SA 3850. Mr. REID proposed an amendment to the bill H.R. 6, to move the United States toward greater energy independence and security, to increase the production of clean renewable fuels, to protect consumers, to increase the efficiency of products, buildings, and vehicles, to promote research on and deploy greenhouse gas capture and storage options, and to improve the energy performance of the Federal Government, and for other purposes; as follows:

In lieu of the matter proposed to be inserted by the amendment of the House to the amendment of the Senate to the text of the bill H.R. 6, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy Independence and Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is as follows:

Sec..1..Short title; table of contents.
Sec..2..Definitions.
Sec..3..Relationship to other law.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY

Subtitle A--Increased Corporate Average Fuel Economy Standards

Sec..101..Short title.
Sec..102..Average fuel economy standards for automobiles and certain other vehicles.
Sec..103..Definitions.
Sec..104..Credit trading program.
Sec..105..Consumer information.
Sec..106..Continued applicability of existing standards.
Sec..107..National Academy of Sciences studies.
Sec..108..National Academy of Sciences study of medium-duty and heavy-duty truck fuel economy.
Sec..109..Extension of flexible fuel vehicle credit program.
Sec..110..Periodic review of accuracy of fuel economy labeling procedures.
Sec..111..Consumer tire information.
Sec..112..Use of civil penalties for research and development.
Sec..113..Exemption from separate calculation requirement.
Subtitle B--Improved Vehicle Technology

Sec..131..Transportation electrification.
Sec..132..Domestic manufacturing conversion grant program.
Sec..133..Inclusion of electric drive in Energy Policy Act of 1992.
Sec..134..Loan guarantees for fuel-efficient automobile parts manufacturers.
Sec..135..Advanced battery loan guarantee program.
Sec..136..Advanced technology vehicles manufacturing incentive program.
Subtitle C--Federal Vehicle Fleets

Sec..141..Federal vehicle fleets.
Sec..142..Federal fleet conservation requirements.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS

Subtitle A--Renewable Fuel Standard

Sec..201..Definitions.
Sec..202..Renewable fuel standard.
Sec..203..Study of impact of Renewable Fuel Standard.
Sec..204..Environmental and resource conservation impacts.
Sec..205..Biomass based diesel and biodiesel labeling.
Sec..206..Study of credits for use of renewable electricity in electric vehicles.
Sec..207..Grants for production of advanced biofuels.
Sec..208..Integrated consideration of water quality in determinations on fuels and fuel additives.
Sec..209..Anti-backsliding.
Sec..210..Effective date, savings provision, and transition rules.
Subtitle B--Biofuels Research and Development

Sec..221..Biodiesel.
Sec..222..Biogas.
Sec..223..Grants for biofuel production research and development in certain States.
Sec..224..Biorefinery energy efficiency.
Sec..225..Study of optimization of flexible fueled vehicles to use E-85 fuel.
Sec..226..Study of engine durability and performance associated with the use of biodiesel.
Sec..227..Study of optimization of biogas used in natural gas vehicles.
Sec..228..Algal biomass.
Sec..229..Biofuels and biorefinery information center.
Sec..230..Cellulosic ethanol and biofuels research.
Sec..231..Bioenergy research and development, authorization of appropriation.
Sec..232..Environmental research and development.
Sec..233..Bioenergy research centers.
Sec..234..University based research and development grant program.
Subtitle C--Biofuels Infrastructure

Sec..241..Prohibition on franchise agreement restrictions related to renewable fuel infrastructure.
Sec..242..Renewable fuel dispenser requirements.
Sec..243..Ethanol pipeline feasibility study.
Sec..244..Renewable fuel infrastructure grants.
Sec..245..Study of the adequacy of transportation of domestically-produced renewable fuel by railroads and other modes of transportation.
Sec..246..Federal fleet fueling centers.
Sec..247..Standard specifications for biodiesel.
Sec..248..Biofuels distribution and advanced biofuels infrastructure.
Subtitle D--Environmental Safeguards

Sec..251..Waiver for fuel or fuel additives.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND LIGHTING

Subtitle A--Appliance Energy Efficiency

Sec..301..External power supply efficiency standards.
Sec..302..Updating appliance test procedures.
Sec..303..Residential boilers.
Sec..304..Furnace fan standard process.
Sec..305..Improving schedule for standards updating and clarifying State authority.
Sec..306..Regional standards for furnaces, central air conditioners, and heat pumps.
Sec..307..Procedure for prescribing new or amended standards.
Sec..308..Expedited rulemakings.
Sec..309..Battery chargers.
Sec..310..Standby mode.
Sec..311..Energy standards for home appliances.
Sec..312..Walk-in coolers and walk-in freezers.
Sec..313..Electric motor efficiency standards.
Sec..314..Standards for single package vertical air conditioners and heat pumps.
Sec..315..Improved energy efficiency for appliances and buildings in cold climates.
Sec..316..Technical corrections.
Subtitle B--Lighting Energy Efficiency

Sec..321..Efficient light bulbs.
Sec..322..Incandescent reflector lamp efficiency standards.
Sec..323..Public building energy efficient and renewable energy systems.
Sec..324..Metal halide lamp fixtures.
Sec..325..Energy efficiency labeling for consumer electronic products.
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY

Sec..401..Definitions.
Subtitle A--Residential Building Efficiency

Sec..411..Reauthorization of weatherization assistance program.
Sec..412..Study of renewable energy rebate programs.
Sec..413..Energy code improvements applicable to manufactured housing.
Subtitle B--High-Performance Commercial Buildings

Sec..421..Commercial high-performance green buildings.
Sec..422..Zero Net Energy Commercial Buildings Initiative.
Sec..423..Public outreach.
Subtitle C--High-Performance Federal Buildings

Sec..431..Energy reduction goals for Federal buildings.
Sec..432..Management of energy and water efficiency in Federal buildings.
Sec..433..Federal building energy efficiency performance standards.
Sec..434..Management of Federal building efficiency .
Sec..435..Leasing.
Sec..436..High-performance green Federal buildings.
Sec..437..Federal green building performance.
Sec..438..Storm water runoff requirements for Federal development projects.
Sec..439..Cost-effective technology acceleration program.
Sec..440..Authorization of appropriations.
Sec..441..Public building life-cycle costs.
Subtitle D--Industrial Energy Efficiency

Sec..451..Industrial energy efficiency.
Sec..452..Energy-intensive industries program.
Sec..453..Energy efficiency for data center buildings.
Subtitle E--Healthy High-Performance Schools

Sec..461..Healthy high-performance schools.
Sec..462..Study on indoor environmental quality in schools.
Subtitle F--Institutional Entities

Sec..471..Energy sustainability and efficiency grants and loans for institutions.
Subtitle G--Public and Assisted Housing

Sec..481..Application of International Energy Conservation Code to public and assisted housing.
Subtitle H--General Provisions

Sec..491..Demonstration project.
Sec..492..Research and development.
Sec..493..Environmental Protection Agency demonstration grant program for local governments.
Sec..494..Green Building Advisory Committee.
Sec..495..Advisory Committee on Energy Efficiency Finance.
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS

Subtitle A--United States Capitol Complex

Sec..501..Capitol complex photovoltaic roof feasibility studies.
Sec..502..Capitol complex E-85 refueling station.
Sec..503..Energy and environmental measures in Capitol complex master plan.
Sec..504..Promoting maximum efficiency in operation of Capitol power plant.
Sec..505..Capitol power plant carbon dioxide emissions feasibility study and demonstration projects.
Subtitle B--Energy Savings Performance Contracting

Sec..511..Authority to enter into contracts; reports.
Sec..512..Financing flexibility.
Sec..513..Promoting long-term energy savings performance contracts and verifying savings.
Sec..514..Permanent reauthorization.
Sec..515..Definition of energy savings.
Sec..516..Retention of savings.
Sec..517..Training Federal contracting officers to negotiate energy efficiency contracts.
Sec..518..Study of energy and cost savings in nonbuilding applications.
Subtitle C--Energy Efficiency in Federal Agencies

Sec..521..Installation of photovoltaic system at Department of Energy headquarters building.
Sec..522..Prohibition on incandescent lamps by Coast Guard.
Sec..523..Standard relating to solar hot water heaters.
Sec..524..Federally-procured appliances with standby power.
Sec..525..Federal procurement of energy efficient products.
Sec..526..Procurement and acquisition of alternative fuels.
Sec..527..Government efficiency status reports.
Sec..528..OMB government efficiency reports and scorecards.
Sec..529..Electricity sector demand response.
Subtitle D--Energy Efficiency of Public Institutions

Sec..531..Reauthorization of State energy programs.
Sec..532..Utility energy efficiency programs.
Subtitle E--Energy Efficiency and Conservation Block Grants

Sec..541..Definitions.
Sec..542..Energy Efficiency and Conservation Block Grant Program.
Sec..543..Allocation of funds.
Sec..544..Use of funds.
Sec..545..Requirements for eligible entities.
Sec..546..Competitive grants.
Sec..547..Review and evaluation.
Sec..548..Funding.
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT

Subtitle A--Solar Energy

Sec..601..Short title.
Sec..602..Thermal energy storage research and development program.
Sec..603..Concentrating solar power commercial application studies.
Sec..604..Solar energy curriculum development and certification grants.
Sec..605..Daylighting systems and direct solar light pipe technology.
Sec..606..Solar Air Conditioning Research and Development Program.
Sec..607..Photovoltaic demonstration program.
Subtitle B--Geothermal Energy

Sec..611..Short title.
Sec..612..Definitions.
Sec..613..Hydrothermal research and development.
Sec..614..General geothermal systems research and development.
Sec..615..Enhanced geothermal systems research and development.
Sec..616..Geothermal energy production from oil and gas fields and recovery and production of geopressured gas resources.
Sec..617..Cost sharing and proposal evaluation.
Sec..618..Center for geothermal technology transfer.
Sec..619..GeoPowering America.
Sec..620..Educational pilot program.
Sec..621..Reports.
Sec..622..Applicability of other laws.
Sec..623..Authorization of appropriations.
Sec..624..International geothermal energy development.
Sec..625..High cost region geothermal energy grant program.
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies

Sec..631..Short title.
Sec..632..Definition.
Sec..633..Marine and hydrokinetic renewable energy research and development.
Sec..634..National Marine Renewable Energy Research, Development, and Demonstration Centers.
Sec..635..Applicability of other laws.
Sec..636..Authorization of appropriations.
Subtitle D--Energy Storage for Transportation and Electric Power

Sec..641..Energy storage competitiveness.
Subtitle E--Miscellaneous Provisions

Sec..651..Lightweight materials research and development.
Sec..652..Commercial insulation demonstration program.
Sec..653..Technical criteria for clean coal power Initiative.
Sec..654..H-Prize.
Sec..655..Bright Tomorrow Lighting Prizes.
Sec..656..Renewable Energy innovation manufacturing partnership.
TITLE VII--CARBON CAPTURE AND SEQUESTRATION

Subtitle A--Carbon Capture and Sequestration Research, Development, and Demonstration

Sec..701..Short title.
Sec..702..Carbon capture and sequestration research, development, and demonstration program.
Sec..703..Carbon capture.
Sec..704..Review of large-scale programs.
Sec..705..Geologic sequestration training and research.
Sec..706..Relation to Safe Drinking Water Act.
Sec..707..Safety research.
Sec..708..University based research and development grant program.
Subtitle B--Carbon Capture and Sequestration Assessment and Framework

Sec..711..Carbon dioxide sequestration capacity assessment.
Sec..712..Assessment of carbon sequestration and methane and nitrous oxide emissions from ecosystems.
Sec..713..Carbon dioxide sequestration inventory.
Sec..714..Framework for geological carbon sequestration on public land.
TITLE VIII--IMPROVED MANAGEMENT OF ENERGY POLICY

Subtitle A--Management Improvements

Sec..801..National media campaign.
Sec..802..Alaska Natural Gas Pipeline administration.
Sec..803..Renewable energy deployment.
Sec..804..Coordination of planned refinery outages.
Sec..805..Assessment of resources.
Sec..806..Sense of Congress relating to the use of renewable resources to generate energy.
Sec..807..Geothermal assessment, exploration information, and priority activities.
Subtitle B--Prohibitions on Market Manipulation and False Information

Sec..811..Prohibition on market manipulation.
Sec..812..Prohibition on false information.
Sec..813..Enforcement by the Federal Trade Commission.
Sec..814..Penalties.
Sec..815..Effect on other laws.
TITLE IX--INTERNATIONAL ENERGY PROGRAMS

Sec..901..Definitions.
Subtitle A--Assistance to Promote Clean and Efficient Energy Technologies in Foreign Countries

Sec..911..United States assistance for developing countries.
Sec..912..United States exports and outreach programs for India, China, and other countries.
Sec..913..United States trade missions to encourage private sector trade and investment.
Sec..914..Actions by Overseas Private Investment Corporation.
Sec..915..Actions by United States Trade and Development Agency.
Sec..916..Deployment of international clean and efficient energy technologies and investment in global energy markets.
Sec..917..United States-Israel energy cooperation.
Subtitle B--International Clean Energy Foundation

Sec..921..Definitions.
Sec..922..Establishment and management of Foundation.
Sec..923..Duties of Foundation.
Sec..924..Annual report.
Sec..925..Powers of the Foundation; related provisions.
Sec..926..General personnel authorities.
Sec..927..Authorization of appropriations.
Subtitle C--Miscellaneous Provisions

Sec..931..Energy diplomacy and security within the Department of State.
Sec..932..National Security Council reorganization.
Sec..933..Annual national energy security strategy report.
Sec..934..Convention on Supplementary Compensation for Nuclear Damage contingent cost allocation.
Sec..935..Transparency in extractive industries resource payments.
TITLE X--GREEN JOBS

Sec..1001..Short title.
Sec..1002..Energy efficiency and renewable energy worker training program.
TITLE XI--ENERGY TRANSPORTATION AND INFRASTRUCTURE

Subtitle A--Department of Transportation

Sec..1101..Office of Climate Change and Environment.
Subtitle B--Railroads

Sec..1111..Advanced technology locomotive grant pilot program.
Sec..1112..Capital grants for class II and class III railroads.
Subtitle C--Marine Transportation

Sec..1121..Short sea transportation initiative.
Sec..1122..Short sea shipping eligibility for capital construction fund.
Sec..1123..Short sea transportation report.
Subtitle D--Highways

Sec..1131..Increased Federal share for CMAQ projects.
Sec..1132..Distribution of rescissions.
Sec..1133..Sense of Congress regarding use of complete streets design techniques.
TITLE XII--SMALL BUSINESS ENERGY PROGRAMS

Sec..1201..Express loans for renewable energy and energy efficiency.
Sec..1202..Pilot program for reduced 7(a) fees for purchase of energy efficient technologies.
Sec..1203..Small business energy efficiency.
Sec..1204..Larger 504 loan limits to help business develop energy efficient technologies and purchases.
Sec..1205..Energy saving debentures.
Sec..1206..Investments in energy saving small businesses.
Sec..1207..Renewable fuel capital investment company.
Sec..1208..Study and report.
TITLE XIII--SMART GRID

Sec..1301..Statement of policy on modernization of electricity grid.
Sec..1302..Smart grid system report.
Sec..1303..Smart grid advisory committee and smart grid task force.
Sec..1304..Smart grid technology research, development, and demonstration.
Sec..1305..Smart grid interoperability framework.
Sec..1306..Federal matching fund for smart grid investment costs.
Sec..1307..State consideration of smart grid.
Sec..1308..Study of the effect of private wire laws on the development of combined heat and power facilities.
Sec..1309..DOE study of security attributes of smart grid systems.
TITLE XIV--POOL AND SPA SAFETY

Sec..1401..Short title.
Sec..1402..Findings.
Sec..1403..Definitions.
Sec..1404..Federal swimming pool and spa drain cover standard.
Sec..1405..State swimming pool safety grant program.
Sec..1406..Minimum State law requirements.
Sec..1407..Education program.
Sec..1408..CPSC report.
TITLE XV--REVENUE PROVISIONS

Sec..1500..Amendment of 1986 Code.
Sec..1501..Extension of additional 0.2 percent FUTA surtax.
Sec..1502..7-year amortization of geological and geophysical expenditures for certain major integrated oil companies.
TITLE XVI--EFFECTIVE DATE

Sec..1601..Effective date.
SEC. 2. DEFINITIONS.
In this Act:
(1) DEPARTMENT.--The term ``Department'' means the Department of Energy.
(2) INSTITUTION OF HIGHER EDUCATION.--The term ``institution of higher education'' has the meaning given the term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).
(3) SECRETARY.--The term ``Secretary'' means the Secretary of Energy.
SEC. 3. RELATIONSHIP TO OTHER LAW.
Except to the extent expressly provided in this Act or an amendment made by this Act, nothing in this Act or an amendment made by this Act supersedes, limits the authority provided or responsibility conferred by, or authorizes any violation of any provision of law (including a regulation), including any energy or environmental law or regulation.
TITLE I--ENERGY SECURITY THROUGH IMPROVED VEHICLE FUEL ECONOMY


