To provide for the establishment of a Federal clean portfolio standard.

TEXT OF AMENDMENTS

SA 1528. Mr. BINGAMAN (for himself and Mr. Domenici) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:

On page 126, line 12, strike ``and''.
On page 126, line 13, strike the period and insert ``;
and''.
On page 126, between lines 13 and 14, insert the following:
(vi) thermal behavior and life degradation mechanisms.
On page 126, strike lines 14 through 21, and insert the
following:
(B) Nanoscience centers.--The Secretary, in cooperation
with the Council, shall coordinate the activities of the
nanoscience centers of the Department to help the nanoscience
centers of the Department maintain a globally competitive
posture in energy storage systems for motor transportation
and electricity transmission and distribution.
On page 127, line 5, insert ``and battery systems'' after
``batteries''.
On page 127, line 7, strike ``and''.
On page 127, line 9, strike the period and insert   ``;
and''.
On page 127, between lines 9 and 10, insert the following:
(G) thermal management systems.
On page 127, line 12, insert ``not more than'' before
``4''.
On page 127, lines 21 and 22, strike ``and the Under
Secretary of Energy''.
Beginning on page 128, strike line 22, and all that follows
through page 129, line 2 and insert the following:
(7) Disclosure.--Section 623 of the Energy Policy Act of
1992 (42 U.S.C. 13293) may apply to any project carried out
through a grant, contract, or cooperative agreement under
this section.
(8) Intellectual property.--In accordance with section
202(a)(ii) of title 35, United States Code, section 152 of
the Atomic Energy Act of 1954 (42 U.S.C. 2182), and section 9
of the Federal Nonnuclear Research and Development Act of
1974 (42 U.S.C. 5908), the Secretary may require, for any new
invention developed under paragraph (6)--
(A) that any industrial participant that is active in a
Energy Storage Research Center established under paragraph
(6) related to the advancement of energy storage technologies
carried out, in whole or in part, with Federal funding, be
granted the first option to negotiate with the invention
owner, at least in the field of energy storage technologies,
nonexclusive licenses and royalties on terms that are
reasonable, as determined by the Secretary;
(B) that, during a 2-year period beginning on the date on
which an invention is made, the patent holder shall not
negotiate any license or royalty agreement with any entity
that is not an industrial participant under paragraph (6);
(C) that, during the 2-year period described in
subparagraph (B), the patent holder shall negotiate
nonexclusive licenses and royalties in good faith with any
interested industrial participant under paragraph (6); and
(D) such other terms as the Secretary determines to be
necessary to promote the accelerated commercialization of
inventions made under paragraph (6) to advance the capability
of the United States to successfully compete in global energy
storage markets.
On page 129, line 3, strike ``(7)'' and insert ``(9)''.
On page 129, line 4, strike ``5 years'' and insert ``3
years''.
On page 129, line 8, strike ``in making'' and all that
follows through the end of the paragraph and insert ``in
carrying out this section.''.
On page 129, line 12, strike ``(8)'' and insert ``(10)''.
______

SA 1529. Mr. BINGAMAN (for himself and Mr. Domenici) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:

On page 73, between lines 4 and 5, insert the following:
(h) Report.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter, the
Administrator of General Services shall submit to the Energy
Information Agency a report describing the quantity, type,
and cost of each lighting product purchased by the Federal
Government.
On page 73, line 5, strike ``(h)'' and insert ``(i)''.
On page 73, line 16, strike ``(i)'' and insert ``(j)''.
______

SA 1530. Mr. PRYOR submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting newemerging
energy technologies, develop greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 161, between lines 2 and 3, insert the following:

SEC. 269. PROMOTION OF ENERGY SAVINGS PERFORMANCE CONTRACTS.

Section 801 of the National Energy Conservation Policy Act
(42 U.S.C. 8287) is amended--
(1) in subsection (a)(2)--
(A) in subparagraph (D), by inserting ``beginning on the
date of the delivery order'' after ``25 years''; and
(B) by adding at the end the following:
``(E) Promotion of contracts.--In carrying out this
section, a Federal agency shall not--

[[Page S7655]]

``(i) establish a Federal agency policy that limits the
maximum contract term under subparagraph (D) to a period
shorter than 25 years; or
``(ii) limit the total amount of obligations under energy
savings performance contracts or other private financing of
energy savings measures.
``(F) Measurement and verification requirements for private
financing.--
``(i) In general.--The evaluations and savings measurement
and verification required under paragraphs (1) and (3) of
section 543(f) shall be used by a Federal agency to meet the
requirements for--

``(I) in the case of energy savings performance contracts,
the need for energy audits, calculation of energy savings,
and any other evaluation of costs and savings needed to
implement the guarantee of savings under this section; and
``(II) in the case of utility energy service contracts,
needs that are similar to the purposes described in subclause
(I).

``(ii) Modification of existing contracts.--Not later than
180 days after the date of enactment of this subparagraph,
each Federal agency shall, to the maximum extent practicable,
modify any indefinite delivery and indefinite quantity energy
savings performance contracts, and other indefinite delivery
and indefinite quantity contracts using private financing, to
conform to the amendments made by the Renewable Fuels,
Consumer Protection, and Energy Efficiency Act of 2007.'';
and
(2) by striking subsection (c).
______

SA 1531. Mr. PRYOR submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting newemerging
energy technologies, develop greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 153, strike line 24 and insert the following:
``under subsection (a)(1).
``(g) Use of Energy and Water Efficiency Measures in
Federal Buildings.--
``(1) Energy and water evaluations.--Not later than 1 year
after the date of enactment of this subsection, and every 3
years thereafter, each Federal agency shall complete a
comprehensive energy and water evaluation for--
``(A) each building and other facility of the Federal
agency that is larger than a minimum size established by the
Secretary; and
``(B) any other building or other facility of the Federal
agency that meets any other criteria established by the
Secretary.
``(2) Implementation of identified energy and water
efficiency measures.--
``(A) In general.--Not later than 2 years after the date of
enactment of this subsection, and every 3 years thereafter,
each Federal agency--
``(i) shall fully implement each energy and water-saving
measure that the Federal agency identified in the evaluation
conducted under paragraph (1) that has a 15-year simple
payback period; and
``(ii) may implement any energy or water-saving measure
that the Federal agency identified in the evaluation
conducted under paragraph (1) that has longer than a 15-year
simple payback period.
``(B) Payback period.--
``(i) In general.--For the purpose of subparagraph (A), a
measure shall be considered to have a 15-year simple payback
if the quotient obtained under clause (ii) is less than or
equal to 15.
``(ii) Quotient.--The quotient for a measure shall be
obtained by dividing--

``(I) the estimated initial implementation cost of the
measure (other than financing costs); by
``(II) the annual cost savings from the measure.

``(C) Cost savings.--For the purpose of subparagraph (B),
cost savings shall include net savings in estimated--
``(i) energy and water costs; and
``(ii) operations, maintenance, repair, replacement, and
other direct costs.
``(D) Exceptions.--The Secretary may modify or make
exceptions to the calculation of a 15-year simple payback
under this paragraph in the guidelines issued by the
Secretary under paragraph (4).
``(3) Follow-up on implemented measures.--For each measure
implemented under paragraph (2), each Federal agency shall
carry out--
``(A) commissioning;
``(B) operations, maintenance, and repair; and
``(C) measurement and verification of energy and water
savings.
``(4) Guidelines.--
``(A) In general.--The Secretary shall issue guidelines and
necessary criteria that each Federal agency shall follow for
implementation of--
``(i) paragraph (1) not later than 90 days after the date
of enactment of this subsection; and
``(ii) paragraphs (2) and (3) not later than 180 days after
the date of enactment of this subsection.
``(B) Relationship to funding source.--The guidelines
issued by the Secretary under subparagraph (A) shall be
appropriate and uniform for measures funded with each type of
funding made available under paragraph (8).
``(5) Web-based certification.--
``(A) In general.--For each building and other facility
that meets the criteria established by the Secretary under
paragraph (1), each Federal agency shall use a web-based
tracking system to certify compliance with the requirements
for--
``(i) energy and water evaluations under paragraph (1);
``(ii) implementation of identified energy and water
measures under paragraph (2); and
``(iii) follow-up on implemented measures under paragraph
(3).
``(B) Deployment.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall deploy the
web-based tracking system required under this paragraph in a
manner that tracks, at a minimum--
``(i) the covered buildings and other facilities;
``(ii) the status of evaluations;
``(iii) the identified measures, with estimated costs and
savings;
``(iv) the status of implementing the measures;
``(v) the measured savings; and
``(vi) the persistence of savings.
``(C) Availability.--
``(i) In general.--Subject to clause (ii), the Secretary
shall make the web-based tracking system required under this
paragraph available to Congress, other Federal agencies, and
the public through the Internet.
``(ii) Exemptions.--At the request of a Federal agency, the
Secretary may exempt specific data for specific buildings
from disclosure under clause (i) for national security
purposes.
``(6) Benchmarking of federal facilities.--
``(A) In general.--Each Federal agency shall enter energy
use data for each building and other facility of the Federal
agency into a building energy use benchmarking system, such
as the Energy Star Portfolio Manager.
``(B) System and guidance.--Not later than 1 year after the
date of enactment of this subsection, the Secretary shall--
``(i) select or develop the building energy use
benchmarking system required under this paragraph for each
type of building; and
``(ii) issue guidance for use of the system.
``(7) Federal agency scorecards.--
``(A) In general.--The Director of the Office of Management
and Budget shall issue quarterly scorecards for energy
management activities carried out by each Federal agency that
includes--
``(i) summaries of the status of--

``(I) energy and water evaluations under paragraph (1);
``(II) implementation of identified energy and water
measures under paragraph (2); and
``(III) follow-up on implemented measures under paragraph
(3); and

``(ii) any other means of measuring performance that the
Director considers appropriate.
``(B) Availability.--The Director shall make the scorecards
required under this paragraph available to Congress, other
Federal agencies, and the public through the Internet.
``(8) Funding.--
``(A) Authorization of appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this subsection.
``(B) Funding options.--
``(i) In general.--To carry out paragraphs (1) through (3),
a Federal agency may use any combination of--

``(I) appropriated funds made available under subparagraph
(A); and
``(II) private financing, including financing available
through energy savings performance contracts or utility
energy savings contracts.

``(ii) Combined funding for same measure.--A Federal agency
may use any combination of appropriated funds and private
financing described in clause (i) to carry out the same
measure under this subsection, with proportional allocation
for any energy and water savings.
``(iii) Lack of appropriated funds.--Since measures may be
carried out using private financing described in clause (i),
a lack of available appropriations shall not be considered a
sufficient reason for the failure of a Federal agency to
comply with paragraphs (1) through (3).''.
______

SA 1532. Mr. THUNE submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting newemerging
energy technologies, develop greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 50, between lines 16 and 17, insert the following:
(d) Approval of Higher Blends of Ethanol.--Not later than
180 days after the date on which the report is submitted
under subsection (c), the Administrator of the Environmental
Protection Agency shall approve

[[Page S7656]]

the use of higher blends of ethanol fuel for use in non-flex
fuel automotive vehicles that received a satisfactory review
based on the components of the study under subsection (a)
addressing the emissions, materials compatibility, and
durability and performance of the approved higher blends of
ethanol fuel in on-road and off-road engines.
______

SA 1533. Mr. MENENDEZ submitted an amendment intended to be proposed
by him to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting newemerging energy technologies, develop greater efficiency,
and creating a Strategic Energy Efficiency and Renewables Reserve to
invest in alternative energy, and for other purposes; which was ordered
to lie on the table; as follows:

At the end of subtitle F of title II, insert the following:

SEC. 2__. DEFINITION OF STATE.

Section 412 of the Energy Conservation and Production Act
(42 U.S.C. 6862) is amended by striking paragraph (8) and
inserting the following:
``(8) State.--The term `State' means--
``(A) a State;
``(B) the District of Columbia; and
``(C) the Commonwealth of Puerto Rico.''.
______

SA 1534. Mr. NELSON of Nebraska submitted an amendment intended to be
proposed to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6,
to reduce our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting newemerging
energy technologies, develop greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 36, line 17, strike ``Section'' and insert the
following:
(a) In General.--Section
On page 36, after line 22, add the following:
(b) Biofuels Investment Trust Fund.--Section 932(d) of the
Energy Policy Act of 2005 (42 U.S.C. 16232(d)) is amended by
adding at the end the following:
``(3) Biofuels investment trust fund.--
``(A) Establishment.--
``(i) In general.--There is established in the Treasury of
the United States a trust fund, to be known as the `Biofuels
Investment Trust Fund' (referred to in this paragraph as the
`trust fund'), consisting of such amounts as are transferred
to the trust fund under clause (ii).
``(ii) Transfer.--As soon as practicable after the date of
enactment of this paragraph, the Secretary of the Treasury
shall transfer to the trust fund, from amounts in the general
fund of the Treasury, such amounts as the Secretary of the
Treasury determines to be equivalent to the amounts received
in the general fund as of January 1, 2007, that are
attributable to duties received on articles entered under
heading 9901.00.50 of the Harmonized Tariff Schedule of the
United States.
``(B) Investment of amounts.--
``(i) In general.--The Secretary of the Treasury shall
invest such portion of the trust fund as is not, in the
judgment of the Secretary of the Treasury, required to meet
current withdrawals.
``(ii) Interest-bearing obligations.--Investments may be
made only in interest-bearing obligations of the United
States.
``(iii) Acquisition of obligations.--For the purpose of
investments under clause (i), obligations may be acquired--

``(I) on original issue at the issue price; or
``(II) by purchase of outstanding obligations at the market
price.

``(iv) Sale of obligations.--Any obligation acquired by the
trust fund may be sold by the Secretary of the Treasury at
the market price.
``(v) Credits to trust fund.--The interest on, and the
proceeds from the sale or redemption of, any obligations held
in the trust fund shall be credited to and form a part of the
trust fund.
``(C) Transfers of amounts.--
``(i) In general.--The amounts required to be transferred
to the trust fund under subparagraph (A)(ii) shall be
transferred at least quarterly from the general fund of the
Treasury to the trust fund on the basis of estimates made by
the Secretary of the Treasury.
``(ii) Adjustments.--Proper adjustment shall be made in
amounts subsequently transferred to the extent prior
estimates were in excess of or less than the amounts required
to be transferred.
``(D) Use of funds.--
``(i) In general.--Amounts in the trust fund shall be used
to carry out the program under paragraph (1).
``(ii) Treatment.--Amounts in the trust fund used under
clause (i) shall be in addition to, and shall not be
considered to be provided in lieu of, any other funds made
available to carry out this subsection.''.
______

SA 1535. Mr. CARDIN (for himself, Ms. Mikulski, Mr. Dodd, Mr. Kerry,
Mr. Reed, Mr. Kennedy, and Mr. Whitehouse) submitted an amendment
intended to be proposed to amendment SA 1502 proposed by Mr. Reid to
the bill H.R. 6, to reduce our Nation's dependency on foreign oil by
investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, develop greater efficiency,
and creating a Strategic Energy Efficiency and Renewables Reserve to
invest in alternative energy, and for other purposes; which was ordered
to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. SITING, CONSTRUCTION, EXPANSION, AND OPERATION OF
LNG TERMINALS.

Section 10 of the Act of March 3, 1899 (33 U.S.C. 403), is
amended--
(1) by striking the section heading and designation and all
that follows through ``creation'' and inserting the
following:

``SEC. 10. OBSTRUCTION OF NAVIGABLE WATERS; WHARVES AND
PIERS; EXCAVATIONS AND FILLING IN.

``(a) In General.--The creation''; and
(2) by adding at the end the following:
``(b) Siting, Construction, Expansion, and Operation of LNG
Terminals.--The Secretary shall not approve or disapprove an
application for the siting, construction, expansion, or
operation of a liquefied natural gas terminal pursuant to
this section without the express concurrence of each State
affected by the application.''.
______

SA 1536. Mr. KERRY (for himself, Mr. Sanders, and Mr. Dodd) submitted
an amendment intended to be proposed by him to the bill H.R. 6, to
reduce our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 2, strike the table between lines 7 and 8 and
insert the following:

Calendar year:                               Minimum annual percentage:
2009 through 2012...................................................  5
2013 through 2016................................................... 10
2017 through 2019................................................... 15
2020 through 2030................................................... 20

On page 3, line 2, strike ``2009'' and insert ``2008''.
______

SA 1537. Mr. REID (for Mr. Bingaman (for himself, Mr. Reid, Mr.
Cardin, Mr. Salazar, Ms. Snowe, and Mr. Durbin)) proposed an amendment
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting newemerging
energy technologies, develop greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; as follows:

At the end, add the following:

TITLE VIII--RENEWABLE PORTFOLIO STANDARD

SEC. 801. RENEWABLE PORTFOLIO STANDARD.

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

``SEC. 610. FEDERAL RENEWABLE PORTFOLIO STANDARD.

``(a) Renewable Energy Requirement.--
``(1) In general.--Each electric utility that sells
electricity to electric consumers shall obtain a percentage
of the base amount of electricity it sells to electric
consumers in any calendar year from new renewable energy or
existing renewable energy. The percentage obtained in a
calendar year shall not be less than the amount specified in
the following table:

``Calendar year:                             Minimum annual percentage:
2010 through 2012..................................................3.75
2013 through 2016..................................................7.50
2017 through 2019.................................................11.25
2020 through 2030.................................................15.0

``(2) Means of compliance.--An electric utility shall meet
the requirements of paragraph (1) by--
``(A) submitting to the Secretary renewable energy credits
issued under subsection (b);
``(B) making alternative compliance payments to the
Secretary at the rate of 2 cents per kilowatt hour (as
adjusted for inflation under subsection (g)); or
``(C) a combination of activities described in
subparagraphs (A) and (B).
``(3) Special rule.--Nothing in this section authorizes or
requires the Tennessee Valley Authority to make any capital
expenditure on new generating capacity, except to the extent
that budget authority for the expenditure is provided in
advance in an appropriations Act.
``(b) Federal Renewable Energy Credit Trading Program.--

[[Page S7657]]

