Instructs the Secretary of Transportation to: (1) designate transit-oriented development corridors in urban areas; and (2) award grants to a state or local governments to construct or improve transit facilities, bicycle transportation facilities, and pedestrian walkways in such a corridor.
Amends federal transportation law to prescribe phased increases in automobile fuel economy standards.
Amends the Internal Revenue Code to subject sports utility vehicles (SUVs) to the limitation on the depreciation of certain luxury automobiles.
Instructs the Secretary of Transportation to implement a national passenger car and light truck tire efficiency program.
Amends the Energy Conservation and Production Act to double the appropriations authorized for weatherization assistance.
Authorizes appropriations for the Energy Star program.
Amends the Internal Revenue Code to extend the credit for: (1) renewable electricity production; and (2) residential energy efficient property.
Amends the Public Utility Regulatory Policies Act of 1978 to prescribe: (1) efficiency resource standards for retail electricity and natural gas suppliers; (2) federal renewable portfolio standards; and (3) a revised standard for net metering.
Amends the Energy Policy Act of 2005 to repeal requirements for: (1) oil and gas royalties in-kind; (2) marginal property production incentives; (3) incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico; (4) royalty relief for deep water production; (5) comprehensive inventory of OCS oil and natural gas resources; (6) ultra-deepwater and unconventional natural gas and other petroleum resources; and (7) specified tax incentives.
Repeals the Alaska Offshore Royalty suspension.
Amends the Energy Policy and Conservation Act to declare certain preemptions of state law inapplicable to state regulation of energy consumption or water use during a specified time period.
Amends the Coastal Zone Management Act of 1972 to restore the former procedure for appeals from consistency determinations revised by the Energy Policy Act of 2005.
Amends the Federal Power Act to repeal provisions of the Energy Policy Act of 2005 governing the siting of interstate electric transmission facilities.
Amends the Natural Gas Act to repeal the authority of the Federal Energy Regulatory Commission under the Energy Policy Act of 2005 to coordinate federal permits and other authorizations and compliance with the National Environmental Policy Act of 1969.
Amends federal transportation law to repeal the preemption of state law relating to automobile fuel economy standards.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4384 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 4384
To improve the energy efficiency of the United States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 17, 2005
Mr. Shays (for himself and Mr. Hinchey) introduced the following bill;
which was referred to the Committee on Energy and Commerce, and in
addition to the Committees on Ways and Means, Resources, and
Transportation and Infrastructure, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To improve the energy efficiency of the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy For Our
Future Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SAVE OIL
Sec. 101. Help consumers buy more fuel efficient cars.
Sec. 102. Energy efficient motor vehicles manufacturing credit.
Sec. 103. Transit-oriented development corridors.
Sec. 104. Automobile Fuel Economy Standards.
Sec. 105. Inclusion of sports utility vehicles in limitation on
depreciation of certain luxury automobiles.
Sec. 106. Fuel efficiency standards for replacement tires.
TITLE II--REDUCE HEAT AND ELECTRIC BILLS
Sec. 201. Weatherization assistance.
Sec. 202. Energy Star programs.
Sec. 203. Renewable electricity production credit.
Sec. 204. Efficiency resource standard.
Sec. 205. Federal renewable portfolio standard.
Sec. 206. Net metering.
TITLE III--SAVE TAX PAYERS MONEY
Sec. 301. Repeal of certain provisions of the Energy Policy Act of
2005.
Sec. 302. Repeal of certain tax provisions of the Energy Policy Act of
2005.
TITLE IV--STATE AND LOCAL AUTHORITY
Sec. 401. State consumer product energy efficiency standards.
Sec. 402. Appeals from consistency determinations under Coastal Zone
Management Act of 1972.
Sec. 403. Siting of interstate electric transmission facilities.
Sec. 404. New natural gas storage facilities.
Sec. 405. Process coordination; hearings; rules of procedure.
Sec. 406. Repeal of preemption of State law relating to automobile fuel
economy standards.
TITLE I--SAVE OIL
SEC. 101. HELP CONSUMERS BUY MORE FUEL EFFICIENT CARS.
(a) Repeal of Limit on Number of Cars Eligible for Credit.--Section
30B of the Internal Revenue Code of 1986 (relating to alternative motor
vehicle credit) is amended by striking subsection (f).
(b) Emissions Standards.--Clause (iv) of section 30B(c)(3)(A) of
such Code is amended to read as follows:
``(iv) for 2004 and later model vehicles,
has received a certificate that such vehicle
meets or exceeds the Bin 5 Tier II emission
standard established in regulations prescribed
by the Administrator of the Environmental
Protection Agency under section 202(i) of the
Clean Air Act for that make and model year
vehicle,''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the amendments made by section 1341(a) of the
Energy Tax Incentives Act of 2005.