Subtitle A--Increased Corporate Average Fuel Economy Standards


SEC. 101. SHORT TITLE.
This subtitle may be cited as the ``Ten-in-Ten Fuel Economy Act''.
SEC. 102. AVERAGE FUEL ECONOMY STANDARDS FOR AUTOMOBILES AND CERTAIN OTHER VEHICLES.
(a) Increased Standards.--Section 32902 of title 49, United States Code, is amended--
(1) in subsection (a)--
(A) by striking ``Non-Passenger Automobiles.--'' and inserting ``Prescription of Standards by Regulation.--'';
(B) by striking ``(except passenger automobiles)'' in subsection (a); and
(C) by striking the last sentence;
(2) by striking subsection (b) and inserting the following:
``(b) Standards for Automobiles and Certain Other Vehicles.--
``(1) IN GENERAL.--The Secretary of Transportation, after consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall prescribe separate average fuel economy standards for--
``(A) passenger automobiles manufactured by manufacturers in each model year beginning with model year 2011 in accordance with this subsection;
``(B) non-passenger automobiles manufactured by manufacturers in each model year beginning with model year 2011 in accordance with this subsection; and
``(C) work trucks and commercial medium-duty or heavy-duty on-highway vehicles in accordance with subsection (k).
``(2) FUEL ECONOMY STANDARDS FOR AUTOMOBILES.--
``(A) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2011 THROUGH 2020.--The Secretary shall prescribe a separate average fuel economy standard for passenger automobiles and a separate average fuel economy standard for non-passenger automobiles for each model year beginning with model year 2011 to achieve a combined fuel economy average for model year 2020 of at least 35 miles per gallon for the total fleet of passenger and non-passenger automobiles manufactured for sale in the United
States for that model year.
``(B) AUTOMOBILE FUEL ECONOMY AVERAGE FOR MODEL YEARS 2021 THROUGH 2030.--For model years 2021 through 2030, the average fuel economy required to be attained by each fleet of passenger and non-passenger automobiles manufactured for sale in the United States shall be the maximum feasible average fuel economy standard for each fleet for that model year.
``(C) PROGRESS TOWARD STANDARD REQUIRED.--In prescribing average fuel economy standards under subparagraph (A), the Secretary shall prescribe annual fuel economy standard increases that increase the applicable average fuel economy standard ratably beginning with model year 2011 and ending with model year 2020.
``(3) AUTHORITY OF THE SECRETARY.--The Secretary shall--
``(A) prescribe by regulation separate average fuel economy standards for passenger and non-passenger automobiles based on 1 or more vehicle attributes related to fuel economy and express each standard in the form of a mathematical function; and
``(B) issue regulations under this title prescribing average fuel economy standards for at least 1, but not more than 5, model years.
``(4) MINIMUM STANDARD.--In addition to any standard prescribed pursuant to paragraph (3), each manufacturer shall also meet the minimum standard for domestically manufactured passenger automobiles, which shall be the greater of--
``(A) 27.5 miles per gallon; or
``(B) 92 percent of the average fuel economy projected by the Secretary for the combined domestic and non-domestic passenger automobile fleets manufactured for sale in the United States by all manufacturers in the model year, which projection shall be published in the Federal Register when the standard for that model year is promulgated in accordance with this section.''; and
(3) in subsection (c)--
(A) by striking ``(1) Subject to paragraph (2) of this subsection, the'' and inserting ``The''; and
(B) by striking paragraph (2).
(b) Fuel Economy Standard for Commercial Medium-Duty and Heavy-Duty On-Highway Vehicles and Work Trucks.--Section 32902 of title 49, United States Code, is amended by adding at the end the following:
``(k) Commercial Medium- and Heavy-Duty On-Highway Vehicles and Work Trucks.--
``(1) STUDY.--Not later than 1 year after the National Academy of Sciences publishes the results of its study under section 108 of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall examine the fuel efficiency of commercial medium- and heavy-duty on-highway vehicles and work trucks and determine--
``(A) the appropriate test procedures and methodologies for measuring the fuel efficiency of such vehicles and work trucks;
``(B) the appropriate metric for measuring and expressing commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency performance, taking into consideration, among other things, the work performed by such on-highway vehicles and work trucks and types of operations in which they are used;
``(C) the range of factors, including, without limitation, design, functionality, use, duty cycle, infrastructure, and total overall energy consumption and operating costs that affect commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency; and
``(D) such other factors and conditions that could have an impact on a program to improve commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency.
``(2) RULEMAKING.--Not later than 24 months after completion of the study required under paragraph (1), the Secretary, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, by regulation, shall determine in a rulemaking proceeding how to implement a commercial medium- and heavy-duty on-highway vehicle and work truck fuel efficiency improvement program designed to achieve the maximum feasible improvement, and shall adopt and implement
appropriate test methods, measurement metrics, fuel economy standards, and compliance and enforcement protocols that are appropriate, cost-effective, and technologically feasible for commercial medium- and heavy-duty on-highway vehicles and work trucks. The Secretary may prescribe separate standards for different classes of vehicles under this subsection.
``(3) LEAD-TIME; REGULATORY STABILITY.--The commercial medium- and heavy-duty on-highway vehicle and work truck fuel economy standard adopted pursuant to this subsection shall provide not less than--
``(A) 4 full model years of regulatory lead-time; and
``(B) 3 full model years of regulatory stability.''.
SEC. 103. DEFINITIONS.
(a) In General.--Section 32901(a) of title 49, United States Code, is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) except as provided in section 32908 of this title, `automobile' means a 4-wheeled vehicle that is propelled by fuel, or by alternative fuel, manufactured primarily for use on public streets, roads, and highways and rated at less than 10,000 pounds gross vehicle weight, except--
``(A) a vehicle operated only on a rail line;
``(B) a vehicle manufactured in different stages by 2 or more manufacturers, if no intermediate or final-stage manufacturer of that vehicle manufactures more than 10,000 multi-stage vehicles per year; or
``(C) a work truck.'';
(2) by redesignating paragraphs (7) through (16) as paragraphs (8) through (17), respectively;
(3) by inserting after paragraph (6) the following:
``(7) `commercial medium- and heavy-duty on-highway vehicle' means an on-highway vehicle with a gross vehicle weight rating of 10,000 pounds or more.'';
(4) in paragraph (9)(A), as redesignated, by inserting ``or a mixture of biodiesel and diesel fuel meeting the standard established by the American Society for Testing and Materials or under section 211(u) of the Clean Air Act (42 U.S.C. 7545(u)) for fuel containing 20 percent biodiesel (commonly known as `B20')'' after ``alternative fuel'';
(5) by redesignating paragraph (17), as redesignated, as paragraph (18);
(6) by inserting after paragraph (16), as redesignated, the following:
``(17) `non-passenger automobile' means an automobile that is not a passenger automobile or a work truck.''; and
(7) by adding at the end the following:
``(19) `work truck' means a vehicle that--
``(A) is rated at between 8,500 and 10,000 pounds gross vehicle weight; and
``(B) is not a medium-duty passenger vehicle (as defined in section 86.1803-01 of title 40, Code of Federal Regulations, as in effect on the date of the enactment of the Ten-in-Ten Fuel Economy Act).''.
SEC. 104. CREDIT TRADING PROGRAM.
(a) In General.--Section 32903 of title 49, United States Code, is amended--
(1) by striking ``section 32902(b)-(d) of this title'' each place it appears and inserting ``subsections (a) through (d) of section 32902'';
(2) in subsection (a)(2)--
(A) by striking ``3 consecutive model years'' and inserting ``5 consecutive model years'';
(B) by striking ``clause (1) of this subsection,'' and inserting ``paragraph (1)'';
(3) by redesignating subsection (f) as subsection (h); and
(4) by inserting after subsection (e) the following:
``(f) Credit Trading Among Manufacturers.--
``(1) IN GENERAL.--The Secretary of Transportation may establish, by regulation, a fuel economy credit trading program to allow manufacturers whose automobiles exceed the average fuel economy standards prescribed under section 32902 to earn credits to be sold to manufacturers whose automobiles fail to achieve the prescribed standards such that the total oil savings associated with manufacturers that exceed the prescribed standards are preserved when trading credits to manufacturers that
fail to achieve the prescribed standards.
``(2) LIMITATION.--The trading of credits by a manufacturer to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of such automobiles shall comply with the requirements of section 32902(b)(4), without regard to any trading of credits from other manufacturers.
``(g) Credit Transferring Within a Manufacturer'
s Fleet.--

``(1) IN GENERAL.--The Secretary of Transportation shall establish by regulation a fuel economy credit transferring program to allow any manufacturer whose automobiles exceed any of the average fuel economy standards prescribed under section 32902 to transfer the credits earned under this section and to apply such credits within that manufacturer's fleet to a compliance category of automobiles that fails to achieve the prescribed standards.
``(2) YEARS FOR WHICH USED.--Credits transferred under this subsection are available to be used in the same model years that the manufacturer could have applied such credits under subsections (a), (b), (d), and (e), as well as for the model year in which the manufacturer earned such credits.
``(3) MAXIMUM INCREASE.--The maximum increase in any compliance category attributable to transferred credits is--
``(A) for model years 2011 through 2013, 1.0 mile per gallon;
``(B) for model years 2014 through 2017, 1.5 miles per gallon; and
``(C) for model year 2018 and subsequent model years, 2.0 miles per gallon.
``(4) LIMITATION.--The transfer of credits by a manufacturer to the category of passenger automobiles manufactured domestically is limited to the extent that the fuel economy level of such automobiles shall comply with the requirements under section 32904(b)(4), without regard to any transfer of credits from other categories of automobiles described in paragraph (6)(B).
``(5) YEARS AVAILABLE.--A credit may be transferred under this subsection only if it is earned after model year 2010.
``(6) DEFINITIONS.--In this subsection:
``(A) FLEET.--The term `fleet' means all automobiles manufactured by a manufacturer in a particular model year.
``(B) COMPLIANCE CATEGORY OF AUTOMOBILES.--The term `compliance category of automobiles' means any of the following 3 categories of automobiles for which compliance is separately calculated under this chapter:
``(i) Passenger automobiles manufactured domestically.
``(ii) Passenger automobiles not manufactured domestically.
``(iii) Non-passenger automobiles.''.
(b) Conforming Amendments.--
(1) LIMITATIONS.--Section 32902(h) of title 49, United States Code, is amended--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) may not consider, when prescribing a fuel economy standard, the trading, transferring, or availability of credits under section 32903.''.
(2) SEPARATE CALCULATIONS.--Section 32904(b)(1)(B) is amended by striking ``chapter.'' and inserting ``chapter, except for the purposes of section 32903.''.
SEC. 105. CONSUMER INFORMATION.
Section 32908 of title 49, United States Code, is amended by adding at the end the following:
``(g) Consumer Information.--
``(1) PROGRAM.--The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a program to require manufacturers--
``(A) to label new automobiles sold in the United States with--
``(i) information reflecting an automobile's performance on the basis of criteria that the Administrator shall develop, not later than 18 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act, to reflect fuel economy and greenhouse gas and other emissions over the useful life of the automobile;
``(ii) a rating system that would make it easy for consumers to compare the fuel economy and greenhouse gas and other emissions of automobiles at the point of purchase, including a designation of automobiles--
``(I) with the lowest greenhouse gas emissions over the useful life of the vehicles; and
``(II) the highest fuel economy; and
``(iii) a permanent and prominent display that an automobile is capable of operating on an alternative fuel; and
``(B) to include in the owner's manual for vehicles capable of operating on alternative fuels information that describes that capability and the benefits of using alternative fuels, including the renewable nature and environmental benefits of using alternative fuels.
``(2) CONSUMER EDUCATION.--
``(A) IN GENERAL.--The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a consumer education program to improve consumer understanding of automobile performance described in paragraph (1)(A)(i) and to inform consumers of the benefits of using alternative fuel in automobiles and the location of stations with alternative fuel capacity.
``(B) FUEL SAVINGS EDUCATION CAMPAIGN.--The Secretary of Transportation shall establish a consumer education campaign on the fuel savings that would be recognized from the purchase of vehicles equipped with thermal management technologies, including energy efficient air conditioning systems and glass.
``(3) FUEL TANK LABELS FOR ALTERNATIVE FUEL AUTOMOBILES.--The Secretary of Transportation shall by rule require a label to be attached to the fuel compartment of vehicles capable of operating on alternative fuels, with the form of alternative fuel stated on the label. A label attached in compliance with the requirements of section 32905(h) is deemed to meet the requirements of this paragraph.
``(4) RULEMAKING DEADLINE.--The Secretary of Transportation shall issue a final rule under this subsection not later than 42 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act.''.
SEC. 106. CONTINUED APPLICABILITY OF EXISTING STANDARDS.
Nothing in this subtitle, or the amendments made by this subtitle, shall be construed to affect the application of section 32902 of title 49, United States Code, to passenger automobiles or non-passenger automobiles manufactured before model year 2011.
SEC. 107. NATIONAL ACADEMY OF SCIENCES STUDIES.
(a) In General.--As soon as practicable after the date of enactment of this Act, the Secretary of Transportation shall execute an agreement with the National Academy of Sciences to develop a report evaluating vehicle fuel economy standards, including--
(1) an assessment of automotive technologies and costs to reflect developments since the Academy's 2002 report evaluating the corporate average fuel economy standards was conducted;
(2) an analysis of existing and potential technologies that may be used practically to improve automobile and medium-duty and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be practically integrated into the automotive and medium-duty and heavy-duty truck manufacturing process; and
(4) an assessment of how such technologies may be used to meet the new fuel economy standards under chapter 329 of title 49, United States Code, as amended by this subtitle.
(b) Report.--The Academy shall submit the report to the Secretary, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Energy and Commerce of the House of Representatives, with its findings and recommendations not later than 5 years after the date on which the Secretary executes the agreement with the Academy.
(c) Quinquennial Updates.--After submitting the initial report, the Academy shall update the report at 5 year intervals thereafter through 2025.
SEC. 108. NATIONAL ACADEMY OF SCIENCES STUDY OF MEDIUM-DUTY AND HEAVY-DUTY TRUCK FUEL ECONOMY.
(a) In General.--As soon as practicable after the date of enactment of this Act, the Secretary of Transportation shall execute an agreement with the National Academy of Sciences to develop a report evaluating medium-duty and heavy-duty truck fuel economy standards, including--
(1) an assessment of technologies and costs to evaluate fuel economy for medium-duty and heavy-duty trucks;
(2) an analysis of existing and potential technologies that may be used practically to improve medium-duty and heavy-duty truck fuel economy;
(3) an analysis of how such technologies may be practically integrated into the medium-duty and heavy-duty truck manufacturing process;
(4) an assessment of how such technologies may be used to meet fuel economy standards to be prescribed under section 32902(k) of title 49, United States Code, as amended by this subtitle; and
(5) associated costs and other impacts on the operation of medium-duty and heavy-duty trucks, including congestion.
(b) Report.--The Academy shall submit the report to the Secretary, the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Energy and Commerce of the House of Representatives, with its findings and recommendations not later than 1 year after the date on which the Secretary executes the agreement with the Academy.
SEC. 109. EXTENSION OF FLEXIBLE FUEL VEHICLE CREDIT PROGRAM.
(a) In General.--Section 32906 of title 49, United States Code, is amended to read as follows:``§32906. Maximum fuel economy increase for alternative fuel automobiles

``(a) In General.--For each of model years 1993 through 2019 for each category of automobile (except an electric automobile), the maximum increase in average fuel economy for a manufacturer attributable to dual fueled automobiles is--

``(1) 1.2 miles a gallon for each of model years 1993 through 2014;
``(2) 1.0 miles per gallon for model year 2015;
``(3) 0.8 miles per gallon for model year 2016;
``(4) 0.6 miles per gallon for model year 2017;
``(5) 0.4 miles per gallon for model year 2018;
``(6) 0.2 miles per gallon for model year 2019; and
``(7) 0 miles per gallon for model years after 2019.
``(b) Calculation.--In applying subsection (a), the Administrator of the Environmental Protection Agency shall determine the increase in a manufacturer's average fuel economy attributable to dual fueled automobiles by subtracting from the manufacturer's average fuel economy calculated under section 32905(e) the number equal to what the manufacturer's average fuel economy would be if it were calculated by the formula under section 32904(a)(1) by including as the denominator for each
model of dual fueled automobiles the fuel economy when the automobiles are operated on gasoline or diesel fuel.''.
(b) Conforming Amendments.--Section 32905 of title 49, United States Code, is amended--
(1) in subsection (b), by striking ``1993-2010,'' and inserting ``1993 through 2019,'';
(2) in subsection (d), by striking ``1993-2010,'' and inserting ``1993 through 2019,'';
(3) by striking subsections (f) and (g); and
(4) by redesignating subsection (h) as subsection (f).
(c) B20 Biodiesel Flexible Fuel Credit.--Section 32905(b)(2) of title 49, United States Code, is amended to read as follows:
``(2) .5 divided by the fuel economy--
``(A) measured under subsection (a) when operating the model on alternative fuel; or
``(B) measured based on the fuel content of B20 when operating the model on B20, which is deemed to contain 0.15 gallon of fuel.''.
SEC. 110. PERIODIC REVIEW OF ACCURACY OF FUEL ECONOMY LABELING PROCEDURES.
Beginning in December, 2009, and not less often than every 5 years thereafter, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Transportation, shall--
(1) reevaluate the fuel economy labeling procedures described in the final rule published in the Federal Register on December 27, 2006 (71 Fed. Reg. 77,872; 40 C.F.R. parts 86 and 600) to determine whether changes in the factors used to establish the labeling procedures warrant a revision of that process; and
(2) submit a report to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives that describes the results of the reevaluation process.
SEC. 111. CONSUMER TIRE INFORMATION.
(a) In General.--Chapter 323 of title 49, United States Code, is amended by inserting after section 32304 the following:``§32304A. Consumer tire information

``(a) Rulemaking.--

``(1) IN GENERAL.--Not later than 24 months after the date of enactment of the Ten-in-Ten Fuel Economy Act, the Secretary of Transportation shall, after notice and opportunity for comment, promulgate rules establishing a national tire fuel efficiency consumer information program for replacement tires designed for use on motor vehicles to educate consumers about the effect of tires on automobile fuel efficiency, safety, and durability.
``(2) ITEMS INCLUDED IN RULE.--The rulemaking shall include--
``(A) a national tire fuel efficiency rating system for motor vehicle replacement tires to assist consumers in making more educated tire purchasing decisions;
``(B) requirements for providing information to consumers, including information at the point of sale and other potential information dissemination methods, including the Internet;
``(C) specifications for test methods for manufacturers to use in assessing and rating tires to avoid variation among test equipment and manufacturers; and
``(D) a national tire maintenance consumer education program including, information on tire inflation pressure, alignment, rotation, and tread wear to maximize fuel efficiency, safety, and durability of replacement tires.
``(3) APPLICABILITY.--This section shall apply only to replacement tires covered under section 575.104(c) of title 49, Code of Federal Regulations, in effect on the date of the enactment of the Ten-in-Ten Fuel Economy Act.
``(b) Consultation.--The Secretary shall consult with the Secretary of Energy and the Administrator of the Environmental Protection Agency on the means of conveying tire fuel efficiency consumer information.
``(c) Report to Congress.--The Secretary shall conduct periodic assessments of the rules promulgated under this section to determine the utility of such rules to consumers, the level of cooperation by industry, and the contribution to national goals pertaining to energy consumption. The Secretary shall transmit periodic reports detailing the findings of such assessments to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy
and Commerce.
``(d) Tire Marking.--The Secretary shall not require permanent labeling of any kind on a tire for the purpose of tire fuel efficiency information.
``(e) Application With State and Local Laws and Regulations.--Nothing in this section prohibits a State or political subdivision thereof from enforcing a law or regulation on tire fuel efficiency consumer information that was in effect on January 1, 2006. After a requirement promulgated under this section is in effect, a State or political subdivision thereof may adopt or enforce a law or regulation on tire fuel efficiency consumer information enacted or promulgated after January 1,
2006, if the requirements of that law or regulation are identical to the requirement promulgated under this section. Nothing in this section shall be construed to preempt a State or political subdivision thereof from regulating the fuel efficiency of tires (including establishing testing methods for determining compliance with such standards) not otherwise preempted under this chapter.''.
(b) Enforcement.--Section 32308 of title 49, United States Code, is amended--
(1) by redesignating subsections (c) and (d) as subsections (d)and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Section 32304A.--Any person who fails to comply with the national tire fuel efficiency information program under section 32304A is liable to the United States Government for a civil penalty of not more than $50,000 for each violation.''.
(c) Conforming Amendment.--The chapter analysis for chapter 323 of title 49, United States Code, is amended by inserting after the item relating to section 32304 the following:

``32304A. Consumer tire information''.
SEC. 112. USE OF CIVIL PENALTIES FOR RESEARCH AND DEVELOPMENT.
Section 32912 of title 49, United States Code, is amended by adding at the end the following:
``(e) Use of Civil Penalties.--For fiscal year 2008 and each fiscal year thereafter, from the total amount deposited in the general fund of the Treasury during the preceding fiscal year from fines, penalties, and other funds obtained through enforcement actions conducted pursuant to this section (including funds obtained under consent decrees), the Secretary of the Treasury, subject to the availability of appropriations, shall--
``(1) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which shall be used by the Secretary to support rulemaking under this chapter; and
``(2) transfer 50 percent of such total amount to the account providing appropriations to the Secretary of Transportation for the administration of this chapter, which shall be used by the Secretary to carry out a program to make grants to manufacturers for retooling, reequipping, or expanding existing manufacturing facilities in the United States to produce advanced technology vehicles and components.''.
SEC. 113. EXEMPTION FROM SEPARATE CALCULATION REQUIREMENT.
(a) Repeal.--Paragraphs (6), (7), and (8) of section 32904(b) of title 49, United States Code, are repealed.
(b) Effect of Repeal on Existing Exemptions.--Any exemption granted under section 32904(b)(6) of title 49, United States Code, prior to the date of the enactment of this Act shall remain in effect subject to its terms through model year 2013.
(c) Accrual and Use of Credits.--Any manufacturer holding an exemption under section 32904(b)(6) of title 49, United States Code, prior to the date of the enactment of this Act may accrue and use credits under sections 32903 and 32905 of such title begining with model year 2011.
Subtitle B--Improved Vehicle Technology