``(1) In general.--Not later than July 1, 2009, the
Secretary shall establish a Federal renewable energy credit
trading program under which electric utilities shall submit
to the Secretary renewable energy credits to certify the
compliance of the electric utilities with respect to
obligations under subsection (a)(1).
``(2) Administration.--As part of the program, the
Secretary shall--
``(A) issue tradeable renewable energy credits to
generators of electric energy from new renewable energy;
``(B) issue nontradeable renewable energy credits to
generators of electric energy from existing renewable energy;
``(C) issue renewable energy credits to electric utilities
associated with State renewable portfolio standard compliance
mechanisms pursuant to subsection (h);
``(D) ensure that a kilowatt hour, including the associated
renewable energy credit, shall be used only once for purposes
of compliance with this Act;
``(E) allow double credits for generation from facilities
on Indian land, and triple credits for generation from small
renewable distributed generators (meaning those no larger
than 1 megawatt); and
``(F) ensure that, with respect to a purchaser that, as of
the date of enactment of this section, has a purchase
agreement from a renewable energy facility placed in service
before that date, the credit associated with the generation
of renewable energy under the contract is issued to the
purchaser of the electric energy to the extent that the
contract does not already provide for the allocation of the
Federal credit.
``(3) Duration.--A credit described in subparagraph (A),
(B), or (C) of paragraph (2) may only be used for compliance
with this section during the 3-year period beginning on the
date of issuance of the credit.
``(4) Transfers.--An electric utility that holds credits in
excess of the quantity of credits needed to comply with
subsection (a) may transfer the credits to another electric
utility in the same utility holding company system.
``(5) Delegation of market function.--The Secretary may
delegate to an appropriate market-making entity the
administration of a national tradeable renewable energy
credit market for purposes of creating a transparent national
market for the sale or trade of renewable energy credits.
``(c) Enforcement.--
``(1) Civil penalties.--Any electric utility that fails to
meet the compliance requirements of subsection (a) shall be
subject to a civil penalty.
``(2) Amount of penalty.--The amount of the civil penalty
shall be determined by multiplying the number of kilowatt-
hours of electric energy sold to electric consumers in
violation of subsection (a) by the greater of--
``(A) the value of the alternative compliance payment, as
adjusted to reflect changes for the 12-month period ending
the preceding November 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor; or
``(B) 200 percent of the average market value of renewable
energy credits during the year in which the violation
occurred.
``(3) Mitigation or waiver.--
``(A) Penalty.--
``(i) In general.--The Secretary may mitigate or waive a
civil penalty under this subsection if the electric utility
is unable to comply with subsection (a) for a reason outside
of the reasonable control of the utility.
``(ii) Amount.--The Secretary shall reduce the amount of
any penalty determined under paragraph (2) by the amount paid
by the electric utility to a State for failure to comply with
the requirement of a State renewable energy program if the
State requirement is greater than the applicable requirement
of subsection (a).
``(B) Requirement.--The Secretary may waive the
requirements of subsection (a) for a period of up to 5 years
with respect to an electric utility if the Secretary
determines that the electric utility cannot meet the
requirements because of a hurricane, tornado, fire, flood,
earthquake, ice storm, or other natural disaster or act of
God beyond the reasonable control of the utility.
``(4) Procedure for assessing penalty.--The Secretary shall
assess a civil penalty under this subsection in accordance
with the procedures prescribed by section 333(d) of the
Energy Policy and Conservation Act of 1954 (42 U.S.C. 6303).
``(d) State Renewable Energy Account Program.--
``(1) In general.--There is established in the Treasury a
State renewable energy account program.
``(2) Deposits.--All money collected by the Secretary from
alternative compliance payments and the assessment of civil
penalties under this section shall be deposited into the
renewable energy account established pursuant to this
subsection.
``(3) Use.--Proceeds deposited in the State renewable
energy account shall be used by the Secretary, subject to
appropriations, for a program to provide grants to the State
agency responsible for developing State energy conservation
plans under section 362 of the Energy Policy and Conservation
Act (42 U.S.C. 6322) for the purposes of promoting renewable
energy production, including programs that promote
technologies that reduce the use of electricity at customer
sites such as solar water heating.
``(4) Administration.--The Secretary may issue guidelines
and criteria for grants awarded under this subsection. State
energy offices receiving grants under this section shall
maintain such records and evidence of compliance as the
Secretary may require.
``(5) Preference.--In allocating funds under this program,
the Secretary shall give preference--
``(A) to States in regions which have a disproportionately
small share of economically sustainable renewable energy
generation capacity; and
``(B) to State programs to stimulate or enhance innovative
renewable energy technologies.
``(e) Rules.--The Secretary shall issue rules implementing
this section not later than 1 year after the date of
enactment of this section.
``(f) Exemptions.--This section shall not apply in any
calendar year to an electric utility--
``(1) that sold less than 4,000,000 megawatt-hours of
electric energy to electric consumers during the preceding
calendar year; or
``(2) in Hawaii.
``(g) Inflation Adjustment.--Not later than December 31 of
each year beginning in 2008, the Secretary shall adjust for
inflation the rate of the alternative compliance payment
under subsection (a)(2)(B) and the amount of the civil
penalty per kilowatt-hour under subsection (c)(2).
``(h) State Programs.--
``(1) In general.--Nothing in this section diminishes any
authority of a State or political subdivision of a State to
adopt or enforce any law or regulation respecting renewable
energy or the regulation of electric utilities, but, except
as provided in subsection (c)(3), no such law or regulation
shall relieve any person of any requirement otherwise
applicable under this section. The Secretary, in consultation
with States having such renewable energy programs, shall, to
the maximum extent practicable, facilitate coordination
between the Federal program and State programs.
``(2) Regulations.--
``(A) In general.--The Secretary, in consultation with
States, shall promulgate regulations to ensure that an
electric utility that is subject to the requirements of this
section and is subject to a State renewable energy standard
receives renewable energy credits if--
``(i) the electric utility complies with State standard by
generating or purchasing renewable electric energy or
renewable energy certificates or credits; or
``(ii) the State imposes or allows other mechanisms for
achieving the State standard, including the payment of taxes,
fees, surcharges, or other financial obligations.
``(B) Amount of credits.--The amount of credits received by
an electric utility under this subsection shall equal--
``(i) in the case of subparagraph (A)(i), the renewable
energy resulting from the generation or purchase by the
electric utility of existing renewable energy or new
renewable energy; and
``(ii) in the case of subparagraph (A)(ii), the pro rata
share of the electric utility, based on the contributions to
the mechanism made by the electric utility or customers of
the electric utility, in the State, of the renewable energy
resulting from those mechanisms.
``(C) Prohibition on double counting.--The regulations
promulgated under this paragraph shall ensure that a
kilowatt-hour associated with a renewable energy credit
issued pursuant to this subsection shall not be used for
compliance with this section more than once.
``(i) Definitions.--In this section:
``(1) Base amount of electricity.--The term `base amount of
electricity' means the total amount of electricity sold by an
electric utility to electric consumers in a calendar year,
excluding--
``(A) electricity generated by a hydroelectric facility
(including a pumped storage facility but excluding
incremental hydropower); and
``(B) electricity generated through the incineration of
municipal solid waste.
``(2) Distributed generation facility.--The term
`distributed generation facility' means a facility at a
customer site.
``(3) Existing renewable energy.--The term `existing
renewable energy' means, except as provided in paragraph
(7)(B), electric energy generated at a facility (including a
distributed generation facility) placed in service prior to
January 1, 2001, from solar, wind, or geothermal energy,
ocean energy, biomass (as defined in section 203(a) of the
Energy Policy Act of 2005), or landfill gas.
``(4) Geothermal energy.--The term `geothermal energy'
means energy derived from a geothermal deposit (within the
meaning of section 613(e)(2) of the Internal Revenue Code of
1986).
``(5) Incremental geothermal production.--
``(A) In general.--The term `incremental geothermal
production' means for any year the excess of--
``(i) the total kilowatt hours of electricity produced from
a facility (including a distributed generation facility)
using geothermal energy; over
``(ii) the average annual kilowatt hours produced at such
facility for 5 of the previous 7 calendar years before the
date of enactment of this section after eliminating the
highest and the lowest kilowatt hour production years in such
7-year period.
``(B) Special rule.--A facility described in subparagraph
(A) that was placed in service

[[Page S7658]]

at least 7 years before the date of enactment of this section
shall, commencing with the year in which such date of
enactment occurs, reduce the amount calculated under
subparagraph (A)(ii) each year, on a cumulative basis, by the
average percentage decrease in the annual kilowatt hour
production for the 7-year period described in subparagraph
(A)(ii) with such cumulative sum not to exceed 30 percent.
``(6) Incremental hydropower.--The term `incremental
hydropower' means additional energy generated as a result of
efficiency improvements or capacity additions made on or
after January 1, 2001, or the effective date of an existing
applicable State renewable portfolio standard program at a
hydroelectric facility that was placed in service before that
date. The term does not include additional energy generated
as a result of operational changes not directly associated
with efficiency improvements or capacity additions.
Efficiency improvements and capacity additions shall be
measured on the basis of the same water flow information used
to determine a historic average annual generation baseline
for the hydroelectric facility and certified by the Secretary
or the Federal Energy Regulatory Commission.
``(7) New renewable energy.--The term `new renewable
energy' means--
``(A) electric energy generated at a facility (including a
distributed generation facility) placed in service on or
after January 1, 2001, from--
``(i) solar, wind, or geothermal energy or ocean energy;
``(ii) biomass (as defined in section 203(b) of the Energy
Policy Act of 2005 (42 U.S.C. 15852(b));
``(iii) landfill gas; or
``(iv) incremental hydropower; and
``(B) for electric energy generated at a facility
(including a distributed generation facility) placed in
service before January 1, 2001--
``(i) the additional energy above the average generation
during the period beginning on January 1, 1998, and ending on
January 1, 2001, at the facility from--

``(I) solar or wind energy or ocean energy;
``(II) biomass (as defined in section 203(b) of the Energy
Policy Act of 2005 (42 U.S.C. 15852(b));
``(III) landfill gas; or
``(IV) incremental hydropower; and

``(ii) incremental geothermal production.
``(8) Ocean energy.--The term `ocean energy' includes
current, wave, tidal, and thermal energy.
``(j) Sunset.--This section expires on December 31,
2030.''.
(b) Table of Contents Amendment.--The table of contents of
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
prec. 2601) is amended by adding at the end of the items
relating to title VI the following:

``Sec. 610. Federal renewable part folio standard.''.
______

SA 1538. Mr. McCONNELL (for Mr. Domenici (for himself, Mr. Craig, Mr.
Bennett, Mr. Crapo, Mr. Graham, and Ms. Murkowski)) proposed an
amendment to be proposed to amendment SA 1537 proposed by Mr. Reid (for
Mr. Bingaman (for himself, Mr. Reid, Mr. Cardin, Mr. Salazar, Ms.
Snowe, and Mr. Durbin)) to the amendment SA 1502 proposed by Mr. Reid
to the bill H.R. 6, to reduce our Nation's dependency on foreign oil by
investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; as
follows:

Beginning on page 1 of the amendment, line 2, strike
everything after ``TITLE'' and insert the following:

VIII--FEDERAL CLEAN PORTFOLIO STANDARD

SEC. 801. FEDERAL CLEAN PORTFOLIO STANDARD.

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

``SEC. 610. FEDERAL CLEAN PORTFOLIO STANDARD.

``(a) Clean Energy Requirement.--
``(1) In general.--Each electric utility that sells
electricity to electric consumers shall obtain a percentage
of the base amount of electricity it sells to electric
consumers in any calendar year from new clean energy or
existing clean energy. The percentage obtained in a calendar
year shall not be less than the amount specified in the
following table:

``Calendar year:                             Minimum annual percentage:
2010 through 2012...................................................  5
2013 through 2016................................................... 10
2017 through 2019................................................... 15
2020 through 2030................................................... 20

``(2) Means of compliance.--An electric utility shall meet
the requirements of paragraph (1) by--
``(A) submitting to the Secretary clean energy credits
issued under subsection (b);
``(B) making alternative compliance payments to the
Secretary at the rate of 2 cents per kilowatt hour (as
adjusted for inflation under subsection (g)); or
``(C) a combination of activities described in
subparagraphs (A) and (B).
``(3) Special rule.--Nothing in this section authorizes or
requires the Tennessee Valley Authority to make ``any capital
expenditure on new generating capacity, except to the extent
that budget authority for the expenditure is provided in
advance in an appropriations Act''.
``(b) Clean Energy Credit Trading Program.--
``(1) In general.--Not later than July 1, 2009, the
Secretary shall establish a clean energy credit trading
program under which electric utilities shall submit to the
Secretary clean energy credits to certify the compliance of
the electric utilities with respect to obligations under
subsection (a)(1).
``(2) Administration.--As part of the program, the
Secretary shall--
``(A) issue tradeable clean energy credits to generators of
electric energy from new clean energy;
``(B) issue nontradeable clean energy credits to generators
of electric energy from existing clean energy;
``(C) issue clean energy credits to electric utilities
associated with State portfolio standard compliance
mechanisms pursuant to paragraph (6);
``(D) ensure that a kilowatt hour, including the associated
clean energy credit, shall be used only once for purposes of
compliance with this Act;
``(E) allow double credits for generation from facilities
on Indian land, and triple credits for generation from small
renewable distributed generators (meaning those no larger
than 1 megawatt); and
``(F) ensure that, with respect to a purchaser that, as of
the date of enactment of this section, has a purchase
agreement from a clean energy facility placed in service
before that date, the credit associated with the generation
of clean energy under the contract is issued to the purchaser
of the electric energy, to the extent that the contract does
not already provide for the allocation of the credit.
``(3) Duration.--A credit described in subparagraph (A),
(B), or (C) of paragraph (2) may only be used for compliance
with this section during the 3-year period beginning on the
date of issuance of the credit.
``(4) Transfers.--An electric utility that holds credits in
excess of the quantity of credits needed to comply with
subsection (a) may transfer the credits to another electric
utility in the same utility holding company system.
``(5) Delegation of market function.--The Secretary may
delegate to an appropriate market-making entity the
administration of a national tradeable clean energy credit
market for purposes of creating a transparent national market
for the sale or trade of clean energy credits.
``(6) Credit for state alternative compliance payments and
other financial compliance mechanisms.--
``(A) In general.--In the case of an electric utility
subject to a State portfolio standard program that requires
the generation of electricity from clean energy and makes
alternative compliance payments under the program in
satisfaction of applicable State requirements or complies by
other financial mechanisms, the Secretary shall issue clean
energy credits to the electric utility in an amount that
corresponds to the amount of the State alternative compliance
payment or other financial compliance mechanism as though
that payment or mechanism had been made to the Secretary
under this subsection.
``(B) Application.--A clean energy credit issued under
subparagraph (A) may be--
``(i) applied against the required annual percentage of an
electric utility; or
``(ii) transferred for use only by an associate company of
the electric utility.
``(c) Enforcement.--
``(1) Civil penalties.--Any electric utility that fails to
meet the compliance requirements of subsection (a) shall be
subject to a civil penalty.
``(2) Amount of penalty.--The amount of the civil penalty
shall be determined by multiplying the number of kilowatt-
hours of electric energy sold to electric consumers in
violation of subsection (a) by the greater of--
``(A) the value of the alternative compliance payment, as
adjusted to reflect changes for the 12-month period ending
the preceding November 30 in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics
of the Department of Labor; or
``(B) 200 percent of the average market value of clean
energy credits during the year in which the violation
occurred.
``(3) Procedure for assessing penalty.--Subject to
subsection (h)(2), the Secretary shall assess a civil penalty
under this subsection in accordance with the procedures
prescribed by section 333(d) of the Energy Policy and
Conservation Act of 1954 (42 U.S.C. 6303).
``(d) State Clean Energy Account Program.--
``(1) In general.--There is established in the Treasury a
State clean energy account program.
``(2) Deposits.--All money collected by the Secretary from
the sale of clean energy credits, the provision of
alternative compliance payments, and the assessment of civil
penalties under this section shall be deposited into the
clean energy account established pursuant to this subsection.

[[Page S7659]]

``(3) Transfer.--Amounts deposited in the State clean
energy account shall be transferred, subject to
appropriations, to the State in which the amounts were
collected.
``(4) Use.--Amounts transferred to a State under paragraph
(3) shall be used by the State for the purposes of promoting
clean energy production, including programs that promote
technologies that reduce the use of electricity at customer
sites.
``(e) Rules.--The Secretary shall issue rules implementing
this section not later than 1 year after the date of
enactment of this section.
``(f) Exemptions.--This section shall not apply in any
calendar year to an electric utility--
``(1) that sold less than 4,000,000 megawatt-hours of
electric energy to electric consumers during the preceding
calendar year; or
``(2) in Hawaii.
``(g) Inflation Adjustment.--Not later than December 31 of
each year beginning in 2008, the Secretary shall adjust for
inflation the rate of alternative compliance payments under
subsection (a)(2)(B) and the amount of the civil penalty per
kilowatt-hour under subsection (c)(2).
``(h) Waiver.--
``(1) In general.--The Secretary may waive the compliance
requirements of subsection (a) with respect to an electric
utility if the Secretary determines that the electric utility
cannot meet the requirements for reason of force majeure in
effect on any date after the date that is 5 years before the
date of enactment of this section.
``(2) Civil penalties.--
``(A) In general.--The Secretary may mitigate or waive a
civil penalty under subsection (c) if the electric utility
was unable to comply with subsection (a) for reasons outside
of the reasonable control of the utility in effect after the
date of enactment of this section.
``(B) Amount of reduction.--The Secretary shall reduce the
amount of any penalty determined under subsection (c)(2) by
an amount paid by the electric utility to a State for failure
to comply with the requirement of a State clean energy
program.
``(i) Governor Certification.--On submission by the
Governor of a State to the Secretary of a notification that
the State has in effect, and is enforcing, a State portfolio
standard that substantially contributes to the overall goals
of the Federal clean portfolio standard under this section,
the State may elect not to participate in the program under
this section.
``(j) Definitions.--In this section:
``(1) Base amount of electricity.--The term `base amount of
electricity' means the total amount of electricity sold by an
electric utility to electric consumers in a calendar year,
excluding--
``(A) electricity generated by a hydroelectric facility
(including a pumped storage facility but excluding
incremental hydropower);
``(B) electricity generated through the incineration of
municipal solid waste; and
``(C) except as provided in paragraph (9), electricity
generated from nuclear power.
``(2) Demand response.--The term `demand response' means a
reduction in electricity usage by end-use customers as
compared to the normal consumption patterns of the customers,
or shifts in electric usage by end-use customers from on-peak
hours of an electric utility to off-peak hours of an electric
utility that do not result in increased usage, in response to
an incentive payment or a program to reduce electricity use
at any time at which--
``(A) wholesale market prices are high; or
``(B) system reliability is jeopardized.
``(3) Distributed generation facility.--The term
`distributed generation facility' means a facility at a
customer site.
``(4) Energy efficiency.--The term `energy efficiency'
means--
``(A) demand response; or
``(B) the use of less energy in homes, buildings, or
industry through methods such as the installation of more
efficient equipment, appliances, or other technologies to
achieve the same level of function or economic activity
achieved on the date of enactment of this section.
``(5) Existing clean energy.--The term `existing clean
energy' means, except as provided in paragraph (9)(B),
electric energy generated at a facility (including a
distributed generation facility) placed in service prior to
January 1, 2001, from solar, wind, or geothermal energy,
ocean energy, biomass (as defined in section 203(a) of the
Energy Policy Act of 2005 (42 U.S.C. 15852(a))), or landfill
gas.
``(6) Geothermal energy.--The term `geothermal energy'
means energy derived from a geothermal deposit (within the
meaning of section 613(e)(2) of the Internal Revenue Code of
1986).
``(7) Incremental geothermal production.--
``(A) In general.--The term `incremental geothermal
production' means for any year the excess of--
``(i) the total kilowatt hours of electricity produced from
a facility (including a distributed generation facility)
using geothermal energy; over
``(ii) the average annual kilowatt hours produced at such
facility for 5 of the previous 7 calendar years before the
date of enactment of this section after eliminating the
highest and the lowest kilowatt hour production years in such
7-year period.
``(B) Special rule.--A facility described in subparagraph
(A) that was placed in service at least 7 years before the
date of enactment of this section shall commencing with the
year in which such date of enactment occurs, reduce the
amount calculated under subparagraph (A)(ii) each year, on a
cumulative basis, by the average percentage decrease in the
annual kilowatt hour production for the 7-year period
described in subparagraph (A)(ii) with such cumulative sum
not to exceed 30 percent.
``(8) Incremental hydropower.--The term `incremental
hydropower' means additional energy generated as a result of
efficiency improvements or capacity additions made on or
after January 1, 2001, or the effective date of an existing
applicable State clean portfolio standard program at a
hydroelectric facility that was placed in service before that
date. The term does not include additional energy generated
as a result of operational changes not directly associated
with efficiency improvements or capacity additions.
Efficiency improvements and capacity additions shall be
measured on the basis of the same water flow information used
to determine a historic average annual generation baseline
for the hydroelectric facility and certified by the Secretary
or the Federal Energy Regulatory Commission.
``(9) New clean energy.--The term `new clean energy'
means--
``(A) electric energy generated at a facility (including a
distributed generation facility) placed in service on or
after January 1, 2001, from--
``(i) solar, wind, or geothermal energy or ocean energy;
``(ii) biomass (as defined in section 203(b) of the Energy
Policy Act of 2005 (42 U.S.C. 15852(b));
``(iii) landfill gas;
``(iv) new hydropower that does not require the
construction of any dam;
``(v) new nuclear generation;
``(vi) a fuel cell;
``(vii) energy efficiency or demand response as result of
programs conducted by the electric utility, as measured and
verified by a method acceptable to the Secretary;
``(viii) an inherently low-emission technology that
captures and stores carbon; or
``(ix) such other clean energy sources as the Secretary
determines, by regulation, will advance the goals of this
section; and
``(B) for electric energy generated at a facility
(including a distributed generation facility) placed in
service before January 1, 2001--
``(i) the additional energy above the average generation
during the period beginning on January 1, 1998, and ending on
January 1, 2001, at the facility from--

``(I) solar or wind energy or ocean energy;
``(II) biomass (as defined in section 203(b) of the Energy
Policy Act of 2005 (42 U.S.C. 15852(b));
``(III) landfill gas;
``(IV) incremental hydropower; or
``(V) nuclear generation; or

``(ii) incremental geothermal production.
``(10) Ocean energy.--The term `ocean energy' includes
current, wave, tidal, and thermal energy.''.
(b) Table of Contents Amendment.--The table of contents of
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
prec. 2601) is amended by adding at the end of the items
relating to title VI the following:

``Sec. 610. Federal clean portfolio standard.''.

