain financially viable2 7,b7 electric utilities make the needed investments that ensure a reliable1 secure1 and resilient grid2 and 7,c7 costs incurred to transform to an integrated grid are allocated and recovered responsibly1 efficiently1 and equitably4 #bjah4 ,state and regional distribution planning 7a7 ,in general ,on the request of a ,state or regional organization1 the ,secretary shall partner with ,states and regional organizations to facilitate the development of ,state and regional electricity distribution plans by-- 7#a7 conducting a resource assessment and analysis of future demand and distribution requirements2 and 7#b7 developing open source tools for ,state and regional planning and operations4 7b7 ,risk and security analysis ,the assessment under subsection 7a77#a7 shall include-- 7#a7 the evaluation of the physical and cybersecurity needs of an advanced distribution management system and the integration of distributed energy resources2 and 7#b7 advanced use of grid architecture to analyze risks in an all-hazards approach that includes communications infrastructure1 control systems architecture1 and power systems architecture4 7c7 ,technical assistance ,for the purpose of developing ,state and regional electricity distribution plans1 the ,secretary shall provide technical assistance to-- 7#a7 ,states2 7#b7 regional reliability entities2 and 7#c7 other distribution asset owners and operators4 #bjai4 ,authorization of appropriations ,there is authorized to be appropriated to the ,secretary to carry out sections #bjac through #bjah #bjj1jjj1jjj for each of fiscal years #bjag through #bjbf4 #bjbj4 ,state consideration of resilience 7a7 ,adoption of standards ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 is amended by adding at the end the following3 7#bj7 ,resilience 7,a7 ,definition of electric grid resilience ,the term electric grid resilience means the ability of the electric grid to adapt to changing conditions and withstand and rapidly recover from disruptions4 7,b7 ,required consideration ,each electric utility shall incorporate into the regular planning process of the electric utility consideration of investments in electric grid resilience4 7,c7 ,factors ,consideration under subparagraph 7,b7 shall include an evaluation of potential benefits of enhancing electric grid resilience1 including-- 7i7 system stability under severe and nontraditional hazards2 7ii7 adaptation to region-specific natural threats and vulnerabilities2 7iii7 adaptation to climate change-related extreme weather disruptions2 7iv7 support provided to interdependent critical infrastructures reliant on energy services to operate2 7v7 reduced costs under normal operating conditions2 7vi7 enhanced distributed generation and microgrid functionality to operate as an integrated energy system in intentional islanding mode2 7vii7 localized energy generation that avoids incurrence of transmission and distribution losses2 7viii7 system operational flexibility2 and 7ix7 ancillary environmental benefits1 including greenhouse gas reductions4 4 7b7 ,compliance 7#a7 ,time limitations ,section #aab7;b7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;b77 is amended by adding at the end the following3 7#g7 7,a7 ,not later than #a year after the date of enactment of this paragraph1 each ,state regulatory authority 7with respect to each electric utility for which it has ratemaking authority71 and each nonregulated electric utility1 shall-- 7i7 commence the consideration referred to in section #aaa2 or 7ii7 set a hearing date for such consideration1 with respect to the standard established by paragraph 7#bj7 of section #aaa7;d74 7,b7 ,not later than #b years after the date of enactment of this paragraph1 each ,state regulatory authority 7with respect to each electric utility for which it has ratemaking authority71 and each nonregulated electric utility1 shall-- 7i7 complete the consideration required under subparagraph 7,a72 and 7ii7 make the determination referred to in section #aaa with respect to the standard established by paragraph 7#bj7 of section #aaa7;d74 4 7#b7 ,failure to comply ,section #aab7;c7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;c77 is amended by adding at the end the following3 ,in the case of the standard established by paragraph 7#bj7 of section #aaa7;d71 the reference contained in this subsection to the date of enactment of this ,act shall be deemed to be a reference to the date of enactment of that paragraph44 ,c ,advanced manufacturing #bjba4 ,advanced ,manufacturing ,office 7a7 ,establishment ,the ,secretary shall establish1 within the ,department1 the ,advanced ,manufacturing ,office 7referred to in this subtitle as the ,office7-- 7#a7 to carry out basic and applied research1 development1 and demonstration of new1 energy-efficient processes and materials-- 7,a7 at a scale adequate to prove the value of the processes and materials to manufacturers in multiple industries2 and 7,b7 that facilitate investments and commercial scale-up2 7#b7 to focus on the conduct of activities that-- 7,a7 use new technology and processes to reuse existing products or update existing processes to achieve energy efficiency and promote energy savings2 and 7,b7 make use of new and emerging processes and materials2 7#c7 to improve workforce development in advanced manufacturing2 and 7#d7 to enable the competitiveness of manufacturers and energy efficiency of manufacturing in the ,united ,states by developing broadly applicable technologies for energy-intensive and energy-dependent manufacturing by supporting research and development directed towards-- 7,a7 advanced and critical materials that provide energy savings and efficiency2 7,b7 emerging topics1 technology1 and processes in advanced manufacturing that promote energy savings2 7,c7 manufacturing platforms for advanced energy technologies2 and 7,d7 strategies to address current and future workforce needs within the manufacturing sector4 7b7 ,industry participation ,to the maximum extent practicable1 the ,office shall carry out activities in partnership or collaboration with relevant industry stakeholders4 7c7 ,interagency and intra-agency coordination ,the ,secretary shall coordinate research1 development1 demonstration1 and commercial application activities of the ,office among-- 7#a7 relevant programs within the ,department1 including-- 7,a7 the ,office of ,energy ,efficiency and ,renewable ,energy2 7,b7 the ,office of ,fossil ,energy2 7,c7 the ,office of ,nuclear ,energy2 7,d7 ,,arpa-,e2 7,e7 the ,office of ,energy ,policy and ,systems ,analysis2 and 7,f7 other offices of the ,department1 as determined to be appropriate by the ,secretary2 and 7#b7 relevant technology research and development programs and workforce training programs in other ,federal agencies4 #bjbb4 ,national ,advanced ,manufacturing ,plan 7a7 ,in ,general ,not later than #ah months after the date of enactment of this ,act1 the ,secretary1 in consultation with the ,secretary of ,commerce1 shall enter into an agreement with the ,national ,academies to develop a national plan for smart and advanced manufacturing technology development and deployment to improve the productivity1 competitiveness1 and energy efficiency of the manufacturing sector of the ,united ,states4 7b7 ,contents 7#a7 ,in general ,the plan developed under subsection 7a7 shall identify areas in which actions by the ,secretary and the heads of other relevant ,federal agencies would-- 7,a7 accelerate the development1 deployment1 and adoption of smart and advanced manufacturing technologies and processes2 7,b7 result in greater energy efficiency of1 and lower environmental impacts for1 all ,united ,states manufacturers2 7,c7 enhance competitiveness and strengthen the manufacturing sectors of the ,united ,states2 and 7,d7 improve workforce training1 career and technical education1 and incumbent worker training between manufacturing industry and training providers4 7#b7 ,inclusions ,in identifying agency actions under paragraph 7#a71 the ,secretary shall include-- 7,a7 an assessment of actions of the ,department relating to smart and advanced manufacturing that were carried out before or after the date of enactment of this ,act2 7,b7 the establishment of voluntary interconnection protocols and performance standards2 7,c7 the commercialization of existing research results2 7,d7 an assessment of existing high-performance and cloud computing infrastructure and opportunities for those technologies to play a role in the design and production of advanced manufacturing technology2 7,e7 an assessment of the research and development opportunities for supply chains related to the manufacture of carbon fiber composite1 critical materials1 advanced materials1 and semiconductors2 7,f7 identification and assessment of financial incentives or demonstration projects that could accelerate the commercialization of advanced technology2 7,g7 an assessment and prioritization of emerging technologies and processes with the potential to increase manufacturing competitiveness2 7,h7 an analysis of the regions and industries that would benefit the most from implementing smart manufacturing technologies2 7,i7 an assessment of-- 7i7 the lessons learned through the decades long partnership of the ,department with the automotive industry2 and 7ii7 how lessons learned could be applied to interactions with other industries 7including the aerospace industry7 and including-- 7,i7 an analysis of the resources needed to expand partnerships with the ,advanced ,manufacturing ,office to other industries2 and 7,,ii7 an assessment of which industries and technologies would benefit most from partnering with the ,department1 based on-- 7aa7 cost savings2 7bb7 energy savings2 7cc7 job creation2 and 7dd7 environmental impacts2 and 7,j7 an assessment of current and future workforce needs within the advanced manufacturing industry that identifies any significant skill gaps and provides suggestions on ways to address the gaps4 7c7 ,biennial revisions and report 7#a7 ,biennial revisions ,not later than #b years after the date on which the ,secretary completes the plan under subsection 7a71 and not less frequently than once every #b years thereafter1 the ,secretary shall revise the plan to account for advancements in information and communication technology and manufacturing needs after the completion of the initial plan4 7#b7 ,report ,the ,secretary shall submit to ,congress after each revision under paragraph 7#a7 a report on the status of implementation of the plan established under subsection 7a74 7d7 ,authorization of appropriations ,there is authorized to be appropriated to carry out the study under this section #be1jjj1jjj4 #bjbc4 ,advanced manufacturing supply chain report 7a7 ,in general ,the ,secretary shall enter into an arrangement with the ,national ,academy of ,sciences under which the ,national ,academy of ,sciences shall develop a report that evaluates the manufacturing supply chains for various advanced manufacturing technologies1 including-- 7#a7 an assessment of the strength1 weaknesses1 opportunities1 and obstacles in the supply chains of advanced manufacturing technologies1 including carbon fiber composite manufacturing1 critical materials1 advanced materials1 and semiconductors2 7#b7 analyses of-- 7,a7 the ways in which the supply chains have changed during the #be-year period preceding the date of enactment of this ,act2 7,b7 whether the supply chains have been disrupted by unfair foreign competition2 7,c7 the impact of global trade on the supply chains2 and 7,d7 current trends relating to the supply chains2 7#c7 for each technology and process assessed1 an analysis of which sections of the supply chain are critical for the ,united ,states to remain or become competitive in the manufacturing of the technology2 and 7#d7 recommendations on which emerging technologies and processes the ,united ,states should focus on in order to advance innovation in manufacturing capabilities to increase the competitiveness of ,united ,states manufacturing4 7b7 ,report ,not later than #b years after the date on which the ,secretary enters into the arrangement with the ,national ,academy of ,sciences under subsection 7a71 the ,national ,academy of ,sciences shall submit to the ,secretary1 the ,committee on ,energy and ,natural ,resources of the ,senate1 and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report that describes the findings and recommendations of the ,national ,academy of ,sciences with respect to the assessment and analyses conducted under subsection 7a74 #bjbd4 ,leveraging existing agency programs to assist small and medium manufacturers 7a7 ,collaboration with national laboratories and institutions of higher education ,the ,office shall work in collaboration with ,national ,laboratories and institutions of higher education to provide assistance to small and medium manufacturers with respect to smart manufacturing technologies and practices4 7b7 ,expansion of ,technical ,assistance ,programs ,the ,secretary shall expand the scope of technologies covered by the ,industrial ,assessment ,centers-- 7#a7 to include smart manufacturing technologies and practices2 and 7#b7 to provide the directors of the ,industrial ,assessment ,centers with the training and tools necessary to provide to manufacturers technical assistance in smart manufacturing technologies and practices1 including energy management systems4 #bjbe4 ,advanced ,manufacturing ,innovation ,hubs 7a7 ,definitions ,in this section3 7#a7 ,advanced ,manufacturing ,the term advanced manufacturing means-- 7,a7 a technology1 or process that-- 7i7 depends on the use and coordination of information1 automation1 computation1 software1 sensing1 and networking2 7ii7 makes use of new materials or reuses existing materials2 or 7iii7 enhances the manufacturing competitiveness of the ,united ,states2 7,b7 research1 development1 demonstration1 and commercial application activities necessary to ensure the long-term1 secure1 and sustainable supply of advanced materials2 or 7,c7 any other innovative energy technology area identified by the ,secretary4 7#b7 ,hub ,the term ,hub means an ,advanced ,manufacturing ,innovation ,hub established under subsection 7b74 7#c7 ,qualifying ,entity ,the term qualifying entity means-- 7,a7 an institution of higher education in partnership with industry2 7,b7 an appropriate ,federal or ,state entity1 including ,federally ,funded ,research and ,development ,centers of the ,department2 7,c7 a nongovernmental organization with expertise in advanced manufacturing research1 development1 demonstration1 or commercial application activities2 or 7,d7 any other relevant entity that the ,secretary considers appropriate4 7b7 ,authorization of ,program 7#a7 ,in ,general ,the ,secretary shall carry out a program to enhance the manufacturing competitiveness of the ,united ,states by making awards to consortia for establishing and operating ,advanced ,manufacturing ,innovation ,hubs to conduct and support multidisciplinary1 collaborative research1 development1 demonstration1 and commercial application of advance manufacturing technologies4 7#b7 ,centralized location ,to the maximum extent practicable1 each ,hub provided an award under this section shall be located at #a centralized location4 7#c7 ,technology ,development ,focus ,the ,secretary shall designate for each ,hub a unique advanced manufacturing technology focus1 process1 or technology4 7#d7 ,coordination ,the ,secretary shall ensure the coordination of1 and avoid unnecessary duplication of1 the activities of ,hubs with the activities of other research entities of the ,department 7including the ,national ,laboratories and the ,advanced ,research ,projects ,agency--,energy7 and industry4 7c7 ,consortia 7#a7 ,eligibility ,to be eligible to receive an award under this section for the establishment and operation of a ,hub1 a consortium shall-- 7,a7 be composed of not fewer than #b qualifying entities2 and 7,b7 operate subject to an agreement entered into by the members of the consortium that documents-- 7i7 the proposed partnership agreement1 including the governance and management structure of the ,hub2 7ii7 measures to enable the cost-effective implementation of the program under this section2 7iii7 a proposed budget for the ,hub1 including a description of financial contributions from non-,federal sources2 7iv7 an accounting structure for the ,hub that enables the ,secretary to ensure that the consortium has complied with the requirements of this section2 and 7v7 a plan to coordinate workforce training within ,hub locations4 7#b7 ,application 7,a7 ,in general ,a consortium seeking to establish and operate a ,hub under this section1 acting through a prime applicant1 shall submit to the ,secretary an application that addresses the elements of the consortium agreement required under paragraph 7#a77;,b74 7,b7 ,multiple locations ,if the consortium members are not located at #a centralized location1 an application submitted under subparagraph 7,a7 shall include a communications plan that ensures close coordination and integration of the activities of the ,hub4 7d7 ,selection and ,schedule 7#a7 ,in general ,the ,secretary shall select consortia for awards for the establishment and operation of ,hubs through a competitive selection process4 7#b7 ,considerations ,in selecting consortia under this section1 the ,secretary shall consider-- 7,a7 the information a consortium is required to document under subsection 7c77#a77;,b72 7,b7 regional diversity2 and 7,c7 any existing facilities that a consortium would provide for ,hub activities4 7#c7 ,term 7,a7 ,in general ,awards made to a ,hub under this section shall be for a period of not more than #e years4 7,b7 ,renewal ,at the end of the #e-year period of an award under this section1 the ,secretary may renew the award1 subject to a rigorous merit review4 7e7 ,hub ,operations 7#a7 ,in general ,each ,hub shall conduct or provide for multidisciplinary1 collaborative research1 development1 demonstration1 and1 as appropriate1 commercial application of advanced manufacturing technologies within the technology development focus for the ,hub designated under subsection 7b77#c74 7#b7 ,requirements ,each ,hub shall-- 7,a7 encourage collaboration and communication among the member qualifying entities of the consortium and awardees by conducting activities1 to the maximum extent practicable1 at #a centralized location2 7,b7 develop and publish on the website of the ,department proposed plans and programs2 7,c7 submit an annual report to the ,secretary that summarizes1 during the period covered by the report1 the activities of the ,hub1 including-- 7i7 a detailed description of organizational expenditures by the ,hub2 and 7ii7 a description of each project undertaken by the ,hub2 and 7,d7 monitor project implementation and coordination4 7#c7 ,conflicts of interest 7,a7 ,procedures ,a ,hub shall maintain conflict of interest procedures1 consistent with the procedures of the ,department1 to ensure that employees and consortia designees for ,hub activities that are in decisionmaking capacities-- 7i7 disclose all material conflicts of interest2 and 7ii7 avoid conflicts of interest4 7,b7 ,disqualification and revocation ,the ,secretary may disqualify an application or revoke funds distributed to a ,hub if the ,secretary discovers a failure to comply with conflict of interest procedures established under subparagraph 7,a74 7#d7 ,prohibition of construction 7,a7 ,in general ,no funds provided under this section may be used for the construction of new buildings or facilities for a ,hub4 7,b7 ,cost-sharing agreement ,construction of new buildings or facilities for a ,hub shall not be considered as part of the non-,federal share of a cost-sharing agreement of the ,hub4 7,c7 ,test bed and renovation exception ,nothing in this paragraph prohibits the use of funds provided under this section1 or non-,federal cost share funds1 for research or for the construction of a test bed or renovations to existing buildings or facilities for the purposes of research1 if the ,secretary determines that the test bed or renovations are limited to a scope and scale necessary for the research to be conducted4 7f7 ,termination ,the ,secretary may terminate an underperforming ,hub for cause during the award period4 7g7 ,loan program ,the consortium from each ,hub1 in consultation with the ,secretary1 may identify best in class technologies that would be eligible for technical assistance1 including assistance from loan programs of the ,department1 the ,community ,development ,financial ,institution ,program1 ,small ,business ,administration loan programs1 ,small ,business ,innovation ,research and ,small ,business ,technology ,transfer programs1 and rural energy loan programs of the ,department of ,agriculture4 7h7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #cjj1jjj1jjj4 #bjbf4 ,advanced ,materials ,prize ,competition ,pilot ,program 7a7 ,in ,general ,the ,secretary shall establish a prize competition under which eligible entities compete to develop and verifiably demonstrate advanced materials technology that reduces energy costs or reduces carbon dioxide emissions by at least #bj percent4 7b7 ,competition ,board ,the ,secretary shall establish a ,competition ,board to administer the prize competition1 to be composed of members from the ,department and industry4 7c7 ,eligible entities ,to be eligible for the competition1 an entity shall be-- 7#a7 a non-public entity2 or 7#b7 a public-private partnership in which the private entity is greater than #ej percent of the partnership4 7d7 ,awards ,as part of the prize competition established under this section1 the ,competition ,board shall award to eligible entities not more than #e prizes of not more than #b1jjj1jjj each4 7e7 ,duration ,the duration for the prize competition established under this section shall be not less than #b years or more than #e years4 7f7 ,selection ,in selecting a winner for a prize awarded under the prize competition1 the ,competition ,board shall evaluate the technology developed by the eligible entity based on the following criteria3 7#a7 ,the amount by which the technology would increase energy savings or decrease carbon dioxide emissions4 7#b7 ,the ability of the technology to be deployed in commercial application in a variety of industries or supply chains4 7#c7 ,the potential for private sector investment in the technology4 7#d7 ,the potential of the technology to transform an existing industry or establish a new industry4 7g7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #aj1jjj1jjj4 #bjbg4 ,pilot program with original equipment manufacturers and public utilities ,the ,office1 in collaboration with the ,industrial ,assessment ,centers at the ,department1 the ,national ,institute of ,standards and ,technology1 the ,manufacturing ,extension ,partnership1 original equipment manufacturers1 and public utilities1 shall develop a pilot program to work with small- and medium-manufacturers in supply chains of original equipment manufacturers to provide-- 7#a7 an assessment of manufacturing efficiency2 and 7#b7 best practices and technical assistance for implementing energy savings and efficiency in the manufacturing process4 ,d ,building better trucks #bjca4 ,advanced technology vehicles manufacturing incentive program ,section #acf of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agjac7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a7-- 7i7 by redesignating subparagraphs 7,a7 through 7,c7 as clauses 7i7 through 7iii71 respectively1 and indenting appropriately2 7ii7 by striking 7#a7 ,advanced technology vehicle4-- and all that follows through meets-- and inserting the following3 7#a7 ,advanced technology vehicle ,the term advanced technology vehicle means-- 7,a7 an ultra efficient vehicle2 7,b7 a light duty vehicle that meets-- 2 7iii7 in subparagraph 7,b77iii7 7as so redesignated71 by striking the period at the end and inserting 2 or2 and 7iv7 by adding at the end the following3 7,c7 a medium-duty or heavy-duty vehicle that-- 7i7 7,i7 is subject to regulations established by the ,secretary of ,transportation under parts #ebc1 #ecd1 and #ece of title #di1 ,code of ,federal ,regulations 7or successor regulations72 or 7,,ii7 is included in a vehicle type or class that offers opportunities to substantially reduce consumption of conventional motor fuel1 as determined by the ,secretary by rule2 and 7ii7 reduces consumption of conventional motor fuel by #aj percent or greater as compared to model year #bjaj medium- and heavy-duty vehicles of a similar vehicle type or class1 unless the ,secretary determines by rule that-- 7,i7 the percentage is not achievable for a specific vehicle type or class2 and 7,,ii7 an alternative percentage for that vehicle type or class will result in substantial reductions in motor fuel consumption within the ,united ,states4 2 and 7,b7 by striking paragraph 7#d7 and inserting the following3 7#d7 ,qualifying components ,the term qualifying components means components1 systems1 or groups of subsystems that the ,secretary determines-- 7,a7 to be designed to improve fuel economy or otherwise substantially reduce consumption of conventional motor fuel2 or 7,b7 to contribute measurably to the overall improved fuel use of an advanced technology vehicle4 2 7#b7 in subsection 7b71 in the matter preceding paragraph 7#a71 by inserting or other vehicle after ultra efficient vehicle2 7#c7 by striking subsection 7f7 and inserting the following3 7f7 ,fees 7#a7 ,in general ,the ,secretary shall charge a closing fee of #ej basis points of the loan to cover applicable administrative expenses4 7#b7 ,use of fees ,fees collected under paragraph 7#a7 shall-- 7,a7 be deposited by the ,secretary into the general fund of the ,treasury2 and 7,b7 remain available until expended1 subject to such other conditions as are contained in annual appropriations ,acts4 2 and 7#d7 in subsection 7h77#a77;,b71 by striking automobiles1 or components of automobiles and inserting automobiles or other vehicles1 or components of automobiles or other vehicles4 ,e ,vehicle innovation #bjda4 ,findings ,congress finds the following3 7#a7 ,according to the ,energy ,information ,administration1 the transportation sector accounts for approximately #bh percent of the ,united ,states primary energy demand and greenhouse gas emissions1 and #ba percent of global oil demand4 7#b7 ,the ,united ,states transportation sector is over #ij-percent dependent on petroleum4 7#c7 ,united ,states heavy truck fuel consumption will increase #bg percent by #bjcj4 7#d7 ,the domestic automotive and commercial vehicle manufacturing sectors have increasingly limited resources for research1 development1 and engineering of advanced technologies4 7#e7 ,vehicle1 engine1 and component manufacturers are playing a more important role in vehicle technology development1 and should be better integrated into ,federal research efforts4 7#f7 ,priorities for the vehicle technologies research of the ,department have shifted drastically in recent years among diesel hybrids1 hydrogen fuel cell vehicles1 and plug-in electric hybrids1 with little continuity among them4 7#g7 ,the integration of vehicle1 communication1 and infrastructure technologies has great potential for efficiency gains through better management of the total transportation system4 7#h7 ,the ,federal ,government should balance its role in researching longer-term exploratory concepts and developing nearer-term transformational technologies for vehicles4 #bjdb4 ,objectives ,the objectives of this subtitle are-- 7#a7 to develop ,united ,states technologies and practices that-- 7,a7 improve the fuel efficiency and emissions of all vehicles produced in the ,united ,states2 and 7,b7 reduce vehicle reliance on petroleum-based fuels2 7#b7 to support domestic research1 development1 engineering1 demonstration1 and commercial application and manufacturing of advanced vehicles1 engines1 and components2 7#c7 to enable vehicles to move larger volumes of goods and more passengers with less energy and emissions2 7#d7 to develop cost-effective advanced technologies for wide-scale utilization throughout the passenger1 commercial1 government1 and transit vehicle sectors2 7#e7 to allow for greater consumer choice of vehicle technologies and fuels2 7#f7 shorten technology development and integration cycles in the vehicle industry2 7#g7 to ensure a proper balance and diversity of ,federal investment in vehicle technologies2 and 7#h7 to strengthen partnerships between ,federal and ,state governmental agencies and the private and academic sectors4 #bjdc4 ,vehicle research and development program 7a7 ,program 7#a7 ,activities ,the ,secretary shall conduct a program of basic and applied research1 development1 engineering1 demonstration1 and commercial application activities on materials1 technologies1 and processes with the potential to substantially reduce or eliminate petroleum use and the emissions of passenger and commercial vehicles in the ,united ,states1 including activities in the areas of-- 7,a7 hybridization or full electrification of vehicle systems2 7,b7 batteries and other energy storage devices2 7,c7 power electronics2 7,d7 vehicle1 component1 and subsystem manufacturing technologies and processes2 7,e7 engine efficiency and combustion optimization2 7,f7 waste heat recovery2 7,g7 transmission and drivetrains2 7,h7 hydrogen vehicle technologies1 including fuel cells and internal combustion engines1 and hydrogen infrastructure1 including hydrogen energy storage to enable renewables and provide hydrogen for fuel and power2 7,i7 natural gas vehicle technologies2 7,j7 aerodynamics1 rolling resistance 7including tires and wheel assemblies71 and accessory power loads of vehicles and associated equipment2 7,k7 vehicle weight reduction1 including lightweighting materials and the development of manufacturing processes to fabricate1 assemble1 and use dissimilar materials2 7,l7 friction and wear reduction2 7,m7 engine and component durability2 7,n7 innovative propulsion systems2 7,o7 advanced boosting systems2 7,p7 hydraulic hybrid technologies2 7,q7 engine compatibility with and optimization for a variety of transportation fuels including natural gas and other liquid and gaseous fuels2 7,r7 predictive engineering1 modeling1 and simulation of vehicle and transportation systems2 7,s7 refueling and charging infrastructure for alternative fueled and electric or plug-in electric hybrid vehicles1 including the unique challenges facing rural areas2 7,t7 gaseous fuels storage systems and system integration and optimization2 7,u7 sensing1 communications1 and actuation technologies for vehicle1 electrical grid1 and infrastructure2 7,v7 efficient use1 substitution1 and recycling of potentially critical materials in vehicles1 including rare earth elements and precious metals1 at risk of supply disruption2 7,w7 aftertreatment technologies2 7,x7 thermal management of battery systems2 7,y7 retrofitting advanced vehicle technologies to existing vehicles2 7,z7 development of common standards1 specifications1 and architectures for both transportation and stationary battery applications2 7,,aa7 advanced internal combustion engines2 7,,bb7 mild hybrid2 7,,cc7 engine down speeding2 and 7,,dd7 other research areas as determined by the ,secretary4 7#b7 ,transformational technology ,the ,secretary shall ensure that the ,department continues to support research1 development1 engineering1 demonstration1 and commercial application activities and maintains competency in mid- to long-term transformational vehicle technologies with potential to achieve deep reductions in petroleum use and emissions1 including activities in the areas of-- 7,a7 hydrogen vehicle technologies1 including fuel cells1 hydrogen storage1 infrastructure1 and activities in hydrogen technology validation and safety codes and standards2 7,b7 multiple battery chemistries and novel energy storage devices1 including nonchemical batteries and electromechanical storage technologies such as hydraulics1 flywheels1 and compressed air storage2 7,c7 communication and connectivity among vehicles1 infrastructure1 and the electrical grid2 and 7,d7 other innovative technologies research and development1 as determined by the ,secretary4 7#c7 ,industry participation 7,a7 ,in general ,to the maximum extent practicable1 activities under this section shall be carried out in partnership or collaboration with automotive manufacturers1 heavy commercial1 vocational1 and transit vehicle manufacturers1 qualified plug-in electric vehicle manufacturers1 compressed natural gas vehicle manufacturers1 vehicle and engine equipment and component manufacturers1 manufacturing equipment manufacturers1 advanced vehicle service providers1 fuel producers and energy suppliers1 electric utilities1 institutions of higher education1 the ,national ,laboratories 7as that term is defined in section #b of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja771 and independent research laboratories4 7,b7 ,requirements ,in carrying out this section1 the ,secretary shall-- 7i7 7,i7 determine whether a wide range of companies that manufacture or assemble vehicles or components in the ,united ,states are represented in ongoing public private partnership activities1 including firms that have not traditionally participated in federally sponsored research and development activities2 and 7,,ii7 if possible1 partner with firms described in subclause 7,,ii7 that conduct significant and relevant research and development activities in the ,united ,states2 7ii7 leverage the capabilities and resources of1 and formalize partnerships with1 industry-led stakeholder organizations1 nonprofit organizations1 industry consortia1 and trade associations with expertise in the research and development of1 and education and outreach activities in1 advanced automotive and commercial vehicle technologies2 7iii7 develop more effective processes for transferring research findings and technologies to industry2 7iv7 give consideration to conversion of existing or former vehicle technology development or manufacturing facilities for the purposes of this section2 7v7 support public-private partnerships dedicated to overcoming barriers in commercial application of transformational vehicle technologies that use the industry-led technology development facilities of entities with demonstrated expertise in successfully designing and engineering pre-commercial generations of transformational vehicle technology2 and 7vi7 promote efforts to ensure that technology research1 development1 engineering1 and commercial application activities funded under this section are carried out in the ,united ,states4 7#d7 ,interagency and intraagency coordination ,to the maximum extent practicable1 the ,secretary shall coordinate research1 development1 demonstration1 and commercial application activities among-- 7,a7 relevant programs within the ,department1 including-- 7i7 the ,office of ,energy ,efficiency and ,renewable ,energy2 7ii7 the ,office of ,science2 7iii7 the ,office of ,electricity ,delivery and ,energy ,reliability2 7iv7 the ,office of ,fossil ,energy2 7v7 the ,advanced ,research ,projects ,agency--,energy2 and 7vi7 other offices as determined by the ,secretary2 and 7,b7 relevant technology research and development programs within other ,federal agencies1 as determined by the ,secretary4 7#e7 ,coordination and nonduplication ,in coordinating activities carried out under this section1 the ,secretary shall ensure1 to the maximum extent practicable1 that the activities do not duplicate those of other programs within the ,department or other relevant research agencies4 7#f7 ,federal demonstration of technologies ,the ,secretary shall make information available to procurement programs of ,federal agencies regarding the potential to demonstrate technologies resulting from activities funded through programs under this section4 7#g7 ,intergovernmental coordination ,the ,secretary shall seek opportunities to leverage resources and support initiatives of ,state and local governments in developing and promoting advanced vehicle technologies1 manufacturing1 and infrastructure4 7#h7 ,criteria ,in awarding grants under this program1 the ,secretary shall give priority to those technologies 7either individually or as part of a system7 that-- 7,a7 provide the greatest aggregate fuel savings based on the reasonable projected sales volumes of the technology2 and 7,b7 provide the greatest increase in employment in the ,united ,states4 7b7 ,sensing and communications technologies ,the ,secretary1 in coordination with the relevant research programs of other ,federal agencies1 shall conduct research1 development1 engineering1 demonstration1 and deployment activities on connectivity of vehicle roadway1 vulnerable road users1 traffic control systems1 and transportation data systems1 including on sensing1 data1 computation1 communication1 cybersecurity1 and actuation technologies that allow for improved safety1 reduced energy and fuel use1 optimized traffic flow1 and vehicle electrification1 including technologies for-- 7#a7 onboard vehicle1 engine1 transmission and component sensing1 actuation1 and calibration2 7#b7 vehicle-to-vehicle sensing and communication2 7#c7 vehicle-to-infrastructure sensing and communication2 7#d7 vehicle-to-pedestrian and vehicle-to-bicyclist sensing and communication2 and 7#e7 vehicle integration with the electrical grid4 7c7 ,manufacturing ,the ,secretary shall carry out a research1 development1 engineering1 demonstration1 and commercial application program of advanced vehicle manufacturing technologies and practices1 including innovative processes-- 7#a7 to increase the production rate and decrease the cost of advanced battery and fuel cell manufacturing2 7#b7 to vary the capability of individual manufacturing facilities to accommodate different battery chemistries and configurations2 7#c7 to reduce waste streams1 emissions1 and energy intensity of vehicle1 engine1 advanced battery and component manufacturing processes2 7#d7 to recycle and remanufacture used batteries and other vehicle components for reuse in vehicles or stationary applications2 7#e7 to develop manufacturing processes to effectively fabricate1 assemble1 and produce cost-effective lightweight materials such as advanced aluminum and other metal alloys1 polymeric composites1 and carbon fiber for use in vehicles2 7#f7 to produce lightweight high pressure storage systems for gaseous fuels2 7#g7 to design and manufacture purpose-built hydrogen fuel cell vehicles and components2 7#h7 to improve the calendar life and cycle life of advanced batteries2 and 7#i7 to produce permanent magnets for advanced vehicles4 7d7 ,user testing facilities ,activities under this section may include construction1 expansion1 or modification of new and existing vehicle1 engine1 and component research and testing facilities for-- 7#a7 testing or simulating interoperability of a variety of vehicle components and systems1 including the technologies described in subsection 7b72 7#b7 subjecting whole or partial vehicle platforms to fully representative duty cycles and operating conditions2 7#c7 developing and demonstrating a range of chemistries and configurations for advanced vehicle battery manufacturing2 7#d7 developing and demonstrating test cycles for new and alternative fuels1 and other advanced vehicle technologies2 7#e7 developing and demonstrating methods to charge electric vehicles and connect them to the electric grid2 and 7#f7 developing1 testing1 and demonstrating hydrogen and natural gas refueling station technologies4 7e7 ,reporting 7#a7 ,technologies developed ,not later than #ah months after the date of enactment of this ,act and annually thereafter through #bjbj1 the ,secretary shall submit to ,congress a report regarding the technologies developed as a result of the activities authorized by this section1 with a particular emphasis on whether the technologies were successfully adopted for commercial applications1 and if so1 whether products relying on those technologies are manufactured in the ,united ,states4 7#b7 ,additional matters ,at the end of each fiscal year through #bjbj the ,secretary shall submit to the relevant ,congressional committees of jurisdiction an annual report describing activities undertaken in the previous year under this section1 active industry participants1 efforts to recruit new participants committed to design1 engineering1 and manufacturing of advanced vehicle technologies in the ,united ,states1 progress of the program in meeting goals and timelines1 and a strategic plan for funding of activities across agencies4 #bjdd4 ,medium- and heavy-duty commercial and transit vehicles program 7a7 ,program 7#a7 ,in general ,the ,secretary1 in partnership with relevant research and development programs in other ,federal agencies1 and a range of appropriate industry stakeholders1 shall carry out a program of cooperative research1 development1 demonstration1 and commercial application activities on advanced technologies for medium- to heavy-duty commercial1 vocational1 recreational1 and transit vehicles1 including activities in the areas of-- 7,a7 engine efficiency and combustion research2 7,b7 onboard storage technologies for compressed and liquefied natural gas2 7,c7 development and integration of engine technologies designed for natural gas operation of a variety of vehicle platforms2 7,d7 waste heat recovery and conversion2 7,e7 improved aerodynamics and tire rolling resistance2 7,f7 energy and space-efficient emissions control systems2 7,g7 mild hybrid1 heavy hybrid1 hybrid hydraulic1 plug-in hybrid1 and electric platforms1 and energy storage technologies2 7,h7 drivetrain optimization2 7,i7 friction and wear reduction2 7,j7 engine idle and parasitic energy loss reduction2 7,k7 electrification of accessory loads2 7,l7 onboard sensing and communications technologies2 7,m7 advanced lightweighting materials and vehicle designs2 7,n7 increasing load capacity per vehicle2 7,o7 thermal management of battery systems2 7,p7 recharging infrastructure2 7,q7 compressed natural gas infrastructure2 7,r7 advanced internal combustion engines2 7,s7 complete vehicle and power pack modeling1 simulation1 and testing2 7,t7 hydrogen vehicle technologies1 including fuel cells and internal combustion engines1 and hydrogen infrastructure1 including hydrogen energy storage to enable renewables and provide hydrogen for fuel and power2 7,u7 retrofitting advanced technologies onto existing truck fleets2 7,v7 advanced boosting systems2 7,w7 engine down speeding2 and 7,x7 integration of these and other advanced systems onto a single truck and trailer platform4 7#b7 ,reporting ,at the end of each fiscal year through fiscal year #bjbj1 the ,secretary shall submit to ,congress an annual report describing activities undertaken in the previous year under this section1 active industry participants1 efforts to recruit new participants1 progress of the program in meeting goals and timelines1 and a strategic plan for funding of activities across agencies4 7b7 ,class #h truck and trailer systems demonstration 7#a7 ,in general ,the ,secretary shall conduct a competitive grant program to demonstrate the integration of multiple advanced technologies on ,class #h truck and trailer platforms1 including a combination of technologies