SEC. 131. TRANSPORTATION ELECTRIFICATION.
(a) Definitions.--In this section:
(1) ADMINISTRATOR.--The term ``Administrator'' means the Administrator of the Environmental Protection Agency.
(2) BATTERY.--The term ``battery'' means an electrochemical energy storage system powered directly by electrical current.
(3) ELECTRIC TRANSPORTATION TECHNOLOGY.--The term ``electric transportation technology'' means--
(A) technology used in vehicles that use an electric motor for all or part of the motive power of the vehicles, including battery electric, hybrid electric, plug-in hybrid electric, fuel cell, and plug-in fuel cell vehicles, or rail transportation; or
(B) equipment relating to transportation or mobile sources of air pollution that use an electric motor to replace an internal combustion engine for all or part of the work of the equipment, including--
(i) corded electric equipment linked to transportation or mobile sources of air pollution; and
(ii) electrification technologies at airports, ports, truck stops, and material-handling facilities.
(4) NONROAD VEHICLE.--The term ``nonroad vehicle'' means a vehicle--
(A) powered--
(i) by a nonroad engine, as that term is defined in section 216 of the Clean Air Act (42 U.S.C. 7550); or
(ii) fully or partially by an electric motor powered by a fuel cell, a battery, or an off-board source of electricity; and
(B) that is not a motor vehicle or a vehicle used solely for competition.
(5) PLUG-IN ELECTRIC DRIVE VEHICLE.--The term ``plug-in electric drive vehicle'' means a vehicle that--
(A) draws motive power from a battery with a capacity of at least 4 kilowatt-hours;
(B) can be recharged from an external source of electricity for motive power; and
(C) is a light-, medium-, or heavy-duty motor vehicle or nonroad vehicle (as those terms are defined in section 216 of the Clean Air Act (42 U.S.C. 7550)).
(6) QUALIFIED ELECTRIC TRANSPORTATION PROJECT.--The term ``qualified electric transportation project'' means an electric transportation technology project that would significantly reduce emissions of criteria pollutants, greenhouse gas emissions, and petroleum, including--
(A) shipside or shoreside electrification for vessels;
(B) truck-stop electrification;
(C) electric truck refrigeration units;
(D) battery powered auxiliary power units for trucks;
(E) electric airport ground support equipment;
(F) electric material and cargo handling equipment;
(G) electric or dual-mode electric rail;
(H) any distribution upgrades needed to supply electricity to the project; and
(I) any ancillary infrastructure, including panel upgrades, battery chargers, in-situ transformers, and trenching.
(b) Plug-in Electric Drive Vehicle Program.--
(1) ESTABLISHMENT.--The Secretary shall establish a competitive program to provide grants on a cost-shared basis to State governments, local governments, metropolitan transportation authorities, air pollution control districts, private or nonprofit entities, or combinations of those governments, authorities, districts, and entities, to carry out 1 or more projects to encourage the use of plug-in electric drive vehicles or other emerging electric vehicle technologies, as determined by
the Secretary.
(2) ADMINISTRATION.--The Secretary shall, in consultation with the Secretary of Transportation and the Administrator, establish requirements for applications for grants under this section, including reporting of data to be summarized for dissemination to grantees and the public, including safety, vehicle, and component performance, and vehicle and component life cycle costs.
(3) PRIORITY.--In making awards under this subsection, the Secretary shall--
(A) give priority consideration to applications that--
(i) encourage early widespread use of vehicles described in paragraph (1); and
(ii) are likely to make a significant contribution to the advancement of the production of the vehicles in the United States; and
(B) ensure, to the maximum extent practicable, that the program established under this subsection includes a variety of applications, manufacturers, and end-uses.
(4) REPORTING.--The Secretary shall require a grant recipient under this subsection to submit to the Secretary, on an annual basis, data relating to safety, vehicle performance, life cycle costs, and emissions of vehicles demonstrated under the grant, including emissions of greenhouse gases.
(5) COST SHARING.--Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a grant made under this subsection.
(6) AUTHORIZATION OF APPROPRIATIONS.--There is authorized to be appropriated to carry out this subsection $90,000,000 for each of fiscal years 2008 through 2012, of which not less than 1/3 of the total amount appropriated shall be available each fiscal year to make grants to local and municipal governments.
(c) Near-Term Transportation Sector Electrification Program.--
(1) IN GENERAL.--Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Transportation and the Administrator, shall establish a program to provide grants for the conduct of qualified electric transportation projects.
(2) PRIORITY.--In providing grants under this subsection, the Secretary shall give priority to large-scale projects and large-scale aggregators of projects.
(3) COST SHARING.--Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to a grant made under this subsection.
(4) AUTHORIZATION OF APPROPRIATIONS.--There is authorized to be appropriated to carry out this subsection $95,000,000 for each of fiscal years 2008 through 2013.
(d) Education Program.--
(1) IN GENERAL.--The Secretary shall develop a nationwide electric drive transportation technology education program under which the Secretary shall provide--
(A) teaching materials to secondary schools and high schools; and
(B) assistance for programs relating to electric drive system and component engineering to institutions of higher education.
(2) ELECTRIC VEHICLE COMPETITION.--The program established under paragraph (1) shall include a plug-in hybrid electric vehicle competition for institutions of higher education, which shall be known as the ``Dr. Andrew Frank Plug-In Electric Vehicle Competition''.
(3) ENGINEERS.--In carrying out the program established under paragraph (1), the Secretary shall provide financial assistance to institutions of higher education to create new, or support existing, degree programs to ensure the availability of trained electrical and mechanical engineers with the skills necessary for the advancement of--
(A) plug-in electric drive vehicles; and
(B) other forms of electric drive transportation technology vehicles.
(4) AUTHORIZATION OF APPROPRIATIONS.--There are authorized to be appropriated such sums as may be necessary to carry out this subsection.
SEC. 132. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
Section 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062) is amended to read as follows:
``SEC. 712. DOMESTIC MANUFACTURING CONVERSION GRANT PROGRAM.
``(a) Program.--
``(1) IN GENERAL.--The Secretary shall establish a program to encourage domestic production and sales of efficient hybrid and advanced diesel vehicles and components of those vehicles.
``(2) INCLUSIONS.--The program shall include grants to automobile manufacturers and suppliers and hybrid component manufacturers to encourage domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and advanced diesel vehicles.
``(3) PRIORITY.--Priority shall be given to the refurbishment or retooling of manufacturing facilities that have recently ceased operation or will cease operation in the near future.
``(b) Coordination With State and Local Programs.--The Secretary may coordinate implementation of this section with State and local programs designed to accomplish similar goals, including the retention and retraining of skilled workers from the manufacturing facilities, including by establishing matching grant arrangements.
``(c) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary such sums as may be necessary to carry out this section.''.
SEC. 133. INCLUSION OF ELECTRIC DRIVE IN ENERGY POLICY ACT OF 1992.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is amended--
(1) by redesignating subsections (a) through (d) as subsections (b) through (e), respectively;
(2) by inserting before subsection (b) the following:
``(a) Definitions.--In this section:
``(1) FUEL CELL ELECTRIC VEHICLE.--The term `fuel cell electric vehicle' means an on-road or nonroad vehicle that uses a fuel cell (as defined in section 803 of the Spark M. Matsunaga Hydrogen Act of 2005 (42 U.S.C. 16152)).
``(2) HYBRID ELECTRIC VEHICLE.--The term `hybrid electric vehicle' means a new qualified hybrid motor vehicle (as defined in section 30B(d)(3) of the Internal Revenue Code of 1986).
``(3) MEDIUM- OR HEAVY-DUTY ELECTRIC VEHICLE.--The term `medium- or heavy-duty electric vehicle' means an electric, hybrid electric, or plug-in hybrid electric vehicle with a gross vehicle weight of more than 8,501 pounds.
``(4) NEIGHBORHOOD ELECTRIC VEHICLE.--The term `neighborhood electric vehicle' means a 4-wheeled on-road or nonroad vehicle that--
``(A) has a top attainable speed in 1 mile of more than 20 mph and not more than 25 mph on a paved level surface; and
``(B) is propelled by an electric motor and on-board, rechargeable energy storage system that is rechargeable using an off-board source of electricity.
``(5) PLUG-IN ELECTRIC DRIVE VEHICLE.--The term `plug-in electric drive vehicle' means a vehicle that--
``(A) draws motive power from a battery with a capacity of at least 4 kilowatt-hours;
``(B) can be recharged from an external source of electricity for motive power; and
``(C) is a light-, medium-, or heavy duty motor vehicle or nonroad vehicle (as those terms are defined in section 216 of the Clean Air Act (42 U.S.C. 7550).'';
(3) in subsection (b) (as redesignated by paragraph (1))--
(A) by striking ``The Secretary'' and inserting the following:
``(1) ALLOCATION.--The Secretary''; and
(B) by adding at the end the following:
``(2) ELECTRIC VEHICLES.--Not later than January 31, 2009, the Secretary shall--
``(A) allocate credit in an amount to be determined by the Secretary for--
``(i) acquisition of--
``(I) a hybrid electric vehicle;
``(II) a plug-in electric drive vehicle;
``(III) a fuel cell electric vehicle;
``(IV) a neighborhood electric vehicle; or
``(V) a medium- or heavy-duty electric vehicle; and
``(ii) investment in qualified alternative fuel infrastructure or nonroad equipment, as determined by the Secretary; and
``(B) allocate more than 1, but not to exceed 5, credits for investment in an emerging technology relating to any vehicle described in subparagraph (A) to encourage--
``(i) a reduction in petroleum demand;
``(ii) technological advancement; and
``(iii) a reduction in vehicle emissions.'';
(4) in subsection (c) (as redesignated by paragraph (1)), by striking ``subsection (a)'' and inserting ``subsection (b)''; and
(5) by adding at the end the following:
``(f) 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.''.
SEC. 134. LOAN GUARANTEES FOR FUEL-EFFICIENT AUTOMOBILE PARTS MANUFACTURERS.
(a) In General.--Section 712(a)(2) of the Energy Policy Act of 2005 (42 U.S.C. 16062(a)(2)) (as amended by section 132) is amended by inserting ``and loan guarantees under section 1703'' after ``grants''.
(b) Conforming Amendment.--Section 1703(b) of the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by striking paragraph (8) and inserting the following:
``(8) Production facilities for the manufacture of fuel efficient vehicles or parts of those vehicles, including electric drive vehicles and advanced diesel vehicles.''.
SEC. 135. ADVANCED BATTERY LOAN GUARANTEE PROGRAM.
(a) Establishment of Program.--The Secretary shall establish a program to provide guarantees of loans by private institutions for the construction of facilities for the manufacture of advanced vehicle batteries and battery systems that are developed and produced in the United States, including advanced lithium ion batteries and hybrid electrical system and component manufacturers and software designers.
(b) Requirements.--The Secretary may provide a loan guarantee under subsection (a) to an applicant if--
(1) without a loan guarantee, credit is not available to the applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in subsection (a);
(2) the prospective earning power of the applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed in accordance with the terms of the loan; and
(3) the loan bears interest at a rate determined by the Secretary to be reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.
(c) Criteria.--In selecting recipients of loan guarantees from among applicants, the Secretary shall give preference to proposals that--
(1) meet all applicable Federal and State permitting requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the greatest need for the facility.
(d) Maturity.--A loan guaranteed under subsection (a) shall have a maturity of not more than 20 years.
(e) Terms and Conditions.--The loan agreement for a loan guaranteed under subsection (a) shall provide that no provision of the loan agreement may be amended or waived without the consent of the Secretary.
(f) Assurance of Repayment.--The Secretary shall require that an applicant for a loan guarantee under subsection (a) provide an assurance of repayment in the form of a performance bond, insurance, collateral, or other means acceptable to the Secretary in an amount equal to not less than 20 percent of the amount of the loan.
(g) Guarantee Fee.--The recipient of a loan guarantee under subsection (a) shall pay the Secretary an amount determined by the Secretary to be sufficient to cover the administrative costs of the Secretary relating to the loan guarantee.
(h) Full Faith and Credit.--The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the loan for the guarantee with respect to principal and interest. The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed loan.
(i) Reports.--Until each guaranteed loan under this section has been repaid in full, the Secretary shall annually submit to Congress a report on the activities of the Secretary under this section.
(j) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section.
(k) Termination of Authority.--The authority of the Secretary to issue a loan guarantee under subsection (a) terminates on the date that is 10 years after the date of enactment of this Act.
SEC. 136. ADVANCED TECHNOLOGY VEHICLES MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions.--In this section:
(1) ADVANCED TECHNOLOGY VEHICLE.--The term ``advanced technology vehicle'' means a light duty vehicle that meets--
(A) the Bin 5 Tier II emission standard established in regulations issued by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)), or a lower-numbered Bin emission standard;
(B) any new emission standard in effect for fine particulate matter prescribed by the Administrator under that Act (42 U.S.C. 7401 et seq.); and
(C) at least 125 percent of the average base year combined fuel economy for vehicles with substantially similar attributes.
(2) COMBINED FUEL ECONOMY.--The term ``combined fuel economy'' means--
(A) the combined city/highway miles per gallon values, as reported in accordance with section 32904 of title 49, United States Code; and
(B) in the case of an electric drive vehicle with the ability to recharge from an off-board source, the reported mileage, as determined in a manner consistent with the Society of Automotive Engineers recommended practice for that configuration or a similar practice recommended by the Secretary.
(3) ENGINEERING INTEGRATION COSTS.--The term ``engineering integration costs'' includes the cost of engineering tasks relating to--
(A) incorporating qualifying components into the design of advanced technology vehicles; and
(B) designing tooling and equipment and developing manufacturing processes and material suppliers for production facilities that produce qualifying components or advanced technology vehicles.
(4) QUALIFYING COMPONENTS.--The term ``qualifying components'' means components that the Secretary determines to be--
(A) designed for advanced technology vehicles; and
(B) installed for the purpose of meeting the performance requirements of advanced technology vehicles.
(b) Advanced Vehicles Manufacturing Facility.--The Secretary shall provide facility funding awards under this section to automobile manufacturers and component suppliers to pay not more than 30 percent of the cost of--
(1) reequipping, expanding, or establishing a manufacturing facility in the United States to produce--
(A) qualifying advanced technology vehicles; or
(B) qualifying components; and
(2) engineering integration performed in the United States of qualifying vehicles and qualifying components.
(c) Period of Availability.--An award under subsection (b) shall apply to--
(1) facilities and equipment placed in service before December 30, 2020; and
(2) engineering integration costs incurred during the period beginning on the date of enactment of this Act and ending on December 30, 2020.
(d) Direct Loan Program.--
(1) IN GENERAL.--Not later than 1 year after the date of enactment of this Act, and subject to the availability of appropriated funds, the Secretary shall carry out a program to provide a total of not more than $25,000,000,000 in loans to eligible individuals and entities (as determined by the Secretary) for the costs of activities described in subsection (b).
(2) APPLICATION.--An applicant for a loan under this subsection shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a written assurance that--
(A) all laborers and mechanics employed by contractors or subcontractors during construction, alteration, or repair that is financed, in whole or in part, by a loan under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with sections 3141-3144, 3146, and 3147 of title 40, United States Code; and
(B) the Secretary of Labor shall, with respect to the labor standards described in this paragraph, have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 3145 of title 40, United States Code.
(3) SELECTION OF ELIGIBLE PROJECTS.--The Secretary shall select eligible projects to receive loans under this subsection in cases in which, as determined by the Secretary, the award recipient--
(A) is financially viable without the receipt of additional Federal funding associated with the proposed project;
(B) will provide sufficient information to the Secretary for the Secretary to ensure that the qualified investment is expended efficiently and effectively; and
(C) has met such other criteria as may be established and published by the Secretary.
(4) RATES, TERMS, AND REPAYMENT OF LOANS.--A loan provided under this subsection--
(A) shall have an interest rate that, as of the date on which the loan is made, is equal to the cost of funds to the Department of the Treasury for obligations of comparable maturity;
(B) shall have a term equal to the lesser of--
(i) the projected life, in years, of the eligible project to be carried out using funds from the loan, as determined by the Secretary; and
(ii) 25 years;
(C) may be subject to a deferral in repayment for not more than 5 years after the date on which the eligible project carried out using funds from the loan first begins operations, as determined by the Secretary; and
(D) shall be made by the Federal Financing Bank.
(e) Improvement.--The Secretary shall issue regulations that require that, in order for an automobile manufacturer to be eligible for an award or loan under this section during a particular year, the adjusted average fuel economy of the manufacturer for light duty vehicles produced by the manufacturer during the most recent year for which data are available shall be not less than the average fuel economy for all light duty vehicles of the manufacturer for model year 2005. In order to
determine fuel economy baselines for eligibility of a new manufacturer or a manufacturer that has not produced previously produced equivalent vehicles, the Secretary may substitute industry averages.
(f) Fees.--Administrative costs shall be no more than $100,000 or 10 basis point of the loan.
(g) Priority.--The Secretary shall, in making awards or loans to those manufacturers that have existing facilities, give priority to those facilities that are oldest or have been in existence for at least 20 years. Such facilities can currently be sitting idle.
(h) Set Aside for Small Automobile Manufacturers and Component Suppliers.--
(1) DEFINITION OF COVERED FIRM.--In this subsection, the term ``covered firm'' means a firm that--
(A) employs less than 500 individuals; and
(B) manufactures automobiles or components of automobiles.
(2) SET ASIDE.--Of the amount of funds that are used to provide awards for each fiscal year under subsection (b), the Secretary shall use not less than 10 percent to provide awards to covered firms or consortia led by a covered firm.
(i) 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 2012.
Subtitle C--Federal Vehicle Fleets


SEC. 141. FEDERAL VEHICLE FLEETS.
Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following new subsection:
``(f) Vehicle Emission Requirements.--
``(1) DEFINITIONS.--In this subsection:
``(A) FEDERAL AGENCY.--The term `Federal agency' does not include any office of the legislative branch, except that it does include the House of Representatives with respect to an acquisition described in paragraph (2)(C).
``(B) MEDIUM DUTY PASSENGER VEHICLE.--The term `medium duty passenger vehicle' has the meaning given that term section 523.2 of title 49 of the Code of Federal Regulations, as in effect on the date of enactment of this paragraph.
``(C) Member's REPRESENTATIONAL ALLOWANCE.--The term `Member's Representational Allowance' means the allowance described in section 101(a) of the House of Representatives Administrative Reform Technical Corrections Act (2 U.S.C. 57b(a)).
``(2) PROHIBITION.--
``(A) IN GENERAL.--Except as provided in subparagraph (B), no Federal agency shall acquire a light duty motor vehicle or medium duty passenger vehicle that is not a low greenhouse gas emitting vehicle.
``(B) EXCEPTION.--The prohibition in subparagraph (A) shall not apply to acquisition of a vehicle if the head of the agency certifies in writing, in a separate certification for each individual vehicle purchased, either--
``(i) that no low greenhouse gas emitting vehicle is available to meet the functional needs of the agency and details in writing the functional needs that could not be met with a low greenhouse gas emitting vehicle; or
``(ii) that the agency has taken specific alternative more cost-effective measures to reduce petroleum consumption that--
``(I) have reduced a measured and verified quantity of greenhouse gas emissions equal to or greater than the quantity of greenhouse gas reductions that would have been achieved through acquisition of a low greenhouse gas emitting vehicle over the lifetime of the vehicle; or
``(II) will reduce each year a measured and verified quantity of greenhouse gas emissions equal to or greater than the quantity of greenhouse gas reductions that would have been achieved each year through acquisition of a low greenhouse gas emitting vehicle.
``(C) SPECIAL RULE FOR VEHICLES PROVIDED BY FUNDS CONTAINED IN MEMBERS'
REPRESENTATIONAL ALLOWANCE.--This paragraph shall apply to the acquisition of a light duty motor vehicle or medium duty passenger vehicle using any portion of a Member's Representational Allowance, including an acquisition under a long-term lease.

``(3) GUIDANCE.--
``(A) IN GENERAL.--Each year, the Administrator of the Environmental Protection Agency shall issue guidance identifying the makes and model numbers of vehicles that are low greenhouse gas emitting vehicles.
``(B) CONSIDERATION.--In identifying vehicles under subparagraph (A), the Administrator shall take into account the most stringent standards for vehicle greenhouse gas emissions applicable to and enforceable against motor vehicle manufacturers for vehicles sold anywhere in the United States.
``(C) REQUIREMENT.--The Administrator shall not identify any vehicle as a low greenhouse gas emitting vehicle if the vehicle emits greenhouse gases at a higher rate than such standards allow for the manufacturer's fleet average grams per mile of carbon dioxide-equivalent emissions for that class of vehicle, taking into account any emissions allowances and adjustment factors such standards provide.''.
SEC. 142. FEDERAL FLEET CONSERVATION REQUIREMENTS.
Part J of title III of the Energy Policy and Conservation Act (42 U.S.C. 6374 et seq.) is amended by adding at the end the following:
``SEC. 400FF. FEDERAL FLEET CONSERVATION REQUIREMENTS.
``(a) Mandatory Reduction in Petroleum Consumption.--
``(1) IN GENERAL.--Not later than 18 months after the date of enactment of this section, the Secretary shall issue regulations for Federal fleets subject to section 400AA to require that, beginning in fiscal year 2010, each Federal agency shall reduce petroleum consumption and increase alternative fuel consumption each year by an amount necessary to meet the goals described in paragraph (2).
``(2) GOALS.--The goals of the requirements under paragraph (1) are that not later than October 1, 2015, and for each year thereafter, each Federal agency shall achieve at least a 20 percent reduction in annual petroleum consumption and a 10 percent increase in annual alternative fuel consumption, as calculated from the baseline established by the Secretary for fiscal year 2005.
``(3) MILESTONES.--The Secretary shall include in the regulations described in paragraph (1)--
``(A) interim numeric milestones to assess annual agency progress towards accomplishing the goals described in that paragraph; and
``(B) a requirement that agencies annually report on progress towards meeting each of the milestones and the 2015 goals.
``(b) Plan.--
``(1) REQUIREMENT.--
``(A) IN GENERAL.--The regulations under subsection (a) shall require each Federal agency to develop a plan, and implement the measures specified in the plan by dates specified in the plan, to meet the required petroleum reduction levels and the alternative fuel consumption increases, including the milestones specified by the Secretary.
``(B) INCLUSIONS.--The plan shall--
``(i) identify the specific measures the agency will use to meet the requirements of subsection (a)(2); and
``(ii) quantify the reductions in petroleum consumption or increases in alternative fuel consumption projected to be achieved by each measure each year.
``(2) MEASURES.--The plan may allow an agency to meet the required petroleum reduction level through--
``(A) the use of alternative fuels;
``(B) the acquisition of vehicles with higher fuel economy, including hybrid vehicles, neighborhood electric vehicles, electric vehicles, and plug-in hybrid vehicles if the vehicles are commercially available;
``(C) the substitution of cars for light trucks;
``(D) an increase in vehicle load factors;
``(E) a decrease in vehicle miles traveled;
``(F) a decrease in fleet size; and
``(G) other measures.''.
TITLE II--ENERGY SECURITY THROUGH INCREASED PRODUCTION OF BIOFUELS