______

SA 1539. Mr. AKAKA (for himself, Ms. Murkowski, and Ms. Snowe)
submitted an amendment intended to be proposed by him to the bill H.R.
6, to reduce our Nation's dependency on foreign oil by investing in
clean, renewable, and alternative energy resources, promoting new
emerging energy technologies, developing greater efficiency, and
creating a Strategic Energy Efficiency and Renewables Reserve to invest
in alternative energy, and for other purposes; which was ordered to lie
on the table; as follows:

At the appropriate place, insert the following:

TITLE _--MARINE AND HYDROKINETIC RENEWABLE ENERGY PROMOTION

SEC. _01. DEFINITION.

For purposes of this title, the term ``marine and
hydrokinetic renewable energy'' means electrical energy
from--
(1) waves, tides, and currents in oceans, estuaries, and
tidal areas;
(2) free flowing water in rivers, lakes, and streams;
(3) free flowing water in man-made channels, including
projects that utilize nonmechanical structures to accelerate
the flow of water for electric power production purposes; and
(4) differentials in ocean temperature (ocean thermal
energy conversion).
The term shall not include energy from any source that
utilizes a dam, diversionary structure, or impoundment for
electric power purposes, except as provided in paragraph (3).

SEC. _02. RESEARCH AND DEVELOPMENT.

(a) Program.--The Secretary of Energy, in consultation with
the Secretary of Commerce and the Secretary of the Interior,
shall establish a program of marine and hydrokinetic
renewable energy research focused on--

[[Page S7660]]

(1) developing and demonstrating marine and hydrokinetic
renewable energy technologies;
(2) reducing the manufacturing and operation costs of
marine and hydrokinetic renewable energy technologies;
(3) increasing the reliability and survivability of marine
and hydrokinetic renewable energy facilities;
(4) integrating marine and hydrokinetic renewable energy
into electric grids;
(5) identifying opportunities for cross fertilization and
development of economies of scale between offshore wind and
marine and hydrokinetic renewable energy sources;
(6) identifying, in consultation with the Secretary of
Commerce and the Secretary of the Interior, the environmental
impacts of marine and hydrokinetic renewable energy
technologies and ways to address adverse impacts, and
providing public information concerning technologies and
other means available for monitoring and determining
environmental impacts; and
(7) standards development, demonstration, and technology
transfer for advanced systems engineering and system
integration methods to identify critical interfaces.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Energy for carrying
out this section $50,000,000 for each of the fiscal years
2008 through 2017.

SEC. _03. ADAPTIVE MANAGEMENT AND ENVIRONMENTAL FUND.

(a) Findings.--The Congress finds that--
(1) the use of marine and hydrokinetic renewable energy
technologies can avoid contributions to global warming gases,
and such technologies can be produced domestically;
(2) marine and hydrokinetic renewable energy is a nascent
industry; and
(3) the United States must work to promote new renewable
energy technologies that reduce contributions to global
warming gases and improve our country's domestic energy
production in a manner that is consistent with environmental
protection, recreation, and other public values.
(b) Establishment.--The Secretary of Energy shall establish
an Adaptive Management and Environmental Fund, and shall lend
amounts from that fund to entities described in subsection
(f) to cover the costs of projects that produce marine and
hydrokinetic renewable energy. Such costs include design,
fabrication, deployment, operation, monitoring, and
decommissioning costs. Loans under this section may be
subordinate to project-related loans provided by commercial
lending institutions to the extent the Secretary of Energy
considers appropriate.
(c) Reasonable Access.--As a condition of receiving a loan
under this section, a recipient shall provide reasonable
access, to Federal or State agencies and other research
institutions as the Secretary considers appropriate, to the
project area and facilities for the purposes of independent
environmental research.
(d) Public Availability.--The results of any assessment or
demonstration paid for, in whole or in part, with funds
provided under this section shall be made available to the
public, except to the extent that they contain information
that is protected from disclosure under section 552(b) of
title 5, United States Code.
(e) Repayment of Loans.--
(1) In general.--The Secretary of Energy shall require a
recipient of a loan under this section to repay the loan,
plus interest at a rate of 2.1 percent per year, over a
period not to exceed 20 years, beginning after the commercial
generation of electric power from the project commences. Such
repayment shall be required at a rate that takes into account
the economic viability of the loan recipient and ensures
regular and timely repayment of the loan.
(2) Beginning of repayment period.--No repayments shall be
required under this subsection until after the project
generates net proceeds. For purposes of this paragraph, the
term ``net proceeds'' means proceeds from the commercial sale
of electricity after payment of project-related costs,
including taxes and regulatory fees that have not been paid
using funds from a loan provided for the project under this
section.
(3) Termination.--Repayment of a loan made under this
section shall terminate as of the date that the project for
which the loan was provided ceases commercial generation of
electricity if a governmental permitting authority has
ordered the closure of the facility because of a finding that
the project has unacceptable adverse environmental impacts,
except that the Secretary shall require a loan recipient to
continue making loan repayments for the cost of equipment,
obtained using funds from the loan that have not otherwise
been repaid under rules established by the Secretary, that is
utilized in a subsequent project for the commercial
generation of electricity.
(f) Adaptive Management Plan.--In order to receive a loan
under this section, an applicant for a Federal license or
permit to construct, operate, or maintain a marine or
hydrokinetic renewable energy project shall provide to the
Federal agency with primary jurisdiction to issue such
license or permit an adaptive management plan for the
proposed project. Such plan shall--
(1) be prepared in consultation with other parties to the
permitting or licensing proceeding, including all Federal,
State, municipal, and tribal agencies with authority under
applicable Federal law to require or recommend design or
operating conditions, for protection, mitigation, and
enhancement of fish and wildlife resources, water quality,
navigation, public safety, land reservations, or recreation,
for incorporation into the permit or license;
(2) set forth specific and measurable objectives for the
protection, mitigation, and enhancement of fish and wildlife
resources, water quality, navigation, public safety, land
reservations, or recreation, as required or recommended by
governmental agencies described in paragraph (1), and shall
require monitoring to ensure that these objectives are met;
(3) provide specifically for the modification or, if
necessary, removal of the marine or hydrokinetic renewable
energy project based on findings by the licensing or
permitting agency that the marine or hydrokinetic renewable
energy project has not attained or will not attain the
specific and measurable objectives set forth in paragraph
(2); and
(4) be approved and incorporated in the Federal license or
permit.
(g) Sunset.--The Secretary of Energy shall transmit a
report to the Congress when the Secretary of Energy
determines that the technologies supported under this title
have achieved a level of maturity sufficient to enable the
expiration of the programs under this title. The Secretary of
Energy shall not make any new loans under this section after
the report is transmitted under this subsection.

SEC. _04. PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT.

The Secretary of Commerce and the Secretary of the Interior
shall, in cooperation with the Federal Energy Regulatory
Commission and the Secretary of Energy, and in consultation
with appropriate State agencies, jointly prepare programmatic
environmental impact statements which contain all the
elements of an environmental impact statement under section
102 of the National Environmental Policy Act of 1969 (42
U.S.C. 4332), regarding the impacts of the deployment of
marine and hydrokinetic renewable energy technologies in the
navigable waters of the United States. One programmatic
environmental impact statement shall be prepared under this
section for each of the Environmental Protection Agency
regions of the United States. The agencies shall issue the
programmatic environmental impact statements under this
section not later than 18 months after the date of enactment
of this Act. The programmatic environmental impact statements
shall evaluate among other things the potential impacts of
site selection on fish and wildlife and related habitat.
Nothing in this section shall operate to delay consideration
of any application for a license or permit for a marine and
hydrokinetic renewable energy technology project.

______

SA 1540. Mr. CARPER (for himself and Mr. Biden) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:

On page 59, after line 21, add the following:

SEC. 151. STUDY OF OFFSHORE WIND RESOURCES.

(a) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
the Minerals Management Service.
(2) Eligible institution.--The term ``eligible
institution'' means a college or university that--
(A) as of the date of enactment of this Act, has an
offshore wind power research program; and
(B) is located in a region of the United States that is in
reasonable proximity to the eastern outer Continental Shelf,
as determined by the Director.
(b) Study.--The Director, in cooperation with an eligible
institution, as selected by the Director, shall conduct a
study to assess each offshore wind resource located in the
region of the eastern outer Continental Shelf.
(c) Report.--Upon completion of the study under subsection
(b), the Director shall submit to Congress a report that
includes--
(1) a description of--
(A) the locations and total power generation resources of
the best offshore wind resources located in the region of the
eastern outer Continental Shelf, as determined by the
Director;
(B) based on conflicting zones relating to any
infrastructure that, as of the date of enactment of this Act,
is located in close proximity to any offshore wind resource,
the likely exclusion zones of each offshore wind resource
described in subparagraph (A);
(C) the relationship of the temporal variation of each
offshore wind resource described in subparagraph (A) with--
(i) any other offshore wind resource; and
(ii) with loads and corresponding system operator markets;
(D) the geological compatibility of each offshore wind
resource described in subparagraph (A) with any potential
technology relating to sea floor towers; and

[[Page S7661]]

(E) with respect to each area in which an offshore wind
resource described in subparagraph (A) is located, the
relationship of the authority under any coastal management
plan of the State in which the area is located with the
Federal Government; and
(2) recommendations on the manner by which to handle
offshore wind intermittence.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000, to
remain available until expended.
______

SA 1541. Mr. SMITH (for himself, Ms. Cantwell, Ms. Murkowski, and Mr.
Wyden) submitted an amendment intended to be proposed to amendment SA
1502 proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:

On page 47, after line 23, insert the following:

SEC. 131. NATIONAL OCEAN ENERGY RESEARCH CENTERS.

(a) In General.--Subject to the availability of
appropriations under subsection (d), the Secretary shall
establish not less than 1, and not more than 6, national
ocean energy research centers at institutions of higher
education for the purpose of conducting research,
development, demonstration, and testing of ocean energy
technologies and associated equipment.
(b) Evaluations.--Each Center shall (in consultation with
developers, utilities, and manufacturers) conduct evaluations
of technologies and equipment described in subsection (a).
(c) Location.--In establishing centers under this section,
the Secretary shall locate the centers in coastal regions of
the United State in a manner that, to the maximum extent
practicable, is geographically dispersed.
(d) Authorization of Appropriations.--There are authorized
to be appropriate such sums as are necessary to carry out
this section.
______

SA 1542. Mr. BROWNBACK submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 161, between lines 2 and 3, insert the following:

SEC. 269. AGRICULTURAL BYPRODUCT USE EXPOSITION.

The Secretary of Agriculture shall establish a program
under which the Secretary of Agriculture shall develop,
solicit applications for participation in, advertise, and
host, at such location as the Secretary determines to be
appropriate, an exposition at which entities can demonstrate
new products, such as plastics, carpets, disposable dishes,
and cosmetics, produced by the entities from agricultural
byproducts.
______

SA 1543. Mr. BAYH (for himself, Mr. Brownback, Mr. Lieberman, Mr.
Coleman, and Mr. Salazar) submitted an amendment intended to be
proposed to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6,
to reduce our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 262, line 16, strike ``(8)'' and insert ``(16)''.
On page 262, strike lines 17 and 18, and insert the
following:
``(17) `E85' means a fuel blend containing 85 percent
ethanol and 15 percent gasoline by volume.
``(18) `flexible fuel automobile' means--
``(A) a GEM flex fuel vehicle; or
``(B) a vehicle warranted by the manufacturer to operate on
biodiesel.
``(19) `GEM flex fuel vehicle' means a motor vehicle
warranted by the manufacturer to operate on gasoline and E85
and M85.
``(20) `M85' means a fuel blend containing 85 percent
methanol and 15 percent gasoline by volume.''.
______

SA 1544. Mr. CASEY (for himself and Mr. Webb) submitted an amendment
intended to be proposed to amendment SA 1502 proposed by Mr. Reid to
the bill H.R. 6, to reduce our Nation's dependency on foreign oil by
investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:

=========================== NOTE ===========================

On Page S7661, June 13, 2007, the following appears: SA 1544.
Mr. CASEY submitted an amendment intended to be proposed to
amendment SA 1502...

The online record has been corrected to read: SA 1544. Mr. CASEY
(for himself and Mr. Webb) submitted an amendment intended to be
proposed to amendment SA 1502...

========================= END NOTE =========================

At the end, add the following:

TITLE VIII--ENERGY SECURITY AND CORPORATE ACCOUNTABILITY

SEC. 801. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) Short Title.--This title may be cited as the ``Energy
Security and Corporate Accountability Act of 2007''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.

SEC. 802. REVALUATION OF LIFO INVENTORIES OF MAJOR INTEGRATED
OIL COMPANIES.

(a) General Rule.--Notwithstanding any other provision of
law, if a taxpayer is a major integrated oil company (as
defined in section 167(h)(5)(B)) for its last taxable year
ending in calendar year 2006, the taxpayer shall--
(1) increase, effective as of the close of such taxable
year, the value of each historic LIFO layer of inventories of
crude oil, natural gas, or any other petroleum product
(within the meaning of section 4611) by the layer adjustment
amount, and
(2) decrease its cost of goods sold for such taxable year
by the aggregate amount of the increases under paragraph (1).

If the aggregate amount of the increases under paragraph (1)
exceed the taxpayer's cost of goods sold for such taxable
year, the taxpayer's gross income for such taxable year shall
be increased by the amount of such excess.
(b) Layer Adjustment Amount.--For purposes of this
section--
(1) In general.--The term ``layer adjustment amount''
means, with respect to any historic LIFO layer, the product
of--
(A) $18.75, and
(B) the number of barrels of crude oil (or in the case of
natural gas or other petroleum products, the number of
barrel-of-oil equivalents) represented by the layer.
(2) Barrel-of-oil equivalent.--The term ``barrel-of-oil
equivalent'' has the meaning given such term by section 45K.
(c) Application of Requirement.--
(1) No change in method of accounting.--Any adjustment
required by this section shall not be treated as a change in
method of accounting.
(2) Underpayments of estimated tax.--No addition to the tax
shall be made under section 6655 (relating to failure by
corporation to pay estimated tax) with respect to any
underpayment of an installment required to be paid with
respect to the taxable year described in subsection (a) to
the extent such underpayment was created or increased by this
section.

SEC. 803. MODIFICATIONS OF FOREIGN TAX CREDIT RULES
APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES
WHICH ARE DUAL CAPACITY TAXPAYERS.

(a) In General.--Section 901 (relating to credit for taxes
of foreign countries and of possessions of the United States)
is amended by redesignating subsection (m) as subsection (n)
and by inserting after subsection (l) the following new
subsection:
``(m) Special Rules Relating to Major Integrated Oil
Companies Which Are Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of
this chapter, any amount paid or accrued by a dual capacity
taxpayer which is a major integrated oil company (as defined
in section 167(h)(5)(B)) to a foreign country or possession
of the United States for any period shall not be considered a
tax--
``(A) if, for such period, the foreign country or
possession does not impose a generally applicable income tax,
or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity taxpayer pursuant to
the generally applicable income tax imposed by the country or
possession, or
``(ii) would be paid if the generally applicable income tax
imposed by the country or possession were applicable to such
dual capacity taxpayer.

Nothing in this paragraph shall be construed to imply the
proper treatment of any such amount not in excess of the
amount determined under subparagraph (B).
``(2) Dual capacity taxpayer.--For purposes of this
subsection, the term `dual capacity taxpayer' means, with
respect to any foreign country or possession of the United
States, a person who--
``(A) is subject to a levy of such country or possession,
and
``(B) receives (or will receive) directly or indirectly a
specific economic benefit (as determined in accordance with
regulations) from such country or possession.
``(3) Generally applicable income tax.--For purposes of
this subsection--
``(A) In general.--The term `generally applicable income
tax' means an income tax (or a series of income taxes) which
is generally imposed under the laws of a foreign

[[Page S7662]]

country or possession on income derived from the conduct of a
trade or business within such country or possession.
``(B) Exceptions.--Such term shall not include a tax unless
it has substantial application, by its terms and in practice,
to--
``(i) persons who are not dual capacity taxpayers, and
``(ii) persons who are citizens or residents of the foreign
country or possession.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxes paid or accrued in taxable years beginning
after the date of the enactment of this Act.
(2) Contrary treaty obligations upheld.--The amendments
made by this section shall not apply to the extent contrary
to any treaty obligation of the United States.

SEC. 804. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES FOR CERTAIN MAJOR INTEGRATED OIL
COMPANIES.

(a) In General.--Subparagraph (A) of section 167(h)(5)
(relating to special rule for major integrated oil companies)
is amended by striking ``5-year'' and inserting ``7-year''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.

SEC. 805. SUSPENSION OF ROYALTY RELIEF.

(a) Repeals.--Sections 344 and 345 of the Energy Policy Act
of 2005 (42 U.S.C. 15904, 15905) are repealed.
(b) Termination of Alaska Offshore Royalty Suspension.--
Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(a)(3)(B)) is amended by striking ``and in the
Planning Areas offshore Alaska''.

SEC. 806. NATIONAL ENERGY SECURITY RESEARCH AND INVESTMENT
RESERVE.

(a) Establishment.--For budgetary purposes, for each fiscal
year, an amount equal to the total net amount of savings to
the Federal Government for the fiscal year resulting from the
amendments made by sections 802, 803, 804, and 805, as
determined by the Secretary of the Treasury, shall be held in
a separate account in the Treasury of the United States, to
be known as the ``National Energy Security Research and
Investment Reserve'' (referred to in this section as the
``Reserve'').
(b) Use.--Of the amounts in the Reserve--
(1) 50 percent shall be available to offset the cost of
legislation enacted after the date of enactment of this Act
to carry out energy research in the United States, including
research relating to--
(A) ethanol, and
(B) biodiesel, and
(2) 50 percent shall be available to offset the cost of
legislation enacted after the date of enactment of this Act
to carry out the development, purchase, and installation of
infrastructure (including new fueling pumps, retrofitting of
existing fueling pumps, and equipment necessary for the
transportation of biofuels) necessary to deliver new fuels to
consumers.
(c) Procedure for Adjustments.--
(1) Budget committee chairman.--After the reporting of a
bill or joint resolution, or the offering of an amendment to
the bill or joint resolution or the submission of a
conference report for the bill or joint resolution, providing
funding for the purposes described in subsection (b) in
excess of the amounts provided for those purposes for fiscal
year 2007, the chairman of the Committee on the Budget of the
applicable House of Congress shall make the adjustments
required under paragraph (2) for the amount of new budget
authority and outlays in the measure and the outlays flowing
from that budget authority.
(2) Matters to be adjusted.--The adjustments referred to in
paragraph (1) are to be made to--
(A) the discretionary spending limits, if any, set forth in
the appropriate concurrent resolution on the budget,
(B) the allocations made pursuant to the appropriate
concurrent resolution on the budget pursuant to section
302(a) of the Congressional Budget Act of 1974 (2 U.S.C.
633(a)), and
(C) the budget aggregates contained in the appropriate
concurrent resolution on the budget as required by section
301(a) of the Congressional Budget Act of 1974 (2 U.S.C.
632(a)).
(3) Amounts of adjustments.--The adjustments referred to in
paragraphs (1) and (2) shall not exceed the receipts
estimated by the Congressional Budget Office that are
attributable to sections 802, 803, 804, and 805 (and the
amendments made by such sections) for the fiscal year in
which the adjustments are made.

______

SA 1545. Mr. ENZI submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 21, strike lines 7 through 11 and insert the
following:
(B) implementation of the requirement would significantly
increase the price of agricultural food products or livestock
feed products;
(C) implementation of the requirement would have a
significantly detrimental impact on the deliverability of
materials, goods, and products (other than renewable fuel),
by rail or truck; or
(D) extreme and unusual circumstances exist that prevent
distribution of an adequate supply of domestically-produced
renewable fuel to consumers in the United States.
______

SA 1546. Mr. DeMINT submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following:

SEC. ___. LIMITATIONS ON LEGISLATION THAT WOULD INCREASE
NATIONAL AVERAGE FUEL PRICES FOR AUTOMOBILES.