listed in subsection 7a77#a74 7#b7 ,applicant teams ,applicant teams may be comprised of truck and trailer manufacturers1 engine and component manufacturers1 fleet customers1 university researchers1 and other applicants as appropriate for the development and demonstration of integrated ,class #h truck and trailer systems4 7c7 ,technology testing and metrics ,the ,secretary1 in coordination with the partners of the interagency research program described in subsection 7a77#a7-- 7#a7 shall develop standard testing procedures and technologies for evaluating the performance of advanced heavy vehicle technologies under a range of representative duty cycles and operating conditions1 including for heavy hybrid propulsion systems2 7#b7 shall evaluate heavy vehicle performance using work performance-based metrics other than those based on miles per gallon1 including those based on units of volume and weight transported for freight applications1 and appropriate metrics based on the work performed by nonroad systems2 and 7#c7 may construct heavy duty truck and bus testing facilities4 7d7 ,nonroad systems pilot program ,the ,secretary shall undertake a pilot program of research1 development1 demonstration1 and commercial applications of technologies to improve total machine or system efficiency for nonroad mobile equipment including agricultural1 construction1 air1 and sea port equipment1 and shall seek opportunities to transfer relevant research findings and technologies between the nonroad and on-highway equipment and vehicle sectors4 #bjde4 ,authorization of appropriations ,there are authorized to be appropriated to the ,secretary for research1 development1 engineering1 demonstration1 and commercial application of vehicles and related technologies in the ,united ,states1 including activities authorized under this subtitle-- 7#a7 for fiscal year #bjaf1 #cac1efg1jjj2 7#b7 for fiscal year #bjag1 #cbf1aji1jjj2 7#c7 for fiscal year #bjah1 #cci1aed1jjj2 7#d7 for fiscal year #bjai1 #ceb1gbj1jjj2 and 7#e7 for fiscal year #bjbj1 #cff1hbi1jjj4 ,f ,carbon fiber recycling #bjea4 ,recycled carbon fiber study 7a7 ,study ,the ,secretary shall conduct a study on-- 7#a7 the technology of recycled carbon fiber and production waste carbon fiber2 and 7#b7 the potential lifecycle energy savings and economic impact of recycled carbon fiber4 7b7 ,factors for consideration ,in conducting the study under subsection 7a71 the ,secretary shall take into consideration-- 7#a7 the quantity of recycled carbon fiber or production waste carbon fiber that would make the use of recycled carbon fiber or production waste carbon fiber economically viable2 7#b7 any existing or potential barriers to recycling carbon fiber or using recycled carbon fiber2 7#c7 any financial incentives that may be necessary for the development of recycled carbon fiber or production waste carbon fiber2 7#d7 the potential lifecycle savings in energy from producing recycled carbon fiber1 as compared to producing new carbon fiber2 7#e7 the best and highest use for recycled carbon fiber2 7#f7 the potential reduction in carbon dioxide emissions from producing recycled carbon fiber1 as compared to producing new carbon fiber2 7#g7 any economic benefits gained from using recycled carbon fiber or production waste carbon fiber2 7#h7 workforce training and skills needed to address labor demands in the development of recycled carbon fiber or production waste carbon fiber2 and 7#i7 how the ,department can leverage existing efforts in the industry on the use of production waste carbon fiber4 7c7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall submit to ,congress a report describing the results of the study conducted under subsection 7a74 #bjeb4 ,carbon fiber recycling demonstration project ,the ,secretary shall consult with the aviation and automotive industries and existing programs of the ,advanced ,manufacturing ,office of the ,department to develop a carbon fiber recycling demonstration project4 #bjec4 ,authorization of appropriations ,there is authorized to be appropriated to carry out this subtitle #aj1jjj1jjj1 to remain available until expended4 ,g ,job creation through energy efficient manufacturing #bjfa4 ,purpose ,the purpose of this subtitle is to encourage widespread deployment of energy efficiency and onsite renewable energy technologies in manufacturing and industrial facilities throughout the ,united ,states through the establishment of a ,financing ,energy ,efficient ,manufacturing ,program that would-- 7#a7 encourage the widespread availability of financial products and programs with attractive rates and terms that significantly reduce or eliminate upfront expenses to allow manufacturing and industrial businesses to invest in energy efficiency measures1 onsite clean and renewable energy systems1 smart grid systems1 and alternative vehicle fleets by providing credit support1 credit enhancement1 secondary markets1 and other support to originators of the financial products and sponsors of the financing programs2 and 7#b7 help building owners to invest in measures and systems that reduce energy costs1 in many cases creating a net cost savings that can be realized in the short-term1 and may also allow manufacturing and industrial business owners to defer capital expenditures1 save money to hire new workers1 and increase the value1 comfort1 and sustainability of the property of the owners4 #bjfb4 ,definitions ,in this subtitle3 7#a7 ,covered program ,the term covered program means a program to finance energy efficiency retrofit1 onsite clean and renewable energy1 smart grid1 and alternative vehicle fleet projects for industrial businesses4 7#b7 ,state ,the term ,state means-- 7,a7 a ,state2 7,b7 the ,district of ,columbia2 7,c7 the ,commonwealth of ,puerto ,rico2 and 7,d7 any other territory or possession of the ,united ,states4 #bjfc4 ,financing ,energy ,efficient ,manufacturing ,program 7a7 ,establishment ,the ,secretary shall establish a program1 to be known as the ,financing ,energy ,efficient ,manufacturing ,program1 under which the ,secretary shall provide grants to ,states to establish or expand covered programs4 7b7 ,applications 7#a7 ,in general ,a ,state may apply to the ,secretary for a grant under subsection 7a7 to establish or expand covered programs4 7#b7 ,evaluation ,the ,secretary shall evaluate applications submitted by ,states under paragraph 7#a7 on the basis of-- 7,a7 the likelihood that the covered program would-- 7i7 be established or expanded2 and 7ii7 increase the total investment and energy savings of retrofit projects to be supported2 7,b7 in the case of industrial business efficiency financing initiatives conducted under subsection 7c71 evidence of multi-,state cooperation and coordination with lenders1 financiers1 and owners2 and 7,c7 other factors that would advance the purposes of this subtitle1 as determined by the ,secretary4 7c7 ,multi-,state facilitation ,the ,secretary shall consult with ,states and relevant stakeholders with applicable expertise to establish a process to identify financing opportunities for manufacturing and industrial business with asset portfolios across multiple ,states4 7d7 ,administration ,a ,state receiving a grant under subsection 7a7 shall give a higher priority to covered programs that-- 7#a7 leverage private and non-,federal sources of funding2 and 7#b7 aim explicitly to expand the use of energy efficiency project financing using private sources of funding4 7e7 ,davis-,bacon compliance 7#a7 ,in general ,all laborers and mechanics employed on projects funded directly by or assisted in whole or in part by this subtitle shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the ,secretary of ,labor in accordance with subchapter ,,iv of chapter #ca of part ,a of subtitle ,,ii of title #dj1 ,united ,states ,code 7commonly referred to as the ,davis-,bacon ,act74 7#b7 ,authority ,with respect to the labor standards specified in this subsection1 the ,secretary of ,labor shall have the authority and functions set forth in ,reorganization ,plan ,numbered #ad of #aiej 7#fd ,stat4 #abfg2 #e ,u4,s4,c4 ,app47 and section #cade of title #dj1 ,united ,states ,code4 7f7 ,reports 7#a7 ,in general ,not later than #b years after the date of receipt of a grant under this subtitle1 a ,state shall submit to the ,secretary1 the ,committee on ,energy and ,natural ,resources of the ,senate1 and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report that describes the performance of covered programs carried out using the grant funds4 7#b7 ,data 7,a7 ,in general ,a ,state receiving a grant under this subtitle1 in cooperation with the ,secretary1 shall-- 7i7 collect and share data resulting from covered programs carried out under this subtitle2 and 7ii7 include in the report submitted under paragraph 7#a7 any data collected under clause 7i74 7,b7 ,department databases ,the ,secretary shall incorporate data described in subparagraph 7,a7 into appropriate databases of the ,department1 with provisions for the protection of confidential business data4 #bjfd4 ,authorization of appropriations 7a7 ,in general ,there is authorized to be appropriated to carry out this subtitle #bej1jjj1jjj1 to remain available until expended4 7b7 ,state energy offices ,funds provided to a ,state under this subtitle shall be provided to the office within the ,state that is responsible for developing the ,state energy plan for the ,state under part ,d of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcba et seq74 ,h #bast ,century energy workforce #baja4 ,findings ,congress finds that-- 7#a7 the energy sector is the third-largest industry in the ,united ,states2 7#b7 #a1ejj1jjj new skilled workers will be needed in the energy sector over the next #ae years2 and 7#c7 a skilled workforce is a critical component of ensuring the growth of the energy sector in the ,united ,states4 #bajb4 ,definitions ,in this subtitle3 7#a7 ,board ,the term ,board means the ,national ,center of ,excellence for the #bast ,century ,workforce ,advisory ,board established under section #bajc7;a74 7#b7 ,community college ,the term community college means a junior or community college 7as defined in section #cab7;f7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajeh7;f7774 7#c7 ,program ,the term program means the pilot program established under section #bajd7;a74 7#d7 ,veterans service organization ,the term veterans service organization means an organization recognized by the ,secretary of ,veterans ,affairs for the representation of veterans under section #eijb of title #ch1 ,united ,states ,code4 #bajc4 ,national ,center of ,excellence for the #bast ,century ,workforce 7a7 ,in general ,the ,secretary shall establish a nationwide advisory board1 to be known as the ,national ,center of ,excellence for the #bast ,century ,workforce ,advisory ,board1 to foster strategic vision1 guidance1 and networks for the energy industry4 7b7 ,representatives ,the members of the ,board shall consist of energy sector stakeholders1 including-- 7#a7 representatives of relevant industries2 7#b7 experts in labor1 economics1 and workforce development2 7#c7 representatives of ,states and units of local government2 7#d7 representatives of elementary and secondary education and postsecondary education2 and 7#e7 representatives of labor organizations4 7c7 ,purposes ,the purposes of the ,board are-- 7#a7 to support and develop training and science education programs that-- 7,a7 meet the industry and labor needs of the energy and advanced manufacturing sectors2 and 7,b7 provide opportunities for students to become qualified for placement in traditional and clean energy sector jobs2 7#b7 to align apprenticeship programs and industry certifications to further develop succession planning in the energy sector2 7#c7 to integrate educational standards to develop foundational skills for elementary and secondary education and postsecondary education to create a pipeline between education and career2 and 7#d7 to support the replication of existing model energy curricula1 particularly in new and emerging technologies1 that lead to industry-wide credentials4 #bajd4 ,energy workforce pilot grant program 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary1 in consultation with the ,secretary of ,labor and the ,secretary of ,education1 shall establish a pilot program to award grants on a competitive basis to eligible entities for job training programs that lead to an industry-recognized credential4 7b7 ,eligibility ,to be eligible to receive a grant under this section1 an entity shall be a public or nonprofit organization1 or a consortium of such organizations1 that-- 7#a7 includes an advisory board of proportional participation1 as determined by the ,secretary1 of relevant organizations1 including-- 7,a7 relevant energy industry organizations1 including public and private employers2 7,b7 labor organizations2 and 7,c7 elementary and secondary education and postsecondary education organizations2 7#b7 demonstrates experience in implementing and operating job training and education programs2 7#c7 demonstrates the ability to recruit and support individuals who plan to work in the energy industry in the successful completion of relevant job training and education programs2 and 7#d7 provides students who complete the job training and education program with an industry-recognized credential4 7c7 ,applications ,eligible entities desiring a grant under this section shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7d7 ,priority ,in selecting eligible entities to receive grants under this section1 the ,secretary shall prioritize applicants that-- 7#a7 house the job training and education programs in-- 7,a7 a community college or institution of higher education that includes basic science and math education in the curriculum of the community college1 institution of higher education2 or 7,b7 an apprenticeship program registered with the ,department of ,labor2 7#b7 work with the ,secretary of ,defense or veterans service organizations to transition members of the ,armed ,forces and veterans to careers in the energy sector2 7#c7 apply as a ,state or regional consortia to leverage best practices already available in the ,state or region in which the community college or institution of higher education is located2 7#d7 have a ,state-supported entity included in the application2 7#e7 include an apprenticeship program registered with the ,department of ,labor as part of the job training and education program2 7#f7 develop a mentorship program for energy professionals and elementary and secondary education students2 7#g7 provide support services and career coaching2 7#h7 provide introductory energy workforce development and advanced manufacturing training2 or 7#i7 work with an ,indian tribe 7as defined in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #dej;b774 7e7 ,additional consideration ,in making grants under this section1 the ,secretary shall consider regional diversity4 7f7 ,limitation on applications ,an eligible entity may not submit1 either individually or as part of a joint application1 more than #a application for a grant under this section during any #a fiscal year4 7g7 ,limitations on amount of grant ,the amount of a grant for any #a year shall not exceed #a1jjj1jjj4 7h7 ,cost sharing 7#a7 ,federal share ,the ,federal share of the cost of a job training and education program carried out using a grant under this section shall be not greater than #fe percent4 7#b7 ,non-,federal share 7,a7 ,in general ,the non-,federal share of the cost of a job training and education program carried out using a grant under this section shall consist of not less than #ej percent cash4 7,b7 ,limitation ,not greater than #ej percent of the non-,federal contribution of the total cost of a job training and education program carried out using a grant under this section shall be in the form of in-kind contributions of goods or services fairly valued4 7i7 ,reduction of duplication ,prior to submitting an application for a grant under this section1 each applicant shall consult with the applicable agencies of the ,federal ,government and coordinate the proposed activities of the applicant with existing ,state and local programs4 7j7 ,technical assistance ,the ,secretary shall provide technical assistance and capacity building to national and ,state energy partnerships1 including the entities described in subsection 7b77#a71 to leverage the existing job training and education programs of the ,department4 7k7 ,report ,the ,secretary shall submit to ,congress and make publicly available on the website of the ,department an annual report on the program established under this section1 including a description of-- 7#a7 the entities receiving grants2 7#b7 the activities carried out using the grants2 7#c7 best practices used to leverage the investment of the ,federal ,government2 7#d7 the rate of employment for participants after completing a job training and education program carried out using a grant2 and 7#e7 an assessment of the results achieved by the program4 7l7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #bj1jjj1jjj for each of fiscal years #bjaf through #bjai4 ,i ,solar installations #baaa4 ,loan and grant program for solar installations in low-income and underserved areas 7a7 ,definitions ,in this section3 7#a7 ,administrative expenses ,the term administrative expenses has such meaning as may be established by the ,secretary4 7#b7 ,community solar facility ,the term community solar facility means a community-based distributed photovoltaic solar electricity generating facility that1 as determined by the ,secretary-- 7,a7 is owned by a subscriber organization2 7,b7 has a nameplate rating of #b megawatts or less2 7,c7 is located in or near a community of subscribers to whom the beneficial use of the electricity generated by the facility belongs2 and 7,d7 reserves not less than #be percent of the quantity of electricity generated by the facility for low-income households that are subscribers to the facility4 7#c7 ,grant-eligible household ,the term grant-eligible household means a household the members of which-- 7,a7 earn an income equal to #hj percent or less of the applicable area median income1 as defined for the applicable year by the ,secretary of ,housing and ,urban ,development2 and 7,b7 reside in an owner-occupied home4 7#d7 ,indian tribe ,the term ,indian tribe means any ,indian tribe1 band1 nation1 or other organized group or community1 including any ,alaskan ,native village or regional or village corporation 7as defined in1 or established pursuant to1 the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afja et seq4771 that is recognized as eligible for the special programs and services provided by the ,united ,states to ,indians because of their status as ,indians4 7#e7 ,loan-eligible entity ,the term loan-eligible entity means-- 7,a7 a nonprofit entity2 7,b7 a unit of ,state1 territorial1 or local government2 7,c7 an ,indian tribe2 7,d7 a rural community 7as defined in section #cdc7;a7 of the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aiia7;a772 and 7,e7 any other national or regional entity that-- 7i7 deploys a safe1 high-quality photovoltaic solar electricity generating facility for consumers under a model that maximizes energy savings to those consumers2 and 7ii7 has experience1 as determined by the ,secretary1 installing solar systems using a job training or community volunteer-based installation model4 7#f7 ,low-income household ,the term low-income household means a household with an income equal to #hj percent or less of the applicable area median income1 as defined for the applicable year by the ,secretary of ,housing and ,urban ,development4 7#g7 ,multi-family affordable housing ,the term multi-family affordable housing means any federally subsidized affordable housing complex in which at least #ej percent of the units are reserved for low-income households4 7#h7 ,photovoltaic solar electricity generating facility ,the term photovoltaic solar electricity generating facility means-- 7,a7 a generator that creates electricity from light photons2 and 7,b7 the accompanying hardware enabling that electricity to flow-- 7i7 onto the electric grid2 or 7ii7 into an energy storage device4 7#i7 ,subscriber ,the term subscriber means an electricity consumer who-- 7,a7 owns a subscription1 or an equivalent unit or share of the capacity or generation1 of a community solar facility2 7,b7 has identified #a or more physical locations-- 7i7 to which the subscription will be attributed2 7ii7 within the same electric utility service territory1 or within the same geographical area1 as the community solar facility1 in accordance with applicable ,state and local law2 and 7iii7 that may change from time to time1 subject to the condition that the physical location shall be within the geographical limits allowed for a subscriber of the applicable community solar facility2 and 7,c7 confirms the status of the consumer as a grant-eligible household for each applicable fiscal year4 7#aj7 ,subscription ,the term subscription means a share in the capacity1 or a proportional interest in the solar electricity generation1 of a community solar facility4 7#aa7 ,underserved area ,the term underserved area means a geographical area with low or no photovoltaic solar deployment1 as determined by the ,secretary4 7b7 ,establishment of loan and grant program 7#a7 ,in general ,the ,secretary shall establish a program under which the ,secretary shall provide loans and grants to grant-eligible households and loan-eligible entities for use in accordance with this section4 7#b7 ,funding 7,a7 ,in general ,subject to the availability of appropriations1 the ,secretary shall make grants and issue loans in accordance with this subsection4 7,b7 ,loans ,subject to subparagraph 7,d71 not more than #ej percent of funds made available under subparagraph 7,a7 for a fiscal year shall be used to provide loans to loan-eligible entities for-- 7i7 community solar facilities2 or 7ii7 multi-family affordable housing solar installations4 7,c7 ,grants ,after allocating amounts to carry out subparagraph 7,b71 the ,secretary shall use the remaining funds made available under subparagraph 7,a7 for a fiscal year to provide grants to grant-eligible households-- 7i7 to pay the upfront costs of photovoltaic solar electricity generating facilities2 or 7ii7 for any other eligible use described in subsection 7e74 7,d7 ,increase in grant amount ,notwithstanding subparagraph 7,a71 if the ,secretary determines that more than #ej percent of the amounts described in that subparagraph are necessary during any of fiscal years #bjaf through #bjcj to provide grants to encourage innovative financing and installation models to reach underserved markets1 the ,secretary may use more than #ej percent of those amounts to provide those grants4 7#c7 ,goals and accountability 7,a7 ,in general ,in providing loans and grants under this subsection1 the ,secretary shall take such actions as may be necessary to ensure that-- 7i7 the assistance provided under this subsection is used to facilitate and encourage innovative solar installation and financing models1 under which the recipients develop and install photovoltaic solar electricity generating facilities that provide significant savings to low-income households while providing job training or community engagement opportunities with respect to each solar system installed2 7ii7 loan and grant recipients shall-- 7,i7 have installed not less than #fjj kilowatts of photovoltaic solar energy during the #b-year period preceding the date on which the loan or grant is provided to ensure consumer protection2 or 7,,ii7 until the goal described in subclause 7,i7 is achieved1 enter into partnership with an entity that-- 7aa7 has not less than #b years of experience deploying solar photovoltaic systems for low-income households in a manner that maximizes the savings benefits of solar access2 and 7bb7 was primarily responsible for the installation of at least #b megawatts of solar energy during the #b-year period preceding the date on which the loan or grant is provided2 7iii7 the photovoltaic solar electricity generating facilities installed using assistance provided under this subsection are safe1 high-quality systems that comply with local building and safety codes and standards2 7iv7 the provision of assistance under this subsection establishes and fosters a partnership between the ,federal ,government and grant-eligible households and loan-eligible entities1 resulting in efficient development of solar installations with-- 7,i7 minimal governmental intervention2 7,,ii7 limited governmental regulation2 and 7,,iii7 significant involvement by nonprofit and private entities2 7v7 solar projects installed using assistance provided under this subsection-- 7,i7 shall include job training2 and 7,,ii7 may include community participation in which job trainees and volunteers assist in the development of solar projects2 7vi7 assistance provided under this subsection prioritizes development in-- 7,i7 areas with low photovoltaic penetration2 7,,ii7 rural areas2 7,,iii7 ,indian tribal areas2 and 7,,iv7 other underserved areas1 including ,alaskan ,native and ,appalachian communities2 7vii7 solar systems are developed using assistance provided under this subsection on a geographically diverse basis among the grant-eligible households and loan-eligible entities2 and 7viii7 to the maximum extent practicable1 solar installation activities for which assistance is provided under this section leverage1 or connect grant-eligible households to1 federally or locally subsidized weatherization and energy efficiency efforts that meet or exceed local energy efficiency standards4 7,b7 ,determination ,if1 at any time1 the ,secretary determines that the goals described in this paragraph cannot be met by providing assistance in accordance with this subsection1 the ,secretary shall immediately submit to the appropriate committees of ,congress a written notice of that determination1 including any proposed changes necessary to achieve the goals under this paragraph4 7#d7 ,community solar facilities 7,a7 ,in general ,a community solar facility may use a loan provided under this subsection only to offset the costs of generation and provision of solar energy to low-income households that are subscribers of the community solar facility4 7,b7 ,transfer and assignment of subscriptions ,a subscription to a community solar facility that receives assistance under this subsection may be transferred or assigned by the subscriber to-- 7i7 any subscriber organization2 or 7ii7 any individual or entity who qualifies to be a subscriber to that community solar facility4 7,c7 ,treatment 7i7 ,in general ,no owner1 operator1 or subscriber of a community solar facility that receives assistance under this subsection shall be subject to regulation by the ,federal ,energy ,regulatory ,commission solely as a result of an interest in the community solar facility4 7ii7 ,price of subscription ,the price paid for any subscription to a community solar facility shall not be subject to the regulation of any ,federal department1 agency1 or commission4 7c7 ,national competition 7#a7 ,in general ,the ,secretary shall select grant-eligible households and loan-eligible entities to receive loans or grants under this section through a nationwide competitive process1 to be established by the ,secretary4 7#b7 ,applications ,to be eligible to receive a loan or grant under this section1 a grant-eligible household or loan-eligible entity shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7#c7 ,requirements ,in selecting grant-eligible households and loan-eligible entities to receive loans or grants under this section1 the ,secretary shall1 at a minimum-- 7,a7 require that the grant-eligible household or loan-eligible entity-- 7i7 enter into a grant or loan agreement1 as applicable1 under subsection 7d72 and 7ii7 has obtained financial commitments 7or has demonstrated the capacity to obtain financial commitments7 necessary to comply with that agreement2 7,b7 ensure that loans and grants are provided1 and amounts are used1 in a manner that results in geographical diversity throughout the ,united ,states and within ,states1 territories1 and ,indian tribal land among photovoltaic solar electricity generating facilities installed using the assistance provided under this section2 7,c7 to the maximum extent practicable1 expand photovoltaic solar energy availability to-- 7i7 geographical areas1 throughout the ,united ,states and within ,states1 territories1 and ,indian tribal land1 with-- 7,i7 low photovoltaic solar penetration2 or 7,,ii7 areas with a higher cost burden with respect to the deployment or installation of photovoltaic solar electricity generating facilities2 7ii7 rural communities2 7iii7 ,indian tribes2 and 7iv7 other underserved areas1 including ,appalachian and ,alaska ,native communities2 7,d7 take into account the warranty period and quality of the applicable photovoltaic solar electricity generating facility equipment and any necessary interconnecting equipment2 and 7,e7 ensure all calculations for estimated household energy savings are based solely on electricity offsets from the photovoltaic solar electricity generating facilities4 7d7 ,loan and grant agreements 7#a7 ,in general ,as a condition of receiving a loan or grant under this section1 a grant-eligible household or loan-eligible entity shall enter into a loan or grant agreement1 as applicable1 with the ,secretary4 7#b7 ,requirements ,a loan or grant agreement under this subsection shall-- 7,a7 require the grant-eligible household or loan-eligible entity-- 7i7 to use the assistance provided under this section only in accordance with this section2 7ii7 to install such number of solar systems with such defined capacity target 7expressed in megawatts7 as may be established by the ,secretary 1 taking into consideration the costs associated with carrying out loan or grant obligations in the areas in which the solar systems will be developed2 7iii7 to use the assistance in a manner that leverages other sources of funding 7other than loans or grants under this section71 including private or public funds1 in developing the solar projects2 and 7iv7 to establish loan terms1 if applicable1 that maximize the benefit to the low-income households receiving solar energy from the loan-eligible entity2 7,b7 require the ,secretary to rescind any amounts provided to the grant-eligible household or loan-eligible entity that are not used during the #b-year period beginning on the date on which the amounts are initially distributed to the grant-eligible household or loan-eligible entity1 except in any case in which the grant-eligible household or loan-eligible entity has demonstrated to the satisfaction of the ,secretary that a longer period1 not to exceed #c years after the date of initial distribution1 is necessary to deliver proposed services2 7,c7 for a loan provided under this section1 establish-- 7i7 an interest rate equal to the then-current cost of funds to the ,department of the ,treasury for obligations of comparable maturity to the loan2 and 7ii7 a payout time that maximizes the savings to customers during the effective period of the agreement2 and 7,d7 contain such other terms as the ,secretary may require to ensure compliance with the requirements of this section4 7e7 ,use ,a grant-eligible household or loan-eligible entity shall use a loan or grant provided under this section only for the following activities1 for the purpose of developing new photovoltaic solar projects in the ,united ,states for low-income households and individuals who otherwise would likely be unable to afford or purchase photovoltaic solar systems3 7#a7 ,photovoltaic solar equipment and installation ,to pay the costs of-- 7,a7 solar equipment1 including only photovoltaic solar equipment and storage and all hardware or software components relating to safely producing1 monitoring1 and connecting the system to the electric grid or onsite storage2 and 7,b7 installation1 including all direct labor associated with installing the photovoltaic solar equipment4 7#b7 ,job training ,to fund onsite job training and community or volunteer engagement1 including-- 7,a7 only job training costs directly associated with the solar projects funded under this section2 and 7,b7 job training opportunities that may cover the full range of the solar value chain1 such as marketing and outreach1 customer acquisition1 system design1 and installation positions4 7#c7 ,deployment support ,to fund entities that have a demonstrated ability1 as determined by the ,secretary-- 7,a7 to advise ,state and local entities regarding low-income solar policy1 regulatory1 and program design to continue and expand the work of the entities2 7,b7 to foster community outreach and education regarding the benefits of photovoltaic solar energy for low-income and disadvantaged communities2 or 7,c7 to provide apprenticeship program opportunities registered and approved by-- 7i7 the ,office of ,apprenticeship of the ,department of ,labor pursuant to part #bi of title #bi1 ,code of ,federal ,regulations 7or successor regulations72 or 7ii7 a ,state ,apprenticeship ,agency recognized by that ,office4 7#d7 ,administration ,to pay the administrative expenses of the grant-eligible household or loan-eligible entity1 including preproject feasibility efforts1 in carrying out the duties of the ,secretary associated with delivering proposed services1 subject to the requirement that not more than #ae percent of the total amount of the assistance provided to the grant-eligible household or loan-eligible entity under this section may be used for administrative expenses4 7f7 ,compliance 7#a7 ,records and audits ,during the period beginning on the date of initial distribution to a grant-eligible household or loan-eligible entity of a loan or grant under this section and ending on the termination date of the loan or grant under subsection 7g71 the grant-eligible household or loan-eligible entity shall maintain such records and adopt such administrative practices as the ,secretary may require to ensure compliance with the requirements of this section and the applicable loan or grant agreement4 7#b7 ,determination by secretary ,if the ,secretary determines that a grant-eligible household or loan-eligible entity that receives a grant or loan under this section has not1 during the #b-year period beginning on the date of initial distribution to the grant-eligible household or loan-eligible entity of the assistance 7or such longer period as is established under subsection 7d77#b77;,b771 substantially fulfilled the obligations of the grant-eligible household or loan-eligible entity under the applicable loan or grant agreement1 the ,secretary shall-- 7,a7 rescind the balance of any funds distributed to1 but not used by1 the grant-eligible household or loan-eligible entity under this section2 and 7,b7 use those amounts to provide other loans or grants in accordance with this section4 7g7 ,termination ,the ,secretary shall terminate a loan or grant provided under this section on a determination that the total amount of the loan or grant 7excluding any interest1 fees1 and other earnings of the loan or grant7 has been-- 7#a7 fully expended by the grant-eligible household or loan-eligible entity2 or 7#b7 returned to the ,secretary4 7h7 ,regulations ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall promulgate such regulations as the ,secretary determines to be necessary to carry out this section1 to take effect on the date of promulgation4 7i7 ,funding ,there is authorized to be appropriated to the ,secretary to carry out this section #bjj1jjj1jjj for each of fiscal years #bjaf through #bjcj1 to remain available until expended4 ,j ,local ,energy ,supply and ,resiliency ,act #baba4 ,definitions ,in this subtitle3 7#a7 ,combined heat and power system ,the term combined heat and power system means generation of electric energy and heat in a single1 integrated system that meets the efficiency criteria in clauses 7ii7 and 7iii7 of section #dh7;c77#c77;,a7 of the ,internal ,revenue ,code of #aihf1 under which heat that is conventionally rejected is recovered and used to meet thermal energy requirements4 7#b7 ,demand response ,the term demand response means changes in electric usage by electric utility customers from the normal consumption patterns of the customers in response to-- 7,a7 changes in the price of electricity over time2 or 7,b7 incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized4 7#c7 ,distributed energy ,the term distributed energy means energy sources and systems that-- 7,a7 produce electric or thermal energy close to the point of use using renewable energy resources or waste thermal energy2 7,b7 generate electricity using a combined heat and power system2 7,c7 distribute electricity in microgrids2 7,d7 store electric or thermal energy2 or 7,e7 distribute thermal energy or transfer thermal energy to building heating and cooling systems through a district energy system4 7#d7 ,district energy system ,the term district energy system means a system that provides thermal energy to buildings and other energy consumers from #a or more plants to individual buildings to provide space heating1 air conditioning1 domestic hot water1 industrial process energy1 and other end uses4 7#e7 ,islanding ,the term islanding means a distributed generator or energy storage device continuing to power a location in the absence of electric power from the primary source4 7#f7 ,loan ,the term loan has the meaning given the term direct loan in section #ejb of the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa;a74 7#g7 ,microgrid ,the term microgrid means an integrated energy system consisting of interconnected loads and distributed energy resources1 including generators and energy storage devices1 within clearly defined electrical boundaries that-- 7,a7 acts as a single controllable entity with respect to the grid2 and 7,b7 can connect and disconnect from the grid to operate in both grid-connected mode and island mode4 7#h7 ,renewable energy source ,the term renewable energy source includes-- 7,a7 biomass2 7,b7 geothermal energy2 7,c7 hydropower2 7,d7 landfill gas2 7,e7 municipal solid waste2 7,f7 ocean 7including tidal1 wave1 current1 and thermal7 energy2 7,g7 organic waste2 7,h7 photosynthetic processes2 7,i7 photovoltaic energy2 7,j7 solar energy2 and 7,k7 wind4 7#i7 ,renewable thermal energy ,the term renewable thermal energy means heating or cooling energy derived from a renewable energy resource4 7#aj7 ,thermal energy ,the term thermal energy means-- 7,a7 heating energy in the form of hot water or steam that is used to provide space heating1 domestic hot water1 or process heat2 or 7,b7 cooling energy in the form of chilled water1 ice1 or other media that is used to provide air conditioning1 or process cooling4 7#aa7 ,waste thermal energy ,the term waste thermal energy means energy that-- 7,a7 is contained in-- 7i7 exhaust gases1 exhaust steam1 condenser water1 jacket cooling heat1 or lubricating oil in power generation systems2 7ii7 exhaust heat1 hot liquids1 or flared gas from any industrial process2 7iii7 waste gas or industrial tail gas that would otherwise be flared1 incinerated1 or vented2 7iv7 a pressure drop in any gas1 excluding any pressure drop to a condenser that subsequently vents the resulting heat2 7v7 condenser water from chilled water or refrigeration plants2 or 7vi7 any other form of waste energy1 as determined by the ,secretary2 and 7,b7 7i7 in the case of an existing facility1 is not being used2 or 7ii7 in the case of a new facility1 is not conventionally used in comparable systems4 #babb4 ,distributed energy loan program 7a7 ,loan program 7#a7 ,in general ,subject to the provisions of this subsection and subsections 7b7 and 7c71 the ,secretary shall establish a program to provide to eligible entities-- 7,a7 loans for the deployment of distributed energy systems in a specific project2 and 7,b7 loans to provide funding for programs to finance the deployment of multiple distributed energy systems through a revolving loan fund1 credit enhancement program1 or other financial assistance program4 7#b7 ,eligibility ,entities eligible to receive a loan under paragraph 7#a7 include-- 7,a7 a ,state1 territory1 or possession of the ,united ,states2 7,b7 a ,state energy office2 7,c7 a tribal organization 7as defined in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #dej;b772 7,d7 an institution of higher education 7as defined in section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja772 and 7,e7 an electric utility1 including-- 7i7 a rural electric cooperative2 7ii7 a municipally owned electric utility2 and 7iii7 an investor-owned utility4 7#c7 ,selection requirements ,in selecting eligible entities to receive loans under this section1 the ,secretary shall1 to the maximum extent practicable1 ensure-- 7,a7 regional diversity among eligible entities to receive loans under this section1 including participation by rural ,states and small ,states2 and 7,b7 that specific projects selected for loans-- 7i7 expand on the existing technology deployment program of the ,department of ,energy2 and 7ii7 are designed to achieve #a or more of the objectives described in paragraph 7#d74 7#d7 ,objectives ,each deployment selected for a loan under paragraph 7#a7 shall include #a or more of the following objectives3 7,a7 ,improved security and resiliency of energy supply in the event of disruptions caused by extreme weather events1 grid equipment or software failure1 or terrorist acts4 7,b7 ,implementation of distributed energy in order to increase use of local renewable energy resources and waste thermal energy sources4 7,c7 ,enhanced feasibility of microgrids1 demand response1 or islanding2 7,d7 ,enhanced management of peak loads for consumers and the grid4 7,e7 ,enhanced reliability in rural areas1 including high energy cost rural areas4 7#e7 ,restriction on use of funds ,any eligible entity that receives a loan under paragraph 7#a7 may only use the loan to fund programs relating to the deployment of distributed energy systems4 7b7 ,loan terms and conditions 7#a7 ,terms and conditions ,notwithstanding any other provision of law1 in providing a loan under this section1 the ,secretary shall provide the loan on such terms and conditions as the ,secretary determines1 after consultation with the ,secretary of the ,treasury1 in accordance with this section4 7#b7 ,specific appropriation ,no loan shall be made unless an appropriation for the full amount of the loan has been specifically provided for that purpose4 7#c7 ,repayment ,no loan shall be made unless the ,secretary determines that there is reasonable prospect of repayment of the principal and interest by the borrower of the loan4 7#d7 ,interest rate ,a loan provided under this section shall bear interest at a fixed rate that is equal or approximately equal1 in the determination of the ,secretary1 to the interest rate for ,treasury securities of comparable maturity4 7#e7 ,term ,the term of the loan shall require full repayment over a period not to exceed the lesser of-- 7,a7 #bj years2 or 7,b7 #ij percent of the projected useful life of the physical asset to be financed by the loan 7as determined by the ,secretary74 7#f7 ,use of payments ,payments