Subtitle A--Renewable Fuel Standard


SEC. 201. DEFINITIONS.
Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)) is amended to read as follows:
``(1) DEFINITIONS.--In this section:
``(A) ADDITIONAL RENEWABLE FUEL.--The term `additional renewable fuel' means fuel that is produced from renewable biomass and that is used to replace or reduce the quantity of fossil fuel present in home heating oil or jet fuel.
``(B) ADVANCED BIOFUEL.--
``(i) IN GENERAL.--The term `advanced biofuel' means renewable fuel, other than ethanol derived from corn starch, that has lifecycle greenhouse gas emissions, as determined by the Administrator, after notice and opportunity for comment, that are at least 50 percent less than baseline lifecycle greenhouse gas emissions.
``(ii) INCLUSIONS.--The types of fuels eligible for consideration as `advanced biofuel' may include any of the following:
``(I) Ethanol derived from cellulose, hemicellulose, or lignin.
``(II) Ethanol derived from sugar or starch (other than corn starch).
``(III) Ethanol derived from waste material, including crop residue, other vegetative waste material, animal waste, and food waste and yard waste.
``(IV) Biomass-based diesel.
``(V) Biogas (including landfill gas and sewage waste treatment gas) produced through the conversion of organic matter from renewable biomass.
``(VI) Butanol or other alcohols produced through the conversion of organic matter from renewable biomass.
``(VII) Other fuel derived from cellulosic biomass.
``(C) BASELINE LIFECYCLE GREENHOUSE GAS EMISSIONS.--The term `baseline lifecycle greenhouse gas emissions' means the average lifecycle greenhouse gas emissions, as determined by the Administrator, after notice and opportunity for comment, for gasoline or diesel (whichever is being replaced by the renewable fuel) sold or distributed as transportation fuel in 2005.
``(D) BIOMASS-BASED DIESEL.--The term `biomass-based diesel' means renewable fuel that is biodiesel as defined in section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 13220(f)) and that has lifecycle greenhouse gas emissions, as determined by the Administrator, after notice and opportunity for comment, that are at least 50 percent less than the baseline lifecycle greenhouse gas emissions. Notwithstanding the preceding sentence, renewable fuel derived from co-processing biomass with
a petroleum feedstock shall be advanced biofuel if it meets the requirements of subparagraph (B), but is not biomass-based diesel.
``(E) CELLULOSIC BIOFUEL.--The term `cellulosic biofuel' means renewable fuel derived from any cellulose, hemicellulose, or lignin that is derived from renewable biomass and that has lifecycle greenhouse gas emissions, as determined by the Administrator, that are at least 60 percent less than the baseline lifecycle greenhouse gas emissions.
``(F) CONVENTIONAL BIOFUEL.--The term `conventional biofuel' means renewable fuel that is ethanol derived from corn starch
``(G) GREENHOUSE GAS.--The term `greenhouse gas' means carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, sulfur hexafluoride. The Administrator may include any other anthropogenically-emitted gas that is determined by the Administrator, after notice and comment, to contribute to global warming.
``(H) LIFECYCLE GREENHOUSE GAS EMISSIONS.--The term `lifecycle greenhouse gas emissions' means the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant emissions from land use changes), as determined by the Administrator, related to the full fuel lifecycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery and
use of the finished fuel to the ultimate consumer, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential.
``(I) RENEWABLE BIOMASS.--The term `renewable biomass' means each of the following:
``(i) Planted crops and crop residue harvested from agricultural land cleared or cultivated at any time prior to the enactment of this sentence that is either actively managed or fallow, and nonforested.
``(ii) Planted trees and tree residue from actively managed tree plantations on non-federal land cleared at any time prior to enactment of this sentence, including land belonging to an Indian tribe or an Indian individual, that is held in trust by the United States or subject to a restriction against alienation imposed by the United States.
``(iii) Animal waste material and animal byproducts.
``(iv) Slash and pre-commercial thinnings that are from non-federal forestlands, including forestlands belonging to an Indian tribe or an Indian individual, that are held in trust by the United States or subject to a restriction against alienation imposed by the United States, but not forests or forestlands that are ecological communities with a global or State ranking of critically imperiled, imperiled, or rare pursuant to a State Natural Heritage Program, old growth forest, or late successional
forest.
``(v) Biomass obtained from the immediate vicinity of buildings and other areas regularly occupied by people, or of public infrastructure, at risk from wildfire.
``(vi) Algae.
``(vii) Separated yard waste or food waste, including recycled cooking and trap grease.
``(J) RENEWABLE FUEL.--The term `renewable fuel' means fuel that is produced from renewable biomass and that is used to replace or reduce the quantity of fossil fuel present in a transportation fuel.
``(K) SMALL REFINERY.--The term `small refinery' means a refinery for which the average aggregate daily crude oil throughput for a calendar year (as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000 barrels.
``(L) TRANSPORTATION FUEL.--The term `transportation fuel' means fuel for use in motor vehicles, motor vehicle engines, nonroad vehicles, or nonroad engines (except for ocean-going vessels).''.
SEC. 202. RENEWABLE FUEL STANDARD.
(a) Renewable Fuel Program.--Paragraph (2) of section 211(o) (42 U.S.C. 7545(o)(2)) of the Clean Air Act is amended as follows:
(1) REGULATIONS.--Clause (i) of subparagraph (A) is amended by adding the following at the end thereof: ``Not later than 1 year after the date of enactment of this sentence, the Administrator shall revise the regulations under this paragraph to ensure that transportation fuel sold or introduced into commerce in the United States (except in noncontiguous States or territories), on an annual average basis, contains at least the applicable volume of renewable fuel, advanced biofuel, cellulosic
biofuel, and biomass-based diesel, determined in accordance with subparagraph (B) and, in the case of any such renewable fuel produced from new facilities that commence construction after the date of enactment of this sentence, achieves at least a 20 percent reduction in lifecycle greenhouse gas emissions compared to baseline lifecycle greenhouse gas emissions.''
(2) APPLICABLE VOLUMES OF RENEWABLE FUEL.--Subparagraph (B) is amended to read as follows:
``(B) APPLICABLE VOLUMES.--
``(i) CALENDAR YEARS AFTER 2005.--
``(I) RENEWABLE FUEL.--For the purpose of subparagraph (A), the applicable volume of renewable fuel for the calendar years 2006 through 2022 shall be determined in accordance with the following table:

Applicable volume of renewable fuel
``Calendar year:
(in billions of gallons):2006

4.02007

4.72008

9.02009

11.12010

12.952011

13.952012

15.22013

16.552014

18.152015

20.52016

22.252017

24.02018

26.02019

28.02020

30.02021

33.02022

36.0

``(II) ADVANCED BIOFUEL.--For the purpose of subparagraph (A), of the volume of renewable fuel required under subclause (I), the applicable volume of advanced biofuel for the calendar years 2009 through 2022 shall be determined in accordance with the following table:

Applicable volume of advanced biofuel
``Calendar year:
(in billions of gallons):2009

0.62010

0.952011

1.352012

2.02013

2.752014

3.752015

5.52016

7.252017

9.02018

11.02019

13.02020

15.02021

18.02022

21.0

``(III) CELLULOSIC BIOFUEL.--For the purpose of subparagraph (A), of the volume of advanced biofuel required under subclause (II), the applicable volume of cellulosic biofuel for the calendar years 2010 through 2022 shall be determined in accordance with the following table:

Applicable volume of cellulosic biofuel
``Calendar year:
(in billions of gallons):2010

0.12011

0.252012

0.52013

1.02014

1.752015

3.02016

4.252017

5.52018

7.02019

8.52020

10.52021

13.52022

16.0

``(IV) BIOMASS-BASED DIESEL.--For the purpose of subparagraph (A), of the volume of advanced biofuel required under subclause (II), the applicable volume of biomass-based diesel for the calendar years 2009 through 2012 shall be determined in accordance with the following table:

Applicable volume of biomass-based diesel
``Calendar year:
(in billions of gallons):2009

0.5 2010

0.652011

0.802012

1.0
``(ii) OTHER CALENDAR YEARS.--For the purposes of subparagraph (A), the applicable volumes of each fuel specified in the tables in clause (i) for calendar years after the calendar years specified in the tables shall be determined by the Administrator, in coordination with the Secretary of Energy and the Secretary of Agriculture, based on a review of the implementation of the program during calendar years specified in the tables, and an analysis of--
``(I) the impact of the production and use of renewable fuels on the environment, including on air quality, climate change, conversion of wet lands, eco-systems, wildlife habitat, water quality, and water supply;
``(II) the impact of renewable fuels on the energy security of the United States;
``(III) the expected annual rate of future commercial production of renewable fuels, including advanced biofuels in each category (cellulosic biofuel and biomass-based diesel);
``(IV) the impact of renewable fuels on the infrastructure of the United States, including deliverability of materials, goods, and products other than renewable fuel, and the sufficiency of infrastructure to deliver and use renewable fuel;
``(V) the impact of the use of renewable fuels on the cost to consumers of transportation fuel and on the cost to transport goods; and
``(VI) the impact of the use of renewable fuels on other factors, including job creation, the price and supply of agricultural commodities, rural economic development, and food prices.
The Administrator shall promulgate rules establishing the applicable volumes under this clause no later than 14 months before the first year for which such applicable volume will apply.
``(iii) APPLICABLE VOLUME OF ADVANCED BIOFUEL.--For the purpose of making the determinations in clause (ii), for each calendar year, the applicable volume of advanced biofuel shall be at least the same percentage of the applicable volume of renewable fuel as in calendar year 2022.
``(iv) APPLICABLE VOLUME OF CELLULOSIC BIOFUEL.--For the purpose of making the determinations in clause (ii), for each calendar year, the applicable volume of cellulosic biofuel established by the Administrator shall be based on the assumption that the Administrator will not need to issue a waiver for such years under paragraph (7)(D).
``(v) MINIMUM APPLICABLE VOLUME OF BIOMASS-BASED DIESEL.--For the purpose of making the determinations in clause (ii), the applicable volume of biomass-based diesel shall not be less than the applicable volume listed in clause (i)(IV) for calendar year 2012.''.
(b) Applicable Percentages.--Paragraph (3) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(3)) is amended as follows:
(1) In subparagraph (A), by striking ``2011'' and inserting ``2021''.
(2) In subparagraph (A), by striking ``gasoline'' and inserting ``transportation fuel, biomass-based diesel, and cellulosic biofuel''.
(3) In subparagraph (B), by striking ``2012'' and inserting ``2021'' in clause (i).
(4) In subparagraph (B), by striking ``gasoline'' and inserting ``transportation fuel'' in clause (ii)(II).
(c) Modification of Greenhouse Gas Percentages.--Paragraph (4) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(4)) is amended to read as follows:
``(4) MODIFICATION OF GREENHOUSE GAS REDUCTION PERCENTAGES.--
``(A) IN GENERAL.--The Administrator may, in the regulations under the last sentence of paragraph (2)(A)(i), adjust the 20 percent, 50 percent, and 60 percent reductions in lifecycle greenhouse gas emissions specified in paragraphs (2)(A)(i)(relating to renewable fuel), (1)(D) (relating to biomass-based diesel), (1)(B)(i)(relating to advanced biofuel), and (1)(E) (relating to cellulosic biofuel) to a lower percentage. For the 50 and 60 percent reductions, the Administrator may make such
an adjustment only if he determines that generally such reduction is not commercially feasible for fuels made using a variety of feedstocks, technologies, and processes to meet the applicable reduction.
``(B) AMOUNT OF ADJUSTMENT.--In promulgating regulations under this paragraph, the specified 50 percent reduction in greenhouse gas emissions from advanced biofuel and in biomass-based diesel may not be reduced below 40 percent. The specified 20 percent reduction in greenhouse gas emissions from renewable fuel may not be reduced below 10 percent, and the specified 60 percent reduction in greenhouse gas emissions from cellulosic biofuel may not be reduced below 50 percent.
``(C) ADJUSTED REDUCTION LEVELS.--An adjustment under this paragraph to a percent less than the specified 20 percent greenhouse gas reduction for renewable fuel shall be the minimum possible adjustment, and the adjusted greenhouse gas reduction shall be established by the Administrator at the maximum achievable level, taking cost in consideration, for natural gas fired corn-based ethanol plants, allowing for the use of a variety of technologies and processes. An adjustment in the 50 or
60 percent greenhouse gas levels shall be the minimum possible adjustment for the fuel or fuels concerned, and the adjusted greenhouse gas reduction shall be established at the maximum achievable level, taking cost in consideration, allowing for the use of a variety of feedstocks, technologies, and processes.
``(D) 5-year REVIEW.--Whenever the Administrator makes any adjustment under this paragraph, not later than 5 years thereafter he shall review and revise (based upon the same criteria and standards as required for the initial adjustment) the regulations establishing the adjusted level.
``(E) SUBSEQUENT ADJUSTMENTS.--After the Administrator has promulgated a final rule under the last sentence of paragraph (2)(A)(i) with respect to the method of determining lifecycle greenhouse gas emissions, except as provided in subparagraph (D), the Administrator may not adjust the percent greenhouse gas reduction levels unless he determines that there has been a significant change in the analytical methodology used for determining the lifecycle greenhouse gas emissions. If he makes
such determination, he may adjust the 20, 50, or 60 percent reduction levels through rulemaking using the criteria and standards set forth in this paragraph.
``(F) LIMIT ON UPWARD ADJUSTMENTS.--If, under subparagraph (D) or (E), the Administrator revises a percent level adjusted as provided in subparagraph (A), (B), and (C) to a higher percent, such higher percent may not exceed the applicable percent specified in paragraph (2)(A)(i), (1)(D),(1)(B)(i), or (1)(E).
``(G) APPLICABILITY OF ADJUSTMENTS.--If the Administrator adjusts, or revises, a percent level referred to in this paragraph or makes a change in the analytical methodology used for determining the lifecycle greenhouse gas emissions, such adjustment, revision, or change (or any combination thereof) shall only apply to renewable fuel from new facilities that commence construction after the effective date of such adjustment, revision, or change.''.
(d) Credits for Additional Renewable Fuel.--Paragraph (5) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(5)) is amended by adding the following new subparagraph at the end thereof:
``(E) CREDITS FOR ADDITIONAL RENEWABLE FUEL.--The Administrator may issue regulations providing (i) for the generation of an appropriate amount of credits by any person that refines, blends, or imports additional renewable fuels specified by the Administrator and (ii) for the use of such credits by the generator, or the transfer of all or a portion of the credits to another person, for the purpose of complying with paragraph (2).''.
(e) Waivers.--
(1) IN GENERAL.--Paragraph (7)(A) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)(A)) is amended by inserting ``, by any person subject to the requirements of this subsection, or by the Administrator on his own motion'' after ``one or more States'' in subparagraph (A) and by striking out ``State'' in subparagraph (B).
(2) CELLULOSIC BIOFUEL.--Paragraph (7) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding the following at the end thereof:
``(D) CELLULOSIC BIOFUEL.--(i) For any calendar year for which the projected volume of cellulosic biofuel production is less than the minimum applicable volume established under paragraph (2)(B), as determined by the Administrator based on the estimate provided under paragraph (3)(A), not later than November 30 of the preceding calendar year, the Administrator shall reduce the applicable volume of cellulosic biofuel required under paragraph (2)(B) to the projected volume available during
that calendar year. For any calendar year in which the Administrator makes such a reduction, the Administrator may also reduce the applicable volume of renewable fuel and advanced biofuels requirement established under paragraph (2)(B) by the same or a lesser volume.
``(ii) Whenever the Administrator reduces the minimum cellulosic biofuel volume under this subparagraph, the Administrator shall make available for sale cellulosic biofuel credits at the higher of $0.25 per gallon or the amount by which $3.00 per gallon exceeds the average wholesale price of a gallon of gasoline in the United States. Such amounts shall be adjusted for inflation by the Administrator for years after 2008.
``(iii) 18 months after date of enactment of this subparagraph, the Administrator shall promulgate regulations to govern the issuance of credits under this subparagraph. The regulations shall set forth the method for determining the exact price of credits in the event of a waiver. The price of such credits shall not be changed more frequently than once each quarter. These regulations shall include such provisions, including limiting the credits' uses and useful life, as the Administrator deems
appropriate to assist market liquidity and transparency, to provide appropriate certainty for regulated entities and renewable fuel producers, and to limit any potential misuse of cellulosic biofuel credits to reduce the use of other renewable fuels, and for such other purposes
as the Administrator determines will help achieve the goals of this subsection. The regulations shall limit the number of cellulosic biofuel credits for any calendar year to the minimum applicable volume (as reduced under this subparagraph) of cellulosic biofuel for that year.''.
(3) BIOMASS-BASED DIESEL.--Paragraph (7) of section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)(7)) is amended by adding the following at the end thereof:
``(E) BIOMASS-BASED DIESEL.--
``(i) MARKET EVALUATION.--The Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, shall periodically evaluate the impact of the biomass-based diesel requirements established under this paragraph on the price of diesel fuel.
``(ii) WAIVER.--If the Administrator determines that there is a significant renewable feedstock disruption or other market circumstances that would make the price of biomass-based diesel fuel increase significantly, the Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, shall issue an order to reduce, for up to a 60-day period, the quantity of biomass-based diesel required under subparagraph (A) by an appropriate quantity that does not exceed
15 percent of the applicable annual requirement for biomass-based diesel. For any calendar year in which the Administrator makes a reduction under this subparagraph, the Administrator may also reduce the applicable volume of renewable fuel and advanced biofuels requirement established under paragraph (2)(B) by the same or a lesser volume.
``(iii) EXTENSIONS.--If the Administrator determines that the feedstock disruption or circumstances described in clause (ii) is continuing beyond the 60-day period described in clause (ii) or this clause, the Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, may issue an order to reduce, for up to an additional 60-day period, the quantity of biomass-based diesel required under subparagraph (A) by an appropriate quantity that does not exceed
an additional 15 percent of the applicable annual requirement for biomass-based diesel.
``(F) MODIFICATION OF APPLICABLE VOLUMES.--For any of the tables in paragraph (2)(B), if the Administrator waives--
``(i) at least 20 percent of the applicable volume requirement set forth in any such table for 2 consecutive years; or
``(ii) at least 50 percent of such volume requirement for a single year,
the Administrator shall promulgate a rule (within one year after issuing such waiver) that modifies the applicable volumes set forth in the table concerned for all years following the final year to which the waiver applies, except that no such modification in applicable volumes shall be made for any year before 2016. In promulgating such a rule, the Administrator shall comply with the processes, criteria, and standards set forth in paragraph (2)(B)(ii).''.
SEC. 203. STUDY OF IMPACT OF RENEWABLE FUEL STANDARD.
(a) In General.--The Secretary of Energy, in consultation with the Secretary of Agriculture and the Administrator of the Environmental Protection Agency, shall enter into an arrangement with the National Academy of Sciences under which the Academy shall conduct a study to assess the impact of the requirements described in section 211(o) of the Clean Air Act on each industry relating to the production of feed grains, livestock, food, forest products, and energy.
(b) Participation.--In conducting the study under this section, the National Academy of Sciences shall seek the participation, and consider the input, of--
(1) producers of feed grains;
(2) producers of livestock, poultry, and pork products;
(3) producers of food and food products;
(4) producers of energy;
(5) individuals and entities interested in issues relating to conservation, the environment, and nutrition;
(6) users and consumer of renewable fuels;
(7) producers and users of biomass feedstocks; and
(8) land grant universities.
(c) Considerations.--In conducting the study, the National Academy of Sciences shall consider--
(1) the likely impact on domestic animal agriculture feedstocks that, in any crop year, are significantly below current projections;
(2) policy options to alleviate the impact on domestic animal agriculture feedstocks that are significantly below current projections; and
(3) policy options to maintain regional agricultural and silvicultural capability.
(d) Components.--The study shall include--
(1) a description of the conditions under which the requirements described in section 211(o) of the Clean Air Act should be suspended or reduced to prevent adverse impacts to domestic animal agriculture feedstocks described in subsection (c)(2) or regional agricultural and silvicultural capability described in subsection (c)(3); and
(2) recommendations for the means by which the Federal Government could prevent or minimize adverse economic hardships and impacts.
(e) Deadline for Completion of Study.--Not later than 18 months after the date of enactment of this Act, the Secretary shall submit to Congress a report that describes the results of the study under this section.
(f) Periodic Reviews.--Section 211(o) of the Clean Air Act is amended by adding the following at the end thereof:
``(11) PERIODIC REVIEWS.--To allow for the appropriate adjustment of the requirements described in subparagraph (B) of paragraph (2), the Administrator shall conduct periodic reviews of--
``(A) existing technologies;
``(B) the feasibility of achieving compliance with the requirements; and
``(C) the impacts of the requirements described in subsection (a)(2) on each individual and entity described in paragraph (2).''.
SEC. 204. ENVIRONMENTAL AND RESOURCE CONSERVATION IMPACTS.
(a) In General.--Not later than 3 years after the enactment of this section and every 3 years thereafter, the Administrator of the Environmental Protection Agency, in consultation with the Secretary of Agriculture and the Secretary of Energy, shall assess and report to Congress on the impacts to date and likely future impacts of the requirements of section 211(o) of the Clean Air Act on the following:
(1) Environmental issues, including air quality, effects on hypoxia, pesticides, sediment, nutrient and pathogen levels in waters, acreage and function of waters, and soil environmental quality.
(2) Resource conservation issues, including soil conservation, water availability, and ecosystem health and biodiversity, including impacts on forests, grasslands, and wetlands.
(3) The growth and use of cultivated invasive or noxious plants and their impacts on the environment and agriculture.
In advance of preparing the report required by this subsection, the Administrator may seek the views of the National Academy of Sciences or another appropriate independent research institute. The report shall include the annual volume of imported renewable fuels and feedstocks for renewable fuels, and the environmental impacts outside the United States of producing such fuels and feedstocks. The report required by this subsection shall include recommendations for actions to address any adverse
impacts found.
(b) Effect on Air Quality and Other Environmental Requirements.--Except as provided in section 211(o)(13) of the Clean Air Act, nothing in the amendments made by this title to section 211(o) of the Clean Air Act shall be construed as superseding, or limiting, any more environmentally protective requirement under the Clean Air Act, or under any other provision of State or Federal law or regulation, including any environmental law or regulation.
SEC. 205. BIOMASS BASED DIESEL AND BIODIESEL LABELING.
(a) In General.--Each retail diesel fuel pump shall be labeled in a manner that informs consumers of the percent of biomass-based diesel or biodiesel that is contained in the biomass-based diesel blend or biodiesel blend that is offered for sale, as determined by the Federal Trade Commission.
(b) Labeling Requirements.--Not later than 180 days after the date of enactment of this section, the Federal Trade Commission shall promulgate biodiesel labeling requirements as follows:
(1) Biomass-based diesel blends or biodiesel blends that contain less than or equal to 5 percent biomass-based diesel or biodiesel by volume and that meet ASTM D975 diesel specifications shall not require any additional labels.
(2) Biomass based diesel blends or biodiesel blends that contain more than 5 percent biomass-based diesel or biodiesel by volume but not more than 20 percent by volume shall be labeled ``contains biomass-based diesel or biodiesel in quantities between 5 percent and 20 percent''.
(3) Biomass-based diesel or biodiesel blends that contain more than 20 percent biomass based or biodiesel by volume shall be labeled ``contains more than 20 percent biomass-based diesel or biodiesel''.
(c) Definitions.--In this section:
(1) ASTM.--The term ``ASTM'' means the American Society of Testing and Materials.
(2) BIOMASS-BASED DIESEL.--The term ``biomass-based diesel'' means biodiesel as defined in section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 13220(f)).
(3) BIODIESEL.--The term ``biodiesel'' means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet--
(A) the registration requirements for fuels and fuel additives under this section; and
(B) the requirements of ASTM standard D6751.
(4) BIOMASS-BASED DIESEL AND BIODIESEL BLENDS.--The terms ``biomass-based diesel blend'' and ``biodiesel blend'' means a blend of ``biomass-based diesel'' or ``biodiesel'' fuel that is blended with petroleum based diesel fuel.
SEC. 206. STUDY OF CREDITS FOR USE OF RENEWABLE ELECTRICITY IN ELECTRIC VEHICLES.
(a) Definition of Electric Vehicle.--In this section, the term ``electric vehicle'' means an electric motor vehicle (as defined in section 601 of the Energy Policy Act of 1992 (42 U.S.C. 13271)) for which the rechargeable storage battery--
(1) receives a charge directly from a source of electric current that is external to the vehicle; and
(2) provides a minimum of 80 percent of the motive power of the vehicle.
(b) Study.--The Administrator of the Environmental Protection Agency shall conduct a study on the feasibility of issuing credits under the program established under section 211(o) of the Clean Air Act to electric vehicles powered by electricity produced from renewable energy sources.
(c) Report.--Not later than 18 months after the date of enactment of this Act, the Administrator shall submit to the Committee on Energy and Natural Resources of the United States Senate and the Committee on Energy and Commerce of the United States House of Representatives a report that describes the results of the study, including a description of--
(1) existing programs and studies on the use of renewable electricity as a means of powering electric vehicles; and
(2) alternatives for--
(A) designing a pilot program to determine the feasibility of using renewable electricity to power electric vehicles as an adjunct to a renewable fuels mandate;
(B) allowing the use, under the pilot program designed under subparagraph (A), of electricity generated from nuclear energy as an additional source of supply;
(C) identifying the source of electricity used to power electric vehicles; and
(D) equating specific quantities of electricity to quantities of renewable fuel under section 211(o) of the Clean Air Act.
SEC. 207. GRANTS FOR PRODUCTION OF ADVANCED BIOFUELS.
(a) In General.--The Secretary of Energy shall establish a grant program to encourage the production of advanced biofuels.
(b) Requirements and Priority.--In making grants under this section, the Secretary--
(1) shall make awards to the proposals for advanced biofuels with the greatest reduction in lifecycle greenhouse gas emissions compared to the comparable motor vehicle fuel lifecycle emissions during calendar year 2005; and
(2) shall not make an award to a project that does not achieve at least a 80 percent reduction in such lifecycle greenhouse gas emissions.
(c) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $500,000,000 for the period of fiscal years 2008 through 2015.
SEC. 208. INTEGRATED CONSIDERATION OF WATER QUALITY IN DETERMINATIONS ON FUELS AND FUEL ADDITIVES.
Section 211(c)(1) of the Clean Air Act (42 U.S.C. 7545(c)(1)) is amended as follows:
(1) By striking ``nonroad vehicle (A) if in the judgment of the Administrator'' and inserting ``nonroad vehicle if, in the judgment of the Administrator, any fuel or fuel additive or'' ; and
(2) In subparagraph (A), by striking ``air pollution which'' and inserting ``air pollution or water pollution (including any degradation in the quality of groundwater) that''.
SEC. 209. ANTI-BACKSLIDING.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by adding at the end the following:
``(v) Prevention of Air Quality Deterioration.--
``(1) STUDY.--
``(A) IN GENERAL.--Not later than 18 months after the date of enactment of this subsection, the Administrator shall complete a study to determine whether the renewable fuel volumes required by this section will adversely impact air quality as a result of changes in vehicle and engine emissions of air pollutants regulated under this Act.
``(B) CONSIDERATIONS.--The study shall include consideration of--
``(i) different blend levels, types of renewable fuels, and available vehicle technologies; and
``(ii) appropriate national, regional, and local air quality control measures.
``(2) REGULATIONS.--Not later than 3 years after the date of enactment of this subsection, the Administrator shall--
``(A) promulgate fuel regulations to implement appropriate measures to mitigate, to the greatest extent achievable, considering the results of the study under paragraph (1), any adverse impacts on air quality, as the result of the renewable volumes required by this section; or
``(B) make a determination that no such measures are necessary.''.
SEC. 210. EFFECTIVE DATE, SAVINGS PROVISION, AND TRANSITION RULES.
(a) Transition Rules.--(1) For calendar year 2008, transportation fuel sold or introduced into commerce in the United States (except in noncontiguous States or territories), that is produced from facilities that commence construction after the date of enactment of this Act shall be treated as renewable fuel within the meaning of section 211(o) of the Clean Air Act only if it achieves at least a 20 percent reduction in lifecycle greenhouse gas emissions compared to baseline lifecycle
greenhouse gas emissions. For calendar years 2008 and 2009, any ethanol plant that is fired with natural gas, biomass, or any combination thereof is deemed to be in compliance with such 20 percent reduction requirement and with the 20 percent reduction requirement of section 211(o)(1) of the Clean Air Act. The terms used in this subsection shall have the same meaning as provided in the amendment made by this Act to section 211(o) of the Clean Air Act.
(2) Until January 1, 2009, the Administrator of the Environmental Protection Agency shall implement section 211(o) of the Clean Air Act and the rules promulgated under that section in accordance with the provisions of that section as in effect before the enactment of this Act and in accordance with the rules promulgated before the enactment of this Act, except that for calendar year 2008, the number ``9.0'' shall be substituted for the number ``5.4'' in the table in section 211(o)(2)(B) and
in the corresponding rules promulgated to carry out those provisions. The Administrator is authorized to take such other actions as may be necessary to carry out this paragraph notwithstanding any other provision of law.
(b) Savings Clause.--Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended by adding the following new paragraph at the end thereof:
``(12) EFFECT ON OTHER PROVISIONS.--Nothing in this subsection, or regulations issued pursuant to this subsection, shall affect or be construed to affect the regulatory status of carbon dioxide or any other greenhouse gas, or to expand or limit regulatory authority regarding carbon dioxide or any other greenhouse gas, for purposes of other provisions (including section 165) of this Act. The previous sentence shall not affect implementation and enforcement of this subsection.''.
(c) Effective Date.--The amendments made by this title to section 211(o) of the Clean Air Act shall take effect January 1, 2009, except that the Administrator shall promulgate regulations to carry out such amendments not later than one year after the enactment of this Act.
Subtitle B--Biofuels Research and Development