(a) Point of Order.--
(1) In general.--If the Senate is considering legislation,
upon a point of order being made by any Senator against
legislation, or any part of the legislation, that it has been
determined in accordance with paragraph (2) that the
legislation, if enacted, would result in an increase in the
national average fuel price for automobiles, and the point of
order is sustained by the Presiding Officer, the Senate shall
cease consideration of the legislation.
(2) Determination.--The determination described in this
paragraph means a determination by the Director of the
Congressional Budget Office, in consultation with the Energy
Information Administration and other appropriate Government
agencies, that is made upon the request of a Senator for
review of legislation, that the legislation, or part of the
legislation, would, if enacted, result in an increase in the
national average fuel price for automobiles.
(3) Legislation.--In this section the term ``legislation''
means a bill, joint resolution, amendment, motion, or
conference report.
(b) Waivers and Appeals.--
(1) Waivers.--Before the Presiding Officer rules on a point
of order described in subsection (a)(1), any Senator may move
to waive the point of order and the motion to waive shall not
be subject to amendment. A point of order described in
subsection (a)(1) is waived only by the affirmative vote of
60 Members of the Senate, duly chosen and sworn.
(2) Appeals.--After the Presiding Officer rules on a point
of order described in subsection (a)(1), any Senator may
appeal the ruling of the Presiding Officer on the point of
order as it applies to some or all of the provisions on which
the Presiding Officer ruled. A ruling of the Presiding
Officer on a point of order described in subsection (a)(1) is
sustained unless 60 Members of the Senate, duly chosen and
sworn, vote not to sustain the ruling.
(3) Debate.--Debate on the motion to waive under paragraph
(1) or on an appeal of the ruling of the Presiding Officer
under paragraph (2) shall be limited to 1 hour. The time
shall be equally divided between, and controlled by, the
Majority leader and the Minority Leader of the Senate, or
their designees.

______

SA 1547. Mr. TESTER (for himself, Mr. Bingaman, Mr. Reid, Ms.
Murkowski, Mr. Stevens, Mr. Salazar, Mr. Akaka, Mr. Sanders, and Ms.
Snowe) submitted an amendment intended to be proposed to amendment SA
1502 proposed by Mr. Reid to the bill H.R. 6, to reduce our Nation's
dependency on foreign oil by investing in clean, renewable, and
alternative energy resources, promoting new emerging energy
technologies, developing greater efficiency, and creating a Strategic
Energy Efficiency and Renewables Reserve to invest in alternative
energy, and for other purposes; which was ordered to lie on the table;
as follows:

At the end, add the following:

TITLE VIII--GEOTHERMAL ENERGY

SEC. 801. SHORT TITLE.

This title may be cited as the ``National Geothermal
Initiative Act of 2007''.

SEC. 802. FINDINGS.

Congress finds that--
(1) domestic geothermal resources have the potential to
provide vast amounts of clean, renewable, and reliable energy
to the United States;
(2) Federal policies and programs are critical to achieving
the potential of those resources;
(3) Federal tax policies should be modified to
appropriately support the longer lead-times of geothermal
facilities and address the high risks of geothermal
exploration and development;

[[Page S7663]]

(4) sustained and expanded research programs are needed--
(A) to support the goal of increased energy production from
geothermal resources;
(B) to develop and demonstrate the potential for geothermal
heat exchange technologies for heating, cooling, and energy
efficiency; and
(C) to develop the technologies that will enable commercial
production of energy from more geothermal resources;
(5) a comprehensive national resource assessment is needed
to support policymakers and industry needs;
(6) a national exploration and development technology and
information center should be established to support the
achievement of increased geothermal energy production; and
(7) implementation and completion of geothermal and other
renewable initiatives on public land in the United States is
critical, consistent with the principles and requirements of
the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1701 et seq.) and other applicable law.

SEC. 803. NATIONAL GOAL.

Congress declares that it shall be a national goal to
achieve at least 15 percent of total electrical energy
production in the United States from geothermal resources by
not later than 2030.

SEC. 804. DEFINITIONS.

In this title:
(1) Initiative.--The term ``Initiative'' means the national
geothermal initiative established by section 805(a).
(2) National goal.--The term ``national goal'' means the
national goal of increased energy production from geothermal
resources described in section 803.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.

SEC. 805. NATIONAL GEOTHERMAL INITIATIVE.

(a) Establishment.--There is established a national
geothermal initiative under which the Federal Government
shall seek to achieve the national goal.
(b) Federal Support and Coordination.--In carrying out the
Initiative, each Federal agency shall give priority to
programs and efforts necessary to support achievement of the
national goal to the extent consistent with applicable law.
(c) Energy and Interior Goals.--
(1) In general.--In carrying out the Initiative, the
Secretary and the Secretary of the Interior shall establish
and carry out policies and programs--
(A) to characterize the complete geothermal resource base
(including engineered geothermal systems) of the United
States by not later than 2010;
(B) to sustain an annual growth rate in the use of
geothermal power, heat, and heat pump applications of at
least 10 percent;
(C) to demonstrate state-of-the-art energy production from
the full range of geothermal resources in the United States;
(D) to achieve new power or commercial heat production from
geothermal resources in at least 25 States;
(E) to develop the tools and techniques to construct an
engineered geothermal system power plant; and
(F) to deploy geothermal heat exchange technologies in
Federal buildings for heating, cooling, and energy
efficiency.
(2) Report to congress.--Not later than 1 year after the
date of enactment of this Act, and every 3 years thereafter,
the Secretary and the Secretary of the Interior shall jointly
submit to the appropriate Committees of Congress a report
that describes--
(A) the proposed plan to achieve the goals described in
paragraph (1); and
(B) a description of the progress during the period covered
by the report toward achieving those goals.
(d) Geothermal Research, Development, Demonstration, and
Commercial Application.--
(1) In general.--The Secretary shall carry out a program of
geothermal research, development, demonstration, outreach and
education, and commercial application to support the
achievement of the national goal.
(2) Requirements of program.--In carrying out the
geothermal research program described in paragraph (1), the
Secretary shall--
(A) prioritize funding for the discovery and
characterization of geothermal resources;
(B) expand funding for cost-shared drilling;
(C)(i) establish, at a national laboratory or university
research center selected by the Secretary, a national
geothermal exploration research and information center;
(ii) support development and application of new exploration
and development technologies through the center; and
(iii) in cooperation with the Secretary of the Interior,
disseminate geological and geophysical data to support
geothermal exploration activities through the center;
(D) support cooperative programs with and among States,
including with the Great Basin Center for Geothermal Energy,
the Intermountain West Geothermal Consortium, and other
similar State and regional initiatives, to expand knowledge
of the geothermal resource base of the United States and
potential applications of that resource base;
(E) improve and advance high-temperature and high-pressure
drilling, completion, and instrumentation technologies
benefiting geothermal well construction;
(F) demonstrate geothermal applications in settings that,
as of the date of enactment of this Act, are noncommercial;
(G) research, develop, and demonstrate engineered
geothermal systems techniques for commercial application of
the technologies, including advances in--
(i) reservoir stimulation;
(ii) reservoir characterization, monitoring, and modeling;
(iii) stress mapping;
(iv) tracer development;
(v) 3-dimensional tomography; and
(vi) understanding seismic effects of deep drilling and
reservoir engineering;
(H) support the development and application of the full
range of geothermal technologies and applications; and
(I)(i) study the potential to apply geothermal heat
exchange technologies to new and existing Federal buildings;
and
(ii) in cooperation with the Administrator of General
Services, develop and carry out 2 demonstration projects with
geothermal heat exchange technologies, of which--
(I) 1 project shall involve the construction of a new
Federal building; and
(II) 1 project shall involve the renovation of an existing
Federal building.
(3) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary to carry out this
subsection--
(A) $75,000,000 for fiscal year 2008;
(B) $110,000,000 for each of fiscal years 2009 through
2012; and
(C) for fiscal year 2013 and each fiscal year thereafter
through fiscal year 2030, such sums as are necessary.
(e) Geothermal Assessment, Exploration Information, and
Priority Activities.--
(1) Interior.--In carrying out the Initiative, the
Secretary of the Interior--
(A) acting through the Director of the United States
Geological Survey, shall, not later than 2010--
(i) conduct and complete a comprehensive nationwide
geothermal resource assessment that examines the full range
of geothermal resources in the United States; and
(ii) submit to the appropriate committees of Congress a
report describing the results of the assessment; and
(B) in planning and leasing, shall consider the national
goal established under this title.
(2) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary of the Interior to carry
out this subsection--
(A) $15,000,000 for fiscal year 2008;
(B) $25,000,000 for each of fiscal years 2009 to 2012; and
(C) for fiscal year 2013 and each fiscal year thereafter
through fiscal year 2030, such sums as are necessary.

SEC. 806. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.

Section 237 of the Energy Policy Act of 2005 (42 U.S.C.
15874) is amended by adding at the end the following:
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section--
``(1) $5,000,000 for each of fiscal years 2008 through
2013; and
``(2) such sums as are necessary for each of fiscal years
2014 through 2020.''.

SEC. 807. INTERNATIONAL MARKET SUPPORT FOR GEOTHERMAL ENERGY
DEVELOPMENT.

(a) United States Agency for International Development.--
The United States Agency for International Development, in
coordination with other appropriate Federal and multilateral
agencies, shall support international and regional
development to promote the use of geothermal resources,
including (as appropriate) the African Rift Geothermal
Development Facility.
(b) United States Trade and Development Agency.--The United
States Trade and Development Agency shall support the
Initiative by--
(1) encouraging participation by United States firms in
actions taken to carry out subsection (a); and
(2) providing grants and other financial support for
feasibility and resource assessment studies.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.

SEC. 808. ALASKA GEOTHERMAL CENTER.

(a) In General.--The Secretary may participate in a
consortium described in subsection (b) to address science and
science policy issues relating to the expanded discovery and
use of geothermal energy, including geothermal energy
generated from geothermal resources on public land.
(b) Administration.--The consortium referred to in
subsection (a) shall--
(1) be known as the ``Alaska Geothermal Center'';
(2) be a regional consortium of institutions and government
agencies that focuses on building collaborative efforts
among--
(A) institutions of higher education in the State of
Alaska;
(B) other regional institutions of higher education; and
(C) State agencies;
(3) include--
(A) the Energy Authority of the State of Alaska;
(B) the Denali Commission established by section 303 of the
Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public
Law 105-277); and
(C) the University of Alaska-Fairbanks;
(4) be hosted and managed by the University of Alaska-
Fairbanks; and
(5) have--
(A) a director appointed by the head of the Energy
Authority of the State of Alaska; and

[[Page S7664]]

(B) associate directors appointed by each participating
institution.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section for each of fiscal years 2008 through 2013.

______

SA 1548. Mr. DURBIN submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 143, after line 23, insert the following:
``(3) Legislative branch fleet.--The Architect of the
Capitol shall comply with the requirements of paragraph (1)
with respect to the fleet of vehicles under the control of
the legislative branch, subject to a waiver for security
reasons which shall be submitted in writing to the
appropriate oversight committees of Congress.
______

SA 1549. Mr. KOHL (for himself, Mr. Feingold, and Mr. Burr) submitted
an amendment intended to be proposed to amendment SA 1502 proposed by
Mr. Reid to the bill H.R. 6, to reduce our Nation's dependency on
foreign oil by investing in clean, renewable, and alternative energy
resources, promoting new emerging energy technologies, developing
greater efficiency, and creating a Strategic Energy Efficiency and
Renewables Reserve to invest in alternative energy, and for other
purposes; which was ordered to lie on the table; as follows:

On page 161, between lines 2 and 3, insert the following:

SEC. 269. USE OF HIGHLY ENERGY EFFICIENT COMMERCIAL WATER
HEATING EQUIPMENT IN FEDERAL BUILDINGS.

(a) In General.--Title 40, United States Code is amended--
(1) by redesignating sections 3313 through 3315 as sections
3314 through 3316, respectively; and
(2) by inserting after section 3312 the following:

``SEC. 3313. USE OF HIGHLY ENERGY-EFFICIENT COMMERCIAL WATER
HEATING EQUIPMENT IN FEDERAL BUILDINGS.

``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of General Services.
``(2) Highly energy-efficient commercial water heater.--The
term `highly energy-efficient commercial water heater' means
a commercial water heater that--
``(A) meets applicable standards for water heaters under
the Energy Star program established by section 324A of the
Energy Policy and Conservation Act (42 U.S.C. 6294a);
``(B) if installed in a public building, would (as
determined by the Administrator) enable the public building
to achieve the Leadership in Energy and Environmental Design
green building rating standard identified as silver by the
United States Green Building Council; or
``(C) has thermal efficiencies of not less than--
``(i) 90 percent for gas units with inputs of a rate that
is not higher than 500,000 British thermal units per hour; or
``(ii) 87 percent for gas units with inputs of a rate that
is higher than 500,000 British thermal units per hour.
``(b) Maintenance of Public Buildings.--Each commercial
water heater that is replaced by the Administrator in the
normal course of maintenance, or determined by the
Administrator to be replaceable to generate substantial
energy savings, shall be replaced, to the maximum extent
feasible (as determined by the Administrator) with a highly
energy-efficient commercial water heater.
``(c) Considerations.--In making a determination under this
section relating to the installation of a highly energy-
efficient commercial water heater, the Administrator shall
consider--
``(1) the life-cycle cost effectiveness of the highly
energy-efficient commercial water heater;
``(2) the compatibility of the highly energy-efficient
commercial water heater with equipment that, on the date on
which the Administrator makes the determination, is installed
in the public building; and
``(3) whether the use of the highly energy-efficient
commercial water heater could interfere with the productivity
of any activity carried out in the public building.''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on the date that is 180 days after the date of
enactment of this Act.

______

SA 1550. Mr. WYDEN (for himself and Mr. Chambliss) submitted an
amendment intended to be proposed to amendment SA 1502 proposed by Mr.
Reid to the bill H.R. 6, to reduce our Nation's dependency on foreign
oil by investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:

At the end, add the following:

TITLE VIII--WISE ACT OF 2007

SEC. 801. SHORT TITLE.

This title may be cited as the ``Weighing Intelligence for
Smarter Energy Act of 2007'' or the ``WISE Act of 2007''.

SEC. 802. FINDINGS.

Congress makes the following findings:
(1) The members of the intelligence community in the United
States, most notably the National Intelligence Council, the
Office of Intelligence and Counterintelligence of the
Department of Energy, and the Office of Transnational Issues
of the Central Intelligence Agency, possess substantial
analytic expertise with regard to global energy issues.
(2) Energy policy debates generally do not use, to the
fullest extent possible, the expertise available in the
intelligence community.

SEC. 803. REPORT ON ENERGY SECURITY.

(a) Requirement.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Director of National
Intelligence shall submit to Congress a report on the long-
term energy security of the United States.
(2) Form of report.--The report required by subsection (a)
shall be submitted in an unclassified form and may include a
classified annex.
(b) Content.--The report submitted pursuant to subsection
(a) shall include the following:
(1) An assessment of key energy issues that have national
security or foreign policy implications for the United
States.
(2) An assessment of the future of world energy supplies,
including the impact likely and unlikely scenarios may have
on world energy supply.
(3) A description of--
(A) the policies being pursued, or expected to be pursued,
by the major energy producing countries or by the major
energy consuming countries, including developing countries,
to include policies that utilize renewable resources for
electrical and biofuel production;
(B) an evaluation of the probable outcomes of carrying out
such policy options, including--
(i) the economic and geopolitical impact of the energy
policy strategies likely to be pursued by such countries;
(ii) the likely impact of such strategies on the decision-
making processes on major energy cartels; and
(iii) the impact of policies that utilize renewable
resources for electrical and biofuel production, including an
assessment of the ability of energy consuming countries to
reduce dependence on oil using renewable resources, the
economic, environmental, and developmental impact of an
increase in biofuels production in both developed and
developing countries, and the impact of an increase in
biofuels production on global food supplies; and
(C) the potential impact of such outcomes on the energy
security and national security of the United States.
______

SA 1551. Ms. CANTWELL submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

On page 161, between lines 2 and 3, insert the following:

SEC. 269. FEDERAL STANDBY POWER STANDARD.

(a) Definitions.--In this section:
(1) Agency.--
(A) In general.--The term ``Agency'' has the meaning given
the term ``Executive agency'' in section 105 of title 5,
United States Code.
(B) Inclusions.--The term ``Agency'' includes military
departments, as the term is defined in section 102 of title
5, United States Code.
(2) Eligible product.--The term ``eligible product'' means
a commercially available, off-the-shelf product that--
(A)(i) uses external standby power devices; or
(ii) contains an internal standby power function; and
(B) is included on the list compiled under subsection (d).
(b) Federal Purchasing Requirement.--Subject to subsection
(c), if an Agency purchases an eligible product, the Agency
shall purchase--
(1) an eligible product that uses not more than 1 watt in
the standby power consuming mode of the eligible product; or
(2) if an eligible product described in paragraph (1) is
not available, the eligible product with the lowest available
standby power

[[Page S7665]]

wattage in the standby power consuming mode of the eligible
product.
(c) Limitation.--The requirements of subsection (b) shall
apply to a purchase by an Agency only if--
(1) the lower-wattage eligible product is--
(A) lifecycle cost-effective; and
(B) practicable; and
(2) the utility and performance of the eligible product is
not compromised by the lower wattage requirement.
(d) Eligible Products.--The Secretary of Energy, in
consultation with the Secretary of Defense and the
Administrator of General Services, shall compile a publicly
accessible list of cost-effective eligible products that
shall be subject to the purchasing requirements of subsection
(b).

______

SA 1552. Mr. INOUYE (for himself and Mr. Stevens) submitted an
amendment intended to be proposed by him to the bill S. 1609, to
provide the necessary authority to the Secretary of Commerce for the
establishment and implementation of a regulatory system for offshore
aquaculture in the United States Exclusive Economic Zone, and for other
purposes; which was referred to the Committee on Commerce, Science, and
Transportation; as follows:

Strike paragraph (2)(A) of section 4(b) and insert the
following:
(A) An offshore aquaculture permit holder shall be--
(i) a citizen or resident of the United States; or
(ii a corporation, partnership, or other entity organized
and existing under the laws of a State or the United States.
______

SA 1553. Mr. INOUYE (for himself and Mr. Stevens) submitted an
amendment intended to be proposed by him to the bill S. 1609, to
provide the necessary authority to the Secretary of Commerce for the
establishment and implementation of a regulatory system for offshore
aquaculture in the United States Exclusive Economic Zone, and for other
purposes; which was referred to the Committee on Commerce, Science, and
Transportation; as follows:

Strike subparagraph (C) of section 4(a)(1) and insert the
following:
(C) procedures for evaluating and minimizing the potential
adverse environmental, socio-economic, and cultural impacts
of offshore aquaculture, including the establishment of
permit conditions;
Strike paragraph (2) of section 4(a) and insert the
following:
(2) The Secretary shall prepare a programmatic
environmental impact statement under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
with respect to the development and operation of offshore
aquaculture facilities. The environmental impact statement
required by this paragraph shall be in addition to, and not
to the exclusion of, the application of that Act to other
aspects of any offshore aquaculture program established under
this Act, including with respect to the issuance of
individual permits.
In section 4(A)(4) strike ``aquaculture, to the extent
necessary.'' and insert ``aquaculture.''.
Strike subparagraphs (E) and (F) of section 4(a)(4) and
insert the following:
(E) requirements that marine species propagated and reared
through offshore aquaculture be species of the local genotype
native to the geographic regions; and
(F) maintaining record systems to track inventory and
movement of fish or other marine species propagated and
reared through offshore aquaculture, and, to the maximum
extent practicable, tagging, marking or otherwise identifying
such fish or other species.
Strike ``Subject to the provisions of subsection (e),'' in
section 4(b) and insert ``Subject to the other provisions of
this Act and rulemaking under this Act,''.
______

SA 1554. Mr. INOUYE (for himself and Mr. Stevens) submitted an
amendment intended to be proposed by him to the bill S. 1609, to
provide the necessary authority to the Secretary of Commerce for the
establishment and implementation of a regulatory system for offshore
aquaculture in the United States Exclusive Economic Zone, and for other
purposes; which was referred to the Committee on Commerce, Science, and
Transportation; as follows:

Strike section 5 and insert the following:

SEC. 5. RESEARCH AND DEVELOPMENT.

(a) In General.--The Secretary, in consultation with other
Federal agencies, coastal States, regional fishery management
councils, academic institutions and other interested
stakeholders shall establish and conduct a research and
development program to further marine aquaculture
technologies that are compatible with the protection of
marine ecosystems.
(b) Components.--The program shall include research to
reduce the use of wild fish in offshore aquaculture feeds,
engineering innovations to reduce the environmental impacts
of offshore aquaculture facilities, non-harmful measures for
avoiding interactions with marine mammals, methods for
minimizing the use of antibiotics, and improvements in
environmental monitoring techniques.
(c) Eligible Entities.--The Secretary may conduct research
and development in partnership with offshore aquaculture
permit holders.
______

SA 1555.  Mr. STEVENS (for himself and Mr. Inouye) submitted an
amendment intended to be proposed by him to the bill S. 1609, to
provide the necessary authority to the Secretary of Commerce for the
establishment and implementation of a regulatory system for offshore
aquaculture in the United States Exclusive Economic Zone, and for other
purposes; which was referred to the Committee on Commerce, Science, and
Transportation; as follows:

At the appropriate place, insert the following:

SEC. __. NO FINFISH AQUACULTURE SEAWARD OF ALASKA.