of principal and interest on the loan shall-- 7,a7 be retained by the ,secretary to support energy research and development activities2 and 7,b7 remain available until expended1 subject to such conditions as are contained in annual appropriations ,acts4 7#g7 ,no penalty on early repayment ,the ,secretary may not assess any penalty for early repayment of a loan provided under this section4 7#h7 ,return of unused portion ,in order to receive a loan under this section1 an eligible entity shall agree to return to the general fund of the ,treasury any portion of the loan amount that is unused by the eligible entity within a reasonable period of time after the date of the disbursement of the loan1 as determined by the ,secretary4 7#i7 ,comparable wage rates ,each laborer and mechanic employed by a contractor or subcontractor in performance of construction work financed1 in whole or in part1 by the loan shall be paid wages at rates not less than the rates prevailing on similar construction in the locality as determined by the ,secretary of ,labor in accordance with subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code4 7c7 ,rules and procedures2 disbursement of loans 7#a7 ,rules and procedures ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall adopt rules and procedures for carrying out the loan program under subsection 7a74 7#b7 ,disbursement of loans ,not later than #a year after the date on which the rules and procedures under paragraph 7#a7 are established1 the ,secretary shall disburse the initial loans provided under this section4 7d7 ,reports ,not later than #b years after the date of receipt of the loan1 and annually thereafter for the term of the loan1 an eligible entity that receives a loan under this section shall submit to the ,secretary a report describing the performance of each program and activity carried out using the loan1 including itemized loan performance data4 7e7 ,authorization of appropriations ,there are authorized to be appropriated to carry out this section such sums as are necessary4 #babc4 ,technical assistance and grant program 7a7 ,establishment 7#a7 ,in general ,the ,secretary shall establish a technical assistance and grant program 7referred to in this section as the program7-- 7,a7 to disseminate information and provide technical assistance directly to eligible entities so the eligible entities can identify1 evaluate1 plan1 and design distributed energy systems2 and 7,b7 to make grants to eligible entities so that the eligible entities may contract to obtain technical assistance to identify1 evaluate1 plan1 and design distributed energy systems4 7#b7 ,technical assistance ,the technical assistance described in paragraph 7#a7 shall include assistance with #a or more of the following activities relating to distributed energy systems3 7,a7 ,identification of opportunities to use distributed energy systems4 7,b7 ,assessment of technical and economic characteristics4 7,c7 ,utility interconnection4 7,d7 ,permitting and siting issues4 7,e7 ,business planning and financial analysis4 7,f7 ,engineering design4 7#c7 ,information dissemination ,the information disseminated under paragraph 7#a77;,a7 shall include-- 7,a7 information relating to the topics described in paragraph 7#b71 including case studies of successful examples2 7,b7 computer software and databases for assessment1 design1 and operation and maintenance of distributed energy systems2 and 7,c7 public databases that track the operation and deployment of existing and planned distributed energy systems4 7b7 ,eligibility ,any nonprofit or for-profit entity shall be eligible to receive technical assistance and grants under the program4 7c7 ,applications 7#a7 ,in general ,an eligible entity desiring technical assistance or grants under the program shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7#b7 ,application process ,the ,secretary shall seek applications for technical assistance and grants under the program-- 7,a7 on a competitive basis2 and 7,b7 on a periodic basis1 but not less frequently than once every #ab months4 7#c7 ,priorities ,in selecting eligible entities for technical assistance and grants under the program1 the ,secretary shall give priority to eligible entities with projects that have the greatest potential for-- 7,a7 facilitating the use of renewable energy resources2 7,b7 strengthening the reliability and resiliency of energy infrastructure to the impact of extreme weather events1 power grid failures1 and interruptions in supply of fossil fuels2 7,c7 improving the feasibility of microgrids or islanding1 particularly in rural areas1 including high energy cost rural areas2 7,d7 minimizing environmental impact1 including regulated air pollutants and greenhouse gas emissions2 and 7,e7 maximizing local job creation4 7d7 ,grants ,on application by an eligible entity1 the ,secretary may award grants to the eligible entity to provide funds to cover not more than-- 7#a7 #ajj percent of the costs of the initial assessment to identify opportunities2 7#b7 #ge percent of the cost of feasibility studies to assess the potential for the implementation2 7#c7 #fj percent of the cost of guidance on overcoming barriers to implementation1 including financial1 contracting1 siting1 and permitting issues2 and 7#d7 #de percent of the cost of detailed engineering4 7e7 ,rules and procedures 7#a7 ,rules ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall adopt rules and procedures for carrying out the program4 7#b7 ,grants ,not later than #abj days after the date of issuance of the rules and procedures for the program1 the ,secretary shall issue grants under this subtitle4 7f7 ,reports ,the ,secretary shall submit to ,congress and make available to the public-- 7#a7 not less frequently than once every #b years1 a report describing the performance of the program under this section1 including a synthesis and analysis of the information provided in the reports submitted to the ,secretary under section #babb7;d72 and 7#b7 on termination of the program under this section1 an assessment of the success of1 and education provided by1 the measures carried out by eligible entities during the term of the program4 7g7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #bej1jjj1jjj for the period of fiscal years #bjaf through #bjbj1 to remain available until expended4 ,k ,geothermal energy opportunities #baca4 ,national goals for production and site identification ,it is the sense of ,congress that1 not later than #aj years after the date of enactment of this ,act-- 7#a7 the ,secretary of the ,interior should seek to have approved more than #ae1jjj megawatts of new geothermal energy capacity on public land across a geographically diverse set of ,states using the full range of available technologies2 and 7#b7 the ,director of the ,geological ,survey and the ,secretary of ,energy should identify sites capable of producing a total of #ej1jjj megawatts of geothermal power1 using the full range of available technologies4 #bacb4 ,priority areas for development on ,federal land ,the ,director of the ,bureau of ,land ,management1 in consultation with other appropriate ,federal officials1 shall-- 7#a7 identify high-priority areas for new geothermal development2 and 7#b7 take any actions the ,director determines necessary to facilitate that development1 consistent with applicable laws4 #bacc4 ,facilitation of coproduction of geothermal energy on oil and gas leases ,section #d7;b7 of the ,geothermal ,steam ,act of #aigj 7#cj ,u4,s4,c4 #ajjc7;b77 is amended by adding at the end the following3 7#d7 ,land subject to oil and gas lease ,land under an oil and gas lease issued pursuant to the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #aha et seq47 or the ,mineral ,leasing ,act for ,acquired ,lands 7#cj ,u4,s4,c4 #cea et seq47 that is subject to an approved application for permit to drill and from which oil and gas production is occurring may be available for noncompetitive leasing under this section to the holder of the oil and gas lease-- 7,a7 on a determination that-- 7i7 geothermal energy will be produced from a well producing or capable of producing oil and gas2 and 7ii7 national energy security will be improved by the issuance of such a lease2 and 7,b7 to provide for the coproduction of geothermal energy with oil and gas4 4 #bacd4 ,cost-shared exploration 7a7 ,in general ,to promote the goals described in section #baca1 the ,secretary may conduct a federally funded program of cost-shared drilling with industry partners-- 7#a7 to explore and document new geothermal resources in the ,united ,states2 and 7#b7 to develop improved tools and methods for geothermal resource identification and extraction1 with the goal of achieving material reductions in the cost of exploration with a corresponding increase in the likelihood of drilling success4 7b7 ,grants 7#a7 ,in general ,to carry out the program described in subsection 7a71 the ,secretary may award cost-share grants on a competitive and merit basis to eligible applicants to support exploration drilling and related activities4 7#b7 ,project criteria ,in selecting applicants to receive grants under paragraph 7#a71 the ,secretary shall-- 7,a7 give preference to applicants proposing projects located in a variety of geological and geographical settings with previously unexplored1 underexplored1 or unproven geothermal resources2 and 7,b7 consider-- 7i7 the potential that the unproven geothermal resources would be explored and developed under the proposed project2 7ii7 the expertise and experience of an applicant in developing geothermal resources2 and 7iii7 the contribution the proposed project would make toward meeting the goals described in section #baca4 7c7 ,data sharing 7#a7 ,in general ,data from all exploratory wells that are carried out under the program described in subsection 7a7 shall be provided to the ,secretary and the ,secretary of the ,interior for-- 7,a7 use in mapping national geothermal resources2 and 7,b7 other purposes1 including-- 7i7 subsurface geological data2 7ii7 metadata2 7iii7 borehole temperature data2 and 7iv7 inclusion in the ,national ,geothermal ,data ,system of the ,department4 7#b7 ,sharing of confidential data ,not later than #b years after the date of enactment of this ,act1 confidential data from all exploratory wells that are carried out under the program described in subsection 7a7 shall be provided to the ,secretary and the ,secretary of the ,interior for the purposes described in subparagraphs 7,a7 and 7,b7 of paragraph 7#a71 to be available for a period of time to be determined by the ,secretary and the ,secretary of the ,interior4 #bace4 ,use of geothermal lease revenues 7a7 ,amounts deposited ,notwithstanding any other provision of law1 beginning in the first full fiscal year after the date of enactment of this ,act1 any amounts received by the ,united ,states as rentals1 royalties1 and other payments required under leases pursuant to the ,geothermal ,steam ,act of #aigj 7#cj ,u4,s4,c4 #ajja et seq47 7excluding funds required to be paid to ,state and county governments7 and from new geothermal leases issued after the date of enactment of this ,act shall be deposited into a separate account in the ,treasury4 7b7 ,use of deposits ,amounts deposited under subsection 7a7 shall be available to the ,secretary for expenditure1 without further appropriation or fiscal year limitation1 to carry out section #bacd4 7c7 ,transfer of funds ,to promote the goals described in section #baca1 the ,secretary may authorize the expenditure or transfer of any funds that are necessary to other cooperating ,federal agencies4 #bacf4 ,noncompetitive leasing of adjoining areas for development of geothermal resources ,section #d7;b7 of the ,geothermal ,steam ,act of #aigj 7#cj ,u4,s4,c4 #ajjc7;b77 7as amended by section #bacc7 is amended by adding at the end the following3 7#e7 ,adjoining land 7,a7 ,definitions ,in this paragraph3 7i7 ,fair market value per acre ,the term fair market value per acre means a dollar amount per acre that-- 7,i7 except as provided in this clause1 shall be equal to the market value per acre 7taking into account the determination under subparagraph 7,b77iii7 regarding a valid discovery on the adjoining land71 as determined by the ,secretary under regulations issued under this paragraph2 7,,ii7 shall be determined by the ,secretary with respect to a lease under this paragraph1 by not later than the end of the #ahj-;day period beginning on the date the ,secretary receives an application for the lease2 and 7,,iii7 shall be not less than the greater of-- 7aa7 #d times the median amount paid per acre for all land leased under this ,act during the preceding year2 and 7bb7 #ej4 7ii7 ,industry standards ,the term industry standards means the standards by which a qualified geothermal professional assesses whether downhole or flowing temperature measurements with indications of permeability are sufficient to produce energy from geothermal resources1 as determined through flow or injection testing or measurement of lost circulation while drilling4 7iii7 ,qualified ,federal land ,the term qualified ,federal land means land that is otherwise available for leasing under this ,act4 7iv7 ,qualified geothermal professional ,the term qualified geothermal professional means an individual who is an engineer or geoscientist in good professional standing with at least #e years of experience in geothermal exploration1 development1 or project assessment4 7v7 ,qualified lessee ,the term qualified lessee means a person that is eligible to hold a geothermal lease under this ,act 7including applicable regulations74 7vi7 ,valid discovery ,the term valid discovery means a discovery of a geothermal resource by a new or existing slim hole or production well1 that exhibits downhole or flowing temperature measurements with indications of permeability that are sufficient to meet industry standards4 7,b7 ,authority ,an area of qualified ,federal land that adjoins other land for which a qualified lessee holds a legal right to develop geothermal resources may be available for a noncompetitive lease under this section to the qualified lessee at the fair market value per acre1 if-- 7i7 the area of qualified ,federal land-- 7,i7 consists of not less than #a acre and not more than #fdj acres2 and 7,,ii7 is not already leased under this ,act or nominated to be leased under subsection 7a72 7ii7 the qualified lessee has not previously received a noncompetitive lease under this paragraph in connection with the valid discovery for which data has been submitted under clause 7iii77,i72 and 7iii7 sufficient geological and other technical data prepared by a qualified geothermal professional has been submitted by the qualified lessee to the applicable ,federal land management agency that would lead individuals who are experienced in the subject matter to believe that-- 7,i7 there is a valid discovery of geothermal resources on the land for which the qualified lessee holds the legal right to develop geothermal resources2 and 7,,ii7 that thermal feature extends into the adjoining areas4 7,c7 ,determination of fair market value 7i7 ,in general ,the ,secretary shall-- 7,i7 publish a notice of any request to lease land under this paragraph2 7,,ii7 determine fair market value for purposes of this paragraph in accordance with procedures for making those determinations that are established by regulations issued by the ,secretary2 7,,iii7 provide to a qualified lessee and publish1 with an opportunity for public comment for a period of #cj days1 any proposed determination under this subparagraph of the fair market value of an area that the qualified lessee seeks to lease under this paragraph2 and 7,,iv7 provide to the qualified lessee and any adversely affected party the opportunity to appeal the final determination of fair market value in an administrative proceeding before the applicable ,federal land management agency1 in accordance with applicable law 7including regulations74 7ii7 ,limitation on nomination ,after publication of a notice of request to lease land under this paragraph1 the ,secretary may not accept under subsection 7a7 any nomination of the land for leasing unless the request has been denied or withdrawn4 7iii7 ,annual rental ,for purposes of section #e7;a77#c71 a lease awarded under this paragraph shall be considered a lease awarded in a competitive lease sale4 7,d7 ,regulations ,not later than #bgj days after the date of enactment of this paragraph1 the ,secretary shall issue regulations to carry out this paragraph4 4 #bacg4 ,large-scale geothermal energy ,title ,,vi of the ,energy ,independence and ,security ,act of #bjjg is amended by inserting after section #faf 7#db ,u4,s4,c4 #agaie7 the following3 #faf;,a4 ,large-scale geothermal energy 7a7 ,findings ,congress finds that-- 7#a7 the ,geothermal ,technologies ,program of the ,office of ,energy ,efficiency and ,renewable ,energy of the ,department has included a focus on direct use of geothermal energy in the low-temperature geothermal energy subprogram 7including in the development of a research and development plan for the program72 7#b7 the ,building ,technologies ,program of the ,office of ,energy ,efficiency and ,renewable ,energy of the ,department-- 7,a7 is focused on the energy demand and energy efficiency of buildings2 and 7,b7 includes geothermal heat pumps as a component technology in the residential and commercial deployment activities of the program2 and 7#c7 geothermal heat pumps and direct use of geothermal energy1 especially in large-scale applications1 can make a significant contribution to the use of renewable energy but are underrepresented in research1 development1 demonstration1 and commercialization4 7b7 ,purposes ,the purposes of this section are-- 7#a7 to improve the components1 processes1 and systems used for geothermal heat pumps and the direct use of geothermal energy2 and 7#b7 to increase the energy efficiency1 lower the cost1 increase the use1 and improve and demonstrate the applicability of geothermal heat pumps to1 and the direct use of geothermal energy in1 large buildings1 commercial districts1 residential communities1 and large municipal1 agricultural1 or industrial projects4 7c7 ,definitions ,in this section3 7#a7 ,direct use of geothermal energy ,the term direct use of geothermal energy means systems that use water that is at a temperature between approximately #ch degrees ,celsius and #adi degrees ,celsius directly or through a heat exchanger to provide-- 7,a7 heating to buildings2 or 7,b7 heat required for industrial processes1 agriculture1 aquaculture1 and other facilities4 7#b7 ,geothermal heat pump ,the term geothermal heat pump means a system that provides heating and cooling by exchanging heat from shallow ground or surface water using-- 7,a7 a closed loop system1 which transfers heat by way of buried or immersed pipes that contain a mix of water and working fluid2 or 7,b7 an open loop system1 which circulates ground or surface water directly into the building and returns the water to the same aquifer or surface water source4 7#c7 ,large-scale application ,the term large-scale application means an application for space or process heating or cooling for large entities with a name-plate capacity1 expected resource1 or rating of #aj or more megawatts1 such as a large building1 commercial district1 residential community1 or a large municipal1 agricultural1 or industrial project4 7#d7 ,secretary ,the term ,secretary means the ,secretary of ,energy1 acting through the ,assistant ,secretary for ,energy ,efficiency and ,renewable ,energy4 7d7 ,program 7#a7 ,in general ,the ,secretary shall establish a program of research1 development1 and demonstration for geothermal heat pumps and the direct use of geothermal energy4 7#b7 ,areas ,the program may include research1 development1 demonstration1 and commercial application of-- 7,a7 geothermal ground loop efficiency improvements through more efficient heat transfer fluids2 7,b7 geothermal ground loop efficiency improvements through more efficient thermal grouts for wells and trenches2 7,c7 geothermal ground loop installation cost reduction through-- 7i7 improved drilling methods2 7ii7 improvements in drilling equipment2 7iii7 improvements in design methodology and energy analysis procedures2 and 7iv7 improved methods for determination of ground thermal properties and ground temperatures2 7,d7 installing geothermal ground loops near the foundation walls of new construction to take advantage of existing structures2 7,e7 using gray or black wastewater as a method of heat exchange2 7,f7 improving geothermal heat pump system economics through integration of geothermal systems with other building systems1 including providing hot and cold water and rejecting or circulating industrial process heat through refrigeration heat rejection and waste heat recovery2 7,g7 advanced geothermal systems using variable pumping rates to increase efficiency2 7,h7 geothermal heat pump efficiency improvements2 7,i7 use of hot water found in mines and mine shafts and other surface waters as the heat exchange medium2 7,j7 heating of districts1 neighborhoods1 communities1 large commercial or public buildings 7including office1 retail1 educational1 government1 and institutional buildings and multifamily residential buildings and campuses71 and industrial and manufacturing facilities2 7,k7 geothermal system integration with solar thermal water heating or cool roofs and solar-regenerated desiccants to balance loads and use building hot water to store geothermal energy2 7,l7 use of hot water coproduced from oil and gas recovery2 7,m7 use of water sources at a temperature of less than #aej degrees ,celsius for direct use2 7,n7 system integration of direct use with geothermal electricity production2 and 7,o7 coproduction of heat and power1 including on-site use4 7#c7 ,environmental impacts ,in carrying out the program1 the ,secretary shall identify and mitigate potential environmental impacts in accordance with section #fad7;c74 7e7 ,grants 7#a7 ,in general ,the ,secretary shall make grants available to ,state and local governments1 institutions of higher education1 nonprofit entities1 utilities1 and for-profit companies 7including manufacturers of heat-pump and direct-use components and systems7 to promote the development of geothermal heat pumps and the direct use of geothermal energy4 7#b7 ,priority ,in making grants under this subsection1 the ,secretary shall give priority to proposals that apply to large buildings 7including office1 retail1 educational1 government1 institutional1 and multifamily residential buildings and campuses and industrial and manufacturing facilities71 commercial districts1 and residential communities4 7#c7 ,national solicitation ,not later than #ahj days after the date of enactment of this section1 the ,secretary shall conduct a national solicitation for applications for grants under this section4 7f7 ,reports 7#a7 ,in general ,not later than #b years after the date of enactment of this section and annually thereafter1 the ,secretary shall submit to the ,committee on ,energy and ,natural ,resources of the ,senate and the ,committee on ,science1 ,space1 and ,technology of the ,house of ,representatives a report on progress made and results obtained under this section to develop geothermal heat pumps and direct use of geothermal energy4 7#b7 ,areas ,each of the reports required under this subsection shall include-- 7,a7 an analysis of progress made in each of the areas described in subsection 7d77#b72 and 7,b7 7i7 a description of any relevant recommendations made during a review of the program2 and 7ii7 any plans to address the recommendations under clause 7i74 4 #bach4 ,report to ,congress ,not later than #c years after the date of enactment of this ,act and not less frequently than once every #e years thereafter1 the ,secretary and the ,secretary of the ,interior shall submit to the appropriate committees of ,congress a report describing the progress made towards achieving the goals described in section #baca4 #baci4 ,authorization of appropriations ,there are authorized to be appropriated to carry out this subtitle such sums as are necessary4 ,l ,clean coal technology research #bada4 ,fossil energy ,section #ifa7;a7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afbia7;a77 is amended by adding at the end the following3 7#h7 ,improving the conversion1 use1 and storage of carbon dioxide produced from fossil fuels4 4 ,m ,long-term contracts #baea4 ,contracts for ,federal purchases of energy ,part #c of title ,v of the ,national ,energy ,conservation ,policy ,act is amended by adding after section #eec 7#db ,u4,s4,c4 #hbei;b7 the following3 #eed4 ,long-term contracts for energy 7a7 ,in general ,notwithstanding section #eja7;b77#a77;,b7 of title #dj1 ,united ,states ,code1 a contract for the acquisition of renewable energy or energy from cogeneration facilities for the ,federal ,government may be made for a period not to exceed #cj years4 7b7 ,standardized energy purchase agreement ,not later than #ij days after the date of enactment of this section1 the ,secretary1 acting through the ,federal ,energy ,management ,program1 shall publish a standardized energy purchase agreement setting forth commercial terms and conditions that agencies may use to acquire renewable energy or energy from cogeneration facilities4 7c7 ,technical assistance ,the ,secretary shall provide technical assistance to assist agencies in implementing this section4 4 ,n ,promoting renewable energy with shared solar #bafa4 ,provision of interconnection service and net billing service for community solar facilities 7a7 ,in general ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 7as amended by section #bjbj7;a77 is amended by adding at the end the following3 7#ba7 ,community solar facilities 7,a7 ,definitions ,in this paragraph3 7i7 ,community solar facility ,the term community solar facility means a solar photovoltaic system that-- 7,i7 allocates electricity to multiple individual electric consumers of an electric utility2 7,,ii7 has a nameplate rating of #b megawatts or less2 and 7,,iii7 is-- 7aa7 owned by the electric utility1 jointly owned1 or third-party-owned2 7bb7 connected to a local distribution facility of the electric utility2 and 7cc7 located on or off the property of a consumer of the electricity4 7ii7 ,interconnection service ,the term interconnection service means a service provided by an electric utility to an electric consumer1 in accordance with the standards described in paragraph 7#ae71 through which a community solar facility is connected to an applicable local distribution facility4 7iii7 ,net billing service ,the term net billing service means a service provided by an electric utility to an electric consumer through which electric energy generated for that electric consumer from a community solar facility may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period4 7,b7 ,requirement ,on receipt of a request of an electric consumer served by the electric utility1 each electric utility shall make available to the electric consumer interconnection service and net billing service for a community solar facility4 4 7b7 ,compliance 7#a7 ,time limitations ,section #aab7;b7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;b77 7as amended by section #bjbj7;b77#a77 is amended by adding at the end the following3 7#h7 7,a7 ,not later than #a year after the date of enactment of this paragraph1 each ,state regulatory authority 7with respect to each electric utility for which the ,state has ratemaking authority7 and each nonregulated utility shall commence consideration under section #aaa1 or set a hearing date for consideration1 with respect to the standard established by paragraph 7#ba7 of section #aaa7;d74 7,b7 ,not later than #b years after the date of enactment of this paragraph1 each ,state regulatory authority 7with respect to each electric utility for which the ,state has ratemaking authority71 and each nonregulated electric utility shall complete the consideration and make the determination under section #aaa with respect to the standard established by paragraph 7#ba7 of section #aaa7;d74 4 7#b7 ,failure to comply 7,a7 ,in general ,section #aab7;c7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;c77 7as amended by section #bjbj7;b77#b77 is amended-- 7i7 by striking such paragraph 7#ad7 and all that follows through paragraphs 7#af7 and inserting such paragraph 7#ad74 ,in the case of the standard established by paragraph 7#ae7 of section #aaa7;d71 the reference contained in this subsection to the date of enactment of this ,act shall be deemed to be a reference to the date of enactment of that paragraph 7#ae74 ,in the case of the standards established by paragraphs 7#af72 and 7ii7 by adding at the end the following3 ,in the case of the standard established by paragraph 7#ba7 of section #aaa7;d71 the reference contained in this subsection to the date of enactment of this ,act shall be deemed to be a reference to the date of enactment of that paragraph 7#ba744 7,b7 ,technical correction 7i7 ,in general ,section #abed7;b7 of the ,energy ,policy ,act of #bjje 7,public ,law #aji-eh2 #aai ,stat4 #iga7 is amended by striking paragraph 7#b74 7ii7 ,treatment ,the amendment made by paragraph 7#b7 of section #abed7;b7 of the ,energy ,policy ,act of #bjje 7,public ,law #aji-eh2 #aai ,stat4 #iga7 7as in effect on the day before the date of enactment of this ,act7 is void1 and section #aab7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;d77 shall be in effect as if those amendments had not been enacted4 7#c7 ,prior ,state actions 7,a7 ,in general ,section #aab of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7 is amended by adding at the end the following3 7g7 ,prior ,state actions ,subsections 7b7 and 7c7 shall not apply to the standard established by paragraph 7#ba7 of section #aaa7;d7 in the case of any electric utility in a ,state if1 before the date of enactment of this subsection-- 7#a7 the ,state has implemented for the electric utility the standard 7or a comparable standard72 7#b7 the ,state regulatory authority for the ,state or the relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard 7or a comparable standard7 for the electric utility2 or 7#c7 the ,state legislature has voted on the implementation of the standard 7or a comparable standard7 for the electric utility4 4 7,b7 ,cross-reference ,section #abd of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfcd7 is amended by adding at the end the following3 ,in the case of the standard established by paragraph 7#ba7 of section #aaa7;d71 the reference contained in this subsection to the date of enactment of this ,act shall be deemed to be a reference to the date of enactment of that paragraph 7#ba744 ,o ,report on ,low- and ,no-,carbon ,energy ,technologies #baga4 ,report 7a7 ,in general ,not later than #a year before the date on which the credits under sections #de,l1 #de,s1 #de,t1 #dh;,e1 #agi;,d1 and #agi;,f of the ,internal ,revenue ,code of #aihf expire1 the ,secretary1 in consultation with the ,secretary of ,treasury1 shall submit to the ,committees on ,finance and ,energy of the ,senate and the ,committees on ,natural ,resources1 ,ways and ,means1 and ,energy and ,commerce of the ,house of ,representative a report on whether continuation of the credits under sections #de,l1 #de,s1 #de,t1 #dh;,e1 #agi;,d1 and #agi;,f of the ,internal ,revenue ,code of #aihf remains necessary to achieve the carbon savings goal described in section #cjja7a74 7b7 ,requirements ,in preparing the report required under subsection 7a71 the ,secretary shall consider-- 7#a7 regional differences in energy prices2 7#b7 the innovation and diffusion of new technologies2 and 7#c7 the interaction between the credits and other ,federal and ,state incentives for renewable and conventional energy sources4 ,p ,loan programs #baha4 ,terms and conditions for incentives for innovative technologies 7a7 ,borrower payment of subsidy cost 7#a7 ,in general ,section #agjb of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeab7 is amended by adding at the end the following3 7l7 ,borrower payment of subsidy cost 7#a7 ,in general ,in addition to the requirement in subsection 7b77#a71 no guarantee shall be made unless the ,secretary has received from the borrower not less than #be percent of the cost of the guarantee4 7#b7 ,estimate ,the ,secretary shall provide to the borrower1 as soon as practicable1 an estimate or range of the cost of the guarantee under paragraph 7#a74 4 7#b7 ,conforming amendment ,section #agjb7;b7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeab7;b77 is amended-- 7,a7 by striking 7#a7 ,in general4--,no guarantee and inserting the following3 ,subject to subsection 7l71 no guarantee2 7,b7 by redesignating subparagraphs 7,a71 7,b71 and 7,c7 as paragraphs 7#a71 7#b71 and 7#c71 respectively1 and indenting appropriately2 and 7,c7 in paragraph 7#c7 7as so redesignated7-- 7i7 by striking subparagraph 7,a7 and inserting paragraph 7#a72 and 7ii7 by striking subparagraph 7,b7 and inserting paragraph 7#b74 7b7 ,prohibition on subordination of debt ,section #agjb7;d77#c7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeab7;d77#c77 is amended by striking is not subordinate and inserting 7including any reorganization1 restructuring1 or termination of the obligation7 shall not at any time be subordinate4 7c7 ,loan program transparency ,section #agjc of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac7 is amended by adding at the end the following3 7f7 ,loan status 7#a7 ,request ,if the ,secretary does not make a final decision on an application for a loan guarantee under this section by the date that is #bgj days after receipt of the application by the ,secretary1 on that date and every #ij days thereafter until the final decision is made1 the applicant may request that the ,secretary provide to the applicant a description of the status of the application4 7#b7 ,response ,not later than #aj days after receiving a request from an applicant under paragraph 7#a71 the ,secretary shall provide to the applicant a response that includes-- 7,a7 a summary of any factors that are delaying a final decision on the application2 and 7,b7 an estimate of when review of the application will be completed4 4 7d7 ,temporary program for rapid deployment of renewable energy and electric power transmission projects 7#a7 ,repeal ,section #agje of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeaf7 is repealed4 7#b7 ,rescission ,there is rescinded the unobligated balance of amounts made available to carry out the loan guarantee program established under section #agje of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeaf7 7before the amendment made by paragraph 7#a774 7#c7 ,management ,the ,secretary shall ensure rigorous continued management and oversight of all outstanding loans guaranteed under the program described in subsection 7b7 until those loans have been repaid in full4 #bahb4 ,state loan eligibility 7a7 ,definitions ,section #agja of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeaa7 is amended by adding at the end the following3 7#f7 ,state ,the term ,state has the meaning given the term in section #bjb of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhjb74 7#g7 ,state energy financing institution 7,a7 ,in general ,the term ,state energy financing institution means a quasi-independent entity or an entity within a ,state agency or financing authority established by a ,state-- 7i7 to provide financing support or credit enhancements1 including loan guarantees and loan loss reserves1 for eligible projects2 and 7ii7 to create liquid markets for eligible projects1 including warehousing and securitization1 or take other steps to reduce financial barriers to the deployment of existing and new eligible projects4 7,b7 ,inclusion ,the term ,state energy financing institution includes an entity or organization established to achieve the purposes described in clauses 7i7 and 7ii7 of subparagraph 7,a7 by an ,indian tribal entity or an ,alaska ,native ,corporation4 4 7b7 ,terms and conditions ,section #agjb of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeab7 7as amended by section #djja7;a77#a77 is amended-- 7#a7 in subsection 7a71 by inserting or to a ,state energy financing institution after for projects2 and 7#b7 by adding at the end the following3 7m7 ,state energy financing institutions 7#a7 ,eligibility ,to be eligible for a guarantee under this title1 a ,state energy financing institution-- 7,a7 shall meet the requirements of section #agjc7;a77#a72 and 7,b7 shall not be required to meet the requirements of section #agjc7;a77#b74 7#b7 ,partnerships authorized ,in carrying out a project receiving a loan guarantee under this title1 ,state energy financing institutions may enter into partnerships with private entities1 tribal entities1 and ,alaska ,native corporations4 4 ,,iii ,cutting pollution and waste ,a ,carbon savings goal #cjja4 ,policy of ,united ,states on addressing climate change ,it is the policy of the ,united ,states-- 7#a7 to use appropriate authorities and available technologies to reduce the greenhouse gas emissions of the ,united ,states by not less than #b percent per year on average through #bjbe2 7#b7 to make the investments necessary to improve the resilience of vulnerable communities and infrastructure in the ,united ,states to the impacts of climate change that can no longer be prevented2 and 7#c7 to exercise the international leadership position of the ,united ,states to address climate change by securing commitments from other major carbon-emitting countries to meet their own carbon pollution reduction targets in a transparent and verifiable manner4 ,b ,american energy efficiency #cjaa4 ,energy efficiency resource standard for retail electricity and natural gas suppliers 7a7 ,in general ,title ,,vi of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfja et seq47 is amended by adding at the end the following3 #faj4 ,federal energy efficiency resource standard for retail electricity and natural gas suppliers 7a7 ,definitions ,in this section3 7#a7 ,base quantity 7,a7 ,in general ,the term base quantity1 with respect to a retail electricity supplier or retail natural gas supplier1 means1 for each calendar year for which a performance standard is established under subsection 7c71 the average annual quantity of electricity or natural gas delivered by the retail electricity supplier or retail natural gas supplier to retail customers during the #c calendar years immediately preceding the first year that compliance is required under subsection 7c77#a74 7,b7 ,exclusion ,the term base quantity1 with respect to a retail natural gas supplier1 does not include natural gas delivered for purposes of electricity generation4 7#b7 ,customer facility savings ,the term customer facility savings means a reduction in end-use electricity or natural gas consumption 7including waste heat energy savings7 at a facility of an end-use consumer of electricity or natural gas served by a retail electricity supplier or natural gas supplier1 as compared to-- 7,a7 in the case of a new facility1 consumption at a reference facility of average efficiency2 7,b7 in the case of an existing facility1 consumption at the facility during a base period of not less than #a year2 7,c7 in the case of new equipment that replaces existing equipment at the end of the useful life of the existing equipment1 consumption by new equipment of average efficiency of the same equipment type1 except that customer savings under this subparagraph shall not be counted towards customer savings under subparagraph 7,a7 or 7,b72 and 7,d7 in the case of new equipment that replaces existing equipment with remaining useful life-- 7i7 consumption of the existing equipment for the remaining useful life of the equipment2 and 7ii7 thereafter1 consumption of new equipment of average efficiency4 7#c7 ,electricity savings ,the term electricity savings means reductions in electricity consumption achieved through measures implemented after the date of enactment of this section1 as determined in accordance with regulations promulgated by the ,secretary1 that are limited to-- 7,a7 customer facility savings of electricity1 adjusted to reflect any associated increase in fuel consumption at the facility2 7,b7 reductions in distribution system losses of electricity achieved by a retail electricity supplier1 as compared to losses attributable to new or replacement distribution system equipment of average efficiency1 as defined in regulations promulgated by the ,secretary2 7,c7 ,,chp savings2 7,d7 codes and standards savings of electricity2 and 7,e7 fuel switching energy savings that results in net savings of electricity4 7#d7 ,natural gas savings ,the term natural gas savings means reductions in natural gas consumption from measures implemented after the date of enactment of this section1 as determined in accordance with regulations promulgated by the ,secretary1 that are limited to-- 7,a7 customer facility savings of natural gas1 adjusted to reflect any associated increase in electricity consumption or consumption of other fuels at the facility2 7,b7 reductions in leakage1 operational losses1 and consumption of natural gas fuel to operate a gas distribution system1 achieved by a retail natural gas supplier1 as compared to similar leakage1 losses1 and consumption during a base period of not less than #a year2 7,c7 codes and standards savings of natural gas2 and 7,d7 fuel switching energy savings that results in net savings of natural gas4 7#e7 ,retail electricity supplier 7,a7 ,in general ,the term retail electricity supplier means1 for any given calendar year1 an electric utility that sells not less than #a1jjj1jjj megawatt hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year4 7,b7 ,inclusions and limitations ,for purposes of determining whether an electric utility qualifies as a retail electricity supplier under subparagraph 7,a7-- 7i7 deliveries by any affiliate of an electric utility to electric consumers for purposes other than resale shall be considered to be deliveries by the electric utility2 and 7ii7 deliveries by any electric utility to a lessee1 tenant1 or affiliate of the electric utility shall not be considered to be deliveries to electric consumers4 7#f7 ,retail natural gas supplier 7,a7 ,in general ,the term retail natural gas supplier means1 for any given calendar year1 a local distribution company 7as defined in section #b of the ,natural ,gas ,policy ,act of #aigh 7#ae ,u4,s4,c4 #ccja771 that delivered to natural gas consumers more than #e1jjj1jjj1jjj cubic feet of natural gas for purposes other than resale during the preceding calendar year4 7,b7 ,inclusions and limitations ,for purposes of determining whether a person qualifies as a retail natural gas supplier under subparagraph 7,a7-- 7i7 deliveries of natural gas by any affiliate of a local distribution company to consumers for purposes other than resale shall be considered to be deliveries by the local distribution company2 and 7ii7 deliveries of natural gas to a lessee1 tenant1 or affiliate of a local distribution company shall not be considered to be deliveries to natural gas consumers4 7b7 ,establishment of program 7#a7 ,regulations ,not later than #a year after the date of enactment of this section1 the ,secretary