SEC. 221. BIODIESEL.
(a) Biodiesel Study.--Not later than 180 days after the date of enactment of this Act, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall submit to Congress a report on any research and development challenges inherent in increasing the proportion of diesel fuel sold in the United States that is biodiesel.
(b) Material for the Establishment of Standards.--The Director of the National Institute of Standards and Technology, in consultation with the Secretary, shall make publicly available the physical property data and characterization of biodiesel and other biofuels as appropriate.
SEC. 222. BIOGAS.
Not later than 180 days after the date of enactment of this Act, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall submit to Congress a report on any research and development challenges inherent in increasing the amount of transportation fuels sold in the United States that are fuel with biogas or a blend of biogas and natural gas.
SEC. 223. GRANTS FOR BIOFUEL PRODUCTION RESEARCH AND DEVELOPMENT IN CERTAIN STATES.
(a) In General.--The Secretary shall provide grants to eligible entities for research, development, demonstration, and commercial application of biofuel production technologies in States with low rates of ethanol production, including low rates of production of cellulosic biomass ethanol, as determined by the Secretary.
(b) Eligibility.--To be eligible to receive a grant under this section, an entity shall--
(1)(A) be an institution of higher education (as defined in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)), including tribally controlled colleges or universities, located in a State described in subsection (a); or
(B) be a consortium including at least 1 such institution of higher education, and industry, State agencies, Indian tribal agencies, National Laboratories, or local government agencies located in the State; and
(2) have proven experience and capabilities with relevant technologies.
(c) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary to carry out this section $25,000,000 for each of fiscal years 2008 through 2010.
SEC. 224. BIOREFINERY ENERGY EFFICIENCY.
Section 932 of Energy Policy Act of 2005 (42 U.S.C. 16232) is amended by adding at the end the following new subsections:
``(g) Biorefinery Energy Efficiency.--The Secretary shall establish a program of research, development, demonstration, and commercial application for increasing energy efficiency and reducing energy consumption in the operation of biorefinery facilities.
``(h) Retrofit Technologies for the Development of Ethanol From Cellulosic Materials.--The Secretary shall establish a program of research, development, demonstration, and commercial application on technologies and processes to enable biorefineries that exclusively use corn grain or corn starch as a feedstock to produce ethanol to be retrofitted to accept a range of biomass, including lignocellulosic feedstocks.''.
SEC. 225. STUDY OF OPTIMIZATION OF FLEXIBLE FUELED VEHICLES TO USE E-85 FUEL.
(a) In General.--The Secretary, in consultation with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall conduct a study of whether optimizing flexible fueled vehicles to operate using E-85 fuel would increase the fuel efficiency of flexible fueled vehicles.
(b) Report.--Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Science and Technology and the Committee on Energy and Commerce of the House of Representatives, and to the Committee on Energy and Natural Resources, the Committee on Environment and Public Works, and the Committee on Commerce, Science, and Transportation of the Senate, a report that describes the results of the study under this section, including any recommendations
of the Secretary.
SEC. 226. STUDY OF ENGINE DURABILITY AND PERFORMANCE ASSOCIATED WITH THE USE OF BIODIESEL.
(a) In General.--Not later than 30 days after the date of enactment of this Act, the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall initiate a study on the effects of the use of biodiesel on the performance and durability of engines and engine systems.
(b) Components.--The study under this section shall include--
(1) an assessment of whether the use of biodiesel lessens the durability and performance of conventional diesel engines and engine systems; and
(2) an assessment of the effects referred to in subsection (a) with respect to biodiesel blends at varying concentrations, including the following percentage concentrations of biodiesel:
(A) 5 percent biodiesel.
(B) 10 percent biodiesel.
(C) 20 percent biodiesel.
(D) 30 percent biodiesel.
(E) 100 percent biodiesel.
(c) Report.--Not later than 24 months after the date of enactment of this Act, the Secretary shall submit to the Committee on Science and Technology and the Committee on Energy and Commerce of the House of Representatives, and to the Committee on Energy and Natural Resources and the Committee on Environment and Public Works of the Senate, a report that describes the results of the study under this section, including any recommendations of the Secretary.
SEC. 227. STUDY OF OPTIMIZATION OF BIOGAS USED IN NATURAL GAS VEHICLES.
(a) In General.--The Secretary, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Transportation, shall conduct a study of methods of increasing the fuel efficiency of vehicles using biogas by optimizing natural gas vehicle systems that can operate on biogas, including the advancement of vehicle fuel systems and the combination of hybrid-electric and plug-in hybrid electric drive platforms with natural gas vehicle systems using biogas.
(b) Report.--Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Energy and Natural Resources, the Committee on Environment and Public Works, and the Committee on Commerce, Science, and Transportation of the Senate, and to the Committee on Science and Technology and the Committee on Energy and Commerce of the House of Representatives, a report that describes the results of the study, including any recommendations of the Secretary.
SEC. 228. ALGAL BIOMASS.
(a) In General.--Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Science and Technology of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on the progress of the research and development that is being conducted on the use of algae as a feedstock for the production of biofuels.
(b) Contents.--The report shall identify continuing research and development challenges and any regulatory or other barriers found by the Secretary that hinder the use of this resource, as well as recommendations on how to encourage and further its development as a viable transportation fuel.
SEC. 229. BIOFUELS AND BIOREFINERY INFORMATION CENTER.
(a) In General.--The Secretary, in cooperation with the Secretary of Agriculture, shall establish a biofuels and biorefinery information center to make available to interested parties information on--
(1) renewable fuel feedstocks, including the varieties of fuel capable of being produced from various feedstocks;
(2) biorefinery processing techniques related to various renewable fuel feedstocks;
(3) the distribution, blending, storage, and retail dispensing infrastructure necessary for the transport and use of renewable fuels;
(4) Federal and State laws and incentives related to renewable fuel production and use;
(5) renewable fuel research and development advancements;
(6) renewable fuel development and biorefinery processes and technologies;
(7) renewable fuel resources, including information on programs and incentives for renewable fuels;
(8) renewable fuel producers;
(9) renewable fuel users; and
(10) potential renewable fuel users.
(b) Administration.--In administering the biofuels and biorefinery information center, the Secretary shall--
(1) continually update information provided by the center;
(2) make information available relating to processes and technologies for renewable fuel production;
(3) make information available to interested parties on the process for establishing a biorefinery; and
(4) make information and assistance provided by the center available through a toll-free telephone number and website.
(c) Coordination and Nonduplication.--To maximum extent practicable, the Secretary shall ensure that the activities under this section are coordinated with, and do not duplicate the efforts of, centers at other government agencies.
(d) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section.
SEC. 230. CELLULOSIC ETHANOL AND BIOFUELS RESEARCH.
(a) Definition of Eligible Entity.--In this section, the term ``eligible entity'' means--
(1) an 1890 Institution (as defined in section 2 of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7061));
(2) a part B institution (as defined in section 322 of the Higher Education Act of 1965 (20 U.S.C. 1061)) (commonly referred to as ``Historically Black Colleges and Universities'');
(3) a tribal college or university (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)); or
(4) a Hispanic-serving institution (as defined in section 502(a) of the Higher Education Act of 1965 (20 U.S.C. 1101a(a)).
(b) Grants.--The Secretary shall make cellulosic ethanol and biofuels research and development grants to 10 eligible entities selected by the Secretary to receive a grant under this section through a peer-reviewed competitive process.
(c) Collaboration.--An eligible entity that is selected to receive a grant under subsection (b) shall collaborate with 1 of the Bioenergy Research Centers of the Office of Science of the Department.
(d) Authorization of Appropriations.--There is authorized to be appropriated to the Secretary to make grants described in subsection (b) $50,000,000 for fiscal year 2008, to remain available until expended.
SEC. 231. BIOENERGY RESEARCH AND DEVELOPMENT, AUTHORIZATION OF APPROPRIATION.
Section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``and'' at the end;
(B) in paragraph (3), by striking the period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) $963,000,000 for fiscal year 2010.''; and
(2) in subsection (c)--
(A) in paragraph (2)--
(i) by striking ``$251,000,000'' and inserting ``$377,000,000''; and
(ii) by striking ``and'' at the end;
(B) in paragraph (3)--
(i) by striking ``$274,000,000'' and inserting ``$398,000,000''; and
(ii) by striking the period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(4) $419,000,000 for fiscal year 2010, of which $150,000,000 shall be for section 932(d).''.
SEC. 232. ENVIRONMENTAL RESEARCH AND DEVELOPMENT.
(a) In General.--Section 977 of the Energy Policy Act of 2005 (42 U.S.C. 16317) is amended--
(1) in subsection (a)(1), by striking ``and computational biology'' and inserting ``computational biology, and environmental science''; and
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``in sustainable production systems that reduce greenhouse gas emissions'' after ``hydrogen'';
(B) in paragraph (3), by striking ``and'' at the end;
(C) by redesignating paragraph (4) as paragraph (5); and
(D) by inserting after paragraph (3) the following:
``(4) develop cellulosic and other feedstocks that are less resource and land intensive and that promote sustainable use of resources, including soil, water, energy, forests, and land, and ensure protection of air, water, and soil quality; and''.
(b) Tools and Evaluation.--Section 307(d) of the Biomass Research and Development Act of 2000 (7 U.S.C. 8606(d)) is amended--
(1) in paragraph (3)(E), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and inserting a semicolon; and
(3) by adding at the end the following:
``(5) the improvement and development of analytical tools to facilitate the analysis of life-cycle energy and greenhouse gas emissions, including emissions related to direct and indirect land use changes, attributable to all potential biofuel feedstocks and production processes; and
``(6) the systematic evaluation of the impact of expanded biofuel production on the environment, including forest lands, and on the food supply for humans and animals.''.
(c) Small-Scale Production and Use of Biofuels.--Section 307(e) of the Biomass Research and Development Act of 2000 (7 U.S.C. 8606(e)) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (3), by striking the period at the end and inserting ``; and''; and
(3) by adding at the end the following:
``(4) to facilitate small-scale production, local, and on-farm use of biofuels, including the development of small-scale gasification technologies for production of biofuel from cellulosic feedstocks.''.
SEC. 233. BIOENERGY RESEARCH CENTERS.
Section 977 of the Energy Policy Act of 2005 (42 U.S.C. 16317) is amended by adding at the end the following:
``(f) Bioenergy Research Centers.--
``(1) ESTABLISHMENT OF CENTERS.--In carrying out the program under subsection (a), the Secretary shall establish at least 7 bioenergy research centers, which may be of varying size.
``(2) GEOGRAPHIC DISTRIBUTION.--The Secretary shall establish at least 1 bioenergy research center in each Petroleum Administration for Defense District or Subdistrict of a Petroleum Administration for Defense District.
``(3) GOALS.--The goals of the centers established under this subsection shall be to accelerate basic transformational research and development of biofuels, including biological processes.
``(4) SELECTION AND DURATION.--
``(A) IN GENERAL.--A center under this subsection shall be selected on a competitive basis for a period of 5 years.
``(B) REAPPLICATION.--After the end of the period described in subparagraph (A), a grantee may reapply for selection on a competitive basis.
``(5) INCLUSION.--A center that is in existence on the date of enactment of this subsection--
``(A) shall be counted towards the requirement for establishment of at least 7 bioenergy research centers; and
``(B) may continue to receive support for a period of 5 years beginning on the date of establishment of the center.''.
SEC. 234. UNIVERSITY BASED RESEARCH AND DEVELOPMENT GRANT PROGRAM.
(a) Establishment.--The Secretary shall establish a competitive grant program, in a geographically diverse manner, for projects submitted for consideration by institutions of higher education to conduct research and development of renewable energy technologies. Each grant made shall not exceed $2,000,000.
(b) Eligibility.--Priority shall be given to institutions of higher education with--
(1) established programs of research in renewable energy;
(2) locations that are low income or outside of an urbanized area;
(3) a joint venture with an Indian tribe; and
(4) proximity to trees dying of disease or insect infestation as a source of woody biomass.
(c) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary $25,000,000 for carrying out this section.
(d) Definitions.--In this section:
(1) INDIAN TRIBE.--The term ``Indian tribe'' has the meaning as defined in section 126(c) of the Energy Policy Act of 2005.
(2) RENEWABLE ENERGY.--The term ``renewable energy'' has the meaning as defined in section 902 of the Energy Policy Act of 2005.
(3) URBANIZED AREA.--The term ``urbanized area'' has the mean as defined by the U.S. Bureau of the Census.
Subtitle C--Biofuels Infrastructure