(a) In General.--Notwithstanding any other provision of
this Act, the Secretary may not issue a permit for finfish
acquaculture in Alaska's seaward portion of the Exclusive
Economic Zone offshore of Alaska.
(b) Alaska's Seaward Portion of the Exclusive Economic
Zone.--
(1) In general.--In this section, the term ``Alaska's
seaward portion of the Exclusive Economic Zone'' shall be
determined by extending the seaward boundary (as defined in
section 2(b) of the Submerged Lands Act (43 U.S.C. 1301(b)))
of Alaska seaward to the edge of the Exclusive Economic Zone.
(B) Limitation.--Nothing in paragraph (1) shall be
construed to give Alaska any right, title, authority, or
jurisdiction over that portion of the Exclusive Economic Zone
described in paragraph (1).
______

SA 1556. Mrs. LINCOLN (for herself Mr. Domenici, Mr. Pryor, Mr.
Craig, and Ms. Landrieu) submitted an amendment intended to be proposed
to amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following:

SEC. ___. ANIMAL WASTE.

(a) Findings and Purpose.--
(1) Findings.--Congress finds that--
(A) a purpose of this Act is to promote, through consistent
policy incentives, the increased commercial use of renewable
energy technologies;
(B) the underlying technologies promoted by those policies
include biomass, and specifically animal manure as important
renewable energy supplies;
(C) stores of that useful animal agriculture byproduct--
(i) are available in all regions of the United States; and
(ii) could be used to help diversify the energy generation
needs of the United States;
(D) expanded commercial adoption of the technologies
described in subparagraph (B) could contribute to the
essential reduction over time of United States reliance on
fossil fuels for the predominant supply of our energy
generation needs;
(E) the marketplace has been affected by regulatory
uncertainty stemming from misinterpretations of punitive,
strict, joint, and severable liability regulatory schemes
originally formed for purposes of environmental regulation
and recovery of damages from industrial pollutants and toxic
waste;
(F) those regulatory schemes specifically exclude from
punitive liability petroleum and petroleum byproducts;
(G) the uncertainty regarding livestock and poultry manure
threatens to undermine Federal policy objectives and
taxpayer-backed incentives to promote renewable energy
production from those sources; and
(H) misapplication of punitive regulatory schemes threatens
to erode commercial and financial market investment to
implement the objectives and incentives described in
subparagraph (G).
(2) Purpose.--The purpose of this section is to provide
policy and market certainty by clarifying that the regulatory
scheme under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et
seq.) is not intended to cover the application,
transportation, or storage of livestock manure or poultry
litter.
(b) Amendment of Superfund.--Title III of the Comprehensive
Environmental Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9651 et seq.) is amended by adding at the end
the following:

``SEC. 313. EXCEPTION FOR MANURE.

``(a) Definition of Manure.--In this section, the term
`manure' means--
``(1) digestive emissions, feces, urine, urea, and other
excrement from livestock (as defined in section 10403 of the
Farm Security

[[Page S7666]]

and Rural Investment Act of 2002 (7 U.S.C. 8302));
``(2) any associated bedding, compost, raw materials, or
other materials commingled with such excrement from livestock
(as so defined);
``(3) any process water associated with any item referred
to in paragraph (1) or (2); and
``(4) any byproduct, constituent, or substance contained in
or originating from, or any emission relating to, an item
described in paragraph (1), (2), or (3).
``(b) Exemption.--Upon the date of enactment of this
section, manure shall not be included in the meaning of--
``(1) the term `hazardous substance', as defined in section
101(14); or
``(2) the term `pollutant or contaminant', as defined in
section 101(33).
``(c) Effect on Other Law.--Nothing with respect to the
enactment of this subsection shall--
``(1) impose any liability under the Emergency Planning and
Community Right-To-Know Act of 1986 (42 U.S.C. 11001 et seq.)
with respect to manure;
``(2) abrogate or otherwise affect any provision of the Air
Quality Agreement entered into between the Administrator and
operators of animal feeding operations (70 Fed. Reg. 4958
(January 31, 2005)); or
``(3) affect the applicability of any other environmental
law as such a law relates to--
``(A) the definition of manure; or
``(B) the responsibilities or liabilities of any person
regarding the treatment, storage, or disposal of manure.''.
(c) Amendment of SARA.--Section 304(a)(4) of the Superfund
Amendments and Reauthorization Act of 1986 (42 U.S.C.
11004(a)(4)) is amended--
(1) by striking ``This section'' and inserting the
following:
``(A) In general.--This section''; and
(2) by adding at the end the following:
``(B) Manure.--The notification requirements under this
subsection do not apply to releases associated with manure
(as defined in section 313 of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980).''.
______

SA 1557. Ms. KLOBUCHAR (for herself, Ms. Snowe, and Mr. Bingaman)
submitted an amendment intended to be proposed by her to the bill H.R.
6, to reduce our Nation's dependency on foreign oil by investing in
clean, renewable, and alternative energy resources, promoting, new
emerging energy technologies, developing greater efficiency, and
creating a Strategic Energy Efficiency and Renewables Reserve to invest
in alternative energy, and for other purposes; which was ordered to lie
on the table; as follows:

At the end of title I, add the following:

Subtitle D--National Greenhouse Gas Registry

SEC. 161. PURPOSE.

The purpose of this subtitle is to establish a national
greenhouse gas registry that--
(1) is complete, consistent, transparent, and accurate; and
(2) will provide reliable and accurate data that can be
used by public and private entities to design efficient and
effective energy security initiatives and greenhouse gas
emission reduction strategies.

SEC. 162. DEFINITIONS.

In this subtitle:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Affected facility.--
(A) In general.--The term ``affected facility'' means--
(i) a major emitting facility (as listed in section 169 of
the Clean Air Act (42 U.S.C. 7479));
(ii) a petroleum refinery;
(iii) a coal mine that produces more than 10,000 short tons
of coal during calendar year 2004 or any subsequent calendar
year;
(iv) a natural gas processing plant;
(v) an importer of refined petroleum products, residual
fuel oil, petroleum coke, liquefied petroleum gas, coal,
coke, or natural gas (including liquefied natural gas);
(vi) a facility that imports or manufactures a greenhouse
gas, including a facility that--

(I) imports or manufactures hydrofluorocarbons,
perfluorocarbons, sulfur hexafluoride, or nitrous oxide, or a
product containing any of those gases;
(II) emits nitrous oxide associated with the manufacture of
adipic acid or nitric acid; or
(III) emits hydrofluorocarbon-23 as a byproduct of
hydrochlorofluorocarbon-22; and

(vii) any other facility that emits a greenhouse gas, as
determined by the Administrator.
(B) Exclusions.--The term ``affected facility'' does not
include any small business (as described in part 121 of title
13, Code of Federal Regulations (or a successor regulation))
that generates fewer than 10,000 metric tons of greenhouse
gas emissions during a calendar year, or a facility below the
thresholds established by the Administrator under section
165(b)(9), unless that small business or facility elects to
voluntarily report to the registry under section 163 as an
affected facility.
(3) Carbon content.--The term ``carbon content'' means the
quantity of carbon (in carbon dioxide equivalent) contained
in a fuel.
(4) Feedstock fossil fuel.--The term ``feedstock fossil
fuel'' means fossil fuel used as raw material in a
manufacturing process.
(5) Greenhouse gas.--The term ``greenhouse gas'' means--
(A) carbon dioxide;
(B) methane;
(C) nitrous oxide;
(D) hydrofluorocarbons;
(E) perfluorocarbons;
(F) sulfur hexafluoride; and
(G) any other anthropogenically-emitted gas that the
Administrator, after notice and comment, determines to
contribute to climate change.
(6) Process emissions.--The term ``process emissions''
means emissions generated during a manufacturing process.

SEC. 163. REPORTING REQUIREMENTS.

(a) In General.--An affected facility shall--
(1) report the quantity and type of fossil fuels and non-
carbon dioxide greenhouse gases produced, refined, imported,
exported, and consumed;
(2) report greenhouse gas emissions (in accordance with
section 164(a)(1)(C)), in metric tons of each greenhouse gas
emitted and in metric tons of carbon dioxide equivalent of
each greenhouse gas emitted, measured using monitoring
systems for fuel flow or emissions that use--
(A) continuous emission monitoring; or
(B) an equivalent system of comparable rigor, accuracy, and
quality;
(3) report the quantity and type of--
(A) feedstock fossil fuel consumption; and
(B) process emissions;
(4) report other data necessary for accurate accounting of
greenhouse gas emissions, as determined by the Administrator;
(5) include an appropriate certification, as determined by
the Administrator; and
(6) report the information required under this section
electronically to the Administrator in such form and to such
extent as may be required by the Administrator.
(b) Verification of Report Required.--Before including the
information from a report required under this section in the
registry, the Administrator shall verify the completeness and
accuracy of the report using information provided under this
section or under other provisions of law.
(c) Timing.--
(1) Calendar years 2004 through 2007.--For a baseline
period of calendar years 2004 through 2007, each affected
facility shall submit required annual data described in this
section to the Administrator not later than March 31, 2009.
(2) Subsequent calendar years.--For subsequent calendar
years, each affected facility shall submit quarterly data
described in this section to the Administrator not later than
30 days after the end of the applicable quarter.
(d) No Effect on Other Requirements.--Nothing in this title
affects any requirement in effect as of the date of enactment
of this Act relating to reporting of--
(1) fossil fuel production, refining, importation,
exportation, or consumption data;
(2) greenhouse gas emission data; or
(3) other relevant data.

SEC. 164. DATA QUALITY AND VERIFICATION.

(a) Protocols and Methods.--
(1) In general.--The Administrator shall establish
protocols and methods to ensure completeness, consistency,
transparency, and accuracy of data on fossil fuel production,
refining, importation, exportation, and consumption, and
greenhouse gas emissions submitted to the registry that
include--
(A) accounting and reporting standards for fossil fuel
production, refining, importation, exportation, and
consumption;
(B) standardized methods for calculating carbon content or
greenhouse gas emissions in specific industries from other
readily available and reliable information, such as fuel
consumption, materials consumption, production data, or other
relevant activity data;
(C) standardized methods of monitoring greenhouse gas
emissions (along with information on the accuracy of the
data) for cases in which the Administrator determines that
rigorous and accurate monitoring is feasible;
(D) methods to avoid double-counting of greenhouse gas
emissions;
(E) protocols to prevent an affected facility from avoiding
the reporting requirements of this title; and
(F) protocols for verification of data submitted by
affected facilities.
(2) Best practices.--The protocols and methods developed
under paragraph (1) shall conform, to the maximum extent
practicable, to the best practices available to ensure
accuracy and consistency of the data.
(b) Verification; Information by Reporting Entities.--Each
affected facility shall--
(1) provide information sufficient for the Administrator to
verify, in accordance with the protocols and methods
developed under subsection (a), that the fossil fuel data and
greenhouse gas emission data of the affected facility have
been completely and accurately reported; and
(2) ensure the submission or retention, for the 5-year
period beginning on the date of provision of the information,
of data sources, information on internal control activities,
information on assumptions used in reporting emissions and
fuels, uncertainty analyses, and other relevant data and
information to facilitate the verification of reports
submitted to the registry.

[[Page S7667]]

(c) Waiver of Reporting Requirements.--The Administrator
may waive reporting requirements for specific facilities if
sufficient data are available under other provisions of law.
(d) Missing Data.--If information, satisfactory to the
Administrator, is not provided for an affected facility, the
Administrator shall prescribe methods that create incentives
for accurate reporting to estimate emissions for the facility
for each quarter for which data are missing.

SEC. 165. NATIONAL GREENHOUSE GAS REGISTRY.

(a) Establishment.--The Administrator (in consultation with
the Secretary of Energy, the Secretary of Commerce, States,
the private sector, and nongovernmental organizations) shall
establish a mandatory national greenhouse gas registry.
(b) Administration.--The Administrator shall--
(1) design and operate the registry;
(2) establish an advisory body with that is broadly
representative of industry, agriculture, environmental
groups, and State and local governments to guide the
development and management of the registry;
(3) provide coordination and technical assistance for the
development of proposed protocols and methods to be published
by the Administrator;
(4) develop forms for reporting under guidelines
established under section 164(a)(1), and make the forms
available to reporting entities;
(5) verify and audit the data submitted by reporting
entities;
(6) establish consistent policies for calculating carbon
content, expressed in units of carbon dioxide equivalent, for
each type of fossil fuel reported under section 163;
(7) calculate carbon content, in units of carbon dioxide
equivalent, of fossil fuel data reported by reporting
entities;
(8) ensure coordination, to the maximum extent practicable,
between the national greenhouse gas registry and greenhouse
gas registries in existence as of the date of the
coordination;
(9) establish, as soon as practicable after the date of
enactment of this Act, threshold levels of greenhouse gas
emissions from a facility, or sector-specific production
levels at a facility, that require reporting under section
163 such that, at a minimum, the registry shall cover 80
percent of the human-induced greenhouse gas emissions in the
United States; and
(10) publish on the Internet all information contained in
the registry, except in any case in which publishing the
information would result in a disclosure of--
(A) information vital to national security, as determined
by the Administrator; or
(B) confidential business information that cannot be
derived from information that is otherwise publicly available
and that would cause significant calculable competitive harm
if published.
(c) Third-Party Verification.--The Administrator may ensure
that reports required under section 163 are certified by a
third-party entity.
(d) Regulations.--The Administrator shall--
(1) propose regulations to carry out this title not later
than 180 days after the date of enactment of this Act; and
(2) promulgate final regulations to carry out this title
not later than December 31, 2008.
(e) Report to Congress.--Not later than 180 days after the
date on which reporting is required under this title, the
Administrator shall submit to Congress a report that
describes the need for harmonization of legal requirements
within the United States relating to greenhouse gas
reporting.

SEC. 166. ENFORCEMENT.

(a) Civil Actions.--The Administrator may bring a civil
action in United States district court against the owner or
operator of an affected facility that fails to comply with
this title.
(b) Penalty.--Any person that violates this title shall be
subject to a civil penalty of not more than $25,000 for each
day the violation continues.
______

SA 1558. Mr. OBAMA submitted an amendment intended to be proposed to
the bill H.R. 6, to reduce our Nation's dependency on foreign oil by
investing in clean, renewable, and alternative energy resources,
promoting new emerging energy technologies, developing greater
efficiency, and creating a Strategic Energy Efficiency and Renewables
Reserve to invest in alternative energy, and for other purposes; which
was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE _--HEALTH CARE FOR HYBRIDS

SEC. _00. FINDINGS.

Congress makes the following findings:
(1) More than 50 percent of the oil consumed in the United
States is imported.
(2) If present trends continue, foreign oil will represent
68 percent of the oil consumed in the United States by 2025.
(3) The United States has only 3 percent of the world's
known oil reserves and the Nation's economic health is
dependent on world oil prices.
(4) World oil prices are overwhelmingly dictated by other
countries, which endangers the economic and national security
of the United States.
(5) A major portion of the world's oil supply is controlled
by unstable governments and countries that are known to
finance, harbor, or otherwise support terrorists and
terrorist activities.
(6) American automakers have lagged behind their foreign
competitors in producing hybrid and other energy-efficient
automobiles.
(7) Legacy health care costs associated with retiree
workers are an increasing burden on the global
competitiveness of American industries.
(8) Innovative uses of new technology in automobiles
manufactured in the United States will--
(A) help retain American jobs;
(B) support health care obligations for retiring workers in
the automotive sector;
(C) decrease our Nation's dependence on foreign oil; and
(D) address pressing environmental concerns.

Subtitle A--Retired Employee Health Benefits Reimbursement Program

SEC. _01. COORDINATING TASK FORCE.

(a) Establishment.--Not later than 6 months after the date
of the enactment of this Act, the Secretary of Energy, the
Secretary of Health and Human Services, the Secretary of
Transportation, and the Secretary of the Treasury shall
establish a task force (referred to in this title as the
``task force'') to administer the program established under
section _02 (referred to in this title as the ``program'').
(b) Membership.--The task force shall be composed
representatives of the departments headed by the officials
referred to in subsection (a), who shall be appointed by such
officials in equal numbers.

SEC. _02. ESTABLISHMENT OF PROGRAM.

(a) In General.--Not later than 1 year after the date of
the enactment of this Act, the task force shall establish a
program to reimburse eligible domestic automobile
manufacturers for the costs incurred in providing health
benefits to their retired employees. The task force shall
determine compliance with the assurances under subsection
(c)(4) through accepted measurements of fuel savings.
(b) Consultation.--In establishing the program, the task
force shall consult with representatives from--
(1) eligible domestic automobile manufacturers;
(2) unions representing employees of such manufacturers;
and
(3) consumer and environmental groups.
(c) Eligibility Requirements.--A domestic automobile
manufacturer seeking reimbursement under the program shall--
(1) submit an application to the task force at such time,
in such manner, and containing such information as the task
force shall require;
(2) certify that such manufacturer is providing full health
care coverage to all of its employees;
(3) provide assurances to the task force that the
manufacturer will invest, in an amount equal to not less than
50 percent of the amount saved by the manufacturer through
the reimbursement of its retiree health care costs under the
program, in--
(A) the domestic manufacture and commercialization of
petroleum fuel reduction technologies, including alternative
or flexible fuel vehicles, hybrids, and other state-of-the-
art fuel saving technologies;
(B) retraining workers and retooling assembly lines for the
activities described in subparagraph (A);
(C) researching, developing, designing, and commercializing
high-performance, fuel-efficient vehicles, and other
activities related to diversifying the domestic production of
automobiles; and
(D) assisting domestic automobile component suppliers to
retool their domestic manufacturing plants to produce
components for petroleum fuel reduction technologies,
including alternative or flexible fuel vehicles and hybrid,
advanced diesel, and other state-of-the-art fuel saving
technologies; and
(4) provide assurances to the task force that average
adjusted fuel economy savings achieved under paragraph (3)
will not result in fuel economy decreases in other
automobiles manufactured in the United States; and
(5) provide additional assurances and information as the
task force may require, including information needed by the
task force to audit the manufacturer's compliance with the
requirements of the program.
(d) Limitation.--Not more than 10 percent of the annual
retiree health care costs of any domestic automobile
manufacturer may be reimbursed under the program in any year.
(e) Termination of Program.--The program shall terminate on
December 31, 2017.

SEC. _03. REPORTING.

(a) Reimbursement Reports.--Not later than 6 months after
the date of the enactment of this Act, and every 6 months
thereafter, the task force shall submit a report to Congress
that--
(1) identifies the reimbursements paid under the program;
and
(2) describes the changes in the manufacture and
commercialization of fuel saving technologies implemented by
automobile manufacturers as a result of such reimbursements.
(b) Consumer Incentives.--Not later than 1 year after the
date of the enactment of this Act, the task force shall
submit a report to Congress that--
(1) indicates the effectiveness of financial incentives
available to consumers for the

[[Page S7668]]

purchase of hybrid vehicles in encouraging such purchases;
and
(2) recommends whether such incentives should be expanded.

SEC. _04. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated such sums as may be
necessary in each of fiscal years 2008 through 2018 to carry
out this subtitle.

Subtitle B--Tax Provisions

SEC. _11. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

(a) In General.--Section 7701 of the Internal Revenue Code
of 1986 is amended--
(1) by redesignating subsection (p) as subsection (q); and
(2) by inserting after subsection (o) the following:
``(p) Clarification of Economic Substance Doctrine.--
``(1) General rules.--
``(A) In general.--In any case in which a court determines
that the economic substance doctrine is relevant for purposes
of this title to a transaction (or series of transactions),
such transaction (or series of transactions) shall have
economic substance only if the requirements of this paragraph
are met.
``(B) Definition of economic substance.--For purposes of
subparagraph (A):
``(i) In general.--A transaction has economic substance
only if--

``(I) the transaction changes in a meaningful way (apart
from Federal tax effects) the taxpayer's economic position,
and
``(II) the taxpayer has a substantial nontax purpose for
entering into such transaction and the transaction is a
reasonable means of accomplishing such purpose.

In applying subclause (II), a purpose of achieving a
financial accounting benefit shall not be taken into account
in determining whether a transaction has a substantial nontax
purpose if the origin of such financial accounting benefit is
a reduction of income tax.
``(ii) Special rule where taxpayer relies on profit
potential.--A transaction shall not be treated as having
economic substance by reason of having a potential for profit
unless--

``(I) the present value of the reasonably expected pre-tax
profit from the transaction is substantial in relation to the
present value of the expected net tax benefits that would be
allowed if the transaction were respected, and
``(II) the reasonably expected pre-tax profit from the
transaction exceeds a risk-free rate of return.