shall1 by regulation1 establish a program to implement and enforce the requirements of this section1 including by-- 7,a7 defining the terms ,,chp savings1 code and standards savings1 combined heat and power system1 cost-effective1 fuel switching energy savings1 reporting period1 third-party efficiency provider1 and waste heat energy savings2 7,b7 establishing measurement and verification procedures and standards that count only measures and savings that are additional to business-as-usual customer purchase practices2 7,c7 establishing requirements under which retail electricity suppliers and retail natural gas suppliers shall-- 7i7 demonstrate1 document1 and report the compliance of the retail electricity suppliers and retail natural gas suppliers with the performance standards under subsection 7c72 and 7ii7 estimate the impact of the standards on current and future electricity and natural gas use in the service territories of the suppliers2 7,d7 establishing requirements governing applications for1 and implementation of1 delegated ,state administration under subsection 7e72 and 7,e7 establishing rules to govern transfers of electricity or natural gas savings between suppliers and third-party efficiency providers serving the same ,state and between suppliers and third-party efficiency providers serving different ,states4 7#b7 ,coordination with ,state programs ,in establishing and implementing this section1 the ,secretary shall1 to the maximum extent practicable1 preserve the integrity and incorporate best practices of existing ,state energy efficiency programs4 7c7 ,performance standards 7#a7 ,compliance obligation ,not later than ,may #a of the calendar year immediately following each reporting period-- 7,a7 each retail electricity supplier shall submit to the ,secretary a report1 in accordance with regulations promulgated by the ,secretary1 demonstrating that the retail electricity supplier has achieved cumulative electricity savings 7adjusted to account for any attrition of savings measures implemented in prior years7 in each calendar year that are equal to the applicable percentage of the base quantity of the retail electricity supplier2 and 7,b7 each retail natural gas supplier shall submit to the ,secretary a report1 in accordance with regulations promulgated by the ,secretary1 demonstrating that it has achieved cumulative natural gas savings 7adjusted to account for any attrition of savings measures implemented in prior years7 in each calendar year that are equal to the applicable percentage of the base quantity of such retail natural gas supplier4 7#b7 ,standards for #bjag through #bjcj ,for each of calendar years #bjag through #bjcj1 the applicable percentages are as follows3 ,calendar ,year,cumulative ,electricity ,savings ,percentage,cumulative ,natural ,gas ,savings ,percentage#bjag #a4jj #j4ejbjah #b4jj #a4bebjai #c4jj #b4jjbjbj #d4be #c4jjbjba #e4ej #d4jjbjbb #g4jj #e4jjbjbc #h4ej #f4jjbjbdaj4jj #g4jjbjbeaa4ej #h4jjbjbfac4jj #i4jjbjbgad4geaj4jjbjbhaf4ejaa4jjbjbiah4 beab4jjbjcjbj4jjac4jj4 7#c7 ,subsequent years 7,a7 ,calendar years #bjca through #bjdj ,not later than ,december #ca1 #bjbh1 the ,secretary shall promulgate regulations establishing performance standards 7expressed as applicable percentages of base quantity for both cumulative electricity savings and cumulative natural gas savings7 for each of calendar years #bjca through #bjdj4 7,b7 ,requirements ,the ,secretary shall establish standards under this paragraph at levels reflecting the maximum achievable level of cost-effective energy efficiency potential1 taking into account-- 7i7 cost-effective energy savings achieved by leading retail electricity suppliers and retail natural gas suppliers2 7ii7 opportunities for new codes and standard savings2 7iii7 technology improvements2 and 7iv7 other indicators of cost-effective energy efficiency potential including differences between ,states4 7,c7 ,minimum percentage ,in no case shall the applicable percentages for any calendar year be less than the applicable percentages for calendar year #bjcj4 7#d7 ,delay of submission for first reporting period 7,a7 ,in general ,notwithstanding paragraphs 7#a7 and 7#b71 for the #bjag reporting period1 the ,secretary may accept a request from a retail electricity supplier or a retail natural gas supplier to delay the required submission of documentation of all or part of the required savings for up to #b years4 7,b7 ,plan for compliance ,the request for delay under subparagraph 7,a7 shall include a plan for coming into full compliance by the end of the #bjah-bjai reporting period4 7#e7 ,applying unused savings to future years ,if savings achieved in a year exceed the performance standards specified in this subsection1 any savings in excess of the performance standards may be applied toward performance standards specified for future years4 7d7 ,enforcement and judicial review 7#a7 ,review of retail supplier reports 7,a7 ,in general ,the ,secretary shall review each report submitted to the ,secretary by a retail electricity supplier or retail natural gas supplier under subsection 7c7 to verify that the applicable performance standards under subsection 7c7 have been met4 7,b7 ,exclusion ,in determining compliance with the applicable performance standards under subsection 7c71 the ,secretary shall exclude reported electricity savings or natural gas savings that are not adequately demonstrated and documented1 in accordance with the regulations promulgated under subsections 7b7 and 7c74 7#b7 ,penalty for failure to document adequate savings ,if a retail electricity supplier or a retail natural gas supplier fails to demonstrate compliance with an applicable performance standard under subsection 7c71 or to pay to the ,state an applicable alternative compliance payment under subsection 7e77#c71 the ,secretary shall assess against the retail electricity supplier or retail natural gas supplier a civil penalty for each failure in an amount equal to1 as adjusted for inflation in accordance with such regulations as the ,secretary may promulgate-- 7,a7 #ajj per megawatt hour of electricity savings or alternative compliance payment that the retail electricity supplier failed to achieve or make1 respectively2 or 7,b7 #aj per million ,btu of natural gas savings or alternative compliance payment that the retail natural gas supplier failed to achieve or make1 respectively4 7#c7 ,offsetting ,state penalties ,the ,secretary shall reduce the amount of any penalty under paragraph 7#b7 by the amount paid by the relevant retail electricity supplier or retail natural gas supplier to a ,state for failure to comply with the requirements of a ,state energy efficiency resource standard during the same compliance period4 7#d7 ,enforcement procedures ,the ,secretary shall assess a civil penalty1 as provided under paragraph 7#b71 in accordance with the procedures described in section #ccc7;d7 of the ,energy ,policy and ,conservation ,act of #aied 7#db ,u4,s4,c4 #fcjc74 7e7 ,state administration 7#a7 ,in general ,on receipt of an application from the ,governor of a ,state 7including the ,mayor of the ,district of ,columbia71 the ,secretary may delegate to the ,state responsibility for administering this section within the territory of the ,state if the ,secretary determines that the ,state will implement an energy efficiency program that meets or exceeds the requirements of this section4 7#b7 ,secretarial determination ,not later than #ahj days after the date on which a complete application is received by the ,secretary1 the ,secretary shall make a substantive determination approving or disapproving a ,state application1 after public notice and comment4 7#c7 ,alternative compliance payments 7,a7 ,in general ,as part of an application submitted under paragraph 7#a71 a ,state may permit retail electricity suppliers or retail natural gas suppliers to pay to the ,state1 by not later than ,may #a of the calendar year immediately following the applicable reporting period1 an alternative compliance payment in an amount equal to1 as adjusted for inflation in accordance with such regulations as the ,secretary may promulgate1 not less than-- 7i7 #ej per megawatt hour of electricity savings needed to make up any deficit with regard to a compliance obligation under the applicable performance standard2 or 7ii7 #e per million ,btu of natural gas savings needed to make up any deficit with regard to a compliance obligation under the applicable performance standard4 7,b7 ,use of payments ,alternative compliance payments collected by a ,state under subparagraph 7,a7 shall be used by the ,state to administer the delegated authority of the ,state under this section and to implement cost-effective energy efficiency programs that-- 7i7 to the maximum extent practicable1 achieve electricity savings and natural gas savings in the ,state sufficient to make up the deficit associated with the alternative compliance payments2 and 7ii7 can be measured and verified in accordance with the applicable procedures and standards under subsection 7b77#a77;,b74 7#d7 ,review of ,state implementation 7,a7 ,periodic review ,every #b years1 the ,secretary shall review ,state implementation of this section for conformance with the requirements of this section in approximately #a_/b of the ,states that have received approval under this subsection to administer the program1 so that each ,state shall be reviewed at least every #d years4 7,b7 ,report ,to facilitate the review under subparagraph 7,a71 the ,secretary may require the ,state to submit a report demonstrating the conformance of the ,state with the requirements of this section4 7,c7 ,deficiencies 7i7 ,in general ,in completing a review under this paragraph1 if the ,secretary finds deficiencies1 the ,secretary shall-- 7,i7 notify the ,state of the deficiencies2 7,,ii7 direct the ,state to correct the deficiencies2 and 7,,iii7 require the ,state to report to the ,secretary on progress made by not later than #ahj days after the date on which the ,state receives notice under subclause 7,i74 7ii7 ,substantial deficiencies ,if the deficiencies are substantial1 the ,secretary shall-- 7,i7 disallow the reported electricity savings or natural gas savings that the ,secretary determines are not credible due to deficiencies2 7,,ii7 re-review the ,state not later than #b years after the date on which the original review was completed2 and 7,,iii7 if substantial deficiencies remain uncorrected after the review provided for under subclause 7,,ii71 revoke the authority of the ,state to administer the program established under this section4 7f7 ,information and reports ,in accordance with section #ac of the ,federal ,energy ,administration ,act of #aigd 7#ae ,u4,s4,c4 #ggb71 the ,secretary may require any retail electricity supplier1 retail natural gas supplier1 third-party efficiency provider1 or any other entity that the ,secretary determines appropriate1 to provide any information the ,secretary determines appropriate to carry out this section4 7g7 ,state law ,nothing in this section diminishes or qualifies any authority of a ,state or political subdivision of a ,state to adopt or enforce any law or regulation respecting electricity savings or natural gas savings1 including any law or regulation establishing energy efficiency requirements that are more stringent than those under this section1 except that no ,state law or regulation shall relieve any person of any requirement otherwise applicable under this section4 4 7b7 ,conforming amendment ,the table of contents of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 prec4 #bfja7 is amended by adding at the end of the items relating to title ,,vi the following3 ,sec4 #fji4 ,rural and remote communities electrification grants4,sec4 #faj4 ,federal energy efficiency resource standard for retail electricity and natural gas suppliers4 4 ,c ,energy efficiency retrofit program #cjba4 ,energy efficiency retrofit pilot program 7a7 ,definitions ,in this section3 7#a7 ,applicant ,the term applicant means a nonprofit organization that applies for a grant under this section4 7#b7 ,energy-efficiency improvement 7,a7 ,in general ,the term energy-efficiency improvement means an installed measure 7including a product1 equipment1 system1 service1 or practice7 that results in a reduction in use by a nonprofit organization for energy or fuel supplied from outside the nonprofit building4 7,b7 ,inclusions ,the term energy-efficiency improvement includes an installed measure described in subparagraph 7,a7 involving-- 7i7 repairing1 replacing1 or installing-- 7,i7 a roof or lighting system1 or component of a roof or lighting system2 7,,ii7 a window2 7,,iii7 a door1 including a security door2 or 7,,iv7 a heating1 ventilation1 or air conditioning system or component of the system 7including insulation and wiring and plumbing improvements needed to serve a more efficient system72 7ii7 a renewable energy generation or heating system1 including a solar1 photovoltaic1 wind1 geothermal1 or biomass 7including wood pellet7 system or component of the system2 and 7iii7 any other measure taken to modernize1 renovate1 or repair a nonprofit building to make the nonprofit building more energy efficient4 7#c7 ,nonprofit building 7,a7 ,in general ,the term nonprofit building means a building operated and owned by a nonprofit organization4 7,b7 ,inclusions ,the term nonprofit building includes a building described in subparagraph 7,a7 that is-- 7i7 a hospital2 7ii7 a youth center2 7iii7 a school2 7iv7 a social-welfare program facility2 7v7 a faith-based organization2 and 7vi7 any other nonresidential and noncommercial structure4 7b7 ,establishment ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall establish a pilot program to award grants for the purpose of retrofitting nonprofit buildings with energy-efficiency improvements4 7c7 ,grants 7#a7 ,in general ,the ,secretary may award grants under the program established under subsection 7b74 7#b7 ,application ,the ,secretary may award a grant under this section if an applicant submits to the ,secretary an application at such time1 in such form1 and containing such information as the ,secretary may prescribe4 7#c7 ,criteria for grant ,in determining whether to award a grant under this section1 the ,secretary shall apply performance-based criteria1 which shall give priority to applications based on-- 7,a7 the energy savings achieved2 7,b7 the cost-effectiveness of the energy-efficiency improvement2 7,c7 an effective plan for evaluation1 measurement1 and verification of energy savings2 7,d7 the financial need of the applicant2 and 7,e7 the percentage of the matching contribution by the applicant4 7#d7 ,limitation on individual grant amount ,each grant awarded under this section shall not exceed-- 7,a7 an amount equal to #ej percent of the energy-efficiency improvement2 and 7,b7 #bjj1jjj4 7#e7 ,cost sharing 7,a7 ,in general ,a grant awarded under this section shall be subject to a minimum non-,federal cost-sharing requirement of #ej percent4 7,b7 ,in-kind contributions ,the non-,federal share may be provided in the form of in-kind contributions of materials or services4 7d7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #aj1jjj1jjj for each of fiscal years #bjaf through #bjbj1 to remain available until expended4 ,d ,weatherization enhancement and local energy efficiency investment and accountability #cjca4 ,findings ,congress finds that-- 7#a7 the ,state energy program established under part ,d of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcba et seq47 7referred to in this section as ,,sep7 and the ,weatherization ,assistance ,program for ,low-,income ,persons established under part ,a of title ,,iv of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhfa et seq47 7referred to in this section as ,,wap7 have proven to be beneficial1 long-term partnerships among ,federal1 ,state1 and local partners2 7#b7 the ,,sep and the ,,wap have been reauthorized on a bipartisan basis over many years to address changing national1 regional1 and ,state circumstances and needs1 especially through-- 7,a7 the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbja et seq472 7,b7 the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhja et seq472 7,c7 the ,state ,energy ,efficiency ,programs ,improvement ,act of #aiij 7,public ,law #aja-ddj2 #ajd ,stat4 #ajjf72 7,d7 the ,energy ,policy ,act of #aiib 7#db ,u4,s4,c4 #acbja et seq472 7,e7 the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja et seq472 and 7,f7 the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agjja et seq472 7#c7 the ,,sep1 also known as the ,state energy conservation program-- 7,a7 was first created in #aige to implement a ,state-based1 national program in support of energy efficiency1 renewable energy1 economic development1 energy emergency preparedness1 and energy policy2 and 7,b7 has come to operate in every sector of the economy in support of the private sector to improve productivity and has dramatically reduced the cost of government through energy savings at the ,state and local levels2 7#d7 ,federal laboratory studies have concluded that1 for every ,federal dollar invested through the ,,sep1 more than #g is saved in energy costs and almost #aa in non-,federal funds is leveraged2 7#e7 the ,,wap-- 7,a7 was first created in #aigf to assist low-income families in response to the first oil embargo2 7,b7 has become the largest residential energy conservation program in the ,united ,states1 with more than #g1ajj1jjj homes weatherized since the ,,wap was created2 7,c7 saves an estimated #ce percent of consumption in the typical weatherized home1 yielding average annual savings of #dcg per year in home energy costs2 7,d7 has created thousands of jobs in both the construction sector and in the supply chain of materials suppliers1 vendors1 and manufacturers who supply the ,,wap2 7,e7 returns #b4ea in energy savings for every ,federal dollar spent in energy and nonenergy benefits over the life of weatherized homes2 7,f7 serves as a foundation for residential energy efficiency retrofit standards1 technical skills1 and workforce training for the emerging broader market and reduces residential and power plant emissions of carbon dioxide by #b4fe metric tons each year per home2 and 7,g7 has decreased national energy consumption by the equivalent of #bd1ajj1jjj barrels of oil annually2 7#f7 the ,,wap can be enhanced with the addition of a targeted portion of the ,federal funds through an innovative program that supports projects performed by qualified nonprofit organizations that have a demonstrated capacity to build1 renovate1 repair1 or improve the energy efficiency of a significant number of low-income homes1 building on the success of the existing program without replacing the existing ,,wap network or creating a separate delivery mechanism for basic ,,wap services2 7#g7 the ,,wap has increased energy efficiency opportunities by promoting new1 competitive public-private sector models of retrofitting low-income homes through new ,federal partnerships2 7#h7 improved monitoring and reporting of the work product of the ,,wap has yielded benefits1 and expanding independent verification of efficiency work will support the long-term goals of the ,,wap2 7#i7 reports of the ,government ,accountability ,office in #bjaa1 the ,inspector ,general of the ,department1 and ,state auditors have identified ,state-level deficiencies in monitoring efforts that can be addressed in a manner that will ensure that ,,wap funds are used more effectively2 7#aj7 through the history of the ,,wap1 the ,,wap has evolved with improvements in efficiency technology1 including1 in the #aiijs1 many ,states adopting advanced home energy audits1 which has led to great returns on investment2 and 7#aa7 as the home energy efficiency industry has become more performance-based1 the ,,wap should continue to use those advances in technology and the professional workforce4 #cjcb4 ,reauthorization of ,weatherization ,assistance ,program ,section #dbb of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhgb7 is amended by striking appropriated-- and all that follows through the period at the end and inserting appropriated #dej1jjj1jjj for each of fiscal years #bjaf through #bjbj44 #cjcc4 ,grants for new1 self-sustaining low-income1 single-family1 and multifamily housing energy retrofit model programs to eligible multi-,state housing and energy nonprofit organizations ,the ,energy ,conservation and ,production ,act is amended by inserting after section #dad;,b 7#db ,u4,s4,c4 #fhfd;b7 the following3 #dad;,c4 ,grants for new1 self-sustaining low-income1 single-family1 and multifamily housing energy retrofit model programs to eligible multi-,state housing and energy nonprofit organizations 7a7 ,purposes ,the purposes of this section are-- 7#a7 to expand the number of low-income1 single-family and multifamily homes that receive energy efficiency retrofits2 7#b7 to promote innovation and new models of retrofitting low-income homes through new ,federal partnerships with covered organizations that leverage substantial donations1 donated materials1 volunteer labor1 homeowner labor equity1 and other private sector resources2 7#c7 to assist the covered organizations in demonstrating1 evaluating1 improving1 and replicating widely the model low-income energy retrofit programs of the covered organizations2 and 7#d7 to ensure that the covered organizations make the energy retrofit programs of the covered organizations self-sustaining by the time grant funds have been expended4 7b7 ,definitions ,in this section3 7#a7 ,covered organization ,the term covered organization means an organization that-- 7,a7 is described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf and exempt from taxation under #eja7;a7 of that ,code2 and 7,b7 has an established record of constructing1 renovating1 repairing1 or making energy efficient a total of not less than #bej owner-occupied1 single-family or multifamily homes per year for low-income households1 either directly or through affiliates1 chapters1 or other direct partners 7using the most recent year for which data are available74 7#b7 ,low-income ,the term low-income means an income level that is not more than #bjj percent of the poverty level 7as determined in accordance with criteria established by the ,director of the ,office of ,management and ,budget7 applicable to a family of the size involved1 except that the ,secretary may establish a higher or lower level if the ,secretary determines that a higher or lower level is necessary to carry out this section4 7#c7 ,weatherization ,assistance ,program for ,low-,income ,persons ,the term ,weatherization ,assistance ,program for ,low-,income ,persons means the program established under this part 7including part #ddj of title #aj1 ,code of ,federal ,regulations1 or successor regulations74 7c7 ,competitive grant program ,the ,secretary shall make grants to covered organizations through a national competitive process for use in accordance with this section4 7d7 ,award factors ,in making grants under this section1 the ,secretary shall consider-- 7#a7 the number of low-income homes the applicant-- 7,a7 has built1 renovated1 repaired1 or made more energy efficient as of the date of the application2 and 7,b7 can reasonably be projected to build1 renovate1 repair1 or make energy efficient during the #aj-year period beginning on the date of the application2 7#b7 the qualifications1 experience1 and past performance of the applicant1 including experience successfully managing and administering ,federal funds2 7#c7 the number and diversity of ,states and climates in which the applicant works as of the date of the application2 7#d7 the amount of non-,federal funds1 donated or discounted materials1 discounted or volunteer skilled labor1 volunteer unskilled labor1 homeowner labor equity1 and other resources the applicant will provide2 7#e7 the extent to which the applicant could successfully replicate the energy retrofit program of the applicant and sustain the program after the grant funds have been expended2 7#f7 regional diversity2 7#g7 urban1 suburban1 and rural localities2 and 7#h7 such other factors as the ,secretary determines to be appropriate4 7e7 ,applications 7#a7 ,in general ,not later than #ahj days after the date of enactment of this section1 the ,secretary shall request proposals from covered organizations4 7#b7 ,administration ,to be eligible to receive a grant under this section1 an applicant shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7#c7 ,awards ,not later than #ij days after the date of issuance of a request for proposals1 the ,secretary shall award grants under this section4 7f7 ,eligible uses of grant funds ,a grant under this section may be used for-- 7#a7 energy efficiency audits1 cost-effective retrofit1 and related activities in different climatic regions of the ,united ,states2 7#b7 energy efficiency materials and supplies2 7#c7 organizational capacity-- 7,a7 to significantly increase the number of energy retrofits2 7,b7 to replicate an energy retrofit program in other ,states2 and 7,c7 to ensure that the program is self-sustaining after the ,federal grant funds are expended2 7#d7 energy efficiency1 audit and retrofit training1 and ongoing technical assistance2 7#e7 information to homeowners on proper maintenance and energy savings behaviors2 7#f7 quality control and improvement2 7#g7 data collection1 measurement1 and verification2 7#h7 program monitoring1 oversight1 evaluation1 and reporting2 7#i7 management and administration 7up to a maximum of #aj percent of the total grant72 7#aj7 labor and training activities2 and 7#aa7 such other activities as the ,secretary determines to be appropriate4 7g7 ,maximum amount 7#a7 ,in general ,the amount of a grant provided under this section shall not exceed-- 7,a7 if the amount made available to carry out this section for a fiscal year is #bbe1jjj1jjj or more1 #e1jjj1jjj2 and 7,b7 if the amount made available to carry out this section for a fiscal year is less than #bbe1jjj1jjj1 #a1ejj1jjj4 7#b7 ,technical and training assistance ,the total amount of a grant provided under this section shall be reduced by the cost of any technical and training assistance provided by the ,secretary that relates to the grant4 7h7 ,guidelines 7#a7 ,in general ,not later than #ij days after the date of enactment of this section1 the ,secretary shall issue guidelines to implement the grant program established under this section4 7#b7 ,administration ,the guidelines-- 7,a7 shall not apply to the ,weatherization ,assistance ,program for ,low-,income ,persons1 in whole or major part2 but 7,b7 may rely on applicable provisions of law governing the ,weatherization ,assistance ,program for ,low-,income ,persons to establish-- 7i7 standards for allowable expenditures2 7ii7 a minimum savings-to-investment ratio2 7iii7 standards-- 7,i7 to carry out training programs2 7,,ii7 to conduct energy audits and program activities2 7,,iii7 to provide technical assistance2 7,,iv7 to monitor program activities2 and 7,v7 to verify energy and cost savings2 7iv7 liability insurance requirements2 and 7v7 recordkeeping requirements1 which shall include reporting to the ,office of ,weatherization and ,intergovernmental ,programs of the ,department of ,energy applicable data on each home retrofitted4 7i7 ,review and evaluation ,the ,secretary shall review and evaluate the performance of any covered organization that receives a grant under this section 7which may include an audit71 as determined by the ,secretary4 7j7 ,compliance with ,state and local law ,nothing in this section or any program carried out using a grant provided under this section supersedes or otherwise affects any ,state or local law1 to the extent that the ,state or local law contains a requirement that is more stringent than the applicable requirement of this section4 7k7 ,annual reports ,the ,secretary shall submit to ,congress annual reports that provide-- 7#a7 findings2 7#b7 a description of energy and cost savings achieved and actions taken under this section2 and 7#c7 any recommendations for further action4 7l7 ,funding ,of the amount of funds that are made available to carry out the ,weatherization ,assistance ,program for each of fiscal years #bjaf through #bjbj under section #dbb1 the ,secretary shall use to carry out this section for each of fiscal years #bjaf through #bjbj-- 7#a7 #b percent of the amount if the amount is less than #bbe1jjj1jjj2 7#b7 #e percent of the amount if the amount is #bbe1jjj1jjj or more but less than #bfj1jjj1jjj2 7#c7 #aj percent of the amount if the amount is #bfj1jjj1jjj or more but less than #djj1jjj1jjj2 and 7#d7 #bj percent of the amount if the amount is #djj1jjj1jjj or more4 4 #cjcd4 ,standards program ,section #dae of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhfe7 is amended by adding at the end the following3 7f7 ,standards program 7#a7 ,contractor qualification ,effective beginning ,january #a1 #bjaf1 to be eligible to carry out weatherization using funds made available under this part1 a contractor shall be selected through a competitive bidding process and be-- 7,a7 accredited by the ,building ,performance ,institute2 7,b7 an ,energy ,smart ,home ,performance ,team accredited under the ,residential ,energy ,services ,network2 or 7,c7 accredited by an equivalent accreditation or program accreditation-based ,state certification program approved by the ,secretary4 7#b7 ,grants for energy retrofit model programs 7,a7 ,in general ,to be eligible to receive a grant under section #dad;,c1 a covered organization 7as defined in section #dad;,c7b77 shall use a crew chief who-- 7i7 is certified or accredited in accordance with paragraph 7#a72 and 7ii7 supervises the work performed with grant funds4 7,b7 ,volunteer labor ,a volunteer who performs work for a covered organization that receives a grant under section #dad;,c shall not be required to be certified under this subsection if the volunteer is not directly installing or repairing mechanical equipment or other items that require skilled labor4 7,c7 ,training ,the ,secretary shall use training and technical assistance funds available to the ,secretary to assist covered organizations under section #dad;,c in providing training to obtain certification required under this subsection1 including provisional or temporary certification4 7#c7 ,minimum efficiency standards ,effective beginning ,october #a1 #bjaf1 the ,secretary shall ensure that-- 7,a7 each retrofit for which weatherization assistance is provided under this part meets minimum efficiency and quality of work standards established by the ,secretary after weatherization of a dwelling unit2 7,b7 at least #aj percent of the dwelling units are randomly inspected by a third party accredited under this subsection to ensure compliance with the minimum efficiency and quality of work standards established under subparagraph 7,a72 and 7,c7 the standards established under this subsection meet or exceed the industry standards for home performance work that are in effect on the date of enactment of this subsection1 as determined by the ,secretary4 4 #cjce4 ,reauthorization of ,state energy program ,section #cfe7;f7 of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcbe7;f77 is amended by striking #abe1jjj1jjj for each of fiscal years #bjjg through #bjab and inserting #ge1jjj1jjj for each of fiscal years #bjaf through #bjbj4 ,e ,utility energy service contracts improvement #cjda4 ,findings ,congress finds that-- 7#a7 the ,federal ,government is the largest consumer of energy in the ,united ,states2 7#b7 ,federal agencies are expected to meet1 by law1 ,executive order1 and mandate1 stringent energy efficiency and conservation targets2 7#c7 the utility energy service contract 7referred to in this section as ,,uesc7 was developed to provide ,federal agencies an effective means to implement energy efficiency1 renewable energy and water efficiency projects1 and has been used successfully to invest nearly #b1gjj1jjj1jjj in property at ,federal facilities2 7#d7 the ,general ,services ,administration1 which manages more than #i1fjj ,federal properties and is the lead agency for procuring utility services for the ,federal ,government1 has determined that ,u,e,s,cs may extend beyond a #aj-year period under the law2 7#e7 the ,federal ,energy ,management ,program1 which oversees the ,,uesc program and is a principal office guiding agencies to use funding more effectively in meeting ,federal and agency-specific energy and resource management objectives1 has determined that ,u,e,s,cs may extend beyond a #aj-year period under the law2 7#f7 extensive precedent exists for ,federal agencies to contract for energy saving services using contracts with term limits of more than #aj years but not to exceed #be years2 7#g7 a number of ,federal agencies1 contrary to congressional intent1 have sought to limit ,,uesc term limits to periods of less than #aj years2 and 7#h7 greater flexibility with ,u,e,s,cs will help reduce the operational cost of ,federal agencies1 ultimately saving money for taxpayers4 #cjdb4 ,utility energy service contracts ,part #c of title ,v of the ,national ,energy ,conservation ,policy ,act 7as amended by section #baea7 is amended by adding after section #eed the following3 #eee4 ,utility energy service contracts 7a7 ,in general ,each ,federal agency may use1 to the maximum extent practicable1 measures provided by law to meet energy efficiency and conservation mandates and laws1 including through utility energy service contracts4 7b7 ,contract period ,the term of a utility energy service contract entered into by a ,federal agency may have a contract period that extends beyond #aj years1 but not to exceed #be years4 7c7 ,requirements ,the conditions of a utility energy service contract entered into by a ,federal agency shall include requirements for measurement1 verification1 and performance assurances or guarantees of the savings4 4 ,f ,state residential building energy efficiency loan pilot program #cjea4 ,state residential building energy efficiency upgrades loan pilot program 7a7 ,loans for residential building energy efficiency upgrades ,part ,d of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcba et seq47 is amended by adding at the end the following3 #cfg4 ,loans for residential building energy efficiency upgrades 7a7 ,definitions ,in this section3 7#a7 ,consumer-friendly ,the term consumer-friendly1 with respect to a loan repayment approach1 means a loan repayment approach that-- 7,a7 emphasizes convenience for customers2 7,b7 is of low cost to consumers2 and 7,c7 emphasizes simplicity and ease of use for consumers in the billing process4 7#b7 ,eligible entity ,the term eligible entity means-- 7,a7 a ,state or territory of the ,united ,states2 and 7,b7 a tribal organization 7as defined in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #dej;b774 7#c7 ,energy advisor program 7,a7 ,in general ,the term energy advisor program means any program to provide to owners or residents of residential buildings advice1 information1 and support in the identification1 prioritization1 and implementation of energy efficiency and energy savings measures4 7,b7 ,inclusions ,the term energy advisor program includes a program that provides-- 7i7 interpretation of energy audit reports2 7ii7 assistance in the prioritization of improvements2 7iii7 assistance in finding qualified contractors2 7iv7 assistance in contractor bid reviews2 7v7 education on energy conservation and energy efficiency2 7vi7 explanations of available incentives and tax credits2 7vii7 assistance in completion of rebate and incentive paperwork2 and 7viii7 any other similar type of support4 7#d7 ,energy efficiency ,the term energy efficiency means a decrease in homeowner or residential tenant consumption of energy 7including electricity and thermal energy7 that is achieved without reducing the quality of energy services through-- 7,a7 a measure or program that targets customer behavior2 7,b7 equipment or energy systems2 7,c7 a device2 or 7,d7 other material4 7#e7 ,energy efficiency upgrade 7,a7 ,in general ,the term energy efficiency upgrade means any project or activity-- 7i7 the primary purpose of which is increasing energy efficiency2 and 7ii7 that is carried out on a residential building4 7,b7 ,inclusions ,the term energy efficiency upgrade includes the installation or improvement of a renewable energy facility for heating or electricity generation serving a residential building carried out in conjunction with an energy efficiency project or activity4 7#f7 ,program entity ,the term program entity means a local government1 utility1 or other entity that carries out a financing program under subsection 7e77#b77;,a7 pursuant to a contract or other agreement with an eligible entity4 7#g7 ,recipient household ,the term recipient household means the owner or tenant of a residential building who receives financing under this section for an energy efficiency upgrade of the residential building4 7#h7 ,residential building 7,a7 ,in general ,the term residential building means a building used for residential purposes4 7,b7 ,inclusions ,the term residential building includes-- 7i7 a single-family residence2 7ii7 a multifamily residence composed not more than #d units2 and 7iii7 a mixed-use building that includes not more than #d residential units4 7b7 ,establishment of program 7#a7 ,in general ,the ,secretary shall establish a program under this part under which the ,secretary shall make available to eligible entities loans for the purpose of establishing or expanding programs that provide to recipient households financing for energy efficiency upgrades of residential buildings4 7#b7 ,consultation ,in establishing the program under paragraph 7#a71 the ,secretary shall consult1 as the ,secretary determines to be appropriate1 with stakeholders and the public4 7#c7 ,no requirement to participate ,no eligible entity shall be required to participate in any manner in the program established under paragraph 7#a74 7#d7 ,deadlines ,the ,secretary shall-- 7,a7 not later than #a year after the date of enactment of this section1 implement the program established under paragraph 7#a7 7including soliciting applications from eligible entities in accordance with subsection 7c772 and 7,b7 not later than #b years after the date of enactment of this section1 disburse the initial loans provided under this section4 7c7 ,applications 7#a7 ,in general ,to be eligible to receive a loan under this section1 an eligible entity shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary may require4 7#b7 ,selection date ,not later than #ba months after the date of enactment of this section1 the ,secretary shall select eligible entities to receive the initial loans provided under this section1 in accordance with the requirements described in paragraph 7#c74 7#c7 ,requirements ,in selecting eligible entities to receive loans under this section1 the ,secretary shall-- 7,a7 to the maximum extent practicable1 ensure-- 7i7 that both innovative and established approaches to the challenges of financing energy efficiency upgrades are supported2 7ii7 that energy efficiency upgrades are conducted and validated to comply with best practices for work quality1 as determined by the ,secretary2 7iii7 regional diversity among eligible entities that receive the loans1 including participation by rural ,states and small ,states2 7iv7 significant participation by families with income levels at or below the median income level for the applicable geographical region1 as determined by the ,secretary2 and 7v7 the incorporation of an energy advisor program by1 as applicable-- 7,i7 eligible entities2 or 7,,ii7 program entities2 7,b7 evaluate applications based primarily on-- 7i7 the projected reduction in energy use1 as determined in accordance with such specific and commonly available methodology as the ,secretary shall establish1 by regulation2 7ii7 the creditworthiness of the eligible entity2 and 7iii7 the incorporation of measures for making the loan repayment system for recipient households as consumer-friendly as practicable2 7,c7 evaluate applications based secondarily on-- 7i7 the extent to which the proposed financing program of the eligible entity incorporates best practices for such a program1 as determined by the ,secretary2 7ii7 7,i7 whether the eligible entity has created a plan for evaluating the effectiveness of the proposed financing program2 and 7,,ii7 whether that plan includes-- 7aa7 a robust strategy for collecting1 managing1 and analyzing data1 as well as making the data available to the public2 and 7bb7 experimental studies1 which may include investigations of how human behavior impacts the effectiveness of efficiency improvements2 7iii7 the extent to which ,federal funds are matched by funding from ,state1 local1 philanthropic1 private sector1 and other sources2 7iv7 the extent to which the proposed financing program will be coordinated and marketed with other existing or planned energy efficiency or energy conservation programs administered by-- 7,i7 utilities and rural cooperatives2 7,,ii7 ,state1 tribal1 territorial1 or local governments2 or 7,,iii7 community development financial institutions2 and 7v7 such other factors as the ,secretary determines to be appropriate2 and 7,d7 not provide an advantage or disadvantage to applications that include renewable energy in the program4 7d7 ,administrative provisions 7#a7 ,term ,the ,secretary shall establish terms for loans provided to eligible entities under this section-- 7,a7 in a manner that-- 7i7 provides for a high degree of cost recovery2 and 7ii7 ensures that1 with respect to all loans provided to or by eligible entities under this section1 the loans are competitive with1 or superior to1 other forms of financing for similar purposes2 and 7,b7 subject to the condition that the term of a loan provided to an eligible entity under this section shall not exceed #ce years4 7#b7 ,interest rates 7,a7 ,in general ,subject to subparagraph 7,b71 the ,secretary1 at the discretion of the ,secretary1 shall charge interest on a loan provided to an eligible entity under this section at a fixed rate equal1 or approximately equal1 to the interest rate charged on ,treasury securities of comparable maturity4 7,b7 ,leveraged loans ,the interest rate and other terms of the loans provided to eligible entities under this section shall be established in a manner that ensures that the total amount of the loans is equal to not less than #bj times1 and not more than #ej times1 an amount equivalent to #hj percent of the amount appropriated for administrative and general financial support costs pursuant to subsection 7g77#b74 7#c7 ,no penalty on early repayment ,the ,secretary shall not assess any penalty for early repayment by an eligible entity of a loan provided under this section4 7#d7 ,return of unused portion ,as a condition of receipt of a loan under this section1 an eligible entity shall agree to return to the general fund of the ,treasury any portion of the loan amount that is unused by the eligible entity within a reasonable period after the date of receipt of the loan1 as determined by the ,secretary4 7e7 ,use of funds 7#a7 ,in general ,an eligible entity shall use a loan provided under this section to establish or expand #a or more financing programs-- 7,a7 the purpose of