SEC. 241. PROHIBITION ON FRANCHISE AGREEMENT RESTRICTIONS RELATED TO RENEWABLE FUEL INFRASTRUCTURE.
(a) In General.--Title I of the Petroleum Marketing Practices Act (15 U.S.C. 2801 et seq.) is amended by adding at the end the following:
``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF RENEWABLE FUEL PUMPS.
``(a) Definition.--In this section:
``(1) RENEWABLE FUEL.--The term `renewable fuel' means any fuel--
``(A) at least 85 percent of the volume of which consists of ethanol; or
``(B) any mixture of biodiesel and diesel or renewable diesel (as defined in regulations adopted pursuant to section 211(o) of the Clean Air Act (40 CFR, Part 80)), determined without regard to any use of kerosene and containing at least 20 percent biodiesel or renewable diesel.
``(2) FRANCHISE-RELATED DOCUMENT.--The term `franchise-related document' means--
``(A) a franchise under this Act; and
``(B) any other contract or directive of a franchisor relating to terms or conditions of the sale of fuel by a franchisee.
``(b) Prohibitions.--
``(1) IN GENERAL.--No franchise-related document entered into or renewed on or after the date of enactment of this section shall contain any provision allowing a franchisor to restrict the franchisee or any affiliate of the franchisee from--
``(A) installing on the marketing premises of the franchisee a renewable fuel pump or tank, except that the franchisee's franchisor may restrict the installation of a tank on leased marketing premises of such franchisor;
``(B) converting an existing tank or pump on the marketing premises of the franchisee for renewable fuel use, so long as such tank or pump and the piping connecting them are either warranted by the manufacturer or certified by a recognized standards setting organization to be suitable for use with such renewable fuel;
``(C) advertising (including through the use of signage) the sale of any renewable fuel;
``(D) selling renewable fuel in any specified area on the marketing premises of the franchisee (including any area in which a name or logo of a franchisor or any other entity appears);
``(E) purchasing renewable fuel from sources other than the franchisor if the franchisor does not offer its own renewable fuel for sale by the franchisee;
``(F) listing renewable fuel availability or prices, including on service station signs, fuel dispensers, or light poles; or
``(G) allowing for payment of renewable fuel with a credit card,
so long as such activities described in subparagraphs (A) through (G) do not constitute mislabeling, misbranding, willful adulteration, or other trademark violations by the franchisee.
``(2) EFFECT OF PROVISION.--Nothing in this section shall be construed to preclude a franchisor from requiring the franchisee to obtain reasonable indemnification and insurance policies.
``(c) Exception to 3-Grade Requirement.--No franchise-related document that requires that 3 grades of gasoline be sold by the applicable franchisee shall prevent the franchisee from selling an renewable fuel in lieu of 1, and only 1, grade of gasoline.''.
(b) Enforcement.--Section 105 of the Petroleum Marketing Practices Act (15 U.S.C. 2805) is amended by striking ``102 or 103'' each place it appears and inserting ``102, 103, or 107''.
(c) Conforming Amendments.--
(1) IN GENERAL.--Section 101(13) of the Petroleum Marketing Practices Act (15 U.S.C. 2801(13)) is amended by aligning the margin of subparagraph (C) with subparagraph (B).
(2) TABLE OF CONTENTS.--The table of contents of the Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is amended--
(A) by inserting after the item relating to section 106 the following:

``Sec..107..Prohibition on restriction of installation of renewable fuel pumps.''; and

(B) by striking the item relating to section 202 and inserting the following:

``Sec..202..Automotive fuel rating testing and disclosure requirements.''.
SEC. 242. RENEWABLE FUEL DISPENSER REQUIREMENTS.
(a) Market Penetration Reports.--The Secretary, in consultation with the Secretary of Transportation, shall determine and report to Congress annually on the market penetration for flexible-fuel vehicles in use within geographic regions to be established by the Secretary.
(b) Dispenser Feasibility Study.--Not later than 24 months after the date of enactment of this Act, the Secretary, in consultation with the Department of Transportation, shall report to the Congress on the feasibility of requiring motor fuel retailers to install E-85 compatible dispensers and related systems at retail fuel facilities in regions where flexible-fuel vehicle market penetration has reached 15 percent of motor vehicles. In conducting such study, the Secretary shall consider
and report on the following factors:
(1) The commercial availability of E-85 fuel and the number of competing E-85 wholesale suppliers in a given region.
(2) The level of financial assistance provided on an annual basis by the Federal Government, State governments, and nonprofit entities for the installation of E-85 compatible infrastructure.
(3) The number of retailers whose retail locations are unable to support more than 2 underground storage tank dispensers.
(4) The expense incurred by retailers in the installation and sale of E-85 compatible dispensers and related systems and any potential effects on the price of motor vehicle fuel.
SEC. 243. ETHANOL PIPELINE FEASIBILITY STUDY.
(a) In General.--The Secretary, in coordination with the Secretary of Transportation, shall conduct a study of the feasibility of the construction of pipelines dedicated to the transportation of ethanol.
(b) Factors for Consideration.--In conducting the study under subsection (a), the Secretary shall take into consideration--
(1) the quantity of ethanol production that would make dedicated pipelines economically viable;
(2) existing or potential barriers to the construction of pipelines dedicated to the transportation of ethanol, including technical, siting, financing, and regulatory barriers;
(3) market risk (including throughput risk) and means of mitigating the risk;
(4) regulatory, financing, and siting options that would mitigate the risk and help ensure the construction of 1 or more pipelines dedicated to the transportation of ethanol;
(5) financial incentives that may be necessary for the construction of pipelines dedicated to the transportation of ethanol, including the return on equity that sponsors of the initial dedicated ethanol pipelines will require to invest in the pipelines;
(6) technical factors that may compromise the safe transportation of ethanol in pipelines, including identification of remedial and preventive measures to ensure pipeline integrity; and
(7) such other factors as the Secretary considers to be appropriate.
(c) Report.--Not later than 15 months after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the results of the study conducted under this section.
(d) Authorization of Appropriations.--There is authorized to be appropriated to the Secretary to carry out this section $1,000,000 for each of fiscal years 2008 and 2009, to remain available until expended.
SEC. 244. RENEWABLE FUEL INFRASTRUCTURE GRANTS.
(a) Definition of Renewable Fuel Blend.--For purposes of this section, the term ``renewable fuel blend'' means gasoline blend that contain not less than 11 percent, and not more than 85 percent, renewable fuel or diesel fuel that contains at least 10 percent renewable fuel.
(b) Infrastructure Development Grants.--
(1) ESTABLISHMENT.--The Secretary shall establish a program for making grants for providing assistance to retail and wholesale motor fuel dealers or other entities for the installation, replacement, or conversion of motor fuel storage and dispensing infrastructure to be used exclusively to store and dispense renewable fuel blends.
(2) SELECTION CRITERIA.--Not later than 12 months after the date of enactment of this Act, the Secretary shall establish criteria for evaluating applications for grants under this subsection that will maximize the availability and use of renewable fuel blends, and that will ensure that renewable fuel blends are available across the country. Such criteria shall provide for--
(A) consideration of the public demand for each renewable fuel blend in a particular geographic area based on State registration records showing the number of flexible-fuel vehicles;
(B) consideration of the opportunity to create or expand corridors of renewable fuel blend stations along interstate or State highways;
(C) consideration of the experience of each applicant with previous, similar projects;
(D) consideration of population, number of flexible-fuel vehicles, number of retail fuel outlets, and saturation of flexible-fuel vehicles; and
(E) priority consideration to applications that--
(i) are most likely to maximize displacement of petroleum consumption, measured as a total quantity and a percentage;
(ii) are best able to incorporate existing infrastructure while maximizing, to the extent practicable, the use of renewable fuel blends; and
(iii) demonstrate the greatest commitment on the part of the applicant to ensure funding for the proposed project and the greatest likelihood that the project will be maintained or expanded after Federal assistance under this subsection is completed.
(3) LIMITATIONS.--Assistance provided under this subsection shall not exceed--
(A) 33 percent of the estimated cost of the installation, replacement, or conversion of motor fuel storage and dispensing infrastructure; or
(B) $180,000 for a combination of equipment at any one retail outlet location.
(4) OPERATION OF RENEWABLE FUEL BLEND STATIONS.--The Secretary shall establish rules that set forth requirements for grant recipients under this section that include providing to the public the renewable fuel blends, establishing a marketing plan that informs consumers of the price and availability of the renewable fuel blends, clearly labeling the dispensers and related equipment, and providing periodic reports on the status of the renewable fuel blend sales, the type and amount of the
renewable fuel blends dispensed at each location, and the average price of such fuel.
(5) NOTIFICATION REQUIREMENTS.--Not later than the date on which each renewable fuel blend station begins to offer renewable fuel blends to the public, the grant recipient that used grant funds to construct or upgrade such station shall notify the Secretary of such opening. The Secretary shall add each new renewable fuel blend station to the renewable fuel blend station locator on its Website when it receives notification under this subsection.
(6) DOUBLE COUNTING.--No person that receives a credit under section 30C of the Internal Revenue Code of 1986 may receive assistance under this section.
(7) RESERVATION OF FUNDS.--The Secretary shall reserve funds appropriated for the renewable fuel blends infrastructure development grant program for technical and marketing assistance described in subsection (c).
(c) Retail Technical and Marketing Assistance.--The Secretary shall enter into contracts with entities with demonstrated experience in assisting retail fueling stations in installing refueling systems and marketing renewable fuel blends nationally, for the provision of technical and marketing assistance to recipients of grants under this section. Such assistance shall include--
(1) technical advice for compliance with applicable Federal and State environmental requirements;
(2) help in identifying supply sources and securing long-term contracts; and
(3) provision of public outreach, education, and labeling materials.
(d) Refueling Infrastructure Corridors.--
(1) IN GENERAL.--The Secretary shall establish a competitive grant pilot program (referred to in this subsection as the ``pilot program''), to be administered through the Vehicle Technology Deployment Program of the Department, to provide not more than 10 geographically-dispersed project grants to State governments, Indian tribal governments, local governments, metropolitan transportation authorities, or partnerships of those entities to carry out 1 or more projects for the purposes described
in paragraph (2).
(2) GRANT PURPOSES.--A grant under this subsection shall be used for the establishment of refueling infrastructure corridors, as designated by the Secretary, for renewable fuel blends, including--
(A) installation of infrastructure and equipment necessary to ensure adequate distribution of renewable fuel blends within the corridor;
(B) installation of infrastructure and equipment necessary to directly support vehicles powered by renewable fuel blends; and
(C) operation and maintenance of infrastructure and equipment installed as part of a project funded by the grant.
(3) APPLICATIONS.--
(A) REQUIREMENTS.--
(i) IN GENERAL.--Subject to clause (ii), not later than 90 days after the date of enactment of this Act, the Secretary shall issue requirements for use in applying for grants under the pilot program.
(ii) MINIMUM REQUIREMENTS.--At a minimum, the Secretary shall require that an application for a grant under this subsection--
(I) be submitted by--
(aa) the head of a State, tribal, or local government or a metropolitan transportation authority, or any combination of those entities; and
(bb) a registered participant in the Vehicle Technology Deployment Program of the Department; and
(II) include--
(aa) a description of the project proposed in the application, including the ways in which the project meets the requirements of this subsection;
(bb) an estimate of the degree of use of the project, including the estimated size of fleet of vehicles operated with renewable fuels blend available within the geographic region of the corridor, measured as a total quantity and a percentage;
(cc) an estimate of the potential petroleum displaced as a result of the project (measured as a total quantity and a percentage), and a plan to collect and disseminate petroleum displacement and other relevant data relating to the project to be funded under the grant, over the expected life of the project;
(dd) a description of the means by which the project will be sustainable without Federal assistance after the completion of the term of the grant;
(ee) a complete description of the costs of the project, including acquisition, construction, operation, and maintenance costs over the expected life of the project; and
(ff) a description of which costs of the project will be supported by Federal assistance under this subsection.
(B) PARTNERS.--An applicant under subparagraph (A) may carry out a project under the pilot program in partnership with public and private entities.
(4) SELECTION CRITERIA.--In evaluating applications under the pilot program, the Secretary shall--
(A) consider the experience of each applicant with previous, similar projects; and
(B) give priority consideration to applications that--
(i) are most likely to maximize displacement of petroleum consumption, measured as a total quantity and a percentage;
(ii) are best able to incorporate existing infrastructure while maximizing, to the extent practicable, the use of advanced biofuels;
(iii) demonstrate the greatest commitment on the part of the applicant to ensure funding for the proposed project and the greatest likelihood that the project will be maintained or expanded after Federal assistance under this subsection is completed;
(iv) represent a partnership of public and private entities; and
(v) exceed the minimum requirements of paragraph (3)(A)(ii).
(5) PILOT PROJECT REQUIREMENTS.--
(A) MAXIMUM AMOUNT.--The Secretary shall provide not more than $20,000,000 in Federal assistance under the pilot program to any applicant.
(B) COST SHARING.--The non-Federal share of the cost of any activity relating to renewable fuel blend infrastructure development carried out using funds from a grant under this subsection shall be not less than 20 percent.
(C) MAXIMUM PERIOD OF GRANTS.--The Secretary shall not provide funds to any applicant under the pilot program for more than 2 years.
(D) DEPLOYMENT AND DISTRIBUTION.--The Secretary shall seek, to the maximum extent practicable, to ensure a broad geographic distribution of project sites funded by grants under this subsection.
(E) TRANSFER OF INFORMATION AND KNOWLEDGE.--The Secretary shall establish mechanisms to ensure that the information and knowledge gained by participants in the pilot program are transferred among the pilot program participants and to other interested parties, including other applicants that submitted applications.
(6) SCHEDULE.--
(A) INITIAL GRANTS.--
(i) IN GENERAL.--Not later than 90 days after the date of enactment of this Act, the Secretary shall publish in the Federal Register, Commerce Business Daily, and such other publications as the Secretary considers to be appropriate, a notice and request for applications to carry out projects under the pilot program.
(ii) DEADLINE.--An application described in clause (i) shall be submitted to the Secretary by not later than 180 days after the date of publication of the notice under that clause.
(iii) INITIAL SELECTION.--Not later than 90 days after the date by which applications for grants are due under clause (ii), the Secretary shall select by competitive, peer-reviewed proposal up to 5 applications for projects to be awarded a grant under the pilot program.
(B) ADDITIONAL GRANTS.--
(i) IN GENERAL.--Not later than 2 years after the date of enactment of this Act, the Secretary shall publish in the Federal Register, Commerce Business Daily, and such other publications as the Secretary considers to be appropriate, a notice and request for additional applications to carry out projects under the pilot program that incorporate the information and knowledge obtained through the implementation of the first round of projects authorized under the pilot program.
(ii) DEADLINE.--An application described in clause (i) shall be submitted to the Secretary by not later than 180 days after the date of publication of the notice under that clause.
(iii) INITIAL SELECTION.--Not later than 90 days after the date by which applications for grants are due under clause (ii), the Secretary shall select by competitive, peer-reviewed proposal such additional applications for projects to be awarded a grant under the pilot program as the Secretary determines to be appropriate.
(7) REPORTS TO CONGRESS.--
(A) INITIAL REPORT.--Not later than 60 days after the date on which grants are awarded under this subsection, the Secretary shall submit to Congress a report containing--
(i) an identification of the grant recipients and a description of the projects to be funded under the pilot program;
(ii) an identification of other applicants that submitted applications for the pilot program but to which funding was not provided; and
(iii) a description of the mechanisms used by the Secretary to ensure that the information and knowledge gained by participants in the pilot program are transferred among the pilot program participants and to other interested parties, including other applicants that submitted applications.
(B) EVALUATION.--Not later than 2 years after the date of enactment of this Act, and annually thereafter until the termination of the pilot program, the Secretary shall submit to Congress a report containing an evaluation of the effectiveness of the pilot program, including an assessment of the petroleum displacement and benefits to the environment derived from the projects included in the pilot program.
(e) Restriction.--No grant shall be provided under subsection (b) or (c) to a large, vertically integrated oil company.
(f) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary for carrying out this section $200,000,000 for each of the fiscal years 2008 through 2014.
SEC. 245. STUDY OF THE ADEQUACY OF TRANSPORTATION OF DOMESTICALLY-PRODUCED RENEWABLE FUEL BY RAILROADS AND OTHER MODES OF TRANSPORTATION.
(a) Study.--
(1) IN GENERAL.--The Secretary, in coordination with the Secretary of Transportation, shall jointly conduct a study of the adequacy of transportation of domestically-produced renewable fuels by railroad and other modes of transportation as designated by the Secretaries.
(2) COMPONENTS.--In conducting the study under paragraph (1), the Secretaries shall--
(A) consider the adequacy of existing railroad and other transportation and distribution infrastructure, equipment, service and capacity to move the necessary quantities of domestically-produced renewable fuel within the timeframes;
(B)(i) consider the projected costs of moving the domestically-produced renewable fuel by railroad and other modes transportation; and
(ii) consider the impact of the projected costs on the marketability of the domestically-produced renewable fuel;
(C) identify current and potential impediments to the reliable transportation and distribution of adequate supplies of domestically-produced renewable fuel at reasonable prices, including practices currently utilized by domestic producers, shippers, and receivers of renewable fuels;
(D) consider whether adequate competition exists within and between modes of transportation for the transportation and distribution of domestically-produced renewable fuel and, whether inadequate competition leads to an unfair price for the transportation and distribution of domestically-produced renewable fuel or unacceptable service for transportation of domestically-produced renewable fuel;
(E) consider whether Federal agencies have adequate legal authority to address instances of inadequate competition when inadequate competition is found to prevent domestic producers for renewable fuels from obtaining a fair and reasonable transportation price or acceptable service for the transportation and distribution of domestically-produced renewable fuels;
(F) consider whether Federal agencies have adequate legal authority to address railroad and transportation service problems that may be resulting in inadequate supplies of domestically-produced renewable fuel in any area of the United States;
(G) consider what transportation infrastructure capital expenditures may be necessary to ensure the reliable transportation of adequate supplies of domestically-produced renewable fuel at reasonable prices within the United States and which public and private entities should be responsible for making such expenditures; and
(H) provide recommendations on ways to facilitate the reliable transportation of adequate supplies of domestically-produced renewable fuel at reasonable prices.
(b) Report.--Not later than 180 days after the date of enactment of this Act, the Secretaries shall jointly submit to the Committee on Commerce, Science and Transportation, the Committee on Energy and Natural Resources, and the Committee on Environment and Public Works of the Senate and the Committee on Transportation and Infrastructure and the Committee on Energy and Commerce of the House of Representatives a report that describes the results of the study conducted under subsection
(a).
SEC. 246. FEDERAL FLEET FUELING CENTERS.
(a) In General.--Not later than January 1, 2010, the head of each Federal agency shall install at least 1 renewable fuel pump at each Federal fleet fueling center in the United States under the jurisdiction of the head of the Federal agency.
(b) Report.--Not later than October 31 of the first calendar year beginning after the date of the enactment of this Act, and each October 31 thereafter, the President shall submit to Congress a report that describes the progress toward complying with subsection (a), including identifying--
(1) the number of Federal fleet fueling centers that contain at least 1 renewable fuel pump; and
(2) the number of Federal fleet fueling centers that do not contain any renewable fuel pumps.
(c) Department of Defense Facility.--This section shall not apply to a Department of Defense fueling center with a fuel turnover rate of less than 100,000 gallons of fuel per year.
(d) Authorization of Appropriations.--There are authorized to be appropriated such sums as are necessary to carry out this section.
SEC. 247. STANDARD SPECIFICATIONS FOR BIODIESEL.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by redesignating subsection (s) as subsection (t), redesignating subsection (r) (relating to conversion assistance for cellulosic biomass, waste-derived ethanol, approved renewable fuels) as subsection (s) and by adding the following new subsection at the end thereof:
``(u) Standard Specifications for Biodiesel.--(1) Unless the American Society for Testing and Materials has adopted a standard for diesel fuel containing 20 percent biodiesel (commonly known as `B20') within 1 year after the date of enactment of this subsection, the Administrator shall initiate a rulemaking to establish a uniform per gallon fuel standard for such fuel and designate an identification number so that vehicle manufacturers are able to design engines to use fuel meeting
such standard.
``(2) Unless the American Society for Testing and Materials has adopted a standard for diesel fuel containing 5 percent biodiesel (commonly known as `B5') within 1 year after the date of enactment of this subsection, the Administrator shall initiate a rulemaking to establish a uniform per gallon fuel standard for such fuel and designate an identification so that vehicle manufacturers are able to design engines to use fuel meeting such standard.
``(3) Whenever the Administrator is required to initiate a rulemaking under paragraph (1) or (2), the Administrator shall promulgate a final rule within 18 months after the date of the enactment of this subsection.
``(4) Not later than 180 days after the enactment of this subsection, the Administrator shall establish an annual inspection and enforcement program to ensure that diesel fuel containing biodiesel sold or distributed in interstate commerce meets the standards established under regulations under this section, including testing and certification for compliance with applicable standards of the American Society for Testing and Materials. There are authorized to be appropriated to carry out the inspection
and enforcement program under this paragraph $3,000,000 for each of fiscal years 2008 through 2010.
``(5) For purposes of this subsection, the term `biodiesel' has the meaning provided by section 312(f) of Energy Policy Act of 1992 (42 U.S.C. 13220(f)).''.
SEC. 248. BIOFUELS DISTRIBUTION AND ADVANCED BIOFUELS INFRASTRUCTURE.
(a) In General.--The Secretary, in coordination with the Secretary of Transportation and in consultation with the Administrator of the Environmental Protection Agency, shall carry out a program of research, development, and demonstration relating to existing transportation fuel distribution infrastructure and new alternative distribution infrastructure.
(b) Focus.--The program described in subsection (a) shall focus on the physical and chemical properties of biofuels and efforts to prevent or mitigate against adverse impacts of those properties in the areas of--
(1) corrosion of metal, plastic, rubber, cork, fiberglass, glues, or any other material used in pipes and storage tanks;
(2) dissolving of storage tank sediments;
(3) clogging of filters;
(4) contamination from water or other adulterants or pollutants;
(5) poor flow properties related to low temperatures;
(6) oxidative and thermal instability in long-term storage and uses;
(7) microbial contamination;
(8) problems associated with electrical conductivity; and
(9) such other areas as the Secretary considers appropriate.
Subtitle D--Environmental Safeguards