``(C) Treatment of fees and foreign taxes.--Fees and other
transaction expenses and foreign taxes shall be taken into
account as expenses in determining pre-tax profit under
subparagraph (B)(ii).
``(2) Special rules for transaction with tax-indifferent
parties.--
``(A) Special rules for financing transactions.--The form
of a transaction which is in substance the borrowing of money
or the acquisition of financial capital directly or
indirectly from a tax-indifferent party shall not be
respected if the present value of the deductions to be
claimed with respect to the transaction is substantially in
excess of the present value of the anticipated economic
returns of the person lending the money or providing the
financial capital. A public offering shall be treated as a
borrowing, or an acquisition of financial capital, from a
tax-indifferent party if it is reasonably expected that at
least 50 percent of the offering will be placed with tax-
indifferent parties.
``(B) Artificial income shifting and basis adjustments.--
The form of a transaction with a tax-indifferent party shall
not be respected if--
``(i) it results in an allocation of income or gain to the
tax-indifferent party in excess of such party's economic
income or gain, or
``(ii) it results in a basis adjustment or shifting of
basis on account of overstating the income or gain of the
tax-indifferent party.
``(3) Definitions and special rules.--For purposes of this
subsection:
``(A) Economic substance doctrine.--The term `economic
substance doctrine' means the common law doctrine under which
tax benefits under subtitle A with respect to a transaction
are not allowable if the transaction does not have economic
substance or lacks a business purpose.
``(B) Tax-indifferent party.--The term `tax-indifferent
party' means any person or entity not subject to tax imposed
by subtitle A. A person shall be treated as a tax-indifferent
party with respect to a transaction if the items taken into
account with respect to the transaction have no substantial
impact on such person's liability under subtitle A.
``(C) Exception for personal transactions of individuals.--
In the case of an individual, this subsection shall apply
only to transactions entered into in connection with a trade
or business or an activity engaged in for the production of
income.
``(D) Treatment of lessors.--In applying paragraph
(1)(B)(ii) to the lessor of tangible property subject to a
lease--
``(i) the expected net tax benefits with respect to the
leased property shall not include the benefits of--

``(I) depreciation,
``(II) any tax credit, or
``(III) any other deduction as provided in guidance by the
Secretary, and

``(ii) subclause (II) of paragraph (1)(B)(ii) shall be
disregarded in determining whether any of such benefits are
allowable.
``(4) Other common law doctrines not affected.--Except as
specifically provided in this subsection, the provisions of
this subsection shall not be construed as altering or
supplanting any other rule of law, and the requirements of
this subsection shall be construed as being in addition to
any such other rule of law.
``(5) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this subsection. Such regulations may include
exemptions from the application of this subsection.''.
(b) Effective Date.--The amendments made by this section
shall apply to transactions entered into after the date of
the enactment of this Act.

SEC. _12. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO
TRANSACTIONS LACKING ECONOMIC SUBSTANCE.

(a) In General.--Subchapter A of chapter 68 of the Internal
Revenue Code of 1986 is amended by inserting after section
6662A the following:

``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO
TRANSACTIONS LACKING ECONOMIC SUBSTANCE.

``(a) Imposition of Penalty.--If a taxpayer has an
noneconomic substance transaction understatement for any
taxable year, there shall be added to the tax an amount equal
to 40 percent of the amount of such understatement.
``(b) Reduction of Penalty for Disclosed Transactions.--
Subsection (a) shall be applied by substituting `20 percent'
for `40 percent' with respect to the portion of any
noneconomic substance transaction understatement with respect
to which the relevant facts affecting the tax treatment of
the item are adequately disclosed in the return or a
statement attached to the return.
``(c) Noneconomic Substance Transaction Understatement.--
For purposes of this section--
``(1) In general.--The term `noneconomic substance
transaction understatement' means any amount which would be
an understatement under section 6662A(b)(1) if section 6662A
were applied by taking into account items attributable to
noneconomic substance transactions rather than items to which
section 6662A would apply without regard to this paragraph.
``(2) Noneconomic substance transaction.--The term
`noneconomic substance transaction' means any transaction
if--
``(A) there is a lack of economic substance (within the
meaning of section 7701(p)(1)) for the transaction giving
rise to the claimed benefit or the transaction was not
respected under section 7701(p)(2), or
``(B) the transaction fails to meet the requirements of any
similar rule of law.
``(d) Rules Applicable to Compromise of Penalty.--
``(1) In general.--If the 1st letter of proposed deficiency
which allows the taxpayer an opportunity for administrative
review in the Internal Revenue Service Office of Appeals has
been sent with respect to a penalty to which this section
applies, only the Commissioner of Internal Revenue may
compromise all or any portion of such penalty.
``(2) Applicable rules.--The rules of paragraphs (2) and
(3) of section 6707A(d) shall apply for purposes of paragraph
(1).
``(e) Coordination With Other Penalties.--Except as
otherwise provided in this part, the penalty imposed by this
section shall be in addition to any other penalty imposed by
this title.
``(f) Cross References.--
``(1) For coordination of penalty with understatements
under section 6662 and other special rules, see section
6662A(e).
``(2) For reporting of penalty imposed under this section
to the Securities and Exchange Commission, see section
6707A(e).''.
(b) Coordination With Other Understatements and
Penalties.--
(1) The second sentence of section 6662(d)(2)(A) of the
Internal Revenue Code of 1986 is amended by inserting ``and
without regard to items with respect to which a penalty is
imposed by section 6662B'' before the period at the end.
(2) Subsection (e) of section 6662A of the Internal Revenue
Code of 1986 is amended--
(A) in paragraph (1), by inserting ``and noneconomic
substance transaction understatements'' after ``reportable
transaction understatements'' both places it appears,
(B) in paragraph (2)(A), by inserting ``and a noneconomic
substance transaction understatement'' after ``reportable
transaction understatement'',
(C) in paragraph (2)(B), by inserting ``6662B or'' before
``6663'',
(D) in paragraph (2)(C)(i), by inserting ``or section
6662B'' before the period at the end,
(E) in paragraph (2)(C)(ii), by inserting ``and section
6662B'' after ``This section'',
(F) in paragraph (3), by inserting ``or noneconomic
substance transaction understatement'' after ``reportable
transaction understatement'', and
(G) by adding at the end the following new paragraph:
``(3) Noneconomic substance transaction understatement.--
For purposes of this subsection, the term `noneconomic
substance transaction understatement' has the meaning given
such term by section 6662B(c).''.
(3) Paragraph (2) of section 6707A(e) of the Internal
Revenue Code of 1986 is amended--
(A) by striking ``or'' at the end of subparagraph (B), and
(B) by striking subparagraph (C) and inserting the
following new subparagraphs:

[[Page S7669]]

``(C) is required to pay a penalty under section 6662B with
respect to any noneconomic substance transaction, or
``(D) is required to pay a penalty under section 6662(h)
with respect to any transaction and would (but for section
6662A(e)(2)(C)) have been subject to penalty under section
6662A at a rate prescribed under section 6662A(c) or under
section 6662B,''.
(c) Clerical Amendment.--The table of sections for part II
of subchapter A of chapter 68 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to
section 6662A the following:

``Sec. 6662B. Penalty for understatements attributable to transactions
lacking economic substance, etc.''.

(d) Effective Date.--The amendments made by this section
shall apply to transactions entered into after the date of
the enactment of this Act.

SEC. _13. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS
ATTRIBUTABLE TO NONECONOMIC SUBSTANCE
TRANSACTIONS.

(a) In General.--Section 163(m) of the Internal Revenue
Code of 1986 (relating to interest on unpaid taxes
attributable to nondisclosed reportable transactions) is
amended--
(1) by striking ``attributable'' and all that follows and
inserting the following: ``attributable to--
``(1) the portion of any reportable transaction
understatement (as defined in section 6662A(b)) with respect
to which the requirement of section 6664(d)(2)(A) is not met,
or
``(2) any noneconomic substance transaction understatement
(as defined in section 6662B(c)).''; and
(2) by inserting ``and noneconomic substance transactions''
after ``transactions''.
(b) Effective Date.--The amendments made by this section
shall apply to transactions after the date of the enactment
of this Act in taxable years ending after such date.
______

SA 1559. Mr. HAGEL submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, develop greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

At the end of title II, add the following:

Subtitle F--Energy-Related Regulatory Reform

SEC. 281. PROCESS COORDINATION AND RULES OF PROCEDURE.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Nuclear Regulatory Commission.
(3) Federal energy authorization.--
(A) In general.--The term ``Federal energy authorization''
means any authorization required under Federal law (including
regulations), regardless of whether the law is administered
by a Federal or State administrative agency or official, with
respect to the siting, construction, expansion, or operation
of an energy facility, including--
(i) a coal-fired electric generating plant;
(ii) a nuclear power electric generating plant;
(iii) a natural gas-fired electric generating plant;
(iv) a waste-to-energy facility;
(v) a geothermal electric generating facility;
(vi) a wind or solar electric generating facility;
(vii) a petroleum refinery;
(viii) a biorefinery;
(ix) a biogas conversion unit;
(x) a shale-oil production site; or
(xi) an oil or gas exploration and production lease.
(B) Inclusions.--The term ``Federal energy authorization''
includes any permit, special use authorization,
certification, opinion, or other approval required under
Federal law (including regulations) with respect to the
siting, construction, expansion, or operation of an energy
facility referred to in subparagraph (A).
(b) Designation as Lead Agency.--
(1) In general.--Except as provided in paragraph (2), the
Environmental Protection Agency shall act as the lead agency
for the purposes of coordinating all Federal energy
authorizations and related environmental reviews.
(2) Exception.--In the case of a nuclear power electric
generating facility, the Nuclear Regulatory Commission shall
act as the lead agency for purposes of coordinating all
Federal nuclear energy authorizations.
(3) Other agencies.--Each Federal or State agency or
official required to provide a Federal energy authorization
shall cooperate with the Administrator or the Chairperson, as
applicable, including by complying with any applicable
deadline relating to the Federal energy authorization
established by the Administrator or Chairperson under
subsection (c).
(c) Schedule.--
(1) Authority of administrator.--The Administrator shall
establish a schedule for all Federal energy authorizations as
the Administrator determines to be appropriate--
(A) to ensure expeditious completion of all proceedings
relating to Federal energy authorizations; and
(B) to accommodate any applicable related schedules
established by Federal law (including regulations).
(2) Authority of chairperson.--The Chairperson shall
collaborate with the Administrator to establish an
appropriate schedule for all environmental authorizations
required with respect to facilities described in subsection
(b)(2) that--
(A) takes into consideration the longer lead time required
by the permitting process for nuclear power electric
generating facilities; and
(B) allows for simultaneous environmental and security
reviews of potential sites to provide for joint authorization
of the sites by the Administrator and the Chairperson.
(3) Failure to meet schedule.--If a Federal or State
administrative agency or official fails to complete a
proceeding for any approval required for a Federal energy
authorization in accordance with the schedule established
under paragraph (1) or (2), any affected applicant for the
Federal energy authorization may seek judicial review of the
failure under subsection (e).
(d) Consolidated Record.--
(1) In general.--Except as provided in paragraph (2), the
Administrator, in cooperation with Federal and State
administrative agencies and officials, shall maintain a
complete consolidated record of all decisions made and all
actions carried out by the Administrator or a Federal or
State administrative agency or officer with respect to any
Federal energy authorization.
(2) Exception.--The Chairperson, in cooperation with the
Administrator and other Federal and State administrative
agencies and officials, shall maintain a complete
consolidated record of all decisions made and all actions
carried out by the Commissioner or a Federal or State
administrative agency or officer with respect to any Federal
authorization of a nuclear power electric generating
facility.
(3) Treatment.--
(A) In general.--Except as provided in subparagraph (B),
the records under paragraphs (1) and (2) shall serve as the
record for a decision or action for purposes of judicial
review of the decision or action under subsection (e).
(B) Exception.--If the United States Court of Appeals for
the District of Columbia determines that a record under
paragraph (1) or (2) contains insufficient information, the
court may remand the proceeding to the Administrator for
development of the record.
(e) Judicial Review.--
(1) In general.--The United States Court of Appeals for the
District of Columbia shall have original and exclusive
jurisdiction over any civil action for the review of--
(A) an order or action by a Federal or State administrative
agency or official relating to a Federal energy
authorization; or
(B) an alleged failure to act by a Federal or State
administrative agency or official with respect to a Federal
energy authorization.
(2) Remand.--
(A) In general.--The court shall remand a proceeding to the
applicable agency or official in any case in which the court
determines under paragraph (1) that--
(i)(I) an order or action described in paragraph (1)(A) is
inconsistent with the Federal law applicable to the Federal
energy authorization;
(II) a failure to act described in paragraph (1)(B) has
occurred; or
(III) a Federal or State administrative agency or official
failed to meet an applicable deadline under subsection (c)
with respect to a Federal energy authorization; and
(ii) the order, action, or failure to act would prevent the
siting, construction, expansion, or operation of an energy
facility referred to in subsection (a)(2)(A).
(B) Schedule.--On remand of an order, action, or failure to
act under subparagraph (A), the court shall establish a
reasonable schedule and deadline for the agency or official
to act with respect to the remand.
(3) Action by lead agency.--
(A) In general.--Except as provided in subparagraph (B),
for any civil action brought under this subsection, the
Administrator shall promptly file with the court the
consolidated record compiled by the Administrator pursuant to
subsection (d)(1).
(B) Exception.--For any civil action brought under this
subsection with respect to a nuclear power electric
generating facility, the Chairperson shall promptly file with
the court the consolidated record compiled by the Chairperson
pursuant to subsection (d)(2).
(4) Expedited consideration.--The Court shall provide
expedited consideration of any civil action brought under
this subsection.
(5) Attorney's fees.--
(A) In general.--Except as provided in subparagraph (B), in
any action challenging a Federal energy authorization that
has been granted, reasonable attorney's fees and other
expenses of the litigation shall be awarded to the prevailing
party.
(B) Exception.--Subparagraph (A) shall not apply to any
action seeking a remedy for--
(i) denial of a Federal energy authorization; or

[[Page S7670]]

(ii) failure to act on an application for a Federal energy
authorization.

SEC. 282. ENERGY SECURITY AND REGULATORY REFORM.

(a) Energy-Related Regulatory Reform.--Title V of the
National Energy Conservation Policy Act (42 U.S.C. 8241 et
seq.) is amended by adding at the end the following:

``PART 5--ENERGY-RELATED REGULATORY REFORM

``SEC. 571. DEFINITIONS.

``In this part:
``(1) Advisory committee.--The term `advisory committee'
means an advisory committee established under section 572(a).
``(2) Applicable agency.--The term `applicable agency'
means any Federal department or agency that, during the 10-
year period ending on the date on which an advisory committee
is established, promulgated a major rule.
``(3) Benefit.--The term `benefit', with respect to a rule,
means any reasonably identifiable, significant, and favorable
effect (whether quantifiable or unquantifiable), including a
social, health, safety, environmental, economic, energy, or
distributional effect, that is expected to result, directly
or indirectly, from the implementation of, or compliance
with, the rule.
``(4) Cost.--The term `cost', with respect to a rule, means
any reasonably identifiable and significant adverse effect
(whether quantifiable or unquantifiable), including a social,
health, safety, environmental, economic, energy, or
distributional effect, that is expected to result, directly
or indirectly, from the implementation of, or compliance
with, the rule.
``(5) Energy rule.--The term `energy rule' means a major
rule that has a direct impact on the production,
distribution, or consumption of energy, as determined by the
Secretary of Energy.
``(6) Flexible regulatory option.--
``(A) In general.--The term `flexible regulatory option'
means an option at a point in the regulatory process that
provides flexibility to any person subject to an applicable
rule with respect to complying with the rule.
``(B) Inclusion.--The term `flexible regulatory option'
includes any option described in subparagraph (A) that uses--
``(i) a market-based mechanism;
``(ii) an outcome-oriented, performance-based standard; or
``(iii) any other option that promotes flexibility, as
determined by the head of the applicable agency.
``(7) Major rule.--The term `major rule' means a rule or
group of closely related rules--
``(A) the reasonably quantifiable increased direct and
indirect costs of which are likely to have a gross annual
effect on the United States economy of at least $100,000,000,
or that has a significant impact on a sector of the economy,
as determined by--
``(i) the head of the agency proposing the rule; or
``(ii) the President (or a designee); or
``(B) that is otherwise designated as a major rule by the
head of the agency proposing the rule or the President (or a
designee), based on a determination that the rule is likely
to result in--
``(i) a substantial increase in costs for--

``(I) consumers;
``(II) an industrial sector;
``(III) nonprofit organizations;
``(IV) any Federal, State, or local governmental agency; or
``(V) a geographical region;

``(ii) a significant adverse effect on--

``(I) competition, employment, investment, productivity,
innovation, health, safety, or the environment; or
``(II) the ability of enterprises with principal places of
business in the United States to compete in domestic or
international markets;

``(iii) a serious inconsistency or interference with an
action carried out or planned to be carried out by another
Federal agency;
``(iv) the material alteration of the budgetary impact of--

``(I) entitlements, grants, user fees, or loan programs; or
``(II) the rights and obligations of recipients of such a
program; or

``(v) disproportionate costs to a class of regulated
persons, including relatively severe economic consequences
for that class.
``(8) Rule.--
``(A) In general.--The term `rule' has the meaning given
the term in section 551 of title 5, United States Code.
``(B) Inclusion.--The term `rule' includes any statement of
general applicability that alters or creates a right or
obligation of a person not employed by the applicable
regulatory agency.
``(C) Exclusions.--The term `rule' does not include--
``(i) a rule of particular applicability that approves or
prescribes--

``(I) future rates, wages, prices, services, corporate or
financial structures, reorganizations, mergers, acquisitions,
or accounting practices; or
``(II) any disclosure relating to an item described in
subclause (I);

``(ii) a rule relating to monetary policy or to the safety
or soundness of an institution (including any affiliate,
branch, agency, commercial lending company, or representative
office of the institution (within the meaning of the
International Banking Act of 1956 (12 U.S.C. 1841 et seq.))
that is--

``(I) a federally-insured depository institution or any
affiliate of such an institution (as defined in section 2(k)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(k));
``(II) a credit union;
``(III) a Federal home loan bank;
``(IV) a government-sponsored housing enterprise;
``(V) a farm credit institution; or
``(VI) a foreign bank that operates in the United States;
or

``(iii) a rule relating to--

``(I) the payment system; or
``(II) the protection of--

``(aa) deposit insurance funds; or
``(bb) the farm credit insurance fund.

``SEC. 572. ADVISORY COMMITTEES FOR ENERGY RULES.

``(a) Establishment.--Not later than 90 days after the date
of enactment of this part, and every 5 years thereafter, the
head of each applicable agency shall establish an advisory
committee to review all energy rules promulgated by the
applicable agency during the 10-calendar-year period ending
on the date on which the advisory committee is established.
``(b) Membership.--
``(1) In general.--The head of an applicable agency shall
appoint not more than 15 members to serve on an advisory
committee.
``(2) Requirement.--In appointing members to serve on an
advisory committee under paragraph (1), the head of the
applicable agency shall ensure that the membership of the
advisory committee reflects a balanced cross-section of
public and private parties affected by energy rules issued by
the applicable agency, including--
``(A) small businesses;
``(B) units of State and local government; and
``(C) public interest groups.
``(3) Prohibition on federal government employment.--A
member of an advisory committee appointed under paragraph (1)
shall not be an employee of the applicable agency for which
the advisory committee is established.
``(c) Term; Vacancies.--
``(1) Term.--A member shall be appointed for the life of an
advisory committee.
``(2) Vacancies.--A vacancy on an advisory committee--
``(A) shall not affect the powers of the advisory
committee; and
``(B) shall be filled in the same manner as the original
appointment was made.
``(d) Chairperson; Panels.--The head of an applicable
agency--
``(1) shall select a Chairperson from among the members of
an advisory committee; and
``(2) may establish such panels as the head determines to
be necessary to assist an advisory committee in carrying out
duties of the advisory committee.
``(e) Duties.--
``(1) In general.--An advisory committee shall review all
energy rules promulgated by the applicable agency for which
the advisory committee is established during the 10-calendar-
year period ending on the date on which the advisory
committee is established, in accordance with section 573.
``(2) Public participation.--An advisory committee shall
solicit public comment with respect to energy rules reviewed
by the advisory committee through appropriate means,
including--
``(A) hearings;
``(B) written comments;
``(C) public meetings; and
``(D) electronic mail.
``(f) Travel Expenses.--A member of an advisory committee
shall be allowed travel expenses, including per diem in lieu
of subsistence, at rates authorized for an employee of an
agency under subchapter I of chapter 57 of title 5, United
States Code, while away from the home or regular place of
business of the member in the performance of the duties of
the advisory committee.
``(g) Termination.--An advisory committee shall terminate
on the date that is 5 years after the date on which the
advisory committee is established.