which is to enable recipient households to undertake energy efficiency upgrades of residential buildings2 7,b7 that may1 at the sole discretion of the eligible entity1 require an outlay of capital by recipient households in accordance with the goals of the program under this section2 and 7,c7 that incorporate a consumer-friendly loan repayment approach4 7#b7 ,structure of financing program ,a financing program of an eligible entity may-- 7,a7 consist-- 7i7 primarily or entirely of a financing program administered by-- 7,i7 the applicable ,state2 or 7,,ii7 a program entity2 or 7ii7 of a combination of programs described in clause 7i72 7,b7 rely on financing provided by-- 7i7 the eligible entity2 or 7ii7 a third party1 acting through the eligible entity2 and 7,c7 include a provision pursuant to which a recipient household shall agree to return to the eligible entity any portion of the assistance that is unused by the recipient household within a reasonable period after the date of receipt of the assistance1 as determined by the eligible entity4 7#c7 ,form of assistance ,assistance from an eligible entity under this subsection may be provided in any form1 or in accordance with any program1 authorized by ,federal law 7including regulations71 including in the form of-- 7,a7 a revolving loan fund2 7,b7 a credit enhancement structure designed to mitigate the effects of default2 or 7,c7 a program that-- 7i7 adopts any other approach for providing financing for energy efficiency upgrades producing significant energy efficiency gains2 and 7ii7 incorporates measures for making the loan repayment system for recipient households as consumer-friendly as practicable4 7#d7 ,scope of assistance ,assistance provided by an eligible entity under this subsection may be used to pay for costs associated with carrying out an energy efficiency upgrade1 including materials and labor4 7#e7 ,additional assistance ,in addition to the amount of the loan provided to an eligible entity by the ,secretary under subsection 7b71 the eligible entity or program entity1 as applicable1 may provide to recipient households such assistance under this subsection as the eligible entity or program entity considers to be appropriate from any other funds of the eligible entity or program entity1 including funds provided to the eligible entity by the ,secretary for administrative costs pursuant to this section4 7#f7 ,limitations 7,a7 ,interest rates 7i7 ,interest charged by eligible entities ,the interest rate charged by an eligible entity on assistance provided under this subsection-- 7,i7 shall be fixed2 and 7,,ii7 shall not exceed the interest rate paid by the eligible entity to the ,secretary under subsection 7d77#b74 7ii7 ,interest charged by program entities ,a program entity that receives funding from an eligible entity under this subsection for the purpose of capitalizing a residential energy efficiency financing program may charge interest on any loan provided by the program entity at a fixed rate that is as low as practicable1 but not more than #e percent more than the applicable interest rate paid by the eligible entity to the ,secretary under subsection 7d77#b74 7,b7 ,no penalty on early repayment ,an eligible entity or program entity1 as applicable1 shall not assess any penalty for early repayment by any recipient household to the eligible entity or program entity1 as applicable4 7f7 ,reports 7#a7 ,eligible entities 7,a7 ,in general ,not later than #b years after the date of receipt of the loan1 and annually thereafter for the term of the loan1 an eligible entity that receives a loan under this section shall submit to the ,secretary a report describing the performance of each program and activity carried out using the loan1 including anonymized loan performance data4 7,b7 ,requirements ,the ,secretary1 in consultation with eligible entities and other stakeholders 7such as lending institutions and the real estate industry71 shall establish such requirements for the reports under this paragraph as the ,secretary determines to be appropriate-- 7i7 to ensure that the reports are clear1 consistent1 and straightforward2 and 7ii7 taking into account the reporting requirements for similar programs in which the eligible entities are participating1 if any4 7#b7 ,secretary ,the ,secretary shall submit to ,congress and make available to the public-- 7,a7 not less frequently than once each year1 a report describing the performance of the program under this section1 including a synthesis and analysis of the information provided in the reports submitted to the ,secretary under paragraph 7#a77;,a72 and 7,b7 on termination of the program under this section1 an assessment of the success of1 and education provided by1 the measures carried out by eligible entities during the term of the program4 7g7 ,authorization of appropriations ,there are authorized to be appropriated to the ,secretary to carry out this section-- 7#a7 #cg1ejj1jjj for energy advisor programs2 7#b7 #be1jjj1jjj for administrative and general financial support costs to the ,secretary of carrying out this section2 and 7#c7 #cg1ejj1jjj for administrative costs to ,states in carrying out this section4 4 7b7 ,reorganization 7#a7 ,in general ,part ,d of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcba et seq47 is amended-- 7,a7 by redesignating sections #cfb1 #cfc1 #cfd1 #cfe1 and #cff as sections #cfd1 #cfe1 #cff1 #cfc1 and #cfb1 respectively1 and moving the sections so as to appear in numerical order2 7,b7 in section #cfb 7as so redesignated7-- 7i7 in paragraph 7#c77;,b77i71 by striking section #cfg1 and and inserting section #cfg 7as in effect on the day before the date of enactment of the ,state ,energy ,efficiency ,programs ,improvement ,act of #aiij 7#db ,u4,s4,c4 #fbja note2 ,public ,law #aja-ddj772 and2 and 7ii7 in each of paragraphs 7#d7 and 7#f71 by striking section #cfe7;e77#a7 each place it appears and inserting section #cfc7;e77#a72 7,c7 in section #cfc 7as so redesignated7-- 7i7 in subsection 7b71 by striking the provisions of sections #cfb and #cfd and subsection 7a7 of section #cfc and inserting sections #cfd1 #cfe7;a71 and #cff2 and 7ii7 in subsection 7g77#a77;,a71 in the second sentence1 by striking section #cfb and inserting section #cfd2 and 7,d7 in section #cfe 7as so redesignated7-- 7i7 in subsection 7a7-- 7,i7 in paragraph 7#a71 by striking section #cfb1 and inserting section #cfd22 and 7,,ii7 in paragraph 7#b71 by striking section #cfb7;b7 or 7e7 and inserting subsection 7b7 or 7e7 of section #cfd2 and 7ii7 in subsection 7b77#b71 in the matter preceding subparagraph 7,a71 by striking section #cfb7;b7 or 7e7 and inserting subsection 7b7 or 7e7 of section #cfd4 7#b7 ,conforming amendments ,section #cia of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcga7 is amended-- 7,a7 in paragraph 7#b77,m71 by striking section #cfe7;e77#b7 and inserting section #cfc7;e77#b72 and 7,b7 in paragraph 7#aj71 by striking section #cfb of this ,act and inserting section #cfd4 7#c7 ,clerical amendment ,the table of contents of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbja note2 ,public ,law #id-afc7 is amended by striking the items relating to part ,d of title ,,iii and inserting the following3 ,part ,d--,state energy conservation programs,sec4 #cfa4 ,findings and purpose4,sec4 #cfb4 ,definitions4,sec4 #cfc4 ,general provisions4,sec4 #cfd4 ,state energy conservation plans4,sec4 #cfe4 ,federal assistance to ,states4,sec4 #cff4 ,state energy efficiency goals4,sec4 #cfg4 ,loans for residential building energy efficiency upgrades4 4 ,g ,smart energy and water efficiency #cjfa4 ,smart energy and water efficiency pilot program ,subtitle ,a of title ,,ix of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afaia et seq47 is amended by adding at the end the following3 #iah4 ,smart energy and water efficiency pilot program 7a7 ,definitions ,in this section3 7#a7 ,eligible entity ,the term eligible entity means-- 7,a7 a utility2 7,b7 a municipality2 7,c7 a water district2 7,d7 an ,indian tribe or ,alaska ,native village2 and 7,e7 any other authority that provides water1 wastewater1 or water reuse services4 7#b7 ,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 7b74 7b7 ,smart energy and water efficiency pilot program 7#a7 ,in general ,the ,secretary shall establish and carry out a smart energy and water efficiency pilot program in accordance with this section4 7#b7 ,purpose ,the purpose of the smart energy and water efficiency pilot program is to award grants to eligible entities to demonstrate unique1 advanced1 or innovative technology-based solutions that will-- 7,a7 increase the energy efficiency of water1 wastewater1 and water reuse systems2 7,b7 improve energy efficiency of water1 wastewater1 and water reuse systems to help communities across the ,united ,states make measurable progress in conserving water1 saving energy1 and reducing costs2 7,c7 support the implementation of innovative and unique processes and the installation of established advanced automated systems that provide real-time data on energy and water2 and 7,d7 improve energy-water conservation and quality and predictive maintenance through technologies that utilize internet connected technologies1 including sensors1 intelligent gateways1 and security embedded in hardware4 7#c7 ,project selection 7,a7 ,in general ,the ,secretary shall make competitive1 merit-reviewed grants under the pilot program to not less than #c1 but not more than #e1 eligible entities4 7,b7 ,selection criteria ,in selecting an eligible entity to receive a grant under the pilot program1 the ,secretary shall consider-- 7i7 energy and cost savings2 7ii7 the uniqueness1 commercial viability1 and reliability of the technology to be used2 7iii7 the degree to which the project integrates next-generation sensors software1 analytics1 and management tools2 7iv7 the anticipated cost-effectiveness of the pilot project through measurable energy efficiency savings1 water savings or reuse1 and infrastructure costs averted2 7v7 whether the technology can be deployed in a variety of geographic regions and the degree to which the technology can be implemented in a wide range of applications ranging in scale from small towns to large cities1 including tribal communities2 7vi7 whether the technology has been successfully deployed elsewhere2 7vii7 whether the technology was sourced from a manufacturer based in the ,united ,states2 and 7viii7 whether the project will be completed in #e years or less4 7,c7 ,applications 7i7 ,in general ,subject to clause 7ii71 an eligible entity seeking a grant under the pilot program shall submit to the ,secretary an application at such time1 in such manner1 and containing such information as the ,secretary determines to be necessary4 7ii7 ,contents ,an application under clause 7i7 shall1 at a minimum1 include-- 7,i7 a description of the project2 7,,ii7 a description of the technology to be used in the project2 7,,iii7 the anticipated results1 including energy and water savings1 of the project2 7,,iv7 a comprehensive budget for the project2 7,v7 the names of the project lead organization and any partners2 7,,vi7 the number of users to be served by the project2 7,,vii7 a description of the ways in which the proposal would meet performance measures established by the ,secretary2 and 7,,viii7 any other information that the ,secretary determines to be necessary to complete the review and selection of a grant recipient4 7#d7 ,administration 7,a7 ,in general ,not later than #cjj days after the date of enactment of this section1 the ,secretary shall select grant recipients under this section4 7,b7 ,evaluations 7i7 ,annual evaluations ,the ,secretary shall annually carry out an evaluation of each project for which a grant is provided under this section that meets performance measures and benchmarks developed by the ,secretary1 consistent with the purposes of this section4 7ii7 ,requirements ,consistent with the performance measures and benchmarks developed under clause 7i71 in carrying out an evaluation under that clause1 the ,secretary shall-- 7,i7 evaluate the progress and impact of the project2 and 7,,ii7 assesses the degree to which the project is meeting the goals of the pilot program4 7,c7 ,technical and policy assistance ,on the request of a grant recipient1 the ,secretary shall provide technical and policy assistance4 7,d7 ,best practices ,the ,secretary shall make available to the public through the ,internet and other means the ,secretary considers to be appropriate-- 7i7 a copy of each evaluation carried out under subparagraph 7,b72 and 7ii7 a description of any best practices identified by the ,secretary as a result of those evaluations4 7,e7 ,report to congress ,the ,secretary shall submit to ,congress a report containing the results of each evaluation carried out under subparagraph 7,b74 7c7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #ae1jjj1jjj1 to remain available until expended4 4 ,h ,regional energy partnerships #cjga4 ,definitions ,in this subtitle3 7#a7 ,cooperative agreement ,the term cooperative agreement has the meaning given the term in sections #fcjb and #fcje of title #ca1 ,united ,states ,code4 7#b7 ,secretaries ,the term ,secretaries means-- 7,a7 the ,secretary1 acting through the ,assistant ,secretary of the ,office of ,electricity ,delivery and ,energy ,reliability in consultation with the ,assistant ,secretary of ,energy ,efficiency and ,renewable ,energy1 the ,assistant ,secretary of ,fossil ,energy1 and the ,director of the ,office of ,nuclear ,energy1 ,science1 and ,technology ,programs2 and 7,b7 the ,secretary of the ,interior1 acting through the ,assistant ,secretary for ,land and ,minerals ,management in consultation with the ,director of the ,bureau of ,land ,management1 the ,director of the ,bureau of ,ocean ,energy ,management1 the ,assistant ,secretary for ,indian ,affairs1 and the ,assistant ,secretary for ,fish and ,wildlife and ,parks4 7#c7 ,state ,the term ,state means-- 7,a7 a ,state2 7,b7 the ,district of ,columbia2 7,c7 the ,commonwealth of ,puerto ,rico2 and 7,d7 any other territory or possession of the ,united ,states4 #cjgb4 ,regional energy partnerships 7a7 ,in general ,the ,secretaries shall provide assistance in accordance with this section for the purpose of developing energy strategies and plans that help harmonize and promote national1 regional1 and ,state energy goals1 including goals for advancing resilient energy systems to mitigate risks and prepare for emerging energy challenges4 7b7 ,technical assistance ,the ,secretaries may provide such technical assistance to ,states1 political subdivisions of ,states1 substate regional organizations 7including organizations that cross ,state boundaries71 multistate regional organizations1 ,indian tribes1 and nonprofit organizations as the ,secretaries determine appropriate to promote-- 7#a7 the development and improvement of regional energy strategies1 where appropriate1 and plans that sustain and promote energy system modernization across the ,united ,states2 7#b7 investment in energy infrastructure1 technological capacity1 innovation1 and workforce development to keep pace with the changing energy ecosystem2 7#c7 structural transformation of the financial1 regulatory1 legal1 and institutional systems that govern energy planning1 production1 and delivery within ,states and regions2 and 7#d7 public-private partnerships for the implementation of regional energy strategies and plans4 7c7 ,cooperative agreements 7#a7 ,in general ,the ,secretaries may enter into cooperative agreements with one or more ,states and ,indian tribes1 on a regional basis1 to develop and implement strategies and plans to address the energy challenges of ,states1 ,indian tribes1 and regions4 7#b7 ,requirements ,a cooperative agreement entered into under this subsection shall include provisions covering or providing-- 7,a7 the purpose and goals of the cooperative agreement1 such as advancing energy efficiency1 clean energy1 fuel and supply diversity1 energy system resiliency1 economic development1 or other goals to make measurable1 significant progress toward specified metrics and objectives that are agreed to by the ,states or ,indian tribes and the ,secretaries2 7,b7 the roles and responsibilities of the ,states or ,indian tribes and the ,secretaries for various functions of the cooperative agreement1 including outreach1 communication1 resources1 and capabilities2 7,c7 a comprehensive framework for the development of energy strategies and plans for ,states1 ,indian tribes1 or regions2 7,d7 timeframes with associated metrics and objectives2 7,e7 a governance structure to resolve conflicts and facilitate decisionmaking consistent with underlying authorities2 and 7,f7 other provisions determined necessary by the ,secretaries1 in consultation with the ,states or ,indian tribes1 to achieve the purposes described in paragraph 7#a74 7d7 ,staff 7#a7 ,in general ,not later than #cj days after the date of the entering into a cooperative agreement under subsection 7c71 the ,secretaries shall1 as appropriate1 assign or employ individuals who have expertise in the technical and regulatory issues relating to the cooperative agreement1 including particular expertise in 7as applicable7-- 7,a7 energy systems integration2 7,b7 renewable energy and energy efficiency2 7,c7 innovative financing mechanisms2 7,d7 utility regulatory policy2 7,e7 modeling and analysis2 7,f7 facilitation and arbitration2 7,g7 energy assurance and emergency preparedness2 and 7,h7 cyber and physical security of energy systems4 7#b7 ,duties ,each individual assigned to carry out a cooperative agreement under paragraph 7#a7 shall-- 7,a7 report to a location in the applicable ,state1 ,indian tribe1 or region not later than #ij days after the date of assignment2 7,b7 be responsible for issues and technical assistance relating to the cooperative agreement2 7,c7 participate as part of the team of personnel working on developing and implementing the applicable regional energy strategy and plan2 and 7,d7 build capacity within the ,state1 ,indian tribe1 or region to continue to implement the goals of this subtitle after the expiration of the cooperative agreement4 7e7 ,comprehensive framework ,under a cooperative agreement1 a comprehensive framework shall be developed that identifies opportunities and actions across various energy sectors and cross-cutting issue areas1 including-- 7#a7 end-use efficiency2 7#b7 energy supply1 including electric generation and fuels2 7#c7 energy storage and delivery2 7#d7 transportation2 7#e7 technical integration1 including standards and interdependencies2 7#f7 institutional structures2 7#g7 regulatory policies2 7#h7 financial incentives2 and 7#i7 market mechanisms4 7f7 ,awards 7#a7 ,definitions ,in this subsection3 7,a7 ,application group ,the term application group means a group of ,states or ,indian tribes that have-- 7i7 entered into a cooperative agreement1 on a regional basis1 with the ,secretaries under subsection 7c72 and 7ii7 submitted an application for an award under paragraph 7#b77;,a74 7,b7 ,partner ,state ,the term partner ,state means a ,state or ,indian tribe that is part of an application group4 7#b7 ,applications 7,a7 ,in general ,subject to subparagraph 7,b71 an application group may apply to the ,secretaries for awards under this subsection4 7,b7 ,individual ,states ,an individual ,state or ,indian tribe that has entered into a cooperative agreement with the ,secretaries under subsection 7c7 may apply to the ,secretaries for an award under this subsection if the ,state or ,indian tribe demonstrates to the ,secretaries the uniqueness of the energy challenges facing the ,state or ,indian tribe4 7#c7 ,base amount ,subject to paragraph 7#d71 the ,secretaries shall provide #f awards under this subsection1 with a base amount of #bj1jjj1jjj for each award4 7#d7 ,bonus amount for application groups 7,a7 ,in general ,subject to subparagraph 7,b71 the ,secretaries shall increase the amount of an award provided under this subsection to an application group for a successful application under paragraph 7#b77;,a7 by the quotient obtained by dividing-- 7i7 the product obtained by multiplying-- 7,i7 the number of partner ,states in the application group2 and 7,,ii7 #ajj1jjj1jjj2 by 7ii7 the total number of partner ,states of all successful applications under this subsection4 7,b7 ,maximum amount ,the amount of a bonus determined under subparagraph 7,a7 shall not exceed an amount that represents #e1jjj1jjj for each partner ,state that is a member of the relevant application group4 7#e7 ,limitation ,a ,state or ,indian tribe shall not be part of more than #a award under this subsection4 7#f7 ,selection criteria ,in selecting applications for awards under this subsection1 the ,secretaries shall consider-- 7,a7 existing commitments from ,states or ,indian tribes1 such as memoranda of understanding2 7,b7 for ,states that are part of the contiguous #dh ,states1 the number of contiguous ,states involved that cover a region2 7,c7 the diversity of the regions represented by all applications2 7,d7 the amount of cost-share or in-kind contributions from ,states or ,indian tribes2 7,e7 the scope and focus of regional and ,state programs and strategies1 with an emphasis on energy system resiliency and grid modernization1 efficiency1 and clean energy2 7,f7 a management and oversight plan to ensure that objectives are met2 7,g7 an outreach plan for the inclusion of stakeholders in the process for developing and implementing ,state or regional energy strategies and plans2 7,h7 the inclusion of tribal entities2 7,i7 plans to fund and sustain activities identified in regional energy strategies and plans2 and 7,j7 the clarity of roles and responsibilities of each ,state and the ,secretaries4 7#g7 ,use of awards 7,a7 ,in general ,awards provided under this subsection shall be used to achieve the purpose of this section1 including by-- 7i7 conducting technical analyses1 resource studies1 and energy system baselines2 7ii7 convening and providing education to stakeholders on emerging energy issues2 7iii7 building decision support and planning tools2 and 7iv7 improving communication between and participation of stakeholders4 7,b7 ,limitation ,awards provided under this subsection shall not be used for-- 7i7 capitalization of green banks or loan guarantees2 or 7ii7 building facilities or funding capital projects4 #cjgc4 ,authorization of appropriations 7a7 ,in general ,there is authorized to be appropriated to carry out this subtitle #bej1jjj1jjj1 to remain available until expended4 7b7 ,allocation ,of the amount authorized to be appropriated under subsection 7a7-- 7#a7 #abj1jjj1jjj shall be used for the base amount of awards under section #cjgb7;f77#c72 7#b7 #ajj1jjj1jjj shall be used for the bonus amount of awards under section #cjgb7;f77#d72 and 7#c7 #cj1jjj1jjj shall be for the administration of this subtitle1 including-- 7,a7 the assignment of staff under section #cjgb7;d72 and 7,b7 if the ,secretaries determine appropriate1 the sharing of best practices from regional partnerships by parties to cooperative agreements entered into under this subtitle4 7c7 ,state energy offices ,funds provided to a ,state under this subtitle shall be provided to the office within the ,state that is responsible for developing the ,state energy plan for the ,state under part ,d of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcba et seq474 7d7 ,maintenance of funding ,the funding provided to ,states under this subtitle shall supplement 7and not supplant7 funding provided under part ,d of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcba et seq474 ,i ,energy ,productivity ,innovation ,challenge #cjha4 ,definitions ,in this subtitle3 7#a7 ,energy productivity ,the term energy productivity means1 in the case of a ,state or ,indian tribe1 the gross ,state or tribal product per ,british thermal unit of energy consumed in the ,state or tribal land of the ,indian tribe1 respectively4 7#b7 ,indian tribe ,the term ,indian tribe has the meaning given the term in section #d of the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #dej;b74 7#c7 ,state ,the term ,state has the meaning given the term in section #c of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fbjb74 #cjhb4 ,phase #a3 ,initial allocation of grants to ,states 7a7 ,in general ,not later than #cj days after the date of enactment of this ,act1 the ,secretary shall issue an invitation to ,states to submit plans to participate in an electric and thermal energy productivity challenge in accordance with this section4 7b7 ,grants 7#a7 ,in general ,subject to section #cjhe1 the ,secretary shall use funds made available under section #cjhf7;b77#a7 to provide an initial allocation of grants to not more than #be ,states4 7#b7 ,amount ,the amount of a grant provided to a ,state under this section shall be not less than #ejj1jjj nor more than #a1gej1jjj4 7c7 ,submission of plans ,to receive a grant under this section1 not later than #ij days after the date of issuance of the invitation under subsection 7a71 a ,state 7in consultation with energy utilities1 regulatory bodies1 and others7 shall submit to the ,secretary an application to receive the grant by submitting a revised ,state energy conservation plan under section #cfb of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcbb74 7d7 ,decision by ,secretary 7#a7 ,basis ,the ,secretary shall base the decision of the ,secretary on an application submitted under this section on-- 7,a7 plans for improvement in electric and thermal energy productivity consistent with this subtitle2 and 7,b7 other factors determined appropriate by the ,secretary1 including geographic diversity4 7#b7 ,ranking ,the ,secretary shall-- 7,a7 rank revised plans submitted under this section in order of the greatest to least likely contribution to improving energy productivity in the ,state2 and 7,b7 provide grants under this section in accordance with the ranking and the scale and scope of a plan4 7e7 ,plan requirements ,a plan submitted under subsection 7c7 shall provide-- 7#a7 a description of the manner in which-- 7,a7 energy savings will be monitored and verified and energy productivity improvements will be calculated using inflation-adjusted dollars2 7,b7 a statewide baseline of energy use and potential resources for calendar year #bjaj will be established to measure improvements2 7,c7 the plan will promote achievement of energy savings and demand reduction goals2 7,d7 public and private sector investments in energy efficiency will be leveraged with available ,federal funding2 and 7,e7 the plan will not cause cost-shifting among utility customer classes or negatively impact low-income populations2 and 7#b7 an assurance that-- 7,a7 the ,state energy office required to submit the plan1 the energy utilities in the ,state participating in the plan1 and the ,state public service commission are cooperating and coordinating programs and activities under this subtitle2 7,b7 the ,state is cooperating with local units of government1 ,indian tribes1 and energy utilities to expand programs as appropriate2 and 7,c7 grants provided under this subtitle will be used to supplement and not supplant ,federal1 ,state1 or ratepayer-funded programs or activities in existence on the date of enactment of this ,act4 7f7 ,uses ,a ,state may use grants provided under this section to promote-- 7#a7 the expansion of policies and programs that will advance industrial energy efficiency1 waste heat recovery1 combined heat and power1 and waste heat-to-power utilization2 7#b7 the expansion of policies and programs that will advance energy efficiency construction and retrofits for public and private commercial buildings 7including schools1 hospitals1 and residential buildings1 including multifamily buildings7 such as through expanded energy service performance contracts1 equivalent utility energy service contracts1 zero net-energy buildings1 and improved building energy efficiency codes2 7#c7 the expansion of residential policies and programs designed to implement best practice policies and tools for residential retrofit programs that-- 7,a7 reduce administrative and delivery costs for energy efficiency projects2 7,b7 encourage streamlining and automation to support contractor engagement2 and 7,c7 implement systems that encourage private investment and market innovation2 7#d7 the establishment or expansion of incentives in the electric utility sector to enhance demand response and energy efficiency1 including consideration of additional incentives to promote the purposes of section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d771 such as appropriate1 cost-effective policies regarding rate structures1 grid improvements1 behavior change1 combined heat and power and waste heat-to-power incentives1 financing of energy efficiency programs1 data use incentives1 district heating1 and regular energy audits2 and 7#e7 leadership by example1 in which ,state activities involving both facilities and vehicle fleets can be a model for other action to promote energy efficiency and can be expanded with ,federal grants provided under this subtitle4 #cjhc4 ,phase #b3 ,subsequent allocation of grants to ,states 7a7 ,reports ,not later than #ah months after the receipt of grants under section #cjhb1 each ,state 7in consultation with other parties described in subsection 7b77#c77;,f77 that received grants under section #cjhb may submit to the ,secretary a report that describes-- 7#a7 the performance of the programs and activities carried out with the grants2 and 7#b7 in consultation with other parties described in subsection 7b77#c77;,f71 the manner in which additional funds would be used to carry out programs and activities to promote the purposes of this subtitle4 7b7 ,grants 7#a7 ,in general ,not later than #ahj days after the date of the receipt of the reports required under subsection 7a71 subject to section #cjhe1 the ,secretary shall use amounts made available under section #cjhf7;b77#b7 to provide grants to not more than #f ,states to carry out the programs and activities described in subsection 7a77#b74 7#b7 ,amount ,the amount of a grant provided to a ,state under this section shall be not more than #ae1jjj1jjj4 7#c7 ,basis ,the ,secretary shall base the decision of the ,secretary to provide grants under this section on-- 7,a7 the performance of the ,state in the programs and activities carried out with grants provided under section #cjhb2 7,b7 the potential of the programs and activities described in subsection 7a77#b7 to achieve the purposes of this subtitle2 7,c7 the desirability of maintaining a total project portfolio that is geographically and functionally diverse2 7,d7 the amount of non-,federal funds that are leveraged as a result of the grants to ensure that ,federal dollars are leveraged effectively2 7,e7 plans for continuation of the improvements after the receipt of grants under this subtitle2 and 7,f7 demonstrated effort by the ,state to involve diverse groups1 including-- 7i7 investor-owned1 cooperative1 and public power utilities2 7ii7 local governments2 and 7iii7 nonprofit organizations4 #cjhd4 ,allocation of grants to ,indian tribes 7a7 ,in general ,not later than #cj days after the date of enactment of this ,act1 the ,secretary shall invite ,indian tribes to submit plans to participate in an electric and thermal energy productivity challenge in accordance with this section4 7b7 ,submission of plans ,to receive a grant under this section1 not later than #ij days after the date of issuance of the invitation under subsection 7a71 an ,indian tribe shall submit to the ,secretary a plan to increase electric and thermal energy productivity by the ,indian tribe4 7c7 ,decision by ,secretary 7#a7 ,in general ,not later than #ij days after the submission of plans under subsection 7b71 the ,secretary shall make a final decision on the allocation of grants under this section4 7#b7 ,basis ,the ,secretary shall base the decision of the ,secretary under paragraph 7#a7 on-- 7,a7 plans for improvement in electric and thermal energy productivity consistent with this subtitle2 7,b7 plans for continuation of the improvements after the receipt of grants under this subtitle2 and 7,c7 other factors determined appropriate by the ,secretary1 including-- 7i7 geographic diversity2 and 7ii7 size differences among ,indian tribes4 7#c7 ,limitation ,an individual ,indian tribe shall not receive more than #bj percent of the total amount available to carry out this section4 #cjhe4 ,administration 7a7 ,independent evaluation ,to evaluate program performance and effectiveness under this subtitle1 the ,secretary shall consult with the ,national ,research ,council regarding requirements for data and evaluation for recipients of grants under this subtitle4 7b7 ,coordination with ,state energy conservation programs 7#a7 ,in general ,grants to ,states under this subtitle shall be provided through additional funding to carry out ,state energy conservation programs under part ,d of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcba et seq474 7#b7 ,relationship to ,state energy conservation programs 7,a7 ,in general ,a grant provided to a ,state under this subtitle shall be used to supplement 7and not supplant7 funds provided to the ,state under part ,d of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcba et seq474 7,b7 ,minimum funding ,a grant shall not be provided to a ,state for a fiscal year under this subtitle if the amount of funding provided to all ,state grantees under the base formula for the fiscal year under part ,d of title ,,iii of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcba et seq47 is less than #ej1jjj1jjj4 7c7 ,voluntary participation ,the participation of a ,state in a challenge established under this subtitle shall be voluntary4 #cjhf4 ,authorization of appropriations 7a7 ,in general ,there is authorized to be appropriated to carry out this subtitle #ajj1jjj1jjj for the period of fiscal years #bjaf and #bjag4 7b7 ,allocation ,of the total amount of funds made available under subsection 7a7-- 7#a7 #cj percent shall be used to provide an initial allocation of grants to ,states under section #cjhb2 7#b7 #fa percent shall be used to provide a subsequent allocation of grants to ,states under section #cjhc2 7#c7 #d percent shall be used to make grants to ,indian tribes under section #cjhd2 and 7#d7 #e percent shall be available to the ,secretary for the cost of administration and technical support to carry out this subtitle4 ,j ,smart buildings #cjia4 ,definitions 7a7 ,definitions ,in this section3 7#a7 ,program ,the term program means the ,federal ,smart ,building ,program established under subsection 7b77#a74 7#b7 ,smart building ,the term smart building means a building1 or collection of buildings1 with an energy system that-- 7,a7 is flexible and automated2 7,b7 has extensive operational monitoring and communication connectivity1 allowing remote monitoring and analysis of all building functions2 7,c7 takes a systems-based approach in integrating the overall building operations for control of energy generation1 consumption1 and storage2 7,d7 communicates with utilities and other third-party commercial entities1 if appropriate2 and 7,e7 is cybersecure4 7#c7 ,smart building accelerator ,the term smart building accelerator means an initiative that is designed to demonstrate specific innovative policies and approaches-- 7,a7 with clear goals and a clear timeline2 and 7,b7 that1 on successful demonstration1 would accelerate investment in energy efficiency4 7b7 ,federal smart building program 7#a7 ,establishment ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall establish a program to be known as the ,federal ,smart ,building ,program-- 7,a7 to implement smart building technology2 and 7,b7 to demonstrate the costs and benefits of smart buildings4 7#b7 ,selection 7,a7 ,in general ,the ,secretary shall coordinate the selection of not fewer than #a building from among each of several key ,federal agencies1 as described in paragraph 7#d71 to compose an appropriately diverse set of smart buildings based on size1 type1 and geographic location4 7,b7 ,inclusion of commercially operated buildings ,in making selections under subparagraph 7,a71 the ,secretary may include buildings that are owned by the ,federal ,government but are commercially operated4 7#c7 ,targets ,not later than #ah months after the date of enactment of this ,act1 the ,secretary shall establish targets for the number of smart buildings to be commissioned and evaluated by key ,federal agencies by #c years and #f years after the date of enactment of this ,act4 7#d7 ,federal agency described ,the key ,federal agencies referred to in this subsection shall include buildings operated by-- 7,a7 the ,department of the ,army2 7,b7 the ,department of the ,navy2 7,c7 the ,department of the ,air ,force2 7,d7 the ,department2 7,e7 the ,department of the ,interior2 7,f7 the ,department of ,veterans ,affairs2 and 7,g7 the ,general ,services ,administration4 7#e7 ,requirement ,in implementing the program1 the ,secretary shall leverage existing financing mechanisms including energy savings performance contracts1 utility energy service contracts1 and annual appropriations4 7#f7 ,evaluation ,using the guidelines of the ,federal ,energy ,management ,program relating to whole-building evaluation1 measurement1 and verification1 the ,secretary shall evaluate the costs and benefits of the buildings selected under paragraph 7#b71 including an identification of-- 7,a7 which advanced building technologies-- 7i7 are most cost-effective2 and 7ii7 show the most promise for-- 7,i7 increasing building energy savings2 7,,ii7 increasing service performance to building occupants2 7,,iii7 reducing environmental impacts2 and 7,,iv7 establishing cybersecurity2 and 7,b7 any other information the ,secretary determines to be appropriate4 7#g7 ,awards ,the ,secretary may expand awards made under the ,federal ,energy ,management ,program and the ,better ,building ,challenge to recognize specific agency achievements in accelerating the adoption of smart building technologies4 7c7 ,survey of private sector smart buildings 7#a7 ,survey ,the ,secretary shall conduct a survey of privately owned smart buildings throughout the ,united ,states1 including commercial buildings1 laboratory facilities1 hospitals1 multifamily residential buildings1 and buildings owned by nonprofit organizations and institutions of higher education4 7#b7 ,selection ,from among the smart buildings surveyed under paragraph 7#a71 the ,secretary shall select not fewer than #a building each from an appropriate range of building sizes1 types1 and geographic locations4 7#c7 ,evaluation ,using the guidelines of the ,federal ,energy ,management ,program relating to whole-building evaluation1 measurement1 and verification1 the ,secretary shall evaluate the costs and benefits of the buildings selected under paragraph 7#b71 including an identification of-- 7,a7 which advanced building technologies and systems-- 7i7 are most cost-effective2 and 7ii7 show the most promise for-- 7,i7 increasing building energy savings2 7,,ii7 increasing service performance to building occupants2 7,,iii7 reducing environmental impacts2 and 7,,iv7 establishing cybersecurity2 and 7,b7 any other information the ,secretary determines to be appropriate4 7d7 ,leveraging existing programs 7#a7 ,better building challenge ,as part of the ,better ,building ,challenge of the ,department1 the ,secretary1 in consultation with major private sector property owners1 shall develop smart building accelerators to demonstrate innovative policies and approaches that will accelerate the transition to smart buildings in the public1 institutional1 and commercial buildings sectors4 7#b7 ,research and development 7,a7 ,in general ,the ,secretary shall conduct research and development to address key barriers to the integration of advanced building technologies and to accelerate the transition to smart buildings4 7,b7 ,inclusion ,the research and development conducted under subparagraph 7,a7 shall include research and development on-- 7i7 achieving whole-building1 systems-level efficiency through smart system and component integration2 7ii7 improving physical components1 such as sensors and controls1 to be adaptive1 anticipatory1 and networked2 7iii7 reducing the cost of key components to accelerate the adoption of smart building technologies2 7iv7 data management1 including the capture and analysis of data and the interoperability of the energy systems2 7v7 protecting against cybersecurity threats and addressing security vulnerabilities of building systems or equipment2 7vi7 business models1 including how business models may limit the adoption of smart building technologies and how to support transactive energy2 7vii7 integration and application of combined heat and power systems and energy storage for resiliency2 7viii7 characterization of buildings and components2 7ix7 consumer and utility protections2 7x7 continuous management1 including the challenges of managing multiple energy systems and optimizing systems for disparate stakeholders2 and 7xi7 other areas of research and development1 as determined appropriate by the ,secretary4 7e7 ,report ,not later than #b years after the date of enactment of this ,act1 and every #b years thereafter until a total of #c reports have been made1 the ,secretary shall submit to the ,committee on ,energy and ,natural ,resources of the ,senate and the ,committee on ,energy and ,commerce of the ,house of ,representatives a report on-- 7#a7 the establishment of the ,federal ,smart ,building ,program and the evaluation of ,federal smart buildings under subsection 7b72 7#b7 the survey and evaluation of private sector smart buildings under subsection 7c72 and 7#c7 any recommendations of the ,secretary to further accelerate the transition to smart buildings4 ,k ,energy ,study #caja4 ,energy information study 7a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,secretary shall complete a study1 with opportunity for public comment-- 7#a7 on the impact of-- 7,a7 ,state and local performance benchmarking and disclosure policies1 and any associated building efficiency policies1 for commercial and multifamily buildings2 and 7,b7 programs and systems in which utilities provide aggregated information regarding whole building energy consumption and usage information to owners of multitenant commercial1 residential1 and mixed-use buildings2 7#b7 that identifies best practice policy approaches studied under paragraph 7#a7 that have resulted in the greatest improvements in building energy efficiency2 and 7#c7 that considers-- 7,a7 compliance rates and the benefits and costs of the policies and programs on building owners1 utilities1 tenants1 and other parties2 7,b7 utility practices1 programs1 and systems that provide aggregated energy consumption information to multitenant building owners1 and the impact of public utility commissions and ,state privacy laws on those practices1 programs1 and systems2 7,c7 exceptions to compliance in existing laws where building owners are not able to gather or access whole building energy information from tenants or utilities2 7,d7 the treatment of buildings with-- 7i7 multiple uses2 7ii7 uses for which baseline information is not available2 and 7iii7 uses that require high levels of energy