SEC. 251. WAIVER FOR FUEL OR FUEL ADDITIVES.
Section 211(f)(4) of the Clean Air Act (42 U.S.C. 7545(f)) is amended to read as follows:
``(4) The Administrator, upon application of any manufacturer of any fuel or fuel additive, may waive the prohibitions established under paragraph (1) or (3) of this subsection or the limitation specified in paragraph (2) of this subsection, if he determines that the applicant has established that such fuel or fuel additive or a specified concentration thereof, and the emission products of such fuel or fuel additive or specified concentration thereof, will not cause or contribute to a failure
of any emission control device or system (over the useful life of the motor vehicle, motor vehicle engine, nonroad engine or nonroad vehicle in which such device or system is used) to achieve compliance by the vehicle or engine with the emission standards with respect
to which it has been certified pursuant to sections 206 and 213(a). The Administrator shall take final action to grant or deny an application submitted under this paragraph, after public notice and comment, within 270 days of the receipt of such an application.''.
TITLE III--ENERGY SAVINGS THROUGH IMPROVED STANDARDS FOR APPLIANCE AND LIGHTING


Subtitle A--Appliance Energy Efficiency


SEC. 301. EXTERNAL POWER SUPPLY EFFICIENCY STANDARDS.
(a) Definitions.--Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 6291) is amended--
(1) in paragraph (36)--
(A) by striking ``(36) The'' and inserting the following:
``(36) EXTERNAL POWER SUPPLY.--
``(A) IN GENERAL.--The''; and
(B) by adding at the end the following:
``(B) ACTIVE MODE.--The term `active mode' means the mode of operation when an external power supply is connected to the main electricity supply and the output is connected to a load.
``(C) CLASS A EXTERNAL POWER SUPPLY.--
``(i) IN GENERAL.--The term `class A external power supply' means a device that--
``(I) is designed to convert line voltage AC input into lower voltage AC or DC output;
``(II) is able to convert to only 1 AC or DC output voltage at a time;
``(III) is sold with, or intended to be used with, a separate end-use product that constitutes the primary load;
``(IV) is contained in a separate physical enclosure from the end-use product;
``(V) is connected to the end-use product via a removable or hard-wired male/female electrical connection, cable, cord, or other wiring; and
``(VI) has nameplate output power that is less than or equal to 250 watts.
``(ii) EXCLUSIONS.--The term `class A external power supply' does not include any device that--
``(I) requires Federal Food and Drug Administration listing and approval as a medical device in accordance with section 513 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 360c); or
``(II) powers the charger of a detachable battery pack or charges the battery of a product that is fully or primarily motor operated.
``(D) NO-LOAD MODE.--The term `no-load mode' means the mode of operation when an external power supply is connected to the main electricity supply and the output is not connected to a load.''; and
(2) by adding at the end the following:
``(52) DETACHABLE BATTERY.--The term `detachable battery' means a battery that is--
``(A) contained in a separate enclosure from the product; and
``(B) intended to be removed or disconnected from the product for recharging.''.
(b) Test Procedures.--Section 323(b) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)) is amended by adding at the end the following:
``(17) CLASS A EXTERNAL POWER SUPPLIES.--Test procedures for class A external power supplies shall be based on the `Test Method for Calculating the Energy Efficiency of Single-Voltage External AC-DC and AC-AC Power Supplies' published by the Environmental Protection Agency on August 11, 2004, except that the test voltage specified in section 4(d) of that test method shall be only 115 volts, 60 Hz.''.
(c) Efficiency Standards for Class A External Power Supplies.--Section 325(u) of the Energy Policy and Conservation Act (42 U.S.C. 6295(u)) is amended by adding at the end the following:
``(6) EFFICIENCY STANDARDS FOR CLASS A EXTERNAL POWER SUPPLIES.--
``(A) IN GENERAL.--Subject to subparagraphs (B) through (D), a class A external power supply manufactured on or after the later of July 1, 2008, or the date of enactment of this paragraph shall meet the following standards:









 


 


 

 


 

``Active Mode
``Nameplate Output	Required Efficiency(decimal equivalent of a percentage)
Less than 1 watt
From 1 watt to not more than 51 watts
Greater than 51 watts
``No-Load Mode
``Nameplate Output	Maximum Consumption
Not more than 250 watts

``(B) NONCOVERED SUPPLIES.--A class A external power supply shall not be subject to subparagraph (A) if the class A external power supply is--
``(i) manufactured during the period beginning on July 1, 2008, and ending on June 30, 2015; and
``(ii) made available by the manufacturer as a service part or a spare part for an end-use product--
``(I) that constitutes the primary load; and
``(II) was manufactured before July 1, 2008.
``(C) MARKING.--Any class A external power supply manufactured on or after the later of July 1, 2008 or the date of enactment of this paragraph shall be clearly and permanently marked in accordance with the External Power Supply International Efficiency Marking Protocol, as referenced in the `Energy Star Program Requirements for Single Voltage External AC-DC and AC-AC Power Supplies, version 1.1' published by the Environmental Protection Agency.
``(D) AMENDMENT OF STANDARDS.--
``(i) FINAL RULE BY JULY 1, 2011.--
``(I) IN GENERAL.--Not later than July 1, 2011, the Secretary shall publish a final rule to determine whether the standards established under subparagraph (A) should be amended.
``(II) ADMINISTRATION.--The final rule shall--
``(aa) contain any amended standards; and
``(bb) apply to products manufactured on or after July 1, 2013.
``(ii) FINAL RULE BY JULY 1, 2015.--
``(I) IN GENERAL.--Not later than July 1, 2015 the Secretary shall publish a final rule to determine whether the standards then in effect should be amended.
``(II) ADMINISTRATION.--The final rule shall--
``(aa) contain any amended standards; and
``(bb) apply to products manufactured on or after July 1, 2017.
``(7) END-USE PRODUCTS.--An energy conservation standard for external power supplies shall not constitute an energy conservation standard for the separate end-use product to which the external power supplies is connected.''.
SEC. 302. UPDATING APPLIANCE TEST PROCEDURES.
(a) Consumer Appliances.--Section 323(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6293(b)(1)) is amended by striking ``(1)'' and all that follows through the end of the paragraph and inserting the following:
``(1) TEST PROCEDURES.--
``(A) AMENDMENT.--At least once every 7 years, the Secretary shall review test procedures for all covered products and--
``(i) amend test procedures with respect to any covered product, if the Secretary determines that amended test procedures would more accurately or fully comply with the requirements of paragraph (3); or
``(ii) publish notice in the Federal Register of any determination not to amend a test procedure.''.
(b) Industrial Equipment.--Section 343(a) of the Energy Policy and Conservation Act (42 U.S.C. 6313(a)) is amended by striking ``(a)'' and all that follows through the end of paragraph (1) and inserting the following:
``(a) Prescription by Secretary; Requirements.--
``(1) TEST PROCEDURES.--
``(A) AMENDMENT.--At least once every 7 years, the Secretary shall conduct an evaluation of each class of covered equipment and--
``(i) if the Secretary determines that amended test procedures would more accurately or fully comply with the requirements of paragraphs (2) and (3), shall prescribe test procedures for the class in accordance with this section; or
``(ii) shall publish notice in the Federal Register of any determination not to amend a test procedure.''.
SEC. 303. RESIDENTIAL BOILERS.
Section 325(f) of the Energy Policy and Conservation Act (42 U.S.C. 6295(f)) is amended--
(1) in the subsection heading, by inserting ``and Boilers'' after ``Furnaces'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following:
``(3) BOILERS.--
``(A) IN GENERAL.--Subject to subparagraphs (B) and (C), boilers manufactured on or after September 1, 2012, shall meet the following requirements:










 



 



 



 



 

Boiler Type	Minimum Annual Fuel Utilization Efficiency	Design Requirements
Gas Hot Water	82%	No Constant Burning Pilot, Automatic Means for Adjusting Water Temperature
Gas Steam	80%	No Constant Burning Pilot
Oil Hot Water	84%	Automatic Means for Adjusting Temperature
Oil Steam	82%	None
Electric Hot Water	None	Automatic Means for Adjusting Temperature
Electric Steam	None	None