``SEC. 573. REVIEW OF ENERGY RULES.

``(a) List.--
``(1) In general.--An advisory committee shall develop a
list describing each energy rule promulgated during the
preceding 10-year period by the applicable agency for which
the advisory committee is established that, as determined by
the advisory committee--
``(A) should be reviewed by the head of the applicable
agency; and
``(B) reasonably could be subject to such a review during
the 5-calendar-year period beginning on the date on which the
energy rule is included on the list.
``(2) Factors for consideration.--In developing a list
under paragraph (1), an advisory committee shall take into
consideration--
``(A) the cost of an energy rule with respect to energy
production or energy efficiency of any individual or entity
subject to the energy rule;
``(B) the extent to which an energy rule could be revised
to substantially increase net benefits of the energy rule,
including through flexible regulatory options;
``(C) the relative importance of an energy rule, as
compared to other energy rules considered for inclusion on
the list; and
``(D) the discretion of the applicable agency under an
applicable authorizing law or regulation to modify or repeal
the energy rule.
``(3) Submission.--Not later than 1 year after the date on
which an advisory committee is established and annually
thereafter, the advisory committee shall submit

[[Page S7671]]

to the head of the applicable agency for which the advisory
committee is established the list developed under paragraph
(1), with each energy rule represented on the list in
descending order of importance, in accordance with the
priority assigned to review of the energy rule by the
advisory committee.
``(4) Action by applicable agency.--As soon as practicable
after receipt of a list under paragraph (3), the head of an
applicable agency shall--
``(A) publish the list in the Federal Register; and
``(B) submit to Congress a copy of the list.
``(b) Schedules for Review.--
``(1) Preliminary schedule.--
``(A) In general.--Not later than 60 days after the date of
receipt of a list under subsection (a)(3), the head of an
applicable agency shall develop and publish in the Federal
Register a preliminary schedule for review by the applicable
agency of the energy rules included on the list, including an
explanation for each modification of the list by the
applicable agency.
``(B) Notice and comment.--The head of an applicable agency
shall provide notice and an opportunity for public comment on
a preliminary schedule for a period of not less than 60 days
after the date of publication of the preliminary schedule
under subparagraph (A).
``(2) Final schedule.--
``(A) In general.--Not later than 60 days after the date of
expiration of the applicable comment period under paragraph
(1)(B), the head of the applicable agency shall develop and
publish in the Federal Register a final schedule for review
of the energy rules by the applicable agency.
``(B) Contents.--
``(i) In general.--A final schedule under subparagraph (A)
shall include a deadline by which the applicable agency shall
review each energy rule included on the list.
``(ii) Requirement.--A deadline described in clause (i)
shall be not later than 5 years after the date of publication
of the final schedule.
``(3) Requirement.--In developing a preliminary or final
schedule under this subsection, the head of an applicable
agency--
``(A) shall defer, to the maximum extent practicable, to
the recommendations of the advisory committee; but
``(B) may modify the list of the advisory committee, taking
into consideration--
``(i) the factors described in subsection (a)(2); and
``(ii) any limitation on resources or authority of the
applicable agency.
``(c) Review.--
``(1) Required publications.--For each energy rule included
on the final schedule of an applicable agency under
subsection (b)(2), the head of the applicable agency shall
publish in the Federal Register--
``(A) not later than the date that is 2 years before the
deadline applicable to the energy rule under the final
schedule, a notice that solicits public comment regarding
whether the energy rule should be continued in effect,
modified, or repealed;
``(B) not later than the date that is 1 year before the
deadline applicable to the energy rule under the final
schedule, a notice that--
``(i) addresses public comments received as a result of the
notice under subparagraph (A);
``(ii) contains a preliminary analysis by the applicable
agency relating to the energy rule;
``(iii) contains a preliminary determination of the
applicable agency regarding whether the energy rule should be
continued in effect, modified, or repealed; and
``(iv) solicits public comment on that preliminary
determination; and
``(C) not later than the date that is 60 days before the
deadline applicable to the energy rule under the final
schedule, a final notice relating to the energy rule that--
``(i) addresses public comments received as a result of the
notice under subparagraph (B);
``(ii) contains--

``(I) a determination of the applicable agency regarding
whether to continue in effect, modify, or repeal the energy
rule; and
``(II) an explanation of the determination; and

``(iii) if the applicable agency determines to modify or
repeal the energy rule, a notice of proposed rulemaking under
section 553 of title 5, United States Code, as applicable.
``(2) Determinations.--
``(A) In general.--Not later than the deadline applicable
to an energy rule under the final schedule under subsection
(b)(2), the head of the applicable agency shall make a
determination--
``(i) to continue the energy rule in effect;
``(ii) to modify the energy rule; or
``(iii) to repeal the energy rule.
``(B) Continuing in effect.--A determination by the head of
an applicable agency under subparagraph (A)(i) to continue an
energy rule in effect--
``(i) shall be published in the Federal Register; and
``(ii) shall be considered to be a final agency action
effective beginning on the date that is 60 days after the
date of publication of the determination.
``(C) Modification or repeal.--On a determination by the
head of an applicable agency to modify or repeal an energy
rule under clause (ii) or (iii) of subparagraph (A), the
applicable agency shall complete final agency action with
respect to the modification or repeal by not later than 2
years after the deadline applicable to the energy rule under
the final schedule under subsection (b)(2).
``(d) Judicial Review.--
``(1) In general.--No preliminary or final schedule under
this section shall be subject to judicial review.
``(2) Determination to continue in effect.--
``(A) Definition of reasonable alternative.--
``(i) In general.--In this paragraph, the term `reasonable
alternative', with respect to an option at a point in the
regulatory process, means an option that--

``(I) would achieve the purpose of the applicable rule; and
``(II) the head of the applicable Federal agency has the
authority to elect.

``(ii) Inclusion.--The term `reasonable alternative'
includes a flexible regulatory option.
``(B) Action by court.--A court of competent jurisdiction
may remand a determination to continue an energy rule in
effect under subsection (c)(2)(B) only on clear and
convincing evidence that a reasonable alternative was
available to the energy rule.
``(3) Failure to act.--A failure of the head of an
applicable agency to carry out an action required under this
section shall be subject to judicial review only as provided
in section 706(1) of title 5, United States Code.
``(e) Effect of Section.--
``(1) In general.--Nothing in this section limits the
discretion of an applicable agency, on making a determination
described in clause (ii) or (iii) of subsection (c)(2)(A), to
elect not to modify or repeal the applicable energy rule.
``(2) Treatment.--An election of an applicable agency
described in paragraph (1) shall be considered to be a final
agency action for purposes of judicial review.

``SEC. 574. PROSPECTIVE CONSIDERATION OF ENERGY RULES.

``(a) Determination.--
``(1) In general.--In promulgating any rule, the head of an
applicable agency shall determine whether the rule is an
energy rule.
``(2) Treatment.--The head of an applicable agency may
determine under paragraph (1) that a set of related rules
proposed to be promulgated by the applicable agency shall be
considered to be an energy rule.
``(b) Regulatory Impact Analysis.--
``(1) In general.--In promulgating an energy rule, the head
of an applicable agency shall prepare--
``(A) by not later than the date that is 60 days before the
date of publication of notice of the proposed rulemaking, a
preliminary regulatory impact analysis relating to the energy
rule; and
``(B) a final regulatory impact analysis relating to the
energy rule, which shall be submitted together with the final
energy rule by not later than the date that is 30 days before
the date of publication of the final energy rule.
``(2) Contents.--A preliminary or final regulator impact
analysis relating to an energy rule under paragraph (1) shall
contain--
``(A) a description of the potential benefits of the energy
rule, including a description of--
``(i) any beneficial effects that cannot be quantified in
monetary terms; and
``(ii) an identification of individuals and entities likely
to receive the benefits;
``(B) an explanation of the necessity, legal authority, and
reasonableness of the energy rule together with a description
of the condition that the energy rule is intended to address;
``(C) a description of the potential costs of the energy
rule, including a description of--
``(i) any costs that cannot be quantified in monetary
terms; and
``(ii) an identification of the individuals and entities
likely to bear the costs;
``(D)(i) an analysis of any alternative approach, including
market-based mechanisms, that could substantially achieve the
regulatory goal of the energy rule at a lower cost; and
``(ii) an explanation of the reasons why the alternative
approach was not adopted, together with a demonstration that
the energy rule provides the least-costly approach with
respect to the regulatory goal;
``(E)(i) an analysis of the benefits and costs of the
energy rule to the national energy supply and national energy
security; and
``(ii) an explanation in any case in which the energy rule
will cause undue harm to the energy stability of any region;
``(F) a statement that, as applicable--
``(i) the energy rule does not conflict with, or duplicate,
any other rule; or
``(ii) describes the reasons why such a conflict or
duplication exists; and
``(G) a statement that describes whether the energy rule
will require--
``(i) any onsite inspection; or
``(ii) any individual or entity--

``(I) to maintain records that will be subject to
inspection; or
``(II) to obtain any license, permit, or other
certification, including a description of any associated fees
or fines.

``(3) Combination with flexibility analysis.--An energy
rule regulatory impact analysis under paragraph (1) may be
prepared together with the regulatory flexibility analysis
relating to the energy rule under sections 603 and 604 of
title 5, United States Code.
``(c) Review of Regulatory Impact Analyses.--

[[Page S7672]]

``(1) In general.--The head of an applicable agency shall
review, and prepare comments regarding--
``(A) each notice of proposed rulemaking relating to an
energy rule of the applicable agency;
``(B) each preliminary and final regulatory impact analysis
relating to an energy rule of the applicable agency under
this section; and
``(C) each final energy rule of the applicable agency.
``(2) Consultation.--On receipt of a request of a head of
an applicable agency, any officer or employee of another
applicable agency shall consult with the head regarding a
review under paragraph (1).
``(3) Requirement.--The head of an applicable agency shall
not promulgate an energy rule until the date on which the
final regulatory impact analysis relating to the energy rule
is published in the Federal Register.
``(4) Review of other applicable agencies.--
``(A) In general.--On receipt of a request of a head of an
applicable agency, another applicable agency--
``(i) shall permit the head to review, and prepare comments
regarding--

``(I) a notice of proposed rulemaking relating to an energy
rule of the applicable agency; or
``(II) a preliminary or final regulatory impact analysis
relating to an energy rule of the applicable agency under
this section; and

``(ii) shall not publish the notice of proposed rulemaking
or preliminary or final regulatory impact analysis until the
earlier of--

``(I) the date on which--

``(aa) the head completes the review; and
``(bb) the applicable agency submits to the head a response
to any comments of the head and includes in the comments of
the applicable agency the response, in accordance with
subparagraph (B)(ii); and

``(II) the expiration of the deadline described in
subparagraph (B)(i).

``(B) Deadlines.--
``(i) Review and comment by head.--A head of an applicable
agency shall complete a review of a notice of proposed
rulemaking or preliminary or final regulatory impact analysis
of another applicable agency under subparagraph (A) by not
later than 90 days after the date on which the head submits a
request for the review.
``(ii) Response by applicable agency.--An applicable agency
shall submit to the head of another applicable agency that
conducted a review and submitted comments regarding an energy
rule under subparagraph (A) a response to those comments by
not later than 90 days after the date on which the comments
are received.
``(d) Plain Language Requirement.--The head of an
applicable agency shall ensure, to the maximum extent
practicable, that each energy rule and each regulatory impact
analysis relating to an energy rule--
``(1) is written in plain language; and
``(2) provides adequate notice of the requirements of the
rule to affected individuals and entities.
``(e) Nonapplicability to Certain Rules and Agencies.--
``(1) Definition of emergency situation.--In this
subsection, the term `emergency situation' means a situation
that--
``(A) is immediately impending and extraordinary in nature;
or
``(B) demands attention due to a condition, circumstance,
or practice that, if no action is taken, would be reasonably
expected to cause--
``(i) death, serious illness, or severe injury to an
individual; or
``(ii) substantial danger to private property or the
environment.
``(2) Nonapplicability.--This section shall not apply to--
``(A) a major rule promulgated in response to an emergency
situation, if a report describing the major rule and the
emergency situation is submitted to the head of each affected
applicable agency as soon as practicable after promulgation
of the major rule;
``(B) a major rule proposed or promulgated in connection
with the implementation of monetary policy or to ensure the
safety and soundness of--
``(i) a federally-insured depository institution or an
affiliate of such an institution;
``(ii) a credit union; or
``(iii) a government-sponsored housing enterprise regulated
by the Office of Federal Housing Enterprise Oversight;
``(C) an action by an applicable agency that the head of
the applicable agency certifies is limited to interpreting,
implementing, or administering the internal revenue laws of
the United States, including any regulation proposed or
issued in connection with ensuring the collection of taxes
from a subsidiary of a foreign company doing business in the
United States; or
``(D) a major rule proposed or promulgated pursuant to
section 553 of title 5, United States Code, in connection
with imposing a trade sanction against any country that
engages in illegal trade activities against the United States
that are injurious to United States technology, jobs,
pensions, or general economic well-being.''.
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the Director of the Office of
Management and Budget shall submit to Congress a report that
contains an analysis of--
(1) rulemaking procedures of Federal departments and
agencies; and
(2) the impact of those procedures on--
(A) the public; and
(B) the regulatory process.
(c) Effective Date.--The amendments made by subsection (a)
shall apply only to final rules of Federal departments and
agencies the rulemaking process for which begins after the
date of enactment of this Act.
(d) Other Policies and Goals.--
(1) Declaration of policy.--Section 101 of the National
Environmental Policy Act of 1969 (42 U.S.C. 4331) is
amended--
(A) by redesignating subsection (c) as subsection (d); and
(B) by inserting after subsection (b) the following:
``(c) Energy Security.--Congress recognizes that, because
the production and consumption of energy has a profound
impact on the environment, and the availability of affordable
energy resources is essential to continued national security
and economic security of the United States, it is the policy
of the United States to ensure that--
``(1) each proposed Federal action should be analyzed with
respect to the impact of the proposed Federal action on the
energy security of the United States; and
``(2) an analysis under paragraph (1) should be taken into
consideration in developing Federal plans, rules, programs,
and actions.''.
(2) Reports.--Section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is
amended--
(A) by redesignating clauses (iii) through (v) as clauses
(iv) through (vi), respectively; and
(B) by inserting after clause (ii) the following:
``(iii) the impact on the energy security of the United
States in terms of the effects to the production,
distribution, and consumption of energy of the proposal or
Federal action;''.
______

SA 1560. Mr. HAGEL submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following:

TITLE VIII--TAX INCENTIVES FOR PRODUCTION AND CONSERVATION OF ENERGY

SEC. 801. INCOME AND GAINS FROM ELECTRICITY TRANSMISSION
SYSTEMS TREATED AS QUALIFYING INCOME FOR
PUBLICLY TRADED PARTNERSHIPS.

(a) In General.--Section 7704(d)(1) of the Internal Revenue
Code of 1986 (defining qualifying income) is amended by
redesignating subparagraphs (F) and (G) as subparagraphs (G)
and (H), respectively, and by inserting after subparagraph
(E) the following new subparagraph:
``(F) income and gains from the transmission of electricity
at 69 or more kilovolts through any property the original use
of which commences after December 31, 2006,''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act,
in taxable years ending after such date.

SEC. 802. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR
DEPRECIATION OF QUALIFIED ENERGY MANAGEMENT
DEVICES.

(a) In General.--Section 168(e)(3)(B) of the Internal
Revenue Code of 1986 (defining 5-year property) is amended by
striking ``and'' at the end of clause (v), by striking the
period at the end of clause (vi)(III) and inserting ``,
and'', and by inserting after clause (vi) the following new
clause:
``(vii) any qualified energy management device.''.
(b) Definition of Qualified Energy Management Device.--
Section 168(i) of such Code (relating to definitions and
special rules) is amended by inserting at the end the
following new paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy management
device' means any energy management device which is placed in
service by a taxpayer who is a supplier of electric energy or
a provider of electric energy services.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device' means
any time-based meter and related communications equipment
which is capable of being used by the taxpayer as part of a
system that--
``(i) measures and records electricity usage data on a
time-differentiated basis in at least 24 separate time
segments per day,
``(ii) provides for the exchange of information between
supplier or provider and the customer's energy management
device in support of time-based rates or other forms of
demand response, and
``(iii) provides data to such supplier or provider so that
the supplier or provider can provide energy usage information
to customers electronically.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service in taxable years
ending after the date of the enactment of this Act.

[[Page S7673]]

SEC. 803. SPECIAL DEPRECIATION ALLOWANCE FOR CELLULOSIC
BIOMASS ETHANOL PLANT PROPERTY.

(a) In General.--Section 168 of the Internal Revenue Code
of 1986 (relating to accelerated cost recovery system) is
amended by adding at the end the following:
``(l) Special Allowance for Cellulosic Biomass Ethanol
Plant Property.--
``(1) Additional allowance.--In the case of any qualified
cellulosic biomass ethanol plant property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 50 percent of the
adjusted basis of such property, and
``(B) the adjusted basis of such property shall be reduced
by the amount of such deduction before computing the amount
otherwise allowable as a depreciation deduction under this
chapter for such taxable year and any subsequent taxable
year.
``(2) Qualified cellulosic biomass ethanol plant
property.--
``(A) In general.--The term `qualified cellulosic biomass
ethanol plant property' means property of a character subject
to the allowance for depreciation--
``(i) which is used in the United States solely to produce
cellulosic biomass ethanol,
``(ii) the original use of which commences with the
taxpayer after the date of the enactment of this subsection,
``(iii) which has a nameplate capacity of 100,000,000
gallons per year of cellulosic biomass ethanol,
``(iv) which is acquired by the taxpayer by purchase (as
defined in section 179(d)) after the date of the enactment of
this subsection, but only if no written binding contract for
the acquisition was in effect on or before the date of the
enactment of this subsection, and
``(v) which is placed in service by the taxpayer before
January 1, 2013.
``(B) Exceptions.--
``(i) Alternative depreciation property.--Such term shall
not include any property described in section
168(k)(2)(D)(i).
``(ii) Tax-exempt bond-financed property.--Such term shall
not include any property any portion of which is financed
with the proceeds of any obligation the interest on which is
exempt from tax under section 103.
``(iii) Election out.--If a taxpayer makes an election
under this subparagraph with respect to any class of property
for any taxable year, this subsection shall not apply to all
property in such class placed in service during such taxable
year.
``(3) Cellulosic biomass ethanol.--For purposes of this
subsection, the term `cellulosic biomass ethanol'--
``(A) means ethanol derived from any lignocellulosic or
hemicellulosic matter that is available on a renewable or
recurring basis, including--
``(i) dedicated energy crops and trees,
``(ii) wood and wood residues,
``(iii) plants,
``(iv) grasses,
``(v) agricultural residues,
``(vi) fibers,
``(vii) animal wastes and other waste materials, and
``(viii) municipal and solid waste, and
``(B) includes any ethanol produced in facilities where
animal wastes or other waste materials are digested or
otherwise used to displace 90 percent or more of the fossil
fuel normally used in the production of ethanol.
``(4) Special rules.--For purposes of this subsection,
rules similar to the rules of subparagraph (E) of section
168(k)(2) shall apply, except that such subparagraph shall be
applied--
``(A) by substituting `the date of the enactment of
subsection (l)' for `September 10, 2001' each place it
appears therein,
``(B) by substituting `January 1, 2013' for `January 1,
2005' in clause (i) thereof, and
``(C) by substituting `qualified cellulosic biomass ethanol
plant property' for `qualified property' in clause (iv)
thereof.
``(5) Allowance against alternative minimum tax.--For
purposes of this subsection, rules similar to the rules of
section 168(k)(2)(G) shall apply.
``(6) Recapture.--For purposes of this subsection, rules
similar to the rules under section 179(d)(10) shall apply
with respect to any qualified cellulosic biomass ethanol
plant property which ceases to be qualified cellulosic
biomass ethanol plant property.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.

SEC. 804. SPECIAL DEPRECIATION ALLOWANCE FOR COAL-TO-LIQUID
FACILITIES.