intensities1 such as data centers1 trading floors1 and television studios2 7,e7 implementation practices1 including disclosure methods and phase-in of compliance2 7,f7 the safety and security of benchmarking tools offered by government agencies1 and the resiliency of those tools against cyber attacks2 and 7,g7 international experiences with regard to building benchmarking and disclosure laws and data aggregation for multitenant buildings4 7b7 ,submission to ,congress ,at the conclusion of the study1 the ,secretary shall submit to ,congress a report on the results of the study4 #cajb4 ,grants to utilities 7a7 ,grants to utilities ,based on the results of the research for the portion of the study described in section #caja7;a77#a77;,b71 and with criteria developed following public notice and comment1 the ,secretary may make competitive awards to utilities1 utility regulators1 and utility partners to develop and implement effective and promising programs to provide aggregated whole building energy consumption information to multitenant building owners4 7b7 ,authorization of ,appropriations ,there is authorized to be appropriated to carry out this section #e1jjj1jjj for each of fiscal years #bjaf through #bjbj1 to remain available until expended4 #cajc4 ,grants to ,states and units of local government 7a7 ,grants to utilities ,based on the results of the research for the portion of the study described in section #caja7;a77#a77;,b71 and with criteria developed following public notice and comment1 the ,secretary may make competitive awards to ,states and units of local government to develop and implement effective and promising benchmarking and disclosure policies1 and any associated building efficiency policies1 for commercial and multifamily buildings4 7b7 ,authorization of ,appropriations ,there is authorized to be appropriated to carry out this section #e1jjj1jjj for each of fiscal years #bjaf through #bjbj1 to remain available until expended4 #cajd4 ,input ,from ,stakeholders ,the ,secretary shall seek input from stakeholders to maximize the effectiveness of the actions taken under this subtitle4 #caje4 ,report ,not later than #b years after the date of enactment of this ,act1 and every #b years thereafter1 the ,secretary shall submit to ,congress a report on the progress made in complying with this subtitle4 ,l ,alternative fueled vehicles #caaa4 ,alternative fueled vehicle fleets and infrastructure 7a7 ,utility incentive programs ,section #edf7;c77#a7 of the ,national ,energy ,conservation ,policy ,act 7#db ,u4,s4,c4 #hbef7;c77#a77 is amended by inserting 7including measures to support the use of alternative fueled vehicles 7as defined in section #djj;,,aa7g7 of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcgd7;g777 or the fueling or charging infrastructure necessary for those vehicles7 after demand4 7b7 ,energy savings performance contracts 7#a7 ,authority to enter contracts ,section #hja7;a77#b77;,b7 of the ,national ,energy ,conservation ,policy ,act 7#db ,u4,s4,c4 #hbhg7;a77#b77;,b77 is amended in the first sentence by inserting or petroleum after utilities4 7#b7 ,payment of costs ,section #hjb of the ,national ,energy ,conservation ,policy ,act 7#db ,u4,s4,c4 #hbhg;a7 is amended by inserting petroleum1 after water14 7#c7 ,definitions ,section #hjd of the ,national ,energy ,conservation ,policy ,act 7#db ,u4,s4,c4 #hbhg;c7 is amended-- 7,a7 in paragraph 7#b7-- 7i7 in subparagraph 7,c71 by striking and after the semicolon2 7ii7 in subparagraph 7,d71 by striking the period at the end and inserting 2 or2 and 7iii7 by adding at the end the following3 7,e7 a reduction in the use of petroleum through the use of alternative fueled vehicles or the fueling or charging infrastructure necessary for alternative fueled vehicles1 including the use of contracts to support alternative fueled vehicles or infrastructure4 2 7,b7 in paragraph 7#d7-- 7i7 in subparagraph 7,a71 by striking or after the semicolon2 7ii7 in subparagraph 7,b71 by striking the period at the end and inserting 2 or2 and 7iii7 by adding at the end the following3 7,c7 a measure to support the use of alternative fueled vehicles or the fueling or charging infrastructure necessary for alternative fueled vehicles1 including the use of contracts to support alternative fueled vehicles or infrastructure4 2 7,c7 by redesignating paragraphs 7#a71 7#b71 7#c71 and 7#d71 as paragraphs 7#e71 7#c71 7#d71 and 7#b71 respectively1 and moving so as to appear in numerical order2 and 7,d7 by inserting before paragraph 7#b7 7as so redesignated7 the following3 7#a7 ,alternative fueled vehicle ,the term alternative fueled vehicle has the meaning given the term in section #djj;,,aa7g7 of the ,energy ,policy and ,conservation ,act 7#db ,u4,s4,c4 #fcgd7;g774 4 ,m ,outer ,continental ,shelf #caba4 ,repeal of outer ,continental ,shelf deep water and deep gas royalty relief 7a7 ,in general ,sections #cdd and #cde of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeijd1 #aeije7 are repealed4 7b7 ,administration ,the ,secretary of the ,interior shall not be required to provide for royalty relief in the lease sale terms beginning with the first lease sale held on or after the date of enactment of this ,act for which a final notice of sale has not been published4 #cabb4 ,disposition of qualified outer ,continental ,shelf revenues from #aha ,area1 #aha ,south ,area1 and #bjjb-bjjg planning areas of ,gulf of ,mexico ,section #aje of the ,gulf of ,mexico ,energy ,security ,act of #bjjf 7#dc ,u4,s4,c4 #acca note7 is amended to read as follows3 #aje4 ,disposition of qualified outer ,continental ,shelf revenues from #aha ,area1 #aha ,south ,area1 and #bjjb-bjjg planning areas of ,gulf of ,mexico ,notwithstanding section #i of the ,outer ,continental ,shelf ,lands ,act 7#dc ,u4,s4,c4 #acch7 and subject to the other provisions of this section1 for each applicable fiscal year1 the ,secretary of the ,treasury shall deposit-- 7#a7 #hg4e percent of qualified outer ,continental ,shelf revenues in the general fund of the ,treasury2 and 7#b7 #ab4e percent of qualified outer ,continental ,shelf revenues in a special account in the ,land and ,water ,conservation ,fund established under section #bjjcjb of title #ed1 ,united ,states ,code1 from which the ,secretary shall disburse1 without further appropriation1 #ajj percent to provide financial assistance to ,states in accordance with section #bjjcje of that title1 which shall be considered income to the ,land and ,water ,conservation ,fund for purposes of section #bjjcjb of that title4 4 ,n ,venting and flaring of gas #caca4 ,regulations to prevent or minimize venting and flaring of gas 7a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,interior shall issue regulations under this subtitle-- 7#a7 to prevent or minimize the venting and flaring of gas in oil and gas production operations on ,federal land onshore and offshore in the ,united ,states2 and 7#b7 to promote the capture and beneficial use or reinjection of gas in the operations referred to in paragraph 7#a74 7b7 ,royalties ,a regulation issued under this section shall include provisions that treat gas that is flared or vented in operations under a lease under this subtitle as production for which royalty is required to be paid to the ,united ,states4 7c7 ,limitation on application to existing leases ,regulations issued under subsection 7a7 shall not apply with respect to production under a lease in effect on the date of enactment of this ,act to the extent such application would constitute a breach of the terms of the lease by the ,united ,states4 #cacb4 ,assessment of venting and flaring of gas in production operations in ,united ,states ,not later than #ah months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall-- 7#a7 assess the venting and flaring of gas in oil and gas production operations on ,federal land onshore and offshore in the ,united ,states2 and 7#b7 submit to ,congress a report on the venting and flaring of gas in oil and gas production operations on ,federal land onshore and offshore in the ,united ,states1 including an estimate of the volume of gas that is vented or flared in such operations each year4 #cacc4 ,regulations ,the ,secretary of the ,interior shall issue regulations that define the terms vent1 venting1 flare1 and flaring for purposes of this subtitle4 ,o ,production ,incentive ,fee #cada4 ,production incentive fee 7a7 ,establishment 7#a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of the ,interior 7referred to in this section as the ,secretary7 shall issue regulations to establish an annual production incentive fee with respect to ,federal onshore and offshore land that is subject to a lease for production of oil or natural gas under which production is not occurring4 7#b7 ,application ,the annual production incentive fee described in paragraph 7#a7 shall apply with respect to land that is subject to a lease described in paragraph 7#a7 that is-- 7,a7 in effect on the date on which final regulations are issued pursuant to this subsection2 or 7,b7 executed after that date4 7b7 ,amount ,for each acre of land from which oil or natural gas is produced for less than #ij days in a calendar year1 the amount of the fee shall be-- 7#a7 in the case of onshore land-- 7,a7 for each of the first #c years of the lease1 #d per acre 7in #bjae dollars72 7,b7 for the fourth year of the lease1 #f per acre 7in #bjae dollars72 and 7,c7 for the fifth year of the lease and each year thereafter for which the lease is otherwise in effect1 #h per acre 7in #bjae dollars72 and 7#b7 in the case of offshore land-- 7,a7 for each of the third1 fourth1 and fifth years of the lease1 #d per acre 7in #bjae dollars72 7,b7 for the sixth year of the lease1 #f per acre 7in #bjae dollars72 and 7,c7 for the seventh year of the lease and each year thereafter for which the lease is otherwise in effect1 #h per acre 7in #bjae dollars74 7c7 ,assessment and collection ,the ,secretary shall assess and collect the fee established under this section4 7d7 ,deposit ,amounts received by the ,secretary for the fee under this section shall be reserved for the ,secretary for expenditures on inspection1 enforcement1 and permitting relating to oil and gas4 7e7 ,regulations ,the ,secretary may issue regulations to prevent evasion of the fee under this section4 ,p ,reauthorization of ,desalination ,act #caea4 ,reauthorization of ,desalination ,act 7a7 ,definitions ,section #b of the ,water ,desalination ,act of #aiif 7#db ,u4,s4,c4 #ajcja note2 ,public ,law #ajd-bih7 is amended-- 7#a7 by redesignating paragraphs 7#a71 7#b71 7#c71 7#d71 and 7#e7 as paragraphs 7#b71 7#c71 7#e71 7#f71 and 7#d71 respectively1 and moving the paragraphs so as to appear in numerical order2 and 7#b7 by inserting before paragraph 7#b7 7as so redesignated7 the following3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,environmental ,protection ,agency4 4 7b7 ,authorization of research and studies ,section #c of the ,water ,desalination ,act of #aiif 7#db ,u4,s4,c4 #ajcja note2 ,public ,law #ajd-bih7 is amended by adding at the end the following3 7e7 ,prioritization ,in carrying out this section1 the ,secretary of the ,interior shall prioritize funding for research-- 7#a7 to reduce energy consumption and lower the cost of seawater and brackish water desalination2 7#b7 to reduce the environmental impacts of seawater desalination and develop technology and strategies to minimize those impacts2 7#c7 to improve existing reverse osmosis and membrane technology2 7#d7 to carry out basic and applied research on next generation desalination technologies1 including graphene membranes1 forward osmosis1 hybrid membrane-thermal desalination1 improved energy recovery systems1 and renewable energy-powered desalination systems that could significantly reduce desalination costs2 and 7#e7 to develop portable or modular desalination units capable of providing temporary emergency water supplies for domestic or military deployment purposes4 4 7c7 ,desalination demonstration and development ,section #d of the ,water ,desalination ,act of #aiif 7#db ,u4,s4,c4 #ajcja note2 ,public ,law #ajd-bih7 is amended by adding at the end the following3 7c7 ,prioritization ,in carrying out demonstration and development activities under this section1 the ,secretary shall prioritize projects-- 7#a7 in drought-stricken ,states and communities2 7#b7 in ,states that have authorized funding for research and development of desalination technologies and projects2 and 7#c7 that can reduce reliance on imported water supplies that have an impact on species listed under the ,endangered ,species ,act of #aigc 7#af ,u4,s4,c4 #aeca et seq474 4 7d7 ,authorization of appropriations ,section #h of the ,water ,desalination ,act of #aiif 7#db ,u4,s4,c4 #ajcja note2 ,public ,law #ajd-bih7 is amended-- 7#a7 in subsection 7a71 in the first sentence-- 7,a7 by striking #e1jjj1jjj and inserting #aj1jjj1jjj2 and 7,b7 by striking #bjac and inserting #bjbj2 and 7#b7 in subsection 7b71 by striking for each of fiscal years #bjab through #bjac and inserting for each of fiscal years #bjaf through #bjbj4 7e7 ,consultation ,section #i of the ,water ,desalination ,act of #aiif 7#db ,u4,s4,c4 #ajcja note2 ,public ,law #ajd-bih7 is amended-- 7#a7 by striking the section designation and heading and all that follows through ,in carrying out in the first sentence and inserting the following3 #i4 ,consultation and coordination 7a7 ,consultation ,in carrying out 2 7#b7 in the second sentence1 by striking ,the authorization and inserting the following3 7c7 ,other desalination programs ,the authorization 2 and 7#c7 by inserting after subsection 7a7 7as designated by paragraph 7#a77 the following3 7b7 ,coordination of ,federal desalination research and development 7#a7 ,in general ,the ,white ,house ,office of ,science and ,technology ,policy shall develop a coordinated strategic plan that-- 7,a7 establishes priorities for future ,federal investments in desalination2 and 7,b7 coordinates the activities of ,federal agencies involved in desalination1 including the ,bureau of ,reclamation1 the ,national ,science ,foundation1 the ,office of ,naval ,research of the ,department of ,defense1 the ,national ,laboratories of the ,department of ,energy1 the ,united ,states ,geological ,survey1 the ,environmental ,protection ,agency1 and the ,national ,oceanic and ,atmospheric ,administration4 4 7f7 ,desalination project assistance ,the ,water ,desalination ,act of #aiif 7#db ,u4,s4,c4 #ajcja note2 ,public ,law #ajd-bih7 is amended by adding at the end the following3 #aj4 ,feasibility study and design assistance 7a7 ,in general ,in order to facilitate the development of water desalination projects1 the ,administrator shall develop and implement a program to provide financial assistance to study the feasibility and support the design of desalination facilities 7including associated water distribution infrastructure7 that provide usable water4 7b7 ,feasibility studies 7#a7 ,in general ,the ,administrator may provide grant assistance to a non-,federal project sponsor to evaluate and determine the feasibility of a public or public-private desalination project4 7#b7 ,federal share ,the ,federal share for a feasibility study under paragraph 7#a7 shall not exceed #ej percent of the cost of the study4 7#c7 ,criteria for eligibility ,in carrying out this subsection1 the ,administrator shall establish criteria to determine projects eligible for grant funding based on the ability of the projects to provide regional water supply benefits1 including-- 7,a7 improving water supply reliability in regions subject to frequent and severe drought2 7,b7 enhancement of public health1 safety1 ecosystems1 and watershed sustainability2 7,c7 preservation of groundwater through reduction of withdrawals from aquifers2 7,d7 offsetting demand for water conveyed from environmentally sensitive areas outside service area of the project2 and 7,e7 mitigation of saltwater intrusion to aquifers4 7c7 ,project design 7#a7 ,in general ,the ,administrator may provide grant assistance to a non-,federal project sponsor for the design of a public or public-private desalination project4 7#b7 ,federal share ,the ,federal share for project design under paragraph 7#a7 shall not exceed #be percent of the cost of project design of the project4 7#c7 ,criteria for eligibility ,in carrying out this subsection1 the ,administrator shall establish criteria to determine projects eligible for grant funding1 including-- 7,a7 completion of a feasibility study described in subsection 7b72 7,b7 demonstration of technical feasibility and cost effectiveness2 7,c7 completion of all required ,state and ,federal environmental impact analyses2 7,d7 receipt of all necessary local1 ,state1 and ,federal permits2 7,e7 demonstration of financial capability of non-,federal project sponsors2 7,f7 quantification and net cost of water produced by the project2 and 7,g7 identification of users of produced water supply1 including water purchase agreements and other contractually binding mechanisms4 7d7 ,guidance ,not later than #ahj days after the date of enactment of this section1 the ,administrator shall publish appropriate guidance to implement this section4 7e7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #aj1jjj1jjj for each of fiscal years #bjaf through #bjbj1 to remain available until expended4 7f7 ,report on desalination technology ,not later than #ij days after the date of enactment of this section1 the ,secretary of the ,navy shall submit to ,congress a report on the application of desalinization technology for defense and national security purposes to provide drought relief to areas impacted by sharp declines in water supply4 4 #caeb4 ,promoting water efficiency with ,water,sense 7a7 ,in general ,there is established within the ,environmental ,protection ,agency a program1 to be known as the ,water,sense ,program1 to identify and promote water efficient products1 buildings1 landscapes1 facilities1 processes1 and services-- 7#a7 to reduce water use2 7#b7 to reduce the strain on water1 wastewater1 and stormwater infrastructure2 7#c7 to conserve energy used to pump1 heat1 transport1 and treat water2 and 7#d7 to preserve water resources for future generations through voluntary labeling of1 or other forms of communications regarding1 products1 buildings1 landscapes1 facilities1 processes1 and services that meet the highest water efficiency and performance criteria4 7b7 ,duties ,the ,administrator of the ,environmental ,protection ,agency 7referred to in this section as the ,administrator7 shall-- 7#a7 establish-- 7,a7 a ,water,sense label to be used for certain items2 and 7,b7 the procedure by which an item may be certified to display the ,water,sense label2 7#b7 promote ,water,sense-labeled products1 buildings1 landscapes1 facilities1 processes1 and services in the marketplace as the preferred technologies and services for-- 7,a7 reducing water use2 and 7,b7 ensuring product and service performance2 7#c7 work to enhance public awareness of the ,water,sense label through public outreach1 education1 and other means2 7#d7 preserve the integrity of the ,water,sense label by-- 7,a7 establishing and maintaining performance criteria so that products1 buildings1 landscapes1 facilities1 processes1 and services labeled with the ,water,sense label perform as well as1 or better than1 less water-efficient counterparts2 7,b7 overseeing ,water,sense certifications made by third parties2 7,c7 conducting reviews of the use of the ,water,sense label in the marketplace and taking corrective action in any case in which misuse of the label is identified2 and 7,d7 carrying out such other measures as the ,administrator determines to be appropriate2 7#e7 at least once every #f years1 review and1 if appropriate1 update ,water,sense criteria for categories of products1 buildings1 landscapes1 facilities1 processes1 and services2 7#f7 to the maximum extent practicable1 at least annually estimate and make available to the public the production and relative market shares of1 and the savings of water1 energy1 and capital costs of water1 wastewater1 and stormwater infrastructure attributable to the use of ,water,sense-labeled products1 buildings1 landscapes1 facilities1 processes1 and services2 7#g7 solicit comments from interested parties and the public prior to establishing or revising a ,water,sense category1 specification1 installation criterion1 or other criterion2 7#h7 provide reasonable notice to interested parties and the public of any changes 7including effective dates71 on the adoption of a new or revised category1 specification1 installation criterion1 or other criterion1 along with-- 7,a7 an explanation of the changes2 and 7,b7 as appropriate1 responses to comments submitted by interested parties and the public2 7#i7 provide appropriate lead time 7as determined by the ,administrator7 prior to the applicable effective date for a new or significant revision to a category1 specification1 installation criterion1 or other criterion1 taking into account the timing requirements of the manufacturing1 marketing1 training1 and distribution process for the specific product1 building and landscape1 or service category addressed2 7#aj7 identify and1 if appropriate1 implement other voluntary approaches in commercial1 institutional1 residential1 industrial1 and municipal sectors to encourage recycling and reuse technologies to improve water efficiency or lower water use2 and 7#aa7 if appropriate1 authorize the ,water,sense label for use on products that are labeled by the ,energy ,star program implemented by the ,administrator and the ,secretary of ,energy4 7c7 ,authorization of appropriations ,there are authorized to be appropriated to carry out this section-- 7#a7 #e1jjj1jjj for fiscal year #bjaf2 7#b7 #e1jjj1jjj for fiscal year #bjag2 7#c7 #e1jjj1jjj for fiscal year #bjah2 7#d7 #e1jjj1jjj for fiscal year #bjai2 and 7#e7 for each fiscal year thereafter1 the applicable amount for the preceding fiscal year1 as adjusted to reflect changes for the #ab-month period ending the preceding ,november #cj in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics of the ,department of ,labor4 #caec4 ,increasing opportunities for agricultural conservation 7a7 ,in general ,the ,secretary of the ,interior 7referred to in this section as the ,secretary7 shall offer to enter into voluntary agreements with public water agencies or other entities that receive water from any project operated by the ,bureau of ,reclamation to implement water conservation programs4 7b7 ,uses of conserved water 7#a7 ,in general ,except as provided in paragraph 7#b71 of the quantity of water conserved as a result of an agreement entered into pursuant to subsection 7a7-- 7,a7 #be percent shall be retained by the public water agency or entity with which the ,secretary has entered into the agreement2 and 7,b7 #ge percent shall be retained by the ,secretary1 of which-- 7i7 #cc percent shall be used or marketed on an annual basis for purposes that will promote groundwater recharge and conservation2 and 7ii7 #fg percent shall be used on an annual basis for refuge water supply or other authorized project purposes4 7#b7 ,exceptions ,for good reason in a particular instance1 the ,secretary and the public water agency or entity with which the ,secretary has entered into an agreement may agree to modify the percentages referred to in paragraph 7#a74 7c7 ,contributed funds 7#a7 ,in general ,any existing water service or repayment contractor within the project service area of a water conservation agreement under this section may contribute funds for the implementation of the agreement4 7#b7 ,action by ,secretary ,the ,secretary shall provide to each contractor that contributes funds under paragraph 7#a7 such portion of the water described in subsection 7b77#a77;,b77ii7 as the ,secretary determines to be appropriate1 but not to exceed the proportion of funds contributed by the contractor4 7#c7 ,additional water ,if a contractor contributes more than #ej percent of the cost of a project carried out under an agreement under this section1 the ,secretary may enter into an agreement with the contractor to provide to the contractor such portion of the water described in subsection 7b77#a77;,b77i7 for groundwater recharge and conservation as the ,secretary determines to be appropriate1 subject to the condition that the contractor shall not receive a higher proportion of the water conserved than the proportion of funds contributed by the contractor4 #caed4 ,support for innovative water supply and conservation technologies 7a7 ,in general ,to promote the development of innovative water supply and conservation technologies1 the ,administrator of the ,environmental ,protection ,agency 7referred to in this section as the ,administrator7 may award1 on a competitive basis1 grants and enter into contracts to assist in the financing of research and demonstration projects for those innovative technologies4 7b7 ,eligible entities ,to be eligible to receive an award under this section1 an entity shall be-- 7#a7 a local entity2 7#b7 a public nonprofit institution or organization2 7#c7 a commercial entity2 7#d7 a federally recognized ,indian tribe2 or 7#e7 a nonprofit institution or organization4 7c7 ,eligibility criteria ,the ,administrator shall establish criteria for an entity described in subsection 7b7 to be eligible to receive a grant from1 or enter into a contract with1 the ,administrator under this section1 including-- 7#a7 demonstration of the technical feasibility of the proposal and the qualifications of the entity to carry out the proposal2 7#b7 demonstration of the financial capability and creditworthiness of non-,federal project sponsors2 7#c7 compliance with all applicable laws and receipt of all necessary local1 ,state1 and ,federal permits2 and 7#d7 quantification of the estimated water to be produced or saved by the project and the net cost of the project4 7d7 ,evaluation criteria ,the ,administrator shall establish criteria for evaluating on a competitive basis eligible applicants under this section1 including the degree to which the proposed technology-- 7#a7 proposes an innovation that has broad1 fundamental implications for water savings or water supply2 7#b7 is economically feasible2 7#c7 could reduce the costs of water supply1 including reductions in associated energy costs2 7#d7 would solve environmental concerns or provide environmental benefits2 7#e7 has a proof of concept1 and a likely path to success within a reasonable timeframe2 and 7#f7 is aimed at the development of a specific water saving or water supply application1 as opposed to basic research aimed at discovery and fundamental knowledge generation4 7e7 ,authority to engage others 7#a7 ,in general ,in carrying out research under this section1 the ,administrator may engage such personnel1 industrial or engineering entities1 ,federal laboratories1 water resources research and technology institutions1 other facilities1 and educational institutions as the ,administrator determines to be necessary4 7#b7 ,technical and administrative assistance ,the ,administrator may-- 7,a7 accept technical and administrative assistance from ,states and public or private agencies in connection with studies1 surveys1 location1 construction1 operation1 and other work relating to the desalting of water2 and 7,b7 enter into contracts or agreements that-- 7i7 establish the purposes for which the assistance is contributed2 and 7ii7 provide for the sharing of costs between the ,administrator and any such agency4 7f7 ,cost sharing 7#a7 ,federal cost share ,subject to paragraph 7#b71 the ,federal share of the cost of a project under this section shall not exceed #be percent1 unless the ,administrator determines that the project is not feasible without an increased ,federal contribution4 7#b7 ,maximum ,federal cost share ,notwithstanding paragraph 7#a71 the ,federal share of the cost of a project under this section shall not exceed #ej percent of the total project cost4 7#c7 ,procedures for allocating costs 7,a7 ,in general ,the ,administrator shall prescribe appropriate procedures to implement this section4 7,b7 ,non-,federal costs ,the costs of operation1 maintenance1 repair1 and rehabilitation of any facility funded under this section shall be a non-,federal responsibility4 7g7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this section #ce1jjj1jjj for the period of fiscal years #bjaf through #bjbj4 ,,iv ,investing in ,research and ,development #djja4 ,basic research ,section #iga7;b7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afcaa7;b77 is amended-- 7#a7 in paragraph 7#f71 by striking and at the end2 7#b7 in paragraph 7#g71 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7#h7 #ae1jjj1jjj1jjj for each of fiscal years #bjaf through #bjbj4 4 #djjb4 ,advanced ,research ,projects ,agency-,energy ,section #ejab of the ,america ,,competes ,act 7#db ,u4,s4,c4 #afech7 is amended-- 7#a7 in subsection 7a77#c71 by striking subsection 7n77#a7 and inserting subsection 7o77#a72 7#b7 in subsection 7i71 by striking paragraph 7#a7 and inserting the following3 7#a7 ,in general ,to the maximum extent practicable1 the ,director shall ensure that-- 7,a7 the activities of ,,arpa-,e are coordinated with1 and do not duplicate the efforts of1 programs and laboratories within the ,department and other relevant research agencies2 and 7,b7 ,,arpa-,e does not provide funding for a project unless the prospective grantee demonstrates sufficient attempts to secure private financing or indicates that the project is not independently commercially viable4 2 7#c7 by redesignating subsection 7n7 as subsection 7o72 7#d7 by inserting after subsection 7m7 the following3 7n7 ,protection of information ,the following types of information collected by the ,,arpa-,e from recipients of financial assistance awards shall be considered privileged and confidential and not subject to disclosure under section #eeb of title #e1 ,united ,states ,code3 7#a7 ,plans for commercialization of technologies developed under the award1 including business plans1 technology-to-market plans1 market studies1 and cost and performance models4 7#b7 ,investments provided to an awardee from third parties 7such as venture capital firms1 hedge funds1 and private equity firms71 including amounts and the percentage of ownership of the awardee provided in return for the investments4 7#c7 ,additional financial support that the awardee-- 7,a7 plans to or has invested into the technology developed under the award2 or 7,b7 is seeking from third parties4 7#d7 ,revenue from the licensing or sale of new products or services resulting from research conducted under the award4 2 and 7#e7 in subsection 7o7 7as redesignated by paragraph 7#c77-- 7,a7 in paragraph 7#b7-- 7i7 in the matter preceding subparagraph 7,a71 by striking paragraphs 7#d7 and 7#e7 and inserting paragraph 7#d72 7ii7 in subparagraph 7,d71 by striking and at the end2 7iii7 in subparagraph 7,e71 by striking the period at the end and inserting 2 and2 and 7iv7 by adding at the end the following3 7,f7 #a1jjj1jjj1 #jjj for each of fiscal years #bjaf through #bjbj4 2 and 7,b7 in paragraph 7#d77;,b71 by striking 7c77#b77;,d7 and inserting 7c77#b77;,c74 ,v ,investing in clean energy #ejja4 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this title an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 ,a ,clean energy tax credits #ejaa4 ,clean energy production credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new section3 #de,s4 ,clean energy production credit 7a7 ,amount of credit 7#a7 ,in general ,for purposes of section #ch1 the clean energy production credit for any taxable year is an amount equal to the product of-- 7,a7 the applicable credit rate 7as determined under paragraph 7#b771 multiplied by 7,b7 the kilowatt hours of electricity-- 7i7 produced by the taxpayer at a qualified facility1 and 7ii7 7,i7 sold by the taxpayer to an unrelated person during the taxable year1 or 7,,ii7 in the case of a qualified facility which is equipped with a metering device which is owned and operated by an unrelated person1 sold1 consumed1 or stored by the taxpayer during the taxable year4 7#b7 ,applicable credit rate 7,a7 ,in general 7i7 ,maximum credit rate ,except as provided in clause 7ii71 the applicable credit rate is #a4e cents4 7ii7 ,reduction of credit based on greenhouse gas emission rate ,the applicable credit rate shall be reduced 7but not below zero7 by an amount which bears the same ratio to the amount in effect under clause 7i7 as the greenhouse gas emissions rate for the qualified facility bears to #cgb grams of ,,co#b;e per ,k,wh4 7,b7 ,rounding ,if any amount determined under subparagraph 7,a77ii7 is not a multiple of #j4a cent1 such amount shall be rounded to the nearest multiple of #j4a cent4 7b7 ,greenhouse gas emissions rate 7#a7 ,in general ,for purposes of this section1 the term greenhouse gas emissions rate means the amount of greenhouse gases emitted into the atmosphere by a qualified facility in the production of electricity1 expressed as grams of ,,co#b;e per ,k,wh4 7#b7 ,non-fossil fuel combustion and gasification ,in the case of a qualified facility which produces electricity through combustion or gasification of a non-fossil fuel1 the greenhouse gas emissions rate for such facility shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such facility in the production of electricity1 expressed as grams of ,,co#b;e per ,k,wh4 7#c7 ,establishment of safe harbor for qualified facilities 7,a7 ,in general ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall1 by regulation1 establish safe-harbor greenhouse gas emissions rates for types or categories of qualified facilities1 which a taxpayer may elect to use for purposes of this section4 7,b7 ,rounding ,in establishing the safe-harbor greenhouse gas emissions rates for qualified facilities1 the ,secretary may round such rates to the nearest multiple of #cg4b grams of ,,co#b;e per ,k,wh 7or1 in the case of a greenhouse gas emissions rate which is less than #ah4f grams of ,,co#b;e per ,k,wh1 by rounding such rate to zero74 7#d7 ,carbon capture and sequestration equipment ,for purposes of this subsection1 the amount of greenhouse gases emitted into the atmosphere by a qualified facility in the production of electricity shall not include any qualified carbon dioxide 7as defined in section #dh;,e7c77#c77;,a77 that is captured and disposed of by the taxpayer4 7c7 ,inflation adjustment 7#a7 ,in general ,in the case of a calendar year beginning after #bjah1 the #a4e cent amount in clause 7i7 of subsection 7a77#b77;,a7 shall be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale or use of the electricity occurs4 ,if any amount as increased under the preceding sentence is not a multiple of #j4a cent1 such amount shall be rounded to the nearest multiple of #j4a cent4 7#b7 ,annual computation ,the ,secretary shall1 not later than ,april #a of each calendar year1 determine and publish in the ,federal ,register the inflation adjustment factor for such calendar year in accordance with this subsection4 7#c7 ,inflation adjustment factor ,the term inflation adjustment factor means1 with respect to a calendar year1 a fraction the numerator of which is the ,,gdp implicit price deflator for the preceding calendar year and the denominator of which is the ,,gdp implicit price deflator for the calendar year #aiib4 ,the term ,,gdp implicit price deflator means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the ,department of ,commerce before ,march #ae of the calendar year4 7d7 ,credit phase-out 7#a7 ,in general ,subject to paragraph 7#c71 if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states are equal to or less than #gb percent of the annual greenhouse gas emissions from electrical production in the ,united ,states for calendar year #bjje1 the amount of the clean energy production credit under subsection 7a7 for any qualified facility placed in service during a calendar year described in paragraph 7#b7 shall be equal to the product of-- 7,a7 the amount of the credit determined under subsection 7a7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#b74 7#b7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for a facility placed in service during the first calendar year following the calendar year in which the determination described in paragraph 7#a7 is made1 #ge percent1 7,b7 for a facility placed in service during the second calendar year following such determination year1 #ej percent1 7,c7 for a facility placed in service during the third calendar year following such determination year1 #be percent1 and 7,d7 for a facility placed in service during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7#c7 ,deadline to begin phase-out ,if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states for each year before calendar year #bjbf are greater than the percentage specified in paragraph 7#a71 then the determination described in such paragraph shall be deemed to have been made for calendar year #bjbe4 7e7 ,definitions ,in this section3 7#a7 ,,co#b;e per ,k,wh ,the term ,,co#b;e per ,k,wh means1 with respect to any greenhouse gas1 the equivalent carbon dioxide per kilowatt hour of electricity produced4 7#b7 ,greenhouse gas ,the term greenhouse gas has the same meaning given such term under section #baa7o77#a77;,g7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a77;,g771 as in effect on the date of the enactment of this section4 7#c7 ,qualified facility 7,a7 ,in general ,subject to subparagraphs 7,b7 and 7,c71 the term qualified facility means a facility which is-- 7i7 used for the generation of electricity1 and 7ii7 originally placed in service after ,december #ca1 #bjag4 7,b7 #aj-year production credit ,for purposes of this section1 a facility shall only be treated as a qualified facility during the #aj-year period beginning on the date the facility was originally placed in service4 7,c7 ,expansion of facility2 incremental production ,a qualified facility shall include either of the following in connection with a facility described in subparagraph 7,a77i7 that was previously placed in service1 but only to the extent of the increased amount of electricity produced at the facility by reason of the following3 7i7 ,a new unit placed in service after ,december #ca1 #bjag4 7ii7 ,any efficiency improvements or additions of capacity placed in service after ,december #ca1 #bjag4 7,d7 ,coordination with other credits ,the term qualified facility shall not include any facility for which-- 7i7 a renewable electricity production credit determined under section #de is allowed under section #ch for the taxable year or any prior taxable year1 7ii7 an energy credit determined under section #dh is allowed under section #ch for the taxable year or any prior taxable year1 or 7iii7 a clean energy investment credit determined under section #dh;,e is allowed under section #ch for the taxable year or any prior taxable year4 7f7 ,final guidance ,not later than ,january #a1 #bjag1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall issue final guidance regarding implementation of this section1 including calculation of greenhouse gas emission rates for qualified facilities and determination of clean energy production credits under this section4 7g7 ,special rules 7#a7 ,only production in the ,united ,states taken into account ,consumption or sales shall be taken into account under this section only with respect to electricity the production of which is within-- 7,a7 the ,united ,states 7within the meaning of section #fch7a771 or 7,b7 a possession of the ,united ,states 7within the meaning of section #fch7b774 7#b7 ,combined heat and power system property 7,a7 ,in general ,for purposes of subsection 7a77#a77;,b71 the kilowatt hours of electricity produced by a taxpayer at a qualified facility shall include any production in the form of useful thermal energy by any combined heat and power system property within such facility4 7,b7 ,combined heat and power system property ,for purposes of this paragraph1 the term combined heat and power system property has the same meaning given such term by section #dh7;c77#c7 7without regard to subparagraphs 7,a77iv71 7,b71 and 7,d7 thereof74 7,c7 ,conversion from ,,btu to ,k,wh 7i7 ,in general ,for purposes of subparagraph 7,a71 the amount of kilowatt hours of electricity produced in the form of useful thermal energy shall be equal to the quotient of-- 7,i7 the total useful thermal energy produced by the combined heat and power system property within the qualified facility1 divided by 7,,ii7 the heat rate for such facility4 7ii7 ,heat rate ,for purposes of this subparagraph1 the term heat rate means the amount of energy used by the qualified facility to generate #a kilowatt hour of electricity1 expressed as ,british thermal units per net kilowatt hour generated4 7#c7 ,production attributable to the taxpayer ,in the case of a qualified facility in which more than #a person has an ownership interest1 except to the extent provided in regulations prescribed by the ,secretary1 production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility4 7#d7 ,related persons ,persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section #eb7;b74 ,in the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return1 such corporation shall be treated as selling electricity to an unrelated person if such electricity is sold to such a person by another member of such group4 7#e7 ,pass-thru in the case of estates and trusts ,under regulations prescribed by the ,secretary1 rules similar to the rules of subsection 7d7 of section #eb shall apply4 7#f7 ,allocation of credit to patrons of agricultural cooperative 7,a7 ,election to allocate 7i7 ,in general ,in the case of an eligible cooperative organization1 any portion of the credit determined under subsection 7a7 for the taxable year may1 at the election of the organization1 be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year4 7ii7 ,form and effect of election ,an election under clause 7i7 for any taxable year shall be made on a timely filed return for such year4 ,such election1 once made1 shall be irrevocable for such taxable year4 ,such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section #achb7;d74 7,b7 ,treatment of organizations and patrons ,the amount of the credit apportioned to any patrons under subparagraph 7,a7-- 7i7 shall not be included in the amount determined under subsection 7a7 with respect to the organization for the taxable year1 and 7ii7 shall be included in the amount determined under subsection 7a7 for the first taxable year of each patron ending on or after the last day of the payment period 7as defined in section #achb7;d77 for the taxable year of the organization or1 if earlier1 for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment4 7,c7 ,special rules for decrease in credits for taxable year ,if the amount of the credit of a cooperative organization determined under subsection 7a7 for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year1 an amount equal to the excess of-- 7i7 such reduction1 over 7ii7 the amount not apportioned to such patrons under subparagraph 7,a7 for the taxable year1 shall be treated as an increase in tax imposed by this chapter on the organization4 ,such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter4 7,d7 ,eligible cooperative defined ,for purposes