``(B) AUTOMATIC MEANS FOR ADJUSTING WATER TEMPERATURE.--
``(i) IN GENERAL.--The manufacturer shall equip each gas, oil, and electric hot water boiler (other than a boiler equipped with a tankless domestic water heating coil) with automatic means for adjusting the temperature of the water supplied by the boiler to ensure that an incremental change in inferred heat load produces a corresponding incremental change in the temperature of water supplied.
``(ii) SINGLE INPUT RATE.--For a boiler that fires at 1 input rate, the requirements of this subparagraph may be satisfied by providing an automatic means that allows the burner or heating element to fire only when the means has determined that the inferred heat load cannot be met by the residual heat of the water in the system.
``(iii) NO INFERRED HEAT LOAD.--When there is no inferred heat load with respect to a hot water boiler, the automatic means described in clause (i) and (ii) shall limit the temperature of the water in the boiler to not more than 140 degrees Fahrenheit.
``(iv) OPERATION.--A boiler described in clause (i) or (ii) shall be operable only when the automatic means described in clauses (i), (ii), and (iii) is installed.
``(C) EXCEPTION.--A boiler that is manufactured to operate without any need for electricity or any electric connection, electric gauges, electric pumps, electric wires, or electric devices shall not be required to meet the requirements of this paragraph.''.
SEC. 304. FURNACE FAN STANDARD PROCESS.
Paragraph (4)(D) of section 325(f) of the Energy Policy and Conservation Act (42 U.S.C. 6295(f)) (as redesignated by section 303(4)) is amended by striking ``the Secretary may'' and inserting ``not later than December 31, 2013, the Secretary shall''.
SEC. 305. IMPROVING SCHEDULE FOR STANDARDS UPDATING AND CLARIFYING STATE AUTHORITY.
(a) Consumer Appliances.--Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended by striking subsection (m) and inserting the following:
``(m) Amendment of Standards.--
``(1) IN GENERAL.--Not later than 6 years after issuance of any final rule establishing or amending a standard, as required for a product under this part, the Secretary shall publish--
``(A) a notice of the determination of the Secretary that standards for the product do not need to be amended, based on the criteria established under subsection (n)(2); or
``(B) a notice of proposed rulemaking including new proposed standards based on the criteria established under subsection (o) and the procedures established under subsection (p).
``(2) NOTICE.--If the Secretary publishes a notice under paragraph (1), the Secretary shall--
``(A) publish a notice stating that the analysis of the Department is publicly available; and
``(B) provide an opportunity for written comment.
``(3) AMENDMENT OF STANDARD; NEW DETERMINATION.--
``(A) AMENDMENT OF STANDARD.--Not later than 2 years after a notice is issued under paragraph (1)(B), the Secretary shall publish a final rule amending the standard for the product.
``(B) NEW DETERMINATION.--Not later than 3 years after a determination under paragraph (1)(A), the Secretary shall make a new determination and publication under subparagraph (A) or (B) of paragraph (1).
``(4) APPLICATION TO PRODUCTS.--
``(A) IN GENERAL.--Except as provided in subparagraph (B), an amendment prescribed under this subsection shall apply to--
``(i) with respect to refrigerators, refrigerator-freezers, freezers, room air conditioners, dishwashers, clothes washers, clothes dryers, fluorescent lamp ballasts, and kitchen ranges and ovens, such a product that is manufactured after the date that is 3 years after publication of the final rule establishing an applicable standard; and
``(ii) with respect to central air conditioners, heat pumps, water heaters, pool heaters, direct heating equipment, and furnaces, such a product that is manufactured after the date that is 5 years after publication of the final rule establishing an applicable standard.
``(B) OTHER NEW STANDARDS.--A manufacturer shall not be required to apply new standards to a product with respect to which other new standards have been required during the prior 6-year period.
``(5) REPORTS.--The Secretary shall promptly submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate--
``(A) a progress report every 180 days on compliance with this section, including a specific plan to remedy any failures to comply with deadlines for action established under this section; and
``(B) all required reports to the Court or to any party to the Consent Decree in State of New York v Bodman, Consolidated Civil Actions No.05 Civ. 7807 and No.05 Civ. 7808.''.
(b) Industrial Equipment.--Section 342(a)(6) of the Energy Policy and Conservation Act (42 U.S.C. 6313(a)(6)) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D); and
(2) by striking ``(6)(A)(i)'' and all that follows through the end of subparagraph (B) and inserting the following:
``(6) AMENDED ENERGY EFFICIENCY STANDARDS.--
``(A) IN GENERAL.--
``(i) ANALYSIS OF POTENTIAL ENERGY SAVINGS.--If ASHRAE/IES Standard 90.1 is amended with respect to any small commercial package air conditioning and heating equipment, large commercial package air conditioning and heating equipment, very large commercial package air conditioning and heating equipment, packaged terminal air conditioners, packaged terminal heat pumps, warm-air furnaces, packaged boilers, storage water heaters, instantaneous water heaters, or unfired hot water storage tanks,
not later than 180 days after the amendment of the standard, the Secretary shall publish in the Federal Register for public comment an analysis of the energy savings potential of amended energy efficiency standards.
``(ii) AMENDED UNIFORM NATIONAL STANDARD FOR PRODUCTS.--
``(I) IN GENERAL.--Except as provided in subclause (II), not later than 18 months after the date of publication of the amendment to the ASHRAE/IES Standard 90.1 for a product described in clause (i), the Secretary shall establish an amended uniform national standard for the product at the minimum level specified in the amended ASHRAE/IES Standard 90.1.
``(II) MORE STRINGENT STANDARD.--Subclause (I) shall not apply if the Secretary determines, by rule published in the Federal Register, and supported by clear and convincing evidence, that adoption of a uniform national standard more stringent than the amended ASHRAE/IES Standard 90.1 for the product would result in significant additional conservation of energy and is technologically feasible and economically justified.
``(B) RULE.--If the Secretary makes a determination described in clause (ii)(II) for a product described in clause (i), not later than 30 months after the date of publication of the amendment to the ASHRAE/IES Standard 90.1 for the product, the Secretary shall issue the rule establishing the amended standard.
``(C) AMENDMENT OF STANDARD.--
``(i) IN GENERAL.--Not later than 6 years after issuance of any final rule establishing or amending a standard, as required for a product under this part, the Secretary shall publish--
``(I) a notice of the determination of the Secretary that standards for the product do not need to be amended, based on the criteria established under subparagraph (A); or
``(II) a notice of proposed rulemaking including new proposed standards based on the criteria and procedures established under subparagraph (B).
``(ii) NOTICE.--If the Secretary publishes a notice under clause (i), the Secretary shall--
``(I) publish a notice stating that the analysis of the Department is publicly available; and
``(II) provide an opportunity for written comment.
``(iii) AMENDMENT OF STANDARD; NEW DETERMINATION.--
``(I) AMENDMENT OF STANDARD.--Not later than 2 years after a notice is issued under clause (i)(II), the Secretary shall publish a final rule amending the standard for the product.
``(II) NEW DETERMINATION.--Not later than 3 years after a determination under clause (i)(I), the Secretary shall make a new determination and publication under subclause (I) or (II) of clause (i).
``(iv) APPLICATION TO PRODUCTS.--An amendment prescribed under this subsection shall apply to products manufactured after a date that is the later of--
``(I) the date that is 3 years after publication of the final rule establishing a new standard; or
``(II) the date that is 6 years after the effective date of the current standard for a covered product.
``(v) REPORTS.--The Secretary shall promptly submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a progress report every 180 days on compliance with this subparagraph, including a specific plan to remedy any failures to comply with deadlines for action established under this subparagraph.''.
SEC. 306. REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR CONDITIONERS, AND HEAT PUMPS.
(a) In General.--Section 325(o) of the Energy Policy and Conservation Act (42 U.S.C. 6295(o)) is amended by adding at the end the following:
``(6) REGIONAL STANDARDS FOR FURNACES, CENTRAL AIR CONDITIONERS, AND HEAT PUMPS.--
``(A) IN GENERAL.--In any rulemaking to establish a new or amended standard, the Secretary may consider the establishment of separate standards by geographic region for furnaces (except boilers), central air conditioners, and heat pumps.
``(B) NATIONAL AND REGIONAL STANDARDS.--
``(i) NATIONAL STANDARD.--If the Secretary establishes a regional standard for a product, the Secretary shall establish a base national standard for the product.
``(ii) REGIONAL STANDARDS.--If the Secretary establishes a regional standard for a product, the Secretary may establish more restrictive standards for the product by geographic region as follows:
``(I) For furnaces, the Secretary may establish 1 additional standard that is applicable in a geographic region defined by the Secretary.
``(II) For any cooling product, the Secretary may establish 1 or 2 additional standards that are applicable in 1 or 2 geographic regions as may be defined by the Secretary.
``(C) BOUNDARIES OF GEOGRAPHIC REGIONS.--
``(i) IN GENERAL.--Subject to clause (ii), the boundaries of additional geographic regions established by the Secretary under this paragraph shall include only contiguous States.
``(ii) ALASKA AND HAWAII.--The States of Alaska and Hawaii may be included under this paragraph in a geographic region that the States are not contiguous to.
``(iii) INDIVIDUAL STATES.--Individual States shall be placed only into a single region under this paragraph.
``(D) PREREQUISITES.--In establishing additional regional standards under this paragraph, the Secretary shall--
``(i) establish additional regional standards only if the Secretary determines that--
``(I) the establishment of additional regional standards will produce significant energy savings in comparison to establishing only a single national standard; and
``(II) the additional regional standards are economically justified under this paragraph; and
``(ii) consider the impact of the additional regional standards on consumers, manufacturers, and other market participants, including product distributors, dealers, contractors, and installers.
``(E) APPLICATION; EFFECTIVE DATE.--
``(i) BASE NATIONAL STANDARD.--Any base national standard established for a product under this paragraph shall--
``(I) be the minimum standard for the product; and
``(II) apply to all products manufactured or imported into the United States on and after the effective date for the standard.
``(ii) REGIONAL STANDARDS.--Any additional and more restrictive regional standard established for a product under this paragraph shall apply to any such product installed on or after the effective date of the standard in States in which the Secretary has designated the standard to apply.
``(F) CONTINUATION OF REGIONAL STANDARDS.--
``(i) IN GENERAL.--In any subsequent rulemaking for any product for which a regional standard has been previously established, the Secretary shall determine whether to continue the establishment of separate regional standards for the product.
``(ii) REGIONAL STANDARD NO LONGER APPROPRIATE.--Except as provided in clause (iii), if the Secretary determines that regional standards are no longer appropriate for a product, beginning on the effective date of the amended standard for the product--
``(I) there shall be 1 base national standard for the product with Federal enforcement; and
``(II) State authority for enforcing a regional standard for the product shall terminate.
``(iii) REGIONAL STANDARD APPROPRIATE BUT STANDARD OR REGION CHANGED.--
``(I) STATE NO LONGER CONTAINED IN REGION.--Subject to subclause (III), if a State is no longer contained in a region in which a regional standard that is more stringent than the base national standard applies, the authority of the State to enforce the regional standard shall terminate.
``(II) STANDARD OR REGION REVISED SO THAT EXISTING REGIONAL STANDARD EQUALS BASE NATIONAL STANDARD.--If the Secretary revises a base national standard for a product or the geographic definition of a region so that an existing regional standard for a State is equal to the revised base national standard--
``(aa) the authority of the State to enforce the regional standard shall terminate on the effective date of the revised base national standard; and
``(bb) the State shall be subject to the revised base national standard.
``(III) STANDARD OR REGION REVISED SO THAT EXISTING REGIONAL STANDARD EQUALS BASE NATIONAL STANDARD.--If the Secretary revises a base national standard for a product or the geographic definition of a region so that the standard for a State is lower than the previously approved regional standard, the State may continue to enforce the previously approved standard level.
``(iv) WAIVER OF FEDERAL PREEMPTION.--Nothing in this paragraph diminishes the authority of a State to enforce a State regulation for which a waiver of Federal preemption has been granted under section 327(d).
``(G) ENFORCEMENT.--
``(i) BASE NATIONAL STANDARD.--
``(I) IN GENERAL.--The Secretary shall enforce any base national standard.
``(II) TRADE ASSOCIATION CERTIFICATION PROGRAMS.--In enforcing the base national standard, the Secretary shall use, to the maximum extent practicable, national standard nationally recognized certification programs of trade associations.
``(ii) REGIONAL STANDARDS.--
``(I) ENFORCEMENT PLAN.--Not later than 90 days after the date of the issuance of a final rule that establishes a regional standard, the Secretary shall initiate a rulemaking to develop and implement an effective enforcement plan for regional standards for the products that are covered by the final rule.
``(II) RESPONSIBLE ENTITIES.--Any rules regarding enforcement of a regional standard shall clearly specify which entities are legally responsible for compliance with the standards and for making any required information or labeling disclosures.
``(III) FINAL RULE.--Not later than 15 months after the date of the issuance of a final rule that establishes a regional standard for a product, the Secretary shall promulgate a final rule covering enforcement of regional standards for the product.
``(IV) INCORPORATION BY STATES AND LOCALITIES.--A State or locality may incorporate any Federal regional standard into State or local building codes or State appliance standards.
``(V) STATE ENFORCEMENT.--A State agency may seek enforcement of a Federal regional standard in a Federal court of competent jurisdiction.
``(H) INFORMATION DISCLOSURE.--
``(i) IN GENERAL.--Not later than 90 days after the date of the publication of a final rule that establishes a regional standard for a product, the Federal Trade Commission shall undertake a rulemaking to determine the appropriate 1 or more methods for disclosing information so that consumers, distributors, contractors, and installers can easily determine whether a specific piece of equipment that is installed in a specific building is in conformance with the regional standard that applies
to the building.
``(ii) METHODS.--A method of disclosing information under clause (i) may include--
``(I) modifications to the Energy Guide label; or
``(II) other methods that make it easy for consumers and installers to use and understand at the point of installation.
``(iii) COMPLETION OF RULEMAKING.--The rulemaking shall be completed not later 15 months after the date of the publication of a final rule that establishes a regional standard for a product.''.
(b) Prohibited Acts.--Section 332(a) of the Energy Policy and Conservation Act (42 U.S.C. 6302(a)) is amended--
(1) in paragraph (4), by striking ``or'' after the semicolon at the end;
(2) in paragraph (5), by striking ``part.'' and inserting ``part, except to the extent that the new covered product is covered by a regional standard that is more stringent than the base national standard; or''; and
(3) by adding at the end the following:
``(6) for any manufacturer or private labeler to knowingly sell a product to a distributor, contractor, or dealer with knowledge that the entity routinely violates any regional standard applicable to the product.''.
(c) Consideration of Prices and Operating Patterns.--Section 342(a)(6)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6313(a)(6)(B)) is amended by adding at the end the following:
``(iii) CONSIDERATION OF PRICES AND OPERATING PATTERNS.--If the Secretary is considering revised standards for air-cooled 3-phase central air conditioners and central air conditioning heat pumps with less 65,000 Btu per hour (cooling capacity), the Secretary shall use commercial energy prices and operating patterns in all analyses conducted by the Secretary.''.
SEC. 307. PROCEDURE FOR PRESCRIBING NEW OR AMENDED STANDARDS.
Section 325(p) of the Energy Policy and Conservation Act (42 U.S.C. 6925(p)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) through (4) as paragraphs (1) through (3), respectively.
SEC. 308. EXPEDITED RULEMAKINGS.
(a) Procedure for Prescribing New or Amended Standards.--Section 325(p) of the Energy Policy and Conservation Act (42 U.S.C. 6295(p)) (as amended by section 307) is amended by adding at the end the following:
``(4) DIRECT FINAL RULES.--
``(A) IN GENERAL.--On receipt of a statement that is submitted jointly by interested persons that are fairly representative of relevant points of view (including representatives of manufacturers of covered products, States, and efficiency advocates), as determined by the Secretary, and contains recommendations with respect to an energy or water conservation standard--
``(i) if the Secretary determines that the recommended standard contained in the statement is in accordance with subsection (o) or section 342(a)(6)(B), as applicable, the Secretary may issue a final rule that establishes an energy or water conservation standard and is published simultaneously with a notice of proposed rulemaking that proposes a new or amended energy or water conservation standard that is identical to the standard established in the final rule to establish the recommended standard
(referred to in this paragraph as a `direct final rule'); or
``(ii) if the Secretary determines that a direct final rule cannot be issued based on the statement, the Secretary shall publish a notice of the determination, together with an explanation of the reasons for the determination.
``(B) PUBLIC COMMENT.--The Secretary shall solicit public comment for a period of at least 110 days with respect to each direct final rule issued by the Secretary under subparagraph (A)(i).
``(C) WITHDRAWAL OF DIRECT FINAL RULES.--
``(i) IN GENERAL.--Not later than 120 days after the date on which a direct final rule issued under subparagraph (A)(i) is published in the Federal Register, the Secretary shall withdraw the direct final rule if--
``(I) the Secretary receives 1 or more adverse public comments relating to the direct final rule under subparagraph (B)(i) or any alternative joint recommendation; and
``(II) based on the rulemaking record relating to the direct final rule, the Secretary determines that such adverse public comments or alternative joint recommendation may provide a reasonable basis for withdrawing the direct final rule under subsection (o), section 342(a)(6)(B), or any other applicable law.
``(ii) ACTION ON WITHDRAWAL.--On withdrawal of a direct final rule under clause (i), the Secretary shall--
``(I) proceed with the notice of proposed rulemaking published simultaneously with the direct final rule as described in subparagraph (A)(i); and
``(II) publish in the Federal Register the reasons why the direct final rule was withdrawn.
``(iii) TREATMENT OF WITHDRAWN DIRECT FINAL RULES.--A direct final rule that is withdrawn under clause (i) shall not be considered to be a final rule for purposes of subsection (o).
``(D) EFFECT OF PARAGRAPH.--Nothing in this paragraph authorizes the Secretary to issue a direct final rule based solely on receipt of more than 1 statement containing recommended standards relating to the direct final rule.''.
(b) Conforming Amendment.--Section 345(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 6316(b)(1)) is amended in the first sentence by inserting ``section 325(p)(5),'' after ``The provisions of''.
SEC. 309. BATTERY CHARGERS.
Section 325(u)(1)(E) of the Energy Policy and Conservation Act (42 U.S.C. 6295(u)(1)(E)) is amended--
(1) by striking ``(E)(i) Not'' and inserting the following:
``(E) EXTERNAL POWER SUPPLIES AND BATTERY CHARGERS.--
``(i) ENERGY CONSERVATION STANDARDS.--
``(I) EXTERNAL POWER SUPPLIES.--Not'';
(2) by striking ``3 years'' and inserting ``2 years'';
(3) by striking ``battery chargers and'' each place it appears; and
(4) by adding at the end the following :
``(II) BATTERY CHARGERS.--Not later than July 1, 2011, the Secretary shall issue a final rule that prescribes energy conservation standards for battery chargers or classes of battery chargers or determine that no energy conservation standard is technically feasible and economically justified.''.
SEC. 310. STANDBY MODE.
Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended--
(1) in subsection (u)--
(A) by striking paragraphs (2), (3), and (4); and
(B) by redesignating paragraph (5) and (6) as paragraphs (2) and (3), respectively;
(2) by redesignating subsection (gg) as subsection (hh);
(3) by inserting after subsection (ff) the following:
``(gg) Standby Mode Energy Use.--
``(1) DEFINITIONS.--
``(A) IN GENERAL.--Unless the Secretary determines otherwise pursuant to subparagraph (B), in this subsection:
``(i) ACTIVE MODE.--The term `active mode' means the condition in which an energy-using product--
``(I) is connected to a main power source;
``(II) has been activated; and
``(III) provides 1 or more main functions.
``(ii) OFF MODE.--The term `off mode' means the condition in which an energy-using product--
``(I) is connected to a main power source; and
``(II) is not providing any standby or active mode function.
``(iii) STANDBY MODE.--The term `standby mode' means the condition in which an energy-using product--
``(I) is connected to a main power source; and
``(II) offers 1 or more of the following user-oriented or protective functions:
``(aa) To facilitate the activation or deactivation of other functions (including active mode) by remote switch (including remote control), internal sensor, or timer.
``(bb) Continuous functions, including information or status displays (including clocks) or sensor-based functions.
``(B) AMENDED DEFINITIONS.--The Secretary may, by rule, amend the definitions under subparagraph (A), taking into consideration the most current versions of Standards 62301 and 62087 of the International Electrotechnical Commission.
``(2) TEST PROCEDURES.--
``(A) IN GENERAL.--Test procedures for all covered products shall be amended pursuant to section 323 to include standby mode and off mode energy consumption, taking into consideration the most current versions of Standards 62301 and 62087 of the International Electrotechnical Commission, with such energy consumption integrated into the overall energy efficiency, energy consumption, or other energy descriptor for each covered product, unless the Secretary determines that--
``(i) the current test procedures for a covered product already fully account for and incorporate the standby mode and off mode energy consumption of the covered product; or
``(ii) such an integrated test procedure is technically infeasible for a particular covered product, in which case the Secretary shall prescribe a separate standby mode and off mode energy use test procedure for the covered product, if technically feasible.
``(B) DEADLINES.--The test procedure amendments required by subparagraph (A) shall be prescribed in a final rule no later than the following dates:
``(i) December 31, 2008, for battery chargers and external power supplies.
``(ii) March 31, 2009, for clothes dryers, room air conditioners, and fluorescent lamp ballasts.
``(iii) June 30, 2009, for residential clothes washers.
``(iv) September 30, 2009, for residential furnaces and boilers.
``(v) March 31, 2010, for residential water heaters, direct heating equipment, and pool heaters.
``(vi) March 31, 2011, for residential dishwashers, ranges and ovens, microwave ovens, and dehumidifiers.
``(C) PRIOR PRODUCT STANDARDS.--The test procedure amendments adopted pursuant to subparagraph (B) shall not be used to determine compliance with product standards established prior to the adoption of the amended test procedures.
``(3) INCORPORATION INTO STANDARD.--
``(A) IN GENERAL.--Subject to subparagraph (B), based on the test procedures required under paragraph (2), any final rule establishing or revising a standard for a covered product, adopted after July 1, 2010, shall incorporate standby mode and off mode energy use into a single amended or new standard, pursuant to subsection (o), if feasible.
``(B) SEPARATE STANDARDS.--If not feasible, the Secretary shall prescribe within the final rule a separate standard for standby mode and off mode energy consumption, if justified under subsection (o).''; and
(4) in paragraph (2) of subsection (hh) (as redesignated by paragraph (2)) , by striking ``(ff)'' each place it appears and inserting ``(gg)''.
SEC. 311. ENERGY STANDARDS FOR HOME APPLIANCES.
(a) Appliances.--
(1) DEHUMIDIFIERS.--Section 325(cc) of the Energy Policy and Conservation Act (42 U.S.C. 6295(cc)) is amended by striking paragraph (2) and inserting the following:
``(2) DEHUMIDIFIERS MANUFACTURED ON OR AFTER OCTOBER 1, 2012.--Dehumidifiers manufactured on or after October 1, 2012, shall have an Energy Factor that meets or exceeds the following values:







 


 


 


 

``Product Capacity (pints/day):	Minimum Energy Factor (liters/KWh)
Up to 35.00
35.01-45.00
45.01-54.00
54.01-75.00
Greater than 75.00

(2) RESIDENTIAL CLOTHES WASHERS AND RESIDENTIAL DISHWASHERS.--Section 325(g) of the Energy Policy and Conservation Act (42 U.S.C. 6295(g)) is amended by adding at the end the following:
``(9) RESIDENTIAL CLOTHES WASHERS MANUFACTURED ON OR AFTER JANUARY 1, 2011.--
``(A) IN GENERAL.--A top-loading or front-loading standard-size residential clothes washer manufactured on or after January 1, 2011, shall have--
``(i) a Modified Energy Factor of at least 1.26; and
``(ii) a water factor of not more than 9.5.
``(B) AMENDMENT OF STANDARDS.--
``(i) IN GENERAL.--Not later than December 31, 2011, the Secretary shall publish a final rule determining whether to amend the standards in effect for clothes washers manufactured on or after January 1, 2015.
``(ii) AMENDED STANDARDS.--The final rule shall contain any amended standards.
``(10) RESIDENTIAL DISHWASHERS MANUFACTURED ON OR AFTER JANUARY 1, 2010.--
``(A) IN GENERAL.--A dishwasher manufactured on or after January 1, 2010, shall--
``(i) for a standard size dishwasher not exceed 355 kwh/year and 6.5 gallon per cycle; and
``(ii) for a compact size dishwasher not exceed 260 kwh/year and 4.5 gallons per cycle.
``(B) AMENDMENT OF STANDARDS.--
``(i) IN GENERAL.--Not later than January 1, 2015, the Secretary shall publish a final rule determining whether to amend the standards for dishwashers manufactured on or after January 1, 2018.
``(ii) AMENDED STANDARDS.--The final rule shall contain any amended standards.''.
(3) REFRIGERATORS AND FREEZERS.--Section 325(b) of the Energy Policy and Conservation Act (42 U.S.C. 6295(b)) is amended by adding at the end the following:
``(4) REFRIGERATORS AND FREEZERS MANUFACTURED ON OR AFTER JANUARY 1, 2014.--
``(A) IN GENERAL.--Not later than December 31, 2010, the Secretary shall publish a final rule determining whether to amend the standards in effect for refrigerators, refrigerator-freezers, and freezers manufactured on or after January 1, 2014.
``(B) AMENDED STANDARDS.--The final rule shall contain any amended standards.''.
(b) Energy Star.--Section 324A(d)(2) of the Energy Policy and Conservation Act (42 U.S.C. 6294a(d)(2)) is amended by striking ``January 1, 2010'' and inserting ``July 1, 2009''.
SEC. 312. WALK-IN COOLERS AND WALK-IN FREEZERS.
(a) Definitions.--Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 6311) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (G) through (K) as subparagraphs (H) through (L), respectively; and
(B) by inserting after subparagraph (F) the following:
``(G) Walk-in coolers and walk-in freezers.'';
(2) by redesignating paragraphs (20) and (21) as paragraphs (21) and (22), respectively; and
(3) by inserting after paragraph (19) the following:
``(20) WALK-IN COOLER; WALK-IN FREEZER.--
``(A) IN GENERAL.--The terms `walk-in cooler' and `walk-in freezer' mean an enclosed storage space refrigerated to temperatures, respectively, above, and at or below 32 degrees Fahrenheit that can be walked into, and has a total chilled storage area of less than 3,000 square feet.
``(B) EXCLUSION.--The terms `walk-in cooler' and `walk-in freezer' do not include products designed and marketed exclusively for medical, scientific, or research purposes.''.
(b) Standards.--Section 342 of the Energy Policy and Conservation Act (42 U.S.C. 6313) is amended by adding at the end the following:
``(f) Walk-in Coolers and Walk-in Freezers.--
``(1) IN GENERAL.--Subject to paragraphs (2) through (5), each walk-in cooler or walk-in freezer manufactured on or after January 1, 2009, shall--
``(A) have automatic door closers that firmly close all walk-in doors that have been closed to within 1 inch of full closure, except that this subparagraph shall not apply to doors wider than 3 feet 9 inches or taller than 7 feet;
``(B) have strip doors, spring hinged doors, or other method of minimizing infiltration when doors are open;
``(C) contain wall, ceiling, and door insulation of at least R-25 for coolers and R-32 for freezers, except that this subparagraph shall not apply to glazed portions of doors nor to structural members;
``(D) contain floor insulation of at least R-28 for freezers;
``(E) for evaporator fan motors of under 1 horsepower and less than 460 volts, use--
``(i) electronically commutated motors (brushless direct current motors); or
``(ii) 3-phase motors;
``(F) for condenser fan motors of under 1 horsepower, use--
``(i) electronically commutated motors;
``(ii) permanent split capacitor-type motors; or
``(iii) 3-phase motors; and
``(G) for all interior lights, use light sources with an efficacy of 40 lumens per watt or more, including ballast losses (if any), except that light sources with an efficacy of 40 lumens per watt or less, including ballast losses (if any), may be used in conjunction with a timer or device that turns off the lights within 15 minutes of when the walk-in cooler or walk-in freezer is not occupied by people.
``(2) ELECTRONICALLY COMMUTATED MOTORS.--
``(A) IN GENERAL.--The requirements of paragraph (1)(E)(i) for electronically commutated motors shall take effect January 1, 2009, unless, prior to that date, the Secretary determines that such motors are only available from 1 manufacturer.
``(B) OTHER TYPES OF MOTORS.--In carrying out paragraph (1)(E)(i) and subparagraph (A), the Secretary may allow other types of motors if the Secretary determines that, on average, those other motors use no more energy in evaporator fan applications than electronically commutated motors.
``(C) MAXIMUM ENERGY CONSUMPTION LEVEL.--The Secretary shall establish the maximum energy consumption level under subparagraph (B) not later than January 1, 2010.
``(3) ADDITIONAL SPECIFICATIONS.--Each walk-in cooler or walk-in freezer with transparent reach-in doors manufactured on or after January 1, 2009, shall also meet the following specifications:
``(A) Transparent reach-in doors for walk-in freezers and windows in walk-in freezer doors shall be of triple-pane glass with either heat-reflective treated glass or gas fill.
``(B) Transparent reach-in doors for walk-in coolers and windows in walk-in cooler doors shall be--
``(i) double-pane glass with heat-reflective treated glass and gas fill; or
``(ii) triple-pane glass with either heat-reflective treated glass or gas fill.
``(C) If the appliance has an antisweat heater without antisweat heat controls, the appliance shall have a total door rail, glass, and frame heater power draw of not more than 7.1 watts per square foot of door opening (for freezers) and 3.0 watts per square foot of door opening (for coolers).
``(D) If the appliance has an antisweat heater with antisweat heat controls, and the total door rail, glass, and frame heater power draw is more than 7.1 watts per square foot of door opening (for freezers) and 3.0 watts per square foot of door opening (for coolers), the antisweat heat controls shall reduce the energy use of the antisweat heater in a quantity corresponding to the relative humidity in the air outside the door or to the condensation on the inner glass pane.
``(4) PERFORMANCE-BASED STANDARDS.--
``(A) IN GENERAL.--Not later than January 1, 2012, the Secretary shall publish performance-based standards for walk-in coolers and walk-in freezers that achieve the maximum improvement in energy that the Secretary determines is technologically feasible and economically justified.
``(B) APPLICATION.--
``(i) IN GENERAL.--Except as provided in clause (ii), the standards shall apply to products described in subparagraph (A) that are manufactured beginning on the date that is 3 years after the final rule is published.
``(ii) DELAYED EFFECTIVE DATE.--If the Secretary determines, by rule, that a 3-year period is inadequate, the Secretary may establish an effective date for products manufactured beginning on the date that is not more than 5 years after the date of publication of a final rule for the products.
``(5) AMENDMENT OF STANDARDS.--
``(A) IN GENERAL.--Not later than January 1, 2020, the Secretary shall publish a final rule to determine if the standards established under paragraph (4) should be amended.
``(B) APPLICATION.--
``(i) IN GENERAL.--Except as provided in clause (ii), the rule shall provide that the standards shall apply to products manufactured beginning on the date that is 3 years after the final rule is published.
``(ii) DELAYED EFFECTIVE DATE.--If the Secretary determines, by rule, that a 3-year period is inadequate, the Secretary may establish an effective date for products manufactured beginning on the date that is not more than 5 years after the date of publication of a final rule for the products.''.
(c) Test Procedures.--Section 343(a) of the Energy Policy and Conservation Act (42 U.S.C. 6314(a)) is amended by adding at the end the following:
``(9) WALK-IN COOLERS AND WALK-IN FREEZERS.--
``(A) IN GENERAL.--For the purpose of test procedures for walk-in coolers and walk-in freezers:
``(i) The R value shall be the 1/K factor multiplied by the thickness of the panel.
``(ii) The K factor shall be based on ASTM test procedure C518-2004.
``(iii) For calculating the R value for freezers, the K factor of the foam at 20