(a) In General.--Section 168 of the Internal Revenue Code
of 1986 (relating to accelerated cost recovery system), as
amended by this Act, is amended by adding at the end the
following:
``(m) Special Allowance for Coal-to-Liquid Plant
Property.--
``(1) Additional allowance.--In the case of any qualified
coal-to-liquid plant property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 50 percent of the
adjusted basis of such property, and
``(B) the adjusted basis of such property shall be reduced
by the amount of such deduction before computing the amount
otherwise allowable as a depreciation deduction under this
chapter for such taxable year and any subsequent taxable
year.
``(2) Qualified coal-to-liquid plant property.--
``(A) In general.--The term `qualified coal-to-liquid plant
property' means property of a character subject to the
allowance for depreciation--
``(i) which is part of a commercial-scale project that
converts coal to 1 or more liquid or gaseous transportation
fuel that demonstrates the capture, and sequestration or
disposal or use of, the carbon dioxide produced in the
conversion process, and that, on the basis of carbon dioxide
sequestration plan prepared by the applicant, is certified by
the Administrator of the Environmental Protection Agency, in
consultation with the Secretary of Energy, as producing fuel
with life cycle carbon dioxide emissions at or below the
average life-cycle carbon dioxide emissions for the same type
of fuel produced at traditional petroleum based facilities
with similar annual capacities,
``(ii) which is used in the United States solely to produce
coal-to-liquid fuels,
``(iii) the original use of which commences with the
taxpayer after the date of the enactment of this subsection,
``(iv) which has a nameplate capacity of 30,000 barrels per
day production of coal-to-liquid fuels;
``(v) which is acquired by the taxpayer by purchase (as
defined in section 179(d)) after the date of the enactment of
this subsection, but only if no written binding contract for
the acquisition was in effect on or before the date of the
enactment of this subsection, and
``(vi) which is placed in service by the taxpayer before
January 1, 2013.
``(B) Exceptions.--
``(i) Alternative depreciation property.--Such term shall
not include any property described in section
168(k)(2)(D)(i).
``(ii) Tax-exempt bond-financed property.--Such term shall
not include any property any portion of which is financed
with the proceeds of any obligation the interest on which is
exempt from tax under section 103.
``(iii) Election out.--If a taxpayer makes an election
under this subparagraph with respect to any class of property
for any taxable year, this subsection shall not apply to all
property in such class placed in service during such taxable
year.
``(3) Special rules.--For purposes of this subsection,
rules similar to the rules of subparagraph (E) of section
168(k)(2) shall apply, except that such subparagraph shall be
applied--
``(A) by substituting `the date of the enactment of
subsection (l)' for `September 10, 2001' each place it
appears therein,
``(B) by substituting `January 1, 2013' for `January 1,
2005' in clause (i) thereof, and
``(C) by substituting `qualified coal-to-liquid plant
property' for `qualified property' in clause (iv) thereof.
``(4) Allowance against alternative minimum tax.--For
purposes of this subsection, rules similar to the rules of
section 168(k)(2)(G) shall apply.
``(5) Recapture.--For purposes of this subsection, rules
similar to the rules under section 179(d)(10) shall apply
with respect to any qualified coal-to-liquid plant property
which ceases to be qualified coal-to-liquid plant
property.''.
(b) Effective Date.--The amendment made by this subsection
shall apply to property placed in service after the date of
the enactment of this Act, in taxable years ending after such
date.

SEC. 805. DEDICATED ETHANOL PIPELINES TREATED AS 15-YEAR
PROPERTY.

(a) In General.--Section 168(e)(3)(E) of the Internal
Revenue Code of 1986 (defining 15-year property), is amended
by striking ``and'' at the end of clause (vii), by striking
the period at the end of clause (viii) and by inserting ``,
and'', and by adding at the end the following new clause:
``(ix) any dedicated ethanol distribution line the original
use of which commences with the taxpayer after August 1,
2007, and which is placed in service before January 1,
2013.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) of such Code (relating to special rule for
certain property assigned to classes) is amended by inserting
after the item relating to subparagraph (E)(viii) the
following new item:

``(E)(ix)........................................................35.''.

(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to property placed in service after August 1, 2007.
(2) Exception.--The amendments made by this section shall
not apply to any property with respect to which the taxpayer
or related party has entered into a binding contract for the
construction thereof on or before August 1, 2007, or, in the
case of self-constructed property, has started construction
on or before such date.

SEC. 806. CREDIT FOR POLLUTION ABATEMENT EQUIPMENT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 45N the following new section:

``SEC. 45O. CREDIT FOR POLLUTION ABATEMENT EQUIPMENT.

``(a) General Rule.--For purposes of section 38, the
pollution abatement equipment credit for any taxable year is
an amount equal to 30 percent of the costs of any qualified
pollution abatement equipment property placed in service by
the taxpayer during the taxable year.

[[Page S7674]]

``(b) Limitation.--The credit allowed under subsection (a)
for any taxable year with respect to any qualified pollution
abatement equipment property shall not exceed--
``(1) $50,000,000 in the case of a property of a character
subject an allowance for depreciation provided in section
167, and
``(2) $30,000,000 in any other case.
``(c) Qualified Pollution Abatement Equipment Property.--
For purposes of this section, the term `qualified pollution
abatement equipment property' means pollution abatement
equipment--
``(1) which is part of a unit or facility which either--
``(A) utilizes technologies that meet relevant Federal and
State clean air requirements applicable to the unit or
facility, including being adequately demonstrated for
purposes of section 111 of the Clean Air Act (42 U.S.C.
7411), achievable for purposes of section 169 of that Act (42
U.S.C. 7479), or achievable in practice for purposes of
section 171 of that Act (42 U.S.C. 7501, or
``(B) utilizes equipment or processes that exceed relevant
Federal or State clean air requirements applicable to the
unit or facility by achieving greater efficiency or
environmental performance,
``(2) which is installed on a voluntary basis and not as a
result of an agreement with a Federal or State agency or
required as a decree from a judicial decision, and
``(3) with respect to which an election under section 169
is not in effect.''.
(b) Credit Treated as Part of General Business Credit.--
Section 38(b) of such Code is amended by striking ``plus'' at
the end of paragraph (30), by striking the period at the end
of paragraph (31) and inserting ``, plus'', and by adding at
the end the following new paragraph:
``(32) the pollution abatement equipment credit determined
under section 45O(a).''.
(c) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 45N
the following new item:

``Sec. 45O. Credit for pollution abatement equipment.''.

(d) Effective Date.--The amendments made by this section
shall apply to expenditures made after the date of the
enactment of this Act, in taxable years ending after such
date.

SEC. 807. MODIFICATIONS RELATING TO CLEAN RENEWABLE ENERGY
BONDS.

(a) Clean Renewable Energy Bond.--Paragraph (1) of section
54(d) of the Internal Revenue Code of 1986 (defining clean
renewable energy bond) is amended--
(1) in subparagraph (A), by striking ``pursuant'' and all
that follows through ``subsection (f)(2)'',
(2) in subparagraph (B), by striking ``95 percent or more
of the proceeds'' and inserting ``90 percent or more of the
net proceeds'', and
(3) in subparagraph (D), by striking ``subsection (h)'' and
inserting ``subsection (g)''.
(b) Qualified Project.--Subparagraph (A) of section
54(d)(2) of such Code (defining qualified project) is amended
to read as follows:
``(A) In general.--The term `qualified project' means any
qualified facility (as determined under section 45(d) without
regard to paragraphs (8) and (10) thereof and to any placed
in service requirement) owned by a qualified borrower and
also without regard to the following:
``(i) In the case of a qualified facility described in
section 45(d)(9) (regarding incremental hydropower
production), any determination of incremental hydropower
production and related calculations shall be determined by
the qualified borrower based on a methodology that meets
Federal Energy Regulatory Commission standards.
``(ii) In the case of a qualified facility described in
section 45(d)(9) (regarding hydropower production), the
facility need not be licensed by the Federal Energy
Regulation Commission if the facility, when constructed, will
meet Federal Energy Regulatory Commission licensing
requirements and other applicable environmental, licensing,
and regulatory requirements.''.
(c) Reimbursement.--Subparagraph (C) of section 54(d)(2) of
such Code (relating to reimbursement) is amended to read as
follows:
``(C) Reimbursement.--For purposes of paragraph (1)(B),
proceeds of a clean renewable energy bond may be issued to
reimburse a qualified borrower for amounts paid after the
date of the enactment of this subparagraph in the same manner
as proceeds of State and local government obligations the
interest upon which is exempt from tax under section 103.''.
(d) Change in Use.--Subparagraph (D) of section 54(d)(2) of
such Code (relating to treatment of changes in use) is
amended by striking ``or qualified issuer''.
(e) Maximum Term.--Paragraph (2) of section 54(e) of such
Code (relating to maximum term) is amended by striking
``without regard to the requirements of subsection (1)(6)
and''.
(f) Repeal of Limitation on Amount of Bonds Designated.--
Section 54 of such Code is amended by striking subsection (f)
(relating to repeal of limitation on amount of bonds
designated).
(g) Special Rules Relating to Expenditures.--Subsection (h)
of section 54 of such Code (relating to special rules
relating to expenditures) is amended--
(1) in paragraph (1)(A), by striking ``95 percent of the
proceeds'' and inserting ``90 percent of the net proceeds'',
(2) in paragraph (1)(B)--
(A) by striking ``10 percent of the proceeds'' and
inserting ``5 percent of the net proceeds'', and
(B) by striking ``the 6-month period beginning on'' both
places it appears and inserting ``1 year of'',
(3) in paragraph (1)(C), by inserting ``net'' before
``proceeds'', and
(4) in paragraph (3), by striking ``95 percent of the
proceeds'' and inserting ``90 percent of the net proceeds''.
(h) Repeal of Special Rules Relating to Arbitrage.--Section
54 of such Code is amended by striking subsection (i)
(relating to repeal of special rules relating to arbitrage).
(i) Public Power Entity.--Subsection (j) of section 54 of
such Code (defining cooperative electric company; qualified
energy tax credit bond lender; governmental body; qualified
borrower) is amended--
(1) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively,
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) Public power entity.--The term `public power entity'
means a State utility with a service obligation, as such
terms are defined in section 217 of the Federal Power Act (as
in effect on the date of enactment of this paragraph).'',
(3) in paragraph (5), as so redesignated--
(A) by striking ``or'' at the end of subparagraph (B),
(B) by striking the period at the end of subparagraph (C)
and inserting ``, or'', and
(C) by adding at the end the following new subparagraph:
``(D) a public power entity.'', and
(4) in paragraph (6), as so redesignated--
(A) by striking ``or'' at the end of subparagraph (A),
(B) by striking the period at the end of subparagraph (B)
and inserting ``, or'', and
(C) by adding at the end the following new subparagraph:
``(C) a public power entity.''.
(j) Repeal of Ratable Principal Amortization Requirement.--
Subsection (l) of section 54 of such Code (relating to other
definitions and special rules) is amended by striking
paragraph (5) and redesignating paragraph (6) as paragraph
(5).
(k) Net Proceeds.--Subsection (l) of section 54 of such
Code (relating to other definitions and special rules), as
amended by subsection (j), is amended by redesignating
paragraphs (2), (3), (4), and (5) as paragraphs (4), (5),
(6), and (7), respectively, and by inserting after paragraph
(1) the following new paragraphs:
``(2) Net proceeds.--The term `net proceeds' means, with
respect to an issue, the proceeds of such issue reduced by
amounts in a reasonably required reserve or replacement fund.
``(3) Limitation on amount in reserve or replacement fund
which may be financed by issue.--A bond issued as part of an
issue shall not be treated as a clean renewable energy bond
if the amount of the proceeds from the sale of such issue
which is part of any reserve or replacement fund exceeds 10
percent of the proceeds of the issue (or such higher amount
which the issuer establishes is necessary to the satisfaction
of the Secretary).''.
(l) Other Special Rules.--Subsection (l) of section 54 of
such Code ((relating to other definitions and special rules),
as amended by subsections (j) and (k), is amended by adding
at the end the following new paragraphs:
``(8) Credits may be separated.--There may be a separation
(including at issuance) of the ownership of a clean renewable
energy bond and the entitlement to the credit under this
section with respect to such bond. In case of any such
separation, the credit under this section shall be allowed to
the person who on the credit allowance date holds the
instrument evidencing the entitlement to the credit and not
to the holder of the bond.
``(9) Treatment for estimated tax purposes.--Solely for the
purposes of sections 6654 and 6655, the credit allowed by
this section to a taxpayer by reason of holding a qualified
energy tax credit bond on a credit allowance date (or the
credit in the case of a separation as provided in paragraph
(8)) shall be treated as if it were a payment of estimated
tax made by the taxpayer on such date.
``(10) Carryback and carryforward of unused credits.--If
the sum of the credit exceeds the limitation imposed by
subsection (c) for any taxable year, any credits may be
applied in a manner similar to the rules set forth in section
39.''.
(m) Termination.--Subsection (m) of section 54 of such Code
(relating to termination) is amended by striking ``2008'' and
inserting ``2013''.
(n) Clerical Redesignations.--Section 54 of such Code, as
amended by the preceding provisions of this section, is
amended by redesignating subsections (g), (h), (j), (k), (l),
and (m) as subsections (f), (g), (h), (i), (j), and (k),
respectively.
(o) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.

SEC. 808. EXTENSION OF RENEWABLE ENERGY PRODUCTION TAX
CREDIT.

(a) In General.--Section 45 of the Internal Revenue Code of
1986 is amended--
(1) by striking ``10-year period beginning on the date the
facility was originally placed in service,'' in subsection
(a)(2)(A)(ii) and inserting ``5-year period beginning on the
date

[[Page S7675]]

the facility was originally placed in service,'',
(2) by striking ``in subsection (a)(2)(A)(ii).'' in
subsection (b)(4)(B)(i) and inserting ``beginning on the date
the facility was originally placed in service.'',
(3) by striking ``in subsection (a)(2)(A)(ii).'' in
subsection (b)(4)(B)(ii) and inserting ``beginning on the
date the facility was originally placed in service.'', and
(4) by striking ``January 1, 2009'' each place it appears
in subsection (d) and inserting ``January 1, 2014''.
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
the enactment of this Act.

SEC. 809. ENERGY CREDIT EXTENDED TO GREEN BUILDINGS.

(a) In General.--Section 48(a)(3)(A) of the Internal
Revenue Code of 1986 (defining energy property) is amended--
(1) by striking ``or'' at the end of clause (iii),
(2) by inserting after clause (iv) the following new
clauses:
``(v) thermal storage system determined by the Secretary of
Energy through a site specific feasibility study which allows
for a reduction in energy use of 10 percent per year compared
with conventional technologies, or
``(vi) daylight dimming technologies determined by the
Secretary of Energy,''.
(b) Credit Rate.--Section 48(a)(2)(A) of such Code
(relating to energy percentage) is amended--
(1) by striking ``and'' at the end of clause (i)(III),
(2) by redesignating clause (ii) as clause (iii), and
(3) by inserting after clause (i) the following new clause:
``(ii) 50 percent in the case of energy property described
in clause (v) or (vi) of paragraph (3)(A), and''.
(c) Limitations.--Section 48 of such Code is amended by
adding at the end the following new subsection:
``(d) Energy Property for Green Buildings.--
``(1) Thermal storage unit.--In the case of energy property
described in paragraph (3)(A)(v) placed in service during the
taxable year, the credit otherwise determined under
subsection (a)(1) for such year with respect to such property
shall not exceed $500,000.
``(2) Daylight dimming technologies.--In the case of energy
property described in paragraph (3)(A)(vi) placed in service
during the taxable year, the credit otherwise determined
under subsection (a)(1) for such year with respect to such
property shall not exceed $500,000.''.
(d) Effective Date.--The amendments made by this section
shall apply to periods after the date of the enactment of
this Act, in taxable years ending after such date, under
rules similar to the rules of section 48(m) of the Internal
Revenue Code of 1986 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990).
______

SA 1561. Mr. KOHL submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Reid to the bill H.R. 6, to reduce
our Nation's dependency on foreign oil by investing in clean,
renewable, and alternative energy resources, promoting new emerging
energy technologies, developing greater efficiency, and creating a
Strategic Energy Efficiency and Renewables Reserve to invest in
alternative energy, and for other purposes; which was ordered to lie on
the table; as follows:

At the end, add the following:

TITLE VIII--MISCELLANEOUS

SEC. 801. SHORT TITLE.

This title may be cited as the ``Strategic Refinery Reserve
Act of 2007''.

SEC. 802. DEFINITIONS.

In this title:
(1) Reserve.--The term ``Reserve'' means the Strategic
Refinery Reserve established under section 803.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.

SEC. 803. STRATEGIC REFINERY RESERVE.

(a) Establishment.--
(1) In general.--The Secretary shall establish and operate
a Strategic Refinery Reserve in the United States.
(2) Authorities.--To carry out this section, the Secretary
may contract for--
(A) the construction or operation of new refineries; or
(B) the acquisition or reopening of closed refineries.
(b) Operation.--The Secretary shall operate the Reserve--
(1) to provide petroleum products to--
(A) the Federal Government (including the Department of
Defense); and
(B) any State governments and political subdivisions of
States that opt to purchase refined petroleum products from
the Reserve; and
(2) to provide petroleum products to the general public
during any period described in subsection (c).
(c) Emergency Periods.--The Secretary shall make petroleum
products from the Reserve available under subsection (b)(2)
only if the President determines that--
(1) there is a severe energy supply interruption (as
defined in section 3 of the Energy Policy and Conservation
Act (42 U.S.C. 6202)); or
(2)(A) there is a regional petroleum product supply
shortage of significant scope and duration; and
(B) action taken under subsection (b)(2) would directly and
significantly assist in reducing the adverse impact of the
shortage.
(d) Locations.--In determining the location of a refinery
for inclusion in the Reserve, the Secretary shall take into
account--
(1) the impact of the refinery on the local community, as
determined after requesting and reviewing any comments from
State and local governments and the public;
(2) regional vulnerability to--
(A) natural disasters; and
(B) terrorist attacks;
(3) the proximity of the refinery to the Strategic
Petroleum Reserve;
(4) the accessibility of the refinery to energy
infrastructure and Federal facilities (including facilities
under the jurisdiction of the Department of Defense);
(5) the need to minimize adverse public health and
environmental impacts; and
(6) the energy needs of the Federal Government (including
the Department of Defense).
(e) Increased Capacity.--The Secretary shall ensure that
refineries in the Reserve are designed to provide a rapid
increase in production capacity during periods described in
subsection (c).
(f) Implementation Plan.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to Congress
a plan for the establishment and operation of the Reserve
under this section.
(2) Requirements.--The plan required under paragraph (1)
shall--
(A)(i)(I) provide for, within 2 years after the date of
enactment of this Act, a capacity within the Reserve equal to
5 percent of the total United States daily demand for
gasoline, diesel, and aviation fuel; and
(II) provide for a capacity within the Reserve such that
not less than 75 percent of the gasoline and diesel fuel
produced by the Reserve contain an average of 10 percent
renewable fuel (as defined in 211(o)(1) of the Clean Air Act
(42 U.S.C. 7545(o)(1))); or
(ii) if the Secretary finds that achieving the capacity
described in subclause (I) or (II) of clause (i) is not
feasible within 2 years after the date of enactment of this
Act, include--
(I) an explanation from the Secretary of the reasons why
achieving the capacity within the timeframe is not feasible;
and
(II) provisions for achieving the required capacity as soon
as practicable; and
(B) provide for adequate delivery systems capable of
providing Reserve product to the entities described in
subsection (b)(1).
(g) Coordination.--The Secretary shall carry out this
section in coordination with the Secretary of Defense.
(h) Compliance With Federal Environmental Requirements.--
Nothing in this section affects any requirement to comply
with Federal or State environmental or other laws.

SEC. 804. REPORTS ON REFINERY CLOSURES.

(a) Reports to Secretary.--
(1) In general.--Not later than 180 days before permanently
closing a refinery in the United States, the owner or
operator of the refinery shall submit to the Secretary notice
of the closing.
(2) Requirements.--The notice required under paragraph (1)
with respect to a refinery to be closed shall include an
explanation of the reasons for the closing of the refinery.
(b) Reports to Congress.--The Secretary shall, in
consultation with the Secretary of Defense, the Administrator
of the Environmental Protection Agency, and the Federal Trade
Commission and as soon as practicable after receipt of a
report under subsection (a), submit to Congress--
(1) the report; and
(2) an analysis of the effects of the proposed closing
covered by the report on--
(A) in accordance with the Clean Air Act (42 U.S.C. 7401 et
seq.), supplies of clean fuel;
(B) petroleum product prices;
(C) competition in the refining industry;
(D) the economy of the United States;
(E) regional economies;
(F) regional supplies of refined petroleum products;
(G) the supply of fuel to the Department of Defense; and
(H) energy security.

____________________