of this section1 the term eligible cooperative means a cooperative organization described in section #acha7;a7 which is owned more than #ej percent by agricultural producers or by entities owned by agricultural producers4 ,for this purpose an entity owned by an agricultural producer is one that is more than #ej percent owned by agricultural producers4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 is amended-- 7,a7 in paragraph 7#ce71 by striking plus at the end1 7,b7 in paragraph 7#cf71 by striking the period at the end and inserting 1 plus1 and 7,c7 by adding at the end the following new paragraph3 7#cg7 the clean energy production credit determined under section #de,s7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new item3 ,sec4 #de,s4 ,clean energy production credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to facilities placed in service after ,december #ca1 #bjag4 #ejab4 ,clean energy investment credit 7a7 ,business credit 7#a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a is amended by inserting after section #dh;,d the following new section3 #dh;,e4 ,clean energy investment credit 7a7 ,investment credit for qualified property 7#a7 ,in general ,for purposes of section #df1 the clean energy investment credit for any taxable year is an amount equal to the sum of-- 7,a7 the clean energy percentage of the qualified investment for such taxable year with respect to any qualified facility1 plus 7,b7 #cj percent of the qualified investment for such taxable year with respect to qualified carbon capture and sequestration equipment1 plus 7,c7 #cj percent of the qualified investment for such taxable year with respect to energy storage property4 7#b7 ,clean energy percentage 7,a7 ,in general 7i7 ,maximum percentage ,except as provided in clause 7ii71 the clean energy percentage is #cj percent4 7ii7 ,reduction of percentage based on greenhouse gas emissions rate ,the clean energy percentage shall be reduced 7but not below zero7 by an amount which bears the same ratio to #cj percent as the anticipated greenhouse gas emissions rate for the qualified facility bears to #cgb grams of ,,co#b;e per ,k,wh4 7,b7 ,rounding ,if any amount determined under subparagraph 7,a77ii7 is not a multiple of #a percent1 such amount shall be rounded to the nearest multiple of #a percent4 7#c7 ,coordination with rehabilitation credit ,the clean energy percentage shall not apply to that portion of the basis of any property which is attributable to qualified rehabilitation expenditures 7as defined in section #dg7;c77#b774 7b7 ,qualified investment with respect to any qualified facility 7#a7 ,in general ,for purposes of subsection 7a77#a77;,a71 the qualified investment with respect to any qualified facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified facility4 7#b7 ,qualified property ,the term qualified property means property-- 7,a7 which is-- 7i7 tangible personal property1 or 7ii7 other tangible property 7not including a building or its structural components71 but only if such property is used as an integral part of the qualified facility1 7,b7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable1 7,c7 which is constructed1 reconstructed1 erected1 or acquired by the taxpayer1 and 7,d7 the original use of which commences with the taxpayer4 7#c7 ,qualified facility ,the term qualified facility has the same meaning given such term by section #de,s7e77#c7 7without regard to subparagraphs 7,b7 and 7,d7 thereof74 ,such term shall not include any facility for which a renewable electricity production credit under section #de or an energy credit determined under section #dh is allowed under section #ch for the taxable year or any prior taxable year4 7c7 ,qualified investment with respect to qualified carbon capture and sequestration equipment 7#a7 ,in general ,for purposes of subsection 7a77#a77;,b71 the qualified investment with respect to qualified carbon capture and sequestration equipment for any taxable year is the basis of any qualified carbon capture and sequestration equipment placed in service by the taxpayer during such taxable year4 7#b7 ,qualified carbon capture and sequestration equipment ,the term qualified carbon capture and sequestration equipment means property-- 7,a7 installed in a facility placed in service before ,january #a1 #bjah1 which produces electricity1 7,b7 which results in at least a #ej percent reduction in the carbon dioxide emissions rate at the facility1 as compared to such rate before installation of such equipment1 through the capture and disposal of qualified carbon dioxide 7as defined in paragraph 7#c77;,a771 7,c7 with respect to which depreciation is allowable1 7,d7 which is constructed1 reconstructed1 erected1 or acquired by the taxpayer1 and 7,e7 the original use of which commences with the taxpayer4 7#c7 ,qualified carbon dioxide 7,a7 ,in general ,the term qualified carbon dioxide means carbon dioxide captured from an industrial source which-- 7i7 would otherwise be released into the atmosphere as industrial emission of greenhouse gas1 7ii7 is measured at the source of capture and verified at the point of disposal or injection1 7iii7 is disposed of by the taxpayer in secure geological storage1 and 7iv7 is captured and disposed of within the ,united ,states 7within the meaning of section #fch7a77 or a possession of the ,united ,states 7within the meaning of section #fch7b774 7,b7 ,secure geological storage ,the term secure geological storage has the same meaning given to such term under section #de,q7d77#b74 7d7 ,qualified investment with respect to energy storage property 7#a7 ,in general ,for purposes of subsection 7a77#a77;,c71 the qualified investment with respect to energy storage property for any taxable year is the basis of any energy storage property placed in service by the taxpayer during such taxable year4 7#b7 ,energy storage property ,the term energy storage property means property-- 7,a7 installed at or near a facility which produces electricity1 7,b7 which receives1 stores1 and delivers electricity or energy for conversion to electricity which is sold by the taxpayer to an unrelated person 7or1 in the case of a facility which is equipped with a metering device which is owned and operated by an unrelated person1 sold or consumed by the taxpayer71 which may include-- 7i7 hydroelectric pumped storage1 7ii7 compressed air energy storage1 7iii7 regenerative fuel cells1 7iv7 batteries1 7v7 superconducting magnetic energy storage1 7vi7 thermal energy storage systems1 7vii7 fuel cells 7as defined in section #dh7;c77#a771 7viii7 any other relevant technology identified by the ,secretary 7in consultation with the ,secretary of ,energy71 and 7ix7 any combination of the properties described in clauses 7i7 through 7viii71 7,c7 with respect to which depreciation is allowable1 7,d7 which is constructed1 reconstructed1 erected1 or acquired by the taxpayer1 7,e7 the original use of which commences with the taxpayer1 and 7,f7 which is placed in service after ,december #ca1 #bjag4 7e7 ,greenhouse gas emissions rate 7#a7 ,in general ,for purposes of this section1 the term greenhouse gas emissions rate has the same meaning given such term under subsection 7b7 of section #de,s4 7#b7 ,establishment of safe harbor for qualified property 7,a7 ,in general ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall1 by regulation1 establish safe-harbor greenhouse gas emissions rates for types or categories of qualified property which are part of a qualified facility1 which a taxpayer may elect to use for purposes of this section4 7,b7 ,rounding ,in establishing the safe-harbor greenhouse gas emissions rates for qualified property1 the ,secretary may round such rates to the nearest multiple of #cg4b grams of ,,co#b;e per ,k,wh 7or1 in the case of a greenhouse gas emissions rate which is less than #ah4f grams of ,,co#b;e per ,k,wh1 by rounding such rate to zero74 7f7 ,certain progress expenditure rules made applicable ,rules similar to the rules of subsection 7c77#d7 and 7d7 of section #df 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of subsection 7a74 7g7 ,credit phase-out 7#a7 ,in general ,subject to paragraph 7#c71 if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states are equal to or less than #gb percent of the annual greenhouse gas emissions from electrical production in the ,united ,states for calendar year #bjje1 the amount of the clean energy investment credit under subsection 7a7 for any qualified facility1 qualified carbon capture and sequestration equipment1 or energy storage property placed in service during a calendar year described in paragraph 7#b7 shall be equal to the product of-- 7,a7 the amount of the credit determined under subsection 7a7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#b74 7#b7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for a facility or property placed in service during the first calendar year following the calendar year in which the determination described in paragraph 7#a7 is made1 #ge percent1 7,b7 for a facility or property placed in service during the second calendar year following such determination year1 #ej percent1 7,c7 for a facility or property placed in service during the third calendar year following such determination year1 #be percent1 and 7,d7 for a facility or property placed in service during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7#c7 ,deadline to begin phase-out ,if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states for each year before calendar year #bjbf are greater than the percentage specified in paragraph 7#a71 then the determination described in such paragraph shall be deemed to have been made for calendar year #bjbe4 7h7 ,definitions ,in this section3 7#a7 ,,co#b;e per ,k,wh ,the term ,,co#b;e per ,k,wh has the same meaning given such term under section #de,s7e77#a74 7#b7 ,greenhouse gas ,the term greenhouse gas has the same meaning given such term under section #de,s7e77#b74 7i7 ,recapture of credit ,for purposes of section #ej1 if the ,administrator of the ,environmental ,protection ,agency determines that-- 7#a7 the greenhouse gas emissions rate for a qualified facility is significantly higher than the anticipated greenhouse gas emissions rate claimed by the taxpayer for purposes of the clean energy investment credit under this section1 or 7#b7 with respect to any qualified carbon capture and sequestration equipment installed in a facility1 the carbon dioxide emissions from such facility cease to be captured or disposed of in a manner consistent with the requirements of subsection 7c71 the facility or equipment shall cease to be investment credit property in the taxable year in which the determination is made4 7j7 ,final guidance ,not later than ,january #a1 #bjag1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall issue final guidance regarding implementation of this section1 including calculation of greenhouse gas emission rates for qualified facilities and determination of clean energy investment credits under this section4 4 7#b7 ,conforming amendments 7,a7 ,section #df is amended by inserting a comma at the end of paragraph 7#d71 by striking 8and0 at the end of paragraph 7#e71 by striking the period at the end of paragraph 7#f7 and inserting 81 and01 and by adding at the end the following new paragraph3 7#g7 the clean energy investment credit4 4 7,b7 ,section #di7;a77#a77;,c7 is amended by striking 8and0 at the end of clause 7v71 by striking the period at the end of clause 7vi7 and inserting a comma1 and by adding at the end the following new clauses3 7vii7 the basis of any qualified property which is part of a qualified facility under section #dh;,e1 7viii7 the basis of any qualified carbon capture and sequestration equipment under section #dh;,e1 and 7ix7 the basis of any energy storage property under section #dh;,e4 4 7,c7 ,section #ej7;a77#b77;,e7 is amended by inserting or #dh;,e7e7 after section #dh7;b74 7,d7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a is amended by inserting after the item relating to section #dh;,d the following new item3 #dh;,e4 ,clean energy investment credit4 4 7#c7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjag1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 7b7 ,individual credit 7#a7 ,in general ,section #be;,d is amended to read as follows3 #be;,d4 ,clean residential energy credit 7a7 ,allowance of credit 7#a7 ,in general ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of-- 7,a7 the clean energy percentage of the expenditures made by the taxpayer for qualified property which is-- 7i7 installed in a dwelling unit which is located in the ,united ,states and used as a residence by the taxpayer1 and 7ii7 placed in service during such taxable year1 plus 7,b7 #cj percent of the expenditures made by the taxpayer for energy storage property which is-- 7i7 installed in a dwelling unit which is located in the ,united ,states and used as a residence by the taxpayer1 and 7ii7 placed in service during such taxable year4 7#b7 ,clean energy percentage 7,a7 ,in general 7i7 ,maximum percentage ,except as provided in clause 7ii71 the clean energy percentage is #cj percent4 7ii7 ,reduction of percentage based on greenhouse gas emissions rate ,the clean energy percentage shall be reduced 7but not below zero7 by an amount which bears the same ratio to #cj percent as the anticipated greenhouse gas emissions rate for the qualified property bears to #cgb grams of ,,co#b;e per ,k,wh4 7,b7 ,rounding ,if any amount determined under subparagraph 7,a77ii7 is not a multiple of #a percent1 such amount shall be rounded to the nearest multiple of #a percent4 7,c7 ,definitions ,for purposes of this section1 the terms greenhouse gas emissions rate and ,,co#b;e per ,k,wh have the same meanings given such terms under subsections 7b7 and 7e77#a7 of section #de,s1 respectively4 7#c7 ,establishment of safe harbor for qualified property 7,a7 ,in general ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall1 by regulation1 establish safe-harbor greenhouse gas emissions rates for types or categories of qualified property which are installed in a dwelling unit1 which a taxpayer may elect to use for purposes of this section4 7,b7 ,rounding ,in establishing the safe-harbor greenhouse gas emissions rates for qualified property1 the ,secretary may round such rates to the nearest multiple of #cg4b grams of ,,co#b;e per ,k,wh 7or1 in the case of a greenhouse gas emissions rate which is less than #ah4f grams of ,,co#b;e per ,k,wh1 by rounding such rate to zero74 7b7 ,qualified property ,the term qualified property means property-- 7#a7 which is tangible personal property1 7#b7 which is used for the generation of electricity1 7#c7 which is constructed1 reconstructed1 erected1 or acquired by the taxpayer1 7#d7 the original use of which commences with the taxpayer1 and 7#e7 which is originally placed in service after ,december #ca1 #bjag4 7c7 ,energy storage property ,the term energy storage property means property which receives1 stores1 and delivers electricity or energy for conversion to electricity which is consumed by the taxpayer1 which may include-- 7#a7 batteries1 7#b7 thermal energy storage systems1 7#c7 fuel cells1 7#d7 any other relevant technology identified by the ,secretary 7in consultation with the ,secretary of ,energy71 and 7#e7 any combination of the properties described in paragraphs 7#a7 through 7#d74 7d7 ,carryforward of unused credit ,if the credit allowable under subsection 7a7 exceeds the limitation imposed by section #bf7;a7 for such taxable year reduced by the sum of the credits allowable under this subpart 7other than this section71 such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection 7a7 for such succeeding taxable year4 7e7 ,credit phase-out 7#a7 ,in general ,subject to paragraph 7#c71 if the ,secretary determines that the annual greenhouse gas emissions from electrical production in the ,united ,states are equal to or less than the percentage specified in section #dh;,e7g71 the amount of the credit allowable under subsection 7a7 for any qualified property or energy storage property placed in service during a calendar year described in paragraph 7#b7 shall be equal to the product of-- 7,a7 the amount of the credit determined under subsection 7a7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#b74 7#b7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for property placed in service during the first calendar year following the calendar year in which the determination described in paragraph 7#a7 is made1 #ge percent1 7,b7 for property placed in service during the second calendar year following such determination year1 #ej percent1 7,c7 for property placed in service during the third calendar year following such determination year1 #be percent1 and 7,d7 for property placed in service during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7#c7 ,deadline to begin phase-out ,if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states for each year before calendar year #bjbf are greater than the percentage specified in section #dh;,e7g71 then the determination described in paragraph 7#a7 shall be deemed to have been made for calendar year #bjbe4 7f7 ,special rules ,for purposes of this section3 7#a7 ,labor costs ,expenditures for labor costs properly allocable to the onsite preparation1 assembly1 or original installation of the qualified property or energy storage property and for piping or wiring to interconnect such property to the dwelling unit shall be taken into account for purposes of this section4 7#b7 ,tenant-stockholder in cooperative housing corporation ,in the case of an individual who is a tenant-stockholder 7as defined in section #baf7 in a cooperative housing corporation 7as defined in such section71 such individual shall be treated as having made his tenant-stockholder's proportionate share 7as defined in section #baf7;b77#c77 of any expenditures of such corporation4 7#c7 ,condominiums 7,a7 ,in general ,in the case of an individual who is a member of a condominium management association with respect to a condominium which the individual owns1 such individual shall be treated as having made the individual's proportionate share of any expenditures of such association4 7,b7 ,condominium management association ,for purposes of this paragraph1 the term condominium management association means an organization which meets the requirements of paragraph 7#a7 of section #ebh7;c7 7other than subparagraph 7,e7 thereof7 with respect to a condominium project substantially all of the units of which are used as residences4 7#d7 ,allocation in certain cases ,if less than #hj percent of the use of a property is for nonbusiness purposes1 only that portion of the expenditures for such property which is properly allocable to use for nonbusiness purposes shall be taken into account4 7g7 ,basis adjustment ,for purposes of this subtitle1 if a credit is allowed under this section for any expenditures with respect to any property1 the increase in the basis of such property which would 7but for this subsection7 result from such expenditures shall be reduced by the amount of the credit so allowed4 7h7 ,final guidance ,not later than ,january #a1 #bjag1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall issue final guidance regarding implementation of this section1 including calculation of greenhouse gas emission rates for qualified property and determination of residential clean energy property credits under this section4 4 7#b7 ,conforming amendments 7,a7 ,paragraph 7#a7 of section #de7;d7 is amended by striking ,such term and all that follows through the period and inserting the following3 ,such term shall not include any facility with respect to which any expenditures for qualified property 7as defined in subsection 7b7 of section #be;,d7 which uses wind to produce electricity is taken into account in determining the credit under such section44 7,b7 ,paragraph 7#cd7 of section #ajaf7;a7 is amended by striking section #be;,d7f7 and inserting section #be;,d7h74 7,c7 ,the item relating to section #be;,d in the table of contents for subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended to read as follows3 ,sec4 #be;,d4 ,clean residential energy credit4 4 7#c7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjag4 #ejac4 ,extensions and modifications of various energy provisions 7a7 ,nonbusiness energy property 7#a7 ,in general ,paragraph 7#b7 of section #be;,c7g7 is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjag4 7#b7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjad4 7b7 ,residential energy efficient property ,subsection 7g7 of section #be;,d is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjag4 7c7 ,alternative fuel vehicle refueling property credit 7#a7 ,in general ,paragraph 7#a7 of section #cj;,c7g7 is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjag4 7#b7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjad4 7d7 #b- and #c-wheeled plug-in electric vehicles 7#a7 ,in general ,subparagraph 7,e7 of section #cj;,d7g7 is amended to read as follows3 7,e7 is acquired-- 7i7 after ,december #ca1 #bjaa1 and before ,january #a1 #bjad1 or 7ii7 after ,december #ca1 #bjad1 and before ,january #a1 #bjah4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to vehicles acquired after ,december #ca1 #bjad4 7e7 ,electricity produced from certain renewable resources 7#a7 ,in general ,the following provisions of section #de7;d7 are each amended by striking ,january #a1 #bjae each place it appears and inserting ,january #a1 #bjah3 7,a7 ,paragraph 7#a74 7,b7 ,paragraph 7#b77;,a74 7,c7 ,paragraph 7#c77;,a74 7,d7 ,paragraph 7#d77;,b74 7,e7 ,paragraph 7#f74 7,f7 ,paragraph 7#g74 7,g7 ,paragraph 7#i74 7,h7 ,paragraph 7#aa77;,b74 7#b7 ,effective date ,the amendments made by this subsection shall take effect on ,january #a1 #bjae4 7f7 ,credit for production from advanced nuclear power facilities ,section #de;,j7d77#a77;,b7 is amended by striking #bjba and inserting #bjah4 7g7 ,new energy efficient home credit 7#a7 ,in general ,subsection 7g7 of section #de,l is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjag4 7#b7 ,effective date ,the amendments made by this subsection shall apply to any qualified new energy efficient home acquired after ,december #ca1 #bjad4 7h7 ,repeal of energy efficient appliance credit 7#a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of subtitle ,a is amended by striking section #de,m4 7#b7 ,conforming amendments 7,a7 ,section #ch7;b7 is amended by striking paragraph 7#bd74 7,b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of subtitle ,a is amended by striking the item relating to section #de,m4 7#c7 ,effective date ,the amendments made by this subsection shall take effect on the date of the enactment of this ,act4 7i7 ,credit for carbon dioxide sequestration ,section #de,q7c7 is amended-- 7#a7 in paragraph 7#b71 by striking and at the end1 7#b7 in paragraph 7#c71 by striking the period at the end and inserting 1 and1 and 7#c7 by adding at the end the following new paragraph3 7#d7 which is placed in service before ,january #a1 #bjah4 4 7j7 ,energy credit 7#a7 ,qualified investment credit facility 7,a7 ,in general ,section #dh7;a77#e77;,c77ii7 is amended by striking ,january #a1 #bjae and inserting ,january #a1 #bjah4 7,b7 ,effective date ,the amendments made by this paragraph shall take effect on ,january #a1 #bjae4 7#b7 ,solar energy property ,section #dh7;a7 is amended-- 7,a7 in paragraphs 7#b77;,a77i77,,ii7 and 7#c77;,a77ii71 by striking ,january #a1 #bjag each place it appears and inserting ,january #a1 #bjah1 and 7,b7 in paragraph 7#c77;,a77i71 by inserting but only with respect to periods ending before ,january #a1 #bjah after swimming pool14 7#c7 ,geothermal energy property ,section #dh7;a77#c77;,a77iii7 is amended by inserting with respect to periods ending before ,january #a1 #bjah1 and after but only4 7#d7 ,thermal energy property ,section #dh7;a77#c77;,a77vii7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjah4 7#e7 ,qualified fuel cell property ,section #dh7;c77#a77;,d7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjag4 7#f7 ,qualified microturbine property ,section #dh7;c77#b77;,d7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjag4 7#g7 ,combined heat and power system property ,section #dh7;c77#c77;,a77iv7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjah4 7#h7 ,qualified small wind energy property ,section #dh7;c77#d77;,c7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjag4 7k7 ,qualifying advanced energy project credit 7#a7 ,in general ,section #dh;,c is amended-- 7,a7 by redesignating subsection 7e7 as subsection 7f71 and 7,b7 by inserting after subsection 7d7 the following new subsection3 7e7 ,additional qualifying advanced energy program 7#a7 ,establishment 7,a7 ,in general ,not later than #ahj days after the date of enactment of this subsection1 the ,secretary1 in consultation with the ,secretary of ,energy1 shall establish an additional qualifying advanced energy project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors4 7,b7 ,limitation ,the total amount of credits that may be allocated under the program described in subparagraph 7,a7 shall not exceed #e1jjj1jjj1jjj4 7#b7 ,certification 7,a7 ,application period ,each applicant for certification under this paragraph shall submit an application containing such information as the ,secretary may require during the #b-year period beginning on the date the ,secretary establishes the program under paragraph 7#a74 7,b7 ,time to meet criteria for certification ,each applicant for certification shall have #a year from the date of acceptance by the ,secretary of the application during which to provide to the ,secretary evidence that the requirements of the certification have been met4 7,c7 ,period of issuance ,an applicant which receives a certification shall have #c years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period1 then the certification shall no longer be valid4 7#c7 ,selection criteria ,in determining which qualifying advanced energy projects to certify under this section1 the ,secretary shall consider the same criteria described in subsection 7d77#c74 7#d7 ,review and redistribution 7,a7 ,review ,not later than #d years after the date of enactment of this subsection1 the ,secretary shall review the credits allocated pursuant to this subsection as of such date4 7,b7 ,redistribution ,the ,secretary may reallocate credits awarded under this section if the ,secretary determines that-- 7i7 there is an insufficient quantity of qualifying applications for certification pending at the time of the review1 or 7ii7 any certification made pursuant to paragraph 7#b7 has been revoked pursuant to paragraph 7#b77;,b7 because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project4 7,c7 ,reallocation ,if the ,secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph 7#b71 the ,secretary is authorized to conduct an additional program for applications for certification4 7#e7 ,disclosure of allocations ,the ,secretary shall1 upon making a certification under this subsection1 publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to periods after the date of the enactment of this ,act1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 7l7 ,energy efficient commercial buildings deduction 7#a7 ,in general ,subsection 7h7 of section #agi;,d is amended by striking ,december #ca1 #bjad and inserting ,december #ca1 #bjag4 7#b7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjad4 ,b ,clean fuel tax credits #ejba4 ,clean fuel production credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a1 as amended by section #ja1 is amended by adding at the end the following new section3 #de,t4 ,clean fuel production credit 7a7 ,amount of credit 7#a7 ,in general ,for purposes of section #ch1 the clean fuel production credit for any taxable year is an amount equal to the product of-- 7,a7 #a4jj per energy equivalent of a gallon of gasoline with respect to any transportation fuel which is-- 7i7 produced by the taxpayer at a qualified facility1 and 7ii7 sold or used by the taxpayer in a manner described in paragraph 7#b71 and 7,b7 the emissions factor for such fuel 7as determined under subsection 7b77#b774 7#b7 ,sale or use ,for purposes of paragraph 7#a77;,a77ii71 the transportation fuel is sold or used in a manner described in this paragraph if such fuel is-- 7,a7 sold by the taxpayer to an unrelated person-- 7i7 for use by such person in the production of a fuel mixture that will be used as a transportation fuel1 7ii7 for use by such person as a transportation fuel in a trade or business1 or 7iii7 who sells such fuel at retail to another person and places such fuel in the fuel tank of such other person1 or 7,b7 used or sold by the taxpayer for any purpose described in subparagraph 7,a74 7#c7 ,rounding ,if any amount determined under paragraph 7#a7 is not a multiple of #j4a cent1 such amount shall be rounded to the nearest multiple of #j4a cent4 7b7 ,emissions factors 7#a7 ,emissions factor 7,a7 ,in general ,the emissions factor of a transportation fuel shall be an amount equal to the quotient of-- 7i7 an amount 7not less than zero7 equal to -- 7,i7 #gg4bc1 minus 7,,ii7 the emissions rate for such fuel1 divided by 7ii7 #gg4bc4 7,b7 ,establishment of safe harbor emissions rate ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall establish the safe harbor emissions rate for similar types and categories of transportation fuels based on the amount of lifecycle greenhouse gas emissions 7as described in section #baa7o77#a77;,h7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a77;,h771 as in effect on the date of the enactment of this section7 for such fuels1 expressed as kilograms of ,,co#b;e per mm,b,t,u1 which a taxpayer may elect to use for purposes of this section4 7,c7 ,rounding of safe harbor emissions rate ,the ,secretary may round the safe harbor emissions rates under subparagraph 7,b7 to the nearest multiple of #g4gbc kilograms of ,,co#b;e per mm,b,t,u1 except that1 in the case of an emissions rate that is less than #c4hfb kilograms of ,,co#b;e per mm,b,t,u1 the ,secretary may round such rate to zero4 7,d7 ,provisional safe harbor emissions rate 7i7 ,in general ,in the case of any transportation fuel for which a safe harbor emissions rate has not been established by the ,secretary1 a taxpayer producing such fuel may file a petition with the ,secretary for determination of the safe harbor emissions rate with respect to such fuel4 7ii7 ,establishment of provisional and final safe harbor emissions rate ,in the case of a transportation fuel for which a petition described in clause 7i7 has been filed1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall-- 7,i7 not later than #ab months after the date on which the petition was filed1 provide a provisional safe harbor emissions rate for such fuel which a taxpayer may use for purposes of this section1 and 7,,ii7 not later than #bd months after the date on which the petition was filed1 establish the safe harbor emissions rate for such fuel4 7,e7 ,rounding ,if any amount determined under subparagraph 7,a7 is not a multiple of #j4a1 such amount shall be rounded to the nearest multiple of #j4a4 7#b7 ,publishing safe harbor emissions rate ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall publish a table that sets forth the safe harbor emissions rate 7as established pursuant to paragraph 7#a77 for similar types and categories of transportation fuels4 7c7 ,inflation adjustment 7#a7 ,in general ,in the case of calendar years beginning after #bjah1 the #a4jj amount in subsection 7a77#a77;,a7 shall be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale or use of the transportation fuel occurs4 ,if any amount as increased under the preceding sentence is not a multiple of #a cent1 such amount shall be rounded to the nearest multiple of #a cent4 7#b7 ,inflation adjustment factor ,for purposes of paragraph 7#a71 the inflation adjustment factor shall be the inflation adjustment factor determined and published by the ,secretary pursuant to section #de,s7c71 determined by substituting calendar year #bjag for calendar year #aiib in paragraph 7#c7 thereof4 7d7 ,credit phase-out 7#a7 ,in general ,subject to paragraph 7#c71 if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the greenhouse gas emissions from transportation fuel produced and sold at retail annually in the ,united ,states are equal to or less than #gb percent of the greenhouse gas emissions from transportation fuel produced and sold at retail in the ,united ,states during calendar year #bjje1 the amount of the clean fuel production credit under this section for any qualified facility placed in service during a calendar year described in paragraph 7#b7 shall be equal to the product of-- 7,a7 the amount of the credit determined under subsection 7a7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#b74 7#b7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for a facility placed in service during the first calendar year following the calendar year in which the determination described in paragraph 7#a7 is made1 #ge percent1 7,b7 for a facility placed in service during the second calendar year following such determination year1 #ej percent1 7,c7 for a facility placed in service during the third calendar year following such determination year1 #be percent1 and 7,d7 for a facility placed in service during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7#c7 ,deadline to begin phase-out ,if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the greenhouse gas emissions from transportation fuel produced and sold at retail annually in the ,united ,states are1 for each year before calendar year #bjbf1 greater than the percentage specified in paragraph 7#a71 then the determination described in such paragraph shall be deemed to have been made for calendar year #bjbe4 7e7 ,definitions ,in this section3 7#a7 mm,b,t,u ,the term mm,b,t,u means #a1jjj1jjj ,british thermal units4 7#b7 ,,co#b;e ,the term ,,co#b;e means1 with respect to any greenhouse gas1 the equivalent carbon dioxide4 7#c7 ,greenhouse gas ,the term greenhouse gas has the same meaning given that term under section #baa7o77#a77;,g7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a77;,g771 as in effect on the date of the enactment of this section4 7#d7 ,qualified facility 7,a7 ,in general ,subject to subparagraphs 7,b7 and 7,c71 the term qualified facility means a facility used for the production of transportation fuels4 7,b7 #aj-year production credit ,for purposes of this section1 a facility shall only qualify as a qualified facility-- 7i7 in the case of a facility that is originally placed in service after ,december #ca1 #bjag1 for the #aj-year period beginning on the date such facility is placed in service1 or 7ii7 in the case of a facility that is originally placed in service before ,january #a1 #bjah1 for the #aj-year period beginning on ,january #a1 #bjah4 7#e7 ,transportation fuel ,the term transportation fuel means a fuel which is suitable for use as a fuel in a highway vehicle or aircraft4 7f7 ,final guidance ,not later than ,january #a1 #bjag1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall issue final guidance regarding implementation of this section1 including calculation of emissions factors for transportation fuel1 the table described in subsection 7b77#b71 and the determination of clean fuel production credits under this section4 7g7 ,special rules 7#a7 ,only registered production in the ,united ,states taken into account 7,a7 ,in general ,no clean fuel production credit shall be determined under subsection 7a7 with respect to any transportation fuel unless-- 7i7 the taxpayer is registered as a producer of clean fuel under section #daja at the time of production1 and 7ii7 such fuel is produced in the ,united ,states4 7,b7 ,united ,states ,for purposes of this paragraph1 the term ,united ,states includes any possession of the ,united ,states4 7#b7 ,production attributable to the taxpayer ,in the case of a facility in which more than #a person has an ownership interest1 except to the extent provided in regulations prescribed by the ,secretary1 production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility4 7#c7 ,related persons ,persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section #eb7;b74 ,in the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return1 such corporation shall be treated as selling fuel to an unrelated person if such fuel is sold to such a person by another member of such group4 7#d7 ,pass-thru in the case of estates and trusts ,under regulations prescribed by the ,secretary1 rules similar to the rules of subsection 7d7 of section #eb shall apply4 7#e7 ,allocation of credit to patrons of agricultural cooperative 7,a7 ,election to allocate 7i7 ,in general ,in the case of an eligible cooperative organization1 any portion of the credit determined under subsection 7a7 for the taxable year may1 at the election of the organization1 be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year4 7ii7 ,form and effect of election ,an election under clause 7i7 for any taxable year shall be made on a timely filed return for such year4 ,such election1 once made1 shall be irrevocable for such taxable year4 ,such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section #achb7;d74 7,b7 ,treatment of organizations and patrons ,the amount of the credit apportioned to any patrons under subparagraph 7,a7-- 7i7 shall not be included in the amount determined under subsection 7a7 with respect to the organization for the taxable year1 and 7ii7 shall be included in the amount determined under subsection 7a7 for the first taxable year of each patron ending on or after the last day of the payment period 7as defined in section #achb7;d77 for the taxable year of the organization or1 if earlier1 for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment4 7,c7 ,special rules for decrease in credits for taxable year ,if the amount of the credit of a cooperative organization determined under subsection 7a7 for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year1 an amount equal to the excess of-- 7i7 such reduction1 over 7ii7 the amount not apportioned to such patrons under subparagraph 7,a7 for the taxable year1 shall be treated as an increase in tax imposed by this chapter on the organization4 ,such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter4 7,d7 ,eligible cooperative defined ,for purposes of this section the term eligible cooperative means a cooperative organization described in section #acha7;a7 which is owned more than #ej percent by agricultural producers or by entities owned by agricultural producers4 ,for this purpose an entity owned by an agricultural producer is one that is more than #ej percent owned by agricultural producers4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b71 as amended by section #ja1 is amended-- 7,a7 in paragraph 7#cf71 by striking plus at the end1 7,b7 in paragraph 7#cg71 by striking the period at the end and inserting 1 plus1 and 7,c7 by adding at the end the following new paragraph3 7#ch7 the clean fuel production credit determined under section #de,t7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a1 as amended by section #ja1 is amended by adding at the end the following new item3 ,sec4 #de,t4 ,clean fuel production credit4 4 7#c7 ,section #daja7;a77#a7 is amended by inserting every person producing a fuel eligible for the clean fuel production credit 7pursuant to section #de,t71 after section #fdbf7;b77#d77;,a7714 7c7 ,effective date ,the amendments made by this section shall apply to transportation fuel produced after ,december #ca1 #bjag4 #ejbb4 ,temporary extension of existing fuel incentives 7a7 ,second generation biofuel producer credit 7#a7 ,in general ,section #dj7;b77#f7 is amended-- 7,a7 in subparagraph 7,e77i7-- 7i7 in subclause 7,i71 by striking and at the end1 7ii7 in subclause 7,,ii71 by striking the period at the end and inserting 1 and1 and 7iii7 by inserting at the end the following new subclause3 7,,iii7 qualifies as a transportation fuel 7as defined in section #de,t7e77#e774 1 and 7,b7 in subparagraph 7,j77i71 by striking #bjae and inserting #bjah4 7#b7 ,effective date ,the amendments made by this subsection shall apply to qualified second generation biofuel production after ,december #ca1 #bjad4 7b7 ,biodiesel and renewable diesel used as fuel 7#a7 ,in general ,section #dj;,a is amended-- 7,a7 in subsection 7f77#c77;,b71 by striking or ,d#cif1 and 7,b7 in subsection 7g71 by striking #bjad and inserting #bjag4 7#b7 ,effective date ,the amendments made by this subsection shall apply to fuel sold or used after ,december #ca1 #bjad4 7c7 ,credit for biodiesel and alternative fuel mixtures 7#a7 ,in general ,section #fdbf is amended-- 7,a7 in subsection 7c77#f71 by striking #bjad and inserting #bjag1 7,b7 in subsection 7d7-- 7i7 in paragraph 7#a71 by striking motor vehicle and inserting highway vehicle1 7ii7 in paragraph 7#b77;,d71 by striking liquefied1 and 7iii7 in paragraph 7#e71 by striking #bjad and inserting #bjag1 and 7,c7 in subsection 7e71 by amending paragraph 7#c7 to read as follows3 7#c7 ,termination ,this subsection shall not apply to any sale or use for any period after-- 7,a7 in the case of any alternative fuel mixture sold or used by the taxpayer for the purposes described in subsection 7d77#a71 ,december #ca1 #bjag1 7,b7 in the case of any sale or use involving hydrogen that is not for the purposes described in subsection 7d77#a71 ,december #ca1 #bjag1 and 7,c7 in the case of any sale or use not described in subparagraph 7,a7 or 7,b71 ,december #ca1 #bjad4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to fuel sold or used after ,december #ca1 #bjad4 7d7 ,biodiesel1 biodiesel mixtures1 and alternative fuels 7#a7 ,in general ,section #fdbg7;e77#f7 is amended-- 7,a7 in subparagraph 7,b71 by striking #bjad and inserting #bjag1 and 7,b7 in subparagraph 7,c71 by striking #bjad and inserting #bjag4 7#b7 ,effective date ,the amendments made by this subsection shall apply to fuel sold or used after ,december #ca1 #bjad4 7e7 ,special rule for certain periods during #bjae ,notwithstanding any other provision of law1 in the case of-- 7#a7 any biodiesel mixture credit properly determined under section #fdbf7;c7 of the ,internal ,revenue ,code of #aihf for periods after ,december #ca1 #bjad1 and on or before the last day of the first calendar quarter ending after the date of the enactment of this ,act1 and 7#b7 any alternative fuel credit properly determined under section #fdbf7;d7 of such ,code for such periods1 such credit shall be allowed1 and any refund or payment attributable to such credit 7including any payment under section #fdbg7;e7 of such ,code7 shall be made1 only in such manner as the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall provide4 ,such ,secretary shall issue guidance within #cj days after the date of the enactment of this ,act providing for a one-time submission of claims covering periods described in the preceding sentence4 ,such guidance shall provide for a #ahj-;day period for the submission of such claims 7in such manner as prescribed by such ,secretary7 to begin not later than #cj days after such guidance is issued4 ,such claims shall be paid by such ,secretary not later than #fj days after receipt4 ,if such ,secretary has not paid pursuant to a claim filed under this subsection within #fj days after the date of the filing of such claim1 the claim shall be paid with interest from such date determined by using the overpayment rate and method under section #ffba of such ,code4 ,c ,energy ,efficiency ,incentives #ejca4 ,credit for new energy efficient residential buildings 7a7 ,in general ,section #de,l is amended to read as follows3 #de,l4 ,new energy efficient home credit 7a7 ,allowance of credit ,for purposes of section #ch1 in the case of an eligible contractor1 the new energy efficient home credit for the taxable year is the applicable amount for each qualified residence which is-- 7#a7 constructed by the eligible contractor1 and 7#b7 acquired by a person from such eligible contractor for use as a residence during the taxable year4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of subsection 7a71 the applicable amount shall be an amount equal to #a1ejj increased 7but not above #c1jjj7 by #ajj for every #e percentage points by which the efficiency ratio for the qualified residence is certified to be greater than #be percent4 7#b7 ,efficiency ratio ,for purposes of this section1 the efficiency ratio of a qualified residence shall be equal to the quotient1 expressed as a percentage1 obtained by dividing-- 7,a7 an amount equal to the difference between-- 7i7 the annual level of energy consumption of the qualified residence1 and 7ii7 the annual level of energy consumption of the baseline residence1 by 7,b7 the annual level of energy consumption of the baseline residence4 7#c7 ,baseline residence ,for purposes of this section1 the baseline residence shall be a residence which is-- 7,a7 comparable to the qualified residence1 and 7,b7 constructed in accordance with the standards of the #bjae ,international ,energy ,conservation ,code1 as such ,code 7including supplements7 is in effect on the date of the enactment of the ,american ,energy ,innovation ,act4 7c7 ,definitions ,for purposes of this section3 7#a7 ,eligible contractor ,the term eligible contractor means-- 7,a7 the person who constructed the qualified residence1 or 7,b7 in the case of a qualified residence which is a manufactured home1 the manufactured home producer of such residence4 7#b7 ,qualified residence ,the term qualified residence means a dwelling unit-- 7,a7 located in the ,united ,states1 7,b7 the construction of which is substantially completed after the date of the enactment of this section1 and 7,c7 which is certified to have an annual level of energy consumption that is less than the baseline residence and an efficiency ratio of not less than #be percent4 7#c7 ,construction ,the term construction does not include substantial reconstruction or rehabilitation4 7d7 ,certification 7#a7 ,in general ,a certification described in this section shall be made-- 7,a7 in accordance with guidance prescribed by1 and 7,b7 by a third-party that is accredited by a certification program approved by1 the ,secretary1 in consultation with the ,secretary of ,energy4 ,such guidance shall specify procedures and methods for calculating annual energy consumption levels1 and shall include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program4 7#b7 ,computer software 7,a7 ,in general ,any calculation under paragraph 7#a7 shall be prepared by qualified computer software4 7,b7 ,qualified computer software ,for purposes of this paragraph1 the term qualified computer software means software-- 7i7 for which the software designer has certified that the software meets all procedures and detailed methods for calculating energy consumption levels as required by the ,secretary1 and 7ii7 which provides such forms as required to be filed by the ,secretary in connection with energy consumption levels and the credit allowed under this section4 7e7 ,basis adjustment ,for purposes of this subtitle1 if a credit is allowed under this section in connection with any expenditure for any property 7other than a qualified low-income building1 as described in section #db7;c77#b771 the increase in the basis of such property which would 7but for this subsection7 result from such expenditure shall be reduced by the amount of the credit so determined4 7f7 ,coordination with investment credits ,for purposes of this section1 expenditures taken into account under section #be;,d or #dg shall not be taken into account under this section4 4 7b7 ,effective date ,the amendment made by this section shall apply to any qualified residence acquired after ,december #ca1 #bjag4 #ejcb4 ,energy efficiency credit for existing residential buildings 7a7 ,in general ,section #be;,c is amended to read as follows3 #be;,c4 ,credit for energy efficiency improvements to residential buildings 7a7 ,allowance of credit ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of-- 7#a7 the applicable amount for the qualified residence based on energy efficiency improvements made by the taxpayer and placed in service during such taxable year1 or 7#b7 #cj percent of the amount paid or incurred by the taxpayer for energy efficiency improvements made to the qualified residence that were placed in service during such taxable year4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of subsection 7a77#a71 the applicable amount shall be an amount equal to #a1gej increased 7but not above #f1ejj7 by #cjj for every #e percentage points by which the efficiency ratio for the qualified residence is certified to be greater than #bj percent4 7#b7 ,efficiency ratio ,for purposes of this section1 the efficiency ratio of a qualified residence shall be equal to the quotient1 expressed as a percentage1 obtained by dividing-- 7,a7 an amount equal to the difference between-- 7i7 the projected annual level of energy consumption of the qualified residence after the energy efficiency improvements have been placed in service1 and 7ii7 the annual level of energy consumption of such qualified residence prior to the energy efficiency improvements being placed in service1 by 7,b7 the annual level of energy consumption described in subparagraph 7,a77ii74 7#c7 ,coordination with credit for residential energy efficient property ,for purposes of paragraph 7#b77;,a71 the determination of the difference in annual levels of energy consumption of the qualified residence shall not include any reduction in net energy consumption related to qualified property or energy storage property for which a credit was allowed under section #be;,d4 7c7 ,definitions ,for purposes of this section3 7#a7 ,qualified residence ,the term qualified residence means a dwelling unit-- 7,a7 located in the ,united ,states1 7,b7 owned and used by the taxpayer as the taxpayer's principal residence 7within the meaning of section #aba71 and 7,c7 which is certified to have-- 7i7 a projected annual level of energy consumption after the energy efficiency improvements have been placed in service that is less than the annual level of energy consumption prior to the energy efficiency improvements being placed in service1 and 7ii7 an efficiency ratio of not less than #bj percent4 7#b7 ,energy efficiency improvements 7,a7 ,in general ,the term energy efficiency improvements means any property installed on or in a dwelling unit which has been certified to reduce the level of energy consumption for such unit or to provide for onsite generation of electricity or useful thermal energy1 provided that-- 7i7 the original use of such property commences with the taxpayer1 and 7ii7 such property reasonably can be expected to remain in use for at least #e years4 7,b7 ,amounts paid or incurred for energy efficiency improvements ,for purposes of subsection 7a77#b71 the amount paid or incurred by the taxpayer-- 7i7 shall include expenditures for design and for labor costs properly allocable to the onsite preparation1 assembly1 or original installation of the property1 and 7ii7 shall not include any expenditures related to expansion of the building envelope4 7d7 ,special rules ,for purposes of this section3 7#a7 ,tenant-stockholder in cooperative housing corporation ,in the case of an individual who is a tenant-stockholder 7as defined in section #baf7 in a cooperative housing corporation 7as defined in such section71 such individual shall be treated as having made his tenant-stockholder's proportionate share 7as defined in section #baf7;b77#c77 of any expenditures for energy efficiency improvements of such corporation4 7#b7 ,condominiums 7,a7 ,in general ,in the case of an individual who is a member of a condominium management association with respect to a condominium which the individual owns1 such individual shall be treated as having made the individual's proportionate share of any expenditures for energy efficiency improvements of such association4 7,b7 ,condominium management association ,for purposes of this paragraph1 the term condominium management association means an organization which meets the requirements of paragraph 7#a7 of section #ebh7;c7 7other than subparagraph 7,e7 thereof7 with respect to a condominium project substantially all of the units of which are used as residences4 7#c7 ,allocation in certain cases ,if less than #hj percent of the use of a property is for nonbusiness purposes1 only that portion of the expenditures for energy efficiency improvements for such property which is properly allocable to use for nonbusiness purposes shall be taken into account4 7e7 ,certification 7#a7 ,in general ,a certification described in this section shall be made-- 7,a7 in accordance with guidance prescribed by1 and 7,b7 by a third-party that is accredited by a certification program approved by1 the ,secretary1 in consultation with the ,secretary of ,energy4 ,such guidance shall specify procedures and methods for calculating annual energy consumption levels1 with such calculations to take into account onsite generation of electricity or useful thermal energy1 and shall include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program4 7#b7 ,computer software 7,a7 ,in general ,any calculation under paragraph 7#a7 shall be prepared by qualified computer software4 7,b7 ,qualified computer software ,for purposes of this paragraph1 the term qualified computer software has the same meaning given such term under section #de,l7d77#b74 7f7 ,basis adjustment ,for purposes of this subtitle1 if a credit is allowed under this section for any expenditures with respect to any energy efficiency improvements1 the increase in the basis of such property which would 7but for this subsection7 result from such expenditures shall be reduced by the amount of the credit so allowed4 7g7 ,coordination with investment credits ,for purposes of this section1 expenditures taken into account under section #be;,d or #dg shall not be taken into account under this section4 4 7b7 ,conforming amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended by striking the item relating to section #be;,c and inserting after the item relating to section #be;,b the following item3 ,sec4 #be;,c4 ,credit for energy efficiency improvements to residential buildings4 4 7c7 ,effective date ,the amendments made by this section shall apply to any energy efficiency improvements placed in service after ,december #ca1 #bjag4 #ejcc4 ,deduction for new energy efficient commercial buildings 7a7 ,in general ,section #agi;,d is amended to read as follows3 #agi;,d4 ,energy efficient commercial building deduction 7a7 ,in general ,there shall be allowed as a deduction an amount equal to the applicable amount for each qualified building placed in service by the taxpayer during the taxable year4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of subsection 7a71 the applicable amount shall be an amount equal to the product of-- 7,a7 the applicable dollar value1 and 7,b7 the square footage of the qualified building4 7#b7 ,applicable dollar value ,for purposes of paragraph 7#a77;,a71 the applicable dollar value shall be an amount equal to #a4jj increased 7but not above #d4ge7 by #j4be for every #e percentage points by which the efficiency ratio for the qualified building is certified to be greater than #be percent4 7#c7 ,efficiency ratio ,for purposes of this section1 the efficiency ratio of a qualified building shall be equal to the quotient1 expressed as a percentage1 obtained by dividing-- 7,a7 an amount equal to the difference between-- 7i7 the annual level of energy consumption of the qualified building1 and 7ii7 the annual level of energy consumption of the baseline building1 by 7,b7 the annual level of energy consumption of the baseline building4 7#d7 ,baseline building ,for purposes of this section1 the baseline building shall be a building which-- 7,a7 is comparable to the qualified building1 and 7,b7 meets the minimum requirements of ,standard #ij4a-bjac of the ,american ,society of ,heating1 ,refrigerating1 and ,air ,conditioning ,engineers and the ,illuminating ,engineering ,society of ,north ,america 7as in effect on ,december #ca1 #bjad74 7c7 ,qualified building ,the term qualified building means a building-- 7#a7 located in the ,united ,states1 7#b7 which is owned by the taxpayer1 and 7#c7 which is certified to have an annual level of energy consumption that is less than the baseline building and an efficiency ratio of not less than #be percent4 7d7 ,allocation of deduction 7#a7 ,in general ,in the case of a qualified building owned by an eligible entity1 the ,secretary shall promulgate regulations to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property1 with such person to be treated as the taxpayer for purposes of this section4 7#b7 ,eligible entity ,for purposes of this subsection1 the term eligible entity means-- 7,a7 a ,federal1 ,state1 or local government or a political subdivision thereof1 7,b7 an ,indian tribe 7as defined in section #de;,a7c77#f771 or 7,c7 an organization described in section #eja7;c7 and exempt from tax under section #eja7;a74 7e7 ,basis adjustment ,for purposes of this subtitle1 if a deduction is allowed under this section with respect to any qualified building1 the basis of such property shall be reduced by the amount of the deduction so allowed4 7f7 ,certification 7#a7 ,in general ,a certification described in this section shall be made-- 7,a7 in accordance with guidance prescribed by1 and 7,b7 by a third-party that is accredited by a certification program approved by1 the ,secretary1 in consultation with the ,secretary of ,energy4 ,such guidance shall specify procedures and methods for calculating annual energy consumption levels1 and shall include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program4 7#b7 ,computer software 7,a7 ,in general ,any calculation under paragraph 7#a7 shall be prepared by qualified computer software4 7,b7 ,qualified computer software ,for purposes of this paragraph1 the term qualified computer software means software-- 7i7 for which the software designer has certified that the software meets all procedures and detailed methods for calculating energy consumption levels as required by the ,secretary1 and 7ii7 which provides such forms as required to be filed by the ,secretary in connection with energy consumption levels and the deduction allowed under this section4 4 7b7 ,conforming amendment ,the table of sections for part ,,vi of subchapter ,b of chapter #a is amended by striking the item relating to section #agi;,d and inserting after the item relating to section #agi;,c the following item3 ,sec4 #agi;,d4 ,energy efficient commercial building deduction4 4 7c7 ,effective date ,the amendments made by this section shall apply to any qualified building placed in service after ,december #ca1 #bjag4 #ejcd4 ,energy efficiency deduction for existing commercial buildings 7a7 ,in general ,part ,,vi of subchapter ,b of chapter #a is amended by inserting after section #agi;,e the following new section3 #agi;,f4 ,deduction for energy efficiency improvements to commercial buildings 7a7 ,in general ,there shall be allowed as a deduction an amount equal to the lesser of-- 7#a7 the applicable amount for the qualified building based on energy efficiency improvements made by the taxpayer and placed in service during the taxable year1 or 7#b7 #cj percent of the amount paid or incurred by the taxpayer for energy efficiency improvements made to the qualified building which were placed in service during the taxable year4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of subsection 7a71 the applicable amount shall be an amount equal to the product of-- 7,a7 the applicable dollar value1 and 7,b7 the square footage of the qualified building4 7#b7 ,applicable dollar value ,for purposes of paragraph 7#a71 the applicable dollar value shall be an amount equal to #a4be increased 7but not above #i4be7 by #j4ej for every #e percentage points by which the efficiency ratio for the qualified building is certified to be greater than #bj percent4 7#c7 ,efficiency ratio ,for purposes of this section1 the efficiency ratio of a qualified building shall be equal to the quotient1 expressed as a percentage1 obtained by dividing-- 7,a7 an amount equal to the difference between-- 7i7 the projected annual level of energy consumption of the qualified building after the energy efficiency improvements have been placed in service1 and 7ii7 the annual level of energy consumption of such qualified building prior to the energy efficiency improvements being placed in service1 by 7,b7 the annual level of energy consumption described in subparagraph 7,a77ii74 7#d7 ,coordination with clean energy investment credit ,for purposes of paragraph 7#c77;,a71 the determination of the difference in annual levels of energy consumption of the qualified building shall not include any reduction in net energy consumption related to qualified property or energy storage property for which a credit was allowed under section #dh;,e4 7c7 ,definitions 7#a7 ,qualified building ,the term qualified building means a building-- 7,a7 located in the ,united ,states1 7,b7 which is owned by the taxpayer1 and 7,c7 which is certified to have-- 7i7 a projected annual level of energy consumption after the energy efficiency improvements have been placed in service that is less than the annual level of energy consumption prior to the energy efficiency improvements being placed in service1 and 7ii7 an efficiency ratio of not less than #bj percent4 7#b7 ,energy efficiency improvements 7,a7 ,in general ,the term energy efficiency improvements means any property installed on or in a qualified building which has been certified to reduce the level of energy consumption for such building or to increase onsite generation of electricity1 provided that depreciation 7or amortization in lieu of depreciation7 is allowable with respect to such property4 7,b7 ,amounts paid or incurred for energy efficiency improvements ,for purposes of subsection 7a77#b71 the amount paid or incurred by the taxpayer-- 7i7 shall include expenditures for design and for labor costs properly allocable to the onsite preparation1 assembly1 or original installation of the property1 and 7ii7 shall not include any expenditures related to expansion of the building envelope4 7d7 ,certification 7#a7 ,in general ,a certification described in this section shall be made-- 7,a7 in accordance with guidance prescribed by1 and 7,b7 by a third-party that is accredited by a certification program approved by1 the ,secretary1 in consultation with the ,secretary of ,energy4 ,such guidance shall specify procedures and methods for calculating annual energy consumption levels1 with such calculations to take into account onsite generation of electricity or useful thermal energy1 and shall include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program4 7#b7 ,computer software 7,a7 ,in general ,any calculation under paragraph 7#a7 shall be prepared by qualified computer software4 7,b7 ,qualified computer software ,for purposes of this paragraph1 the term qualified computer software has the same meaning given such term under section #agi;,d7f77#b74 7e7 ,allocation of deduction 7#a7 ,in general ,in the case of a qualified building owned by an eligible entity1 the ,secretary shall promulgate regulations to allow the allocation of the deduction to the person primarily responsible for designing the energy efficiency improvements in lieu of the owner of such property1 with such person to be treated as the taxpayer for purposes of this section4 7#b7 ,eligible entity ,for purposes of this subsection1 the term eligible entity has the same meaning given such term under section #agi;,d7d77#b74 7f7 ,basis reduction ,for purposes of this subtitle1 if a deduction is allowed under this section with respect to any energy efficiency improvements1 the basis of such property shall be reduced by the amount of the deduction so allowed4 7g7 ,coordination with other credits ,for purposes of this section1 expenditures taken into account under section #dg or #dh;,e shall not be taken into account under this section4 4 7b7 ,conforming amendment 7#a7 ,section #bfc7;a7 is amended-- 7,a7 in subparagraph 7,k71 by striking or at the end1 7,b7 in subparagraph 7,l71 by striking the period and inserting 1 or1 and 7,c7 by inserting at the end the following new subparagraph3 7,m7 expenditures for which a deduction is allowed under section #agi;,f4 4 7#b7 ,section #cab7k77#c77;,b7 is amended-- 7,a7 in the heading1 by striking or #agi;,e and inserting #agi;,e1 or #agi;,f1 and 7,b7 by striking or #agi;,e and inserting #agi;,e1 or #agi;,f4 7#c7 ,section #ajaf7;a7 is amended-- 7,a7 in paragraph 7#cf71 by striking and at the end1 7,b7 in paragraph 7#cg71 by striking the period at the end and inserting 1 and1 and 7,c7 by inserting at the end the following new paragraph3 7#ch7 to the extent provided in section #agi;,d7f74 4 7#d7 ,section #abde7;a7 is amended-- 7,a7 in paragraph 7#b77;,c71 by inserting #agi;,f1 after #agi;,e11 and 7,b7 in paragraph 7#c77;,c71 by inserting #agi;,f1 after #agi;,e14 7#e7 ,the table of sections for part ,,vi of subchapter ,b of chapter #a is amended by inserting after the item relating to section #agi;,e the following new item3 ,sec4 #agi;,f4 ,deduction for energy efficiency improvements to commercial buildings4 4 7c7 ,effective date ,the amendments made by this section shall apply to any energy efficiency improvements placed in service after ,december #ca1 #bjag4 ,d ,clean ,electricity and ,fuel ,bonds #ejda4 ,clean ,energy ,bonds 7a7 ,in general ,subpart ,j of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new section3 #ed;,,bb4 ,clean energy bonds 7a7 ,in general ,if a taxpayer holds a clean energy bond on one or more interest payment dates of the bond during any taxable year1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection 7b7 with respect to such dates4 7b7 ,amount of credit ,the amount of the credit determined under this subsection with respect to any interest payment date for a clean energy bond is #bh percent of the amount of interest payable by the issuer with respect to such date4 7c7 ,limitation based on amount of tax 7#a7 ,in general ,the credit allowed under subsection 7a7 for any taxable year shall not exceed the excess of-- 7,a7 the sum of the regular tax liability 7as defined in section #bf7;b77 plus the tax imposed by section #ee1 over 7,b7 the sum of the credits allowable under this part 7other than subpart ,c and this subpart74 7#b7 ,carryover of unused credit ,if the credit allowable under subsection 7a7 exceeds the limitation imposed by paragraph 7#a7 for such taxable year1 such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection 7a7 for such taxable year 7determined before the application of paragraph 7#a7 for such succeeding taxable year74 7d7 ,clean energy bond 7#a7 ,in general ,for purposes of this section1 the term clean energy bond means any bond issued as part of an issue if-- 7,a7 #ajj percent of the excess of the available project proceeds 7as defined in section #ed;,a7e77#d77 of such issue over the amounts in a reasonably required reserve 7within the meaning of section #aej7;a77#c77 with respect to such issue are to be used for capital expenditures incurred by an entity described in subparagraph 7,b7 for #a or more qualified facilities1 7,b7 the bond is issued by-- 7i7 a governmental body 7as defined in paragraph 7#c7 of section #ed;,c7d771 7ii7 a public power provider 7as defined in paragraph 7#b7 of such section71 or 7iii7 a cooperative electric company 7as defined in paragraph 7#d7 of such section71 and 7,c7 the issuer makes an irrevocable election to have this section apply4 7#b7 ,applicable rules ,for purposes of applying paragraph 7#a7-- 7,a7 for purposes of section #adi7;b71 a clean energy bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection 7a7 or section #fdcc1 7,b7 for purposes of section #adh1 the yield on a clean energy bond shall be determined without regard to the credit allowed under subsection 7a71 and 7,c7 a bond shall not be treated as a clean energy bond if the issue price has more than a de minimis amount 7determined under rules similar to the rules of section #abgc7;a77#c77 of premium over the stated principal amount of the bond4 7#c7 ,qualified facility ,the term qualified facility means a facility-- 7,a7 which is described in subsection 7e77#c7 of section #de,s and has a greenhouse gas emissions rate of less than #ahf grams of ,,co#b;e per ,k,wh 7as such terms are defined in subsections 7b77#a7 and 7e77#a7 of such section71 or 7,b7 which is described in subsection 7e77#d7 of section #de,t and only produces transportation fuel which has an emissions rate of less than #ch4fb kilograms of ,,co#b;e per mm,b,t,u 7as such terms are defined in subsections 7b7 and 7e7 of such section74 7e7 ,interest payment date ,for purposes of this section1 the term interest payment date means any date on which the holder of record of the clean energy bond is entitled to a payment of interest under such bond4 7f7 ,credit phase out 7#a7 ,electrical production 7,a7 ,in general ,subject to subparagraph 7,b71 in the case of a clean energy bond for which the proceeds are used for capital expenditures incurred by an entity for a qualified facility described in subsection 7d77#c77;,a71 if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states are equal to or less than the percentage specified in section #de,s7d77#a71 the amount of the credit determined under subsection 7b7 with respect to any clean energy bond issued during a calendar year described in paragraph 7#c7 shall be equal to the product of-- 7i7 the amount determined under subsection 7b7 without regard to this subsection1 multiplied by 7ii7 the phase-out percentage under paragraph 7#c74 7,b7 ,deadline to begin phase-out ,if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states for each year before calendar year #bjbf are greater than the percentage specified in section #de,s7d77#a71 then the determination described in subparagraph 7,a7 shall be deemed to have been made for calendar year #bjbe4 7#b7 ,fuel production 7,a7 ,in general ,subject to subparagraph 7,b71 in the case of a clean energy bond for which the proceeds are used for capital expenditures incurred by an entity for a qualified facility described in subsection 7d77#c77;,b71 if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from transportation fuel produced and sold at retail annually in the ,united ,states are equal to or less than the percentage specified in section #de,t7d77#a71 the amount of the credit determined under subsection 7b7 with respect to any clean energy bond issued during a calendar year described in paragraph 7#c7 shall be equal to the product of-- 7i7 the amount determined under subsection 7b7 without regard to this subsection1 multiplied by 7ii7 the phase-out percentage under paragraph 7#c74 7,b7 ,deadline to begin phase-out ,if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from transportation fuel produced and sold at retail annually in the ,united ,states for each year before calendar year #bjbf are greater than the percentage specified in section #de,t7d77#a71 then the determination described in subparagraph 7,a7 shall be deemed to have been made for calendar year #bjbe4 7#c7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for any bond issued during the first calendar year following the calendar year in which the determination described in paragraph 7#a77;,a7 or 7#b77;,a7 is made1 #ge percent1 7,b7 for any bond issued during the second calendar year following such determination year1 #ej percent1 7,c7 for any bond issued during the third calendar year following such determination year1 #be percent1 and 7,d7 for any bond issued during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7g7 ,special rules 7#a7 ,interest on clean energy bonds includible in gross income for ,federal income tax purposes ,for purposes of this title1 interest on any clean energy bond shall be includible in gross income4 7#b7 ,application of certain rules ,rules similar to the rules of subsections 7f71 7g71 7h71 and 7i7 of section #ed;,a shall apply for purposes of the credit allowed under subsection 7a74 7h7 ,regulations ,the ,secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section #fdcc4 4 7b7 ,credit for qualified clean energy bonds allowed to issuer ,subchapter ,b of chapter #fe of subtitle ,f is amended by adding at the end the following new section3 #fdcc4 ,credit for qualified clean energy bonds allowed to issuer 7a7 ,in general ,the issuer of a qualified clean energy bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the ,secretary as provided in subsection 7b74 7b7 ,payment of credit 7#a7 ,in general ,the ,secretary shall pay 7contemporaneously with each interest payment date under such bond7 to the issuer of such bond 7or to any person who makes such interest payments on behalf of the issuer7 #bh percent of the interest payable under such bond on such date4 7#b7 ,interest payment date ,for purposes of this subsection1 the term interest payment date means each date on which interest is payable by the issuer under the terms of the bond4 7c7 ,application of arbitrage rules ,for purposes of section #adh1 the yield on a qualified clean energy bond shall be reduced by the credit allowed under this section4 7d7 ,qualified clean energy bond ,for purposes of this section1 the term qualified clean energy bond means a clean energy bond 7as defined in section #ed;,,bb7d77 issued as part of an issue if the issuer1 in lieu of any credit allowed under section #ed;,,bb7a7 with respect to such bond1 makes an irrevocable election to have this section apply4 4 7c7 ,conforming amendments 7#a7 ,the table of sections for subpart ,j of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new item3 ,sec4 #ed;,,bb4 ,clean energy bonds4 4 7#b7 ,the heading of such subpart 7and the item relating to such subpart in the table of subparts for part ,,iv of subchapter ,a of chapter #a7 are each amended by striking ,build ,america ,bondsand inserting ,build ,america ,bonds and ,clean ,energy ,bonds4 7#c7 ,the table of sections for subchapter ,b of chapter #fe of subtitle ,f is amended by adding at the end the following new item3 ,sec4 #fdcc4 ,credit for qualified clean energy bonds allowed to issuer4 4 7#d7 ,subparagraph 7,a7 of section #fbaa7;b77#d7 is amended by striking and #fdca and inserting #fdca1 and #fdcc4 7d7 ,effective date ,the amendments made by this section shall apply to obligations issued after the date of the enactment of this ,act4 ,e ,treatment of tar sands under excise taxes #ejea4 ,clarification of tar sands as crude oil for excise tax purposes 7a7 ,in general ,paragraph 7#a7 of section #dfab7;a7 is amended to read as follows3 7#a7 ,crude oil ,the term crude oil includes crude oil condensates1 natural gasoline1 synthetic petroleum1 any bitumen or bituminous mixture1 any oil derived from a bitumen or bituminous mixture1 and any oil derived from kerogen-bearing sources4 4 7b7 ,technical amendment ,paragraph 7#b7 of section #dfab7;a7 is amended by striking from a well located4 7c7 ,effective date ,the amendments made by this section shall apply to oil and petroleum products received1 entered1 used1 or exported during calendar quarters beginning more than #fj days after the date of the enactment of this ,act4 ,f ,closing big oil tax loopholes #ejfa4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers 7a7 ,in general ,section #ija is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,special rules relating to major integrated oil companies which are dual capacity taxpayers 7#a7 ,general rule ,notwithstanding any other provision of this chapter1 any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e77 to a foreign country or possession of the ,united ,states for any period shall not be considered a tax-- 7,a7 if1 for such period1 the foreign country or possession does not impose a generally applicable income tax1 or 7,b7 to the extent such amount exceeds the amount 7determined in accordance with regulations7 which-- 7i7 is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession1 or 7ii7 would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer4 ,nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph 7,b74 7#b7 ,dual capacity taxpayer ,for purposes of this subsection1 the term dual capacity taxpayer means1 with respect to any foreign country or possession of the ,united ,states1 a person who-- 7,a7 is subject to a levy of such country or possession1 and 7,b7 receives 7or will receive7 directly or indirectly a specific economic benefit 7as determined in accordance with regulations7 from such country or possession4 7#c7 ,generally applicable income tax ,for purposes of this subsection-- 7,a7 ,in general ,the term generally applicable income tax means an income tax 7or a series of income taxes7 which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession4 7,b7 ,exceptions ,such term shall not include a tax unless it has substantial application1 by its terms and in practice1 to-- 7i7 persons who are not dual capacity taxpayers1 and 7ii7 persons who are citizens or residents of the foreign country or possession4 4 7b7 ,effective ,date 7#a7 ,in general ,the amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this ,act4 7#b7 ,contrary treaty obligations upheld ,the amendments made by this section shall not apply to the extent contrary to any treaty obligation of the ,united ,states4 #ejfb4 ,limitation on section #aii deduction attributable to oil1 natural gas1 or primary products thereof 7a7 ,denial of deduction ,paragraph 7#d7 of section #aii7;c7 is amended by adding at the end the following new subparagraph3 7,e7 ,special rule for certain oil and gas income ,in the case of any taxpayer who is a major integrated oil company 7within the meaning of section #afg7;h77#e77 for the taxable year1 the term domestic production gross receipts shall not include gross receipts from the production1 refining1 processing1 transportation1 or distribution of oil1 gas1 or any primary product 7within the meaning of subsection 7d77#i77 thereof4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjae4 #ejfc4 ,limitation on deduction for intangible drilling and development costs2 amortization of disallowed amounts 7a7 ,in general ,section #bfc7;c7 is amended to read as follows3 7c7 ,intangible drilling and development costs in the case of oil and gas wells and geothermal wells 7#a7 ,in general ,notwithstanding subsection 7a71 and except as provided in subsection 7i71 regulations shall be prescribed by the ,secretary under this subtitle corresponding to the regulations which granted the option to deduct as expenses intangible drilling and development costs in the case of oil and gas wells and which were recognized and approved by the ,congress in ,house ,concurrent ,resolution #ej1 ,seventy-ninth ,congress4 ,such regulations shall also grant the option to deduct as expenses intangible drilling and development costs in the case of wells drilled for any geothermal deposit 7as defined in section #fac7;e77#b77 to the same extent and in the same manner as such expenses are deductible in the case of oil and gas wells4 ,this subsection shall not apply with respect to any costs to which any deduction is allowed under section #ei7;e7 or #bia4 7#b7 ,exclusion 7,a7 ,in general ,this subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company 7within the meaning of section #afg7;h77#e774 7,b7 ,amortization of amounts not allowable as deductions under subparagraph 7,a7 ,the amount not allowable as a deduction for any taxable year by reason of subparagraph 7,a7 shall be allowable as a deduction ratably over the #fj-month period beginning with the month in which the costs are paid or incurred4 ,for purposes of section #abed1 any deduction under this subparagraph shall be treated as a deduction under this subsection4 4 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjae4 #ejfd4 ,limitation on percentage depletion allowance for oil and gas wells 7a7 ,in general ,section #fac;,a is amended by adding at the end the following new subsection3 7f7 ,application with respect to major integrated oil companies ,in the case of any taxable year in which the taxpayer is a major integrated oil company 7within the meaning of section #afg7;h77#e771 the allowance for percentage depletion shall be zero4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjae4 #ejfe4 ,limitation on deduction for tertiary injectants 7a7 ,in general ,section #aic is amended by adding at the end the following new subsection3 7d7 ,application with respect to major integrated oil companies 7#a7 ,in general ,this section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company 7within the meaning of section #afg7;h77#e774 7#b7 ,amortization of amounts not allowable as deductions under paragraph 7#a7 ,the amount not allowable as a deduction for any taxable year by reason of paragraph 7#a7 shall be allowable as a deduction ratably over the #fj-month period beginning with the month in which the costs are paid or incurred4 4 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjae4 ,,vi ,conservation reauthorization #fjja4 ,national ,park ,service ,centennial ,fund 7a7 ,in general ,chapter #ajdi of title #ed1 ,united ,states ,code1 is amended by adding at the end the following3 #ajdijh4 ,national ,park ,service ,centennial ,fund 7a7 ,in general ,there is established in the ,treasury a fund1 to be known as the ,national ,park ,service ,centennial ,fund 7referred to in this section as the ,fund74 7b7 ,deposits to fund ,notwithstanding any provision of law providing that the proceeds shall be credited to miscellaneous receipts of the ,treasury1 for each fiscal year1 there shall be deposited in the ,fund1 from revenues due and payable to the ,united ,states under section #i of the ,outer ,continental ,shelf ,lands ,act 7#dc ,u4,s4,c4 #acch71 #aej1jjj1jjj4 7c7 ,availability ,amounts deposited in the ,fund shall be made available for expenditure1 without further appropriation or fiscal year limitation1 in accordance with this section4 7d7 ,use of fund ,the ,secretary shall use amounts in the ,fund for critical ,national ,park ,system maintenance and infrastructure needs and other projects and programs that will better enable the ,national ,park ,service to protect park resources and provide improved visitor services4 7e7 ,land acquisition prohibition ,amounts in the ,fund shall not be used for land acquisition4 4 7b7 ,clerical amendment ,the table of sections for chapter #ajdi of title #ed1 ,united ,states ,code1 is amended by inserting after the item relating to section #ajdijg the following3 ,sec4 #ajdijh4 ,national ,park ,service ,centennial ,fund4 4 #fjjb4 ,land and ,water ,conservation ,fund 7a7 ,permanent authorization ,section #bjjcjb of title #ed1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7b71 in the matter preceding paragraph 7#a71 by striking ,during the period ending ,september #cj1 #bjae1 there and inserting ,there2 and 7#b7 in subsection 7c7-- 7,a7 in paragraph 7#a71 by striking through ,september #cj1 #bjae2 and 7#c7 by striking paragraph 7#c74 7b7 ,full funding ,section #bjjcjc of title #ed1 ,united ,states ,code1 is amended to read as follows3 #bjjcjc4 ,availability of funds 7a7 ,in general ,amounts deposited in the ,fund under section #bjjcjb on or after the date of enactment of the ,american ,energy ,innovation ,act shall be made available for expenditure1 without further appropriation or fiscal year limitation1 to carry out the purposes of the ,fund 7including accounts and programs made available from the ,fund under the ,consolidated and ,further ,continuing ,appropriations ,act1 #bjae 7,public ,law #aac-bce774 7b7 ,additional amounts ,amounts made available under subsection 7a7 shall be in addition to amounts made available to the ,fund under section #aje of the ,gulf of ,mexico ,energy ,security ,act of #bjjf 7#dc ,u4,s4,c4 #acca note2 ,public ,law #aji-dcb7 or otherwise appropriated from the ,fund4 7c7 ,allocation authority 7#a7 ,submission of cost estimates ,the ,president shall submit to ,congress detailed account1 program1 and project allocations to be funded under subsection 7a7 as part of the annual budget submission of the ,president4 7#b7 ,alternate allocation 7,a7 ,in general ,appropriations ,acts may provide for alternate allocation of amounts made available under subsection 7a71 including allocations by account and program4 7,b7 ,allocation by president 7i7 ,no alternate allocations ,if ,congress has not enacted legislation establishing alternate allocations by the date that is #abj days after the date on which the applicable fiscal year begins1 amounts made available under subsection 7a7 shall be allocated by the ,president4 7ii7 ,insufficient alternate allocation ,if ,congress enacts legislation establishing alternate allocations for amounts made available under subsection 7a7 that are less than the full amount appropriated under that subsection1 the difference between the amount appropriated and the alternate allocation shall be allocated by the ,president4 7#c7 ,annual report ,the ,president shall submit to ,congress an annual report that describes the final allocation by account1 program1 and project of amounts made available under subsection 7a71 including a description of the status of obligations and expenditures4 4 7c7 ,clerical amendment ,the table of sections for title #ed is amended by striking the item relating to section #bjjcjc and inserting the following3 ,sec4 #bjjcjc4 ,availability of funds4 4 7d7 ,public access ,section #bjjcjf of title #ed1 ,united ,states ,code1 is amended by adding at the end the following3 7c7 ,public access ,not less than #a4e percent of the annual authorized funding amount shall be made available each year for projects that secure recreational public access to existing ,federal public land for hunting1 fishing1 or other recreational purposes4 4 #fjjc4 ,historic preservation fund 7a7 ,authorization ,section #cjcajb of title #ed1 ,united ,states ,code1 is amended by striking of fiscal years #bjab to #bjae and inserting fiscal year4 7b7 ,use and availability ,section #cjcajc of title #ed1 ,united ,states ,code1 is amended by striking the first sentence and inserting the following3 ,amounts deposited in the ,historic ,preservation ,fund on or after the date of enactment of the ,american ,energy ,innovation ,act shall only be used to carry out this division and shall be available for expenditure without further appropriation44 ,september #bi1 #bjae,read the second time and placed on the calendar