SEC. 102. ENERGY EFFICIENT MOTOR VEHICLES MANUFACTURING CREDIT.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to foreign tax credit,
etc.) is amended by adding at the end the following new section:
``SEC. 30D. ENERGY EFFICIENT MOTOR VEHICLES MANUFACTURING CREDIT.
``(a) Credit Allowed.--In the case of an eligible taxpayer, subject
to a credit allocation under subsection (e) to such eligible taxpayer,
there shall be allowed as a credit against the tax imposed by this
chapter for the taxable year to an amount equal to the sum of--
``(1) the initial investment credit determined under
subsection (b) for the taxable year,
``(2) the fuel economy achievement credit determined under
subsection (c) for such taxable year, and
``(3) the eligible components R&D credit determined under
subsection (d) for such taxable year.
``(b) Initial Investment Credit.--For purposes of this section, the
initial investment credit is equal to 20 percent of the qualified
investment of an eligible taxpayer with respect to energy efficient
motor vehicles during the taxable year beginning in 2006.
``(c) Fuel Economy Achievement Credit.--For purposes of this
section--
``(1) In general.--In the case of an eligible taxpayer who
meets the requirements of paragraph (2) for a model year ending
in a taxable year specified in the table contained in paragraph
(3), the fuel economy achievement credit for such taxable year
is equal to 30 percent of the sum of--
``(A) at the election of the eligible taxpayer,
such qualified investment for any preceding taxable
year beginning after 2005 if such taxable year has not
previously been taken into account under this
subsection by such taxpayer, plus
``(B) at the election of the eligible taxpayer, the
qualified investment with respect to energy efficient
motor vehicles of the eligible taxpayer for the taxable
year beginning in 2015.
``(2) Demonstrated combined fleet economy improvements.--
The requirements of this paragraph are met for any model year
ending in a taxable year if the eligible taxpayer can
demonstrate to the satisfaction of the Secretary that the
percentage by which the taxpayer's overall combined fuel
economy standard for the taxpayer's vehicle fleet for such
model year exceeds such standard for such taxpayer's 2005 model
year as reported to the National Highway Traffic Safety
Administration under section 32907 of title 49, United States
Code, is not less than the percentage determined for such model
year under paragraph (3).
``(3) Percentage increase.--The percentage determined under
this paragraph for any taxable year is equal to--
``Model year ending in Percentage
taxable year increase
2008................................................... 5
2009................................................... 10
2010................................................... 15
2011................................................... 20
2012................................................... 27.5
2013................................................... 35
2014................................................... 42.5
2015................................................... 50.
``(d) Eligible Components R&D Credit.--For purposes of this
section, the eligible R&D credit for any taxable year is equal to 30
percent of the research and development costs paid or incurred by an
eligible taxpayer for such taxable year with respect to eligible
components used or to be used in the manufacture of energy efficient
motor vehicles.
``(e) Limitation.--
``(1) Initial investment credit and fuel economy
achievement credit.--Subject to paragraph (2), the aggregate
amount of initial investment credits and fuel economy
achievement credits allowed under subsection (a) for any
taxable year beginning in a calendar year after 2005 shall be
allocated by the Secretary among all eligible taxpayers--
``(A) based on each eligible taxpayer's percentage
of the total qualified investment of all such
taxpayers, and
``(B) such that such aggregate amount does not
exceed--
``(i) $1,000,000,000, plus
``(ii) any amount of credit unallocated
during any preceding calendar year.
``(2) Eligible components r&d credit.--Of the dollar amount
available for allocation under paragraph (1) for any taxable
year, 10 percent of such amount shall be allocated in the same
manner by the Secretary among all eligible taxpayers with
respect to the eligible components R&D credit.
``(f) Qualified Investment.--For purposes of this section--
``(1) In general.--The qualified investment for any taxable
year is equal to the incremental costs incurred during such
taxable year--
``(A) to re-equip or expand any manufacturing
facility of the eligible taxpayer to produce energy
efficient motor vehicles or to produce eligible
components, and
``(B) for engineering integration of such vehicles
and components as described in subsection (h).
``(2) Attribution rules.--In the event a facility of the
eligible taxpayer produces both energy efficient motor vehicles
and conventional motor vehicles, or eligible and non-eligible
components, only the qualified investment attributable to
production of energy efficient motor vehicles and the research
and development costs attributable to eligible components shall
be taken into account.
``(g) Energy Efficient Motor Vehicles and Eligible Components.--For
purposes of this section--
``(1) Energy efficient motor vehicle.--The term `energy
efficient motor vehicle' means--
``(A) any new advanced lean burn technology motor
vehicle (as defined in section 30B(c)(3) determined
without regard to subparagraph (A)(iv)(II) thereof or
the weight limitation under subparagraph (A)(iv)(I)
thereof),
``(B) any new qualified hybrid motor vehicle (as
defined in section 30B(d)(3)(A) determined without
regard to subparagraph (A)(ii)(II) thereof, the weight
limitation under subparagraph (A)(ii)(I) thereof, and
subparagraph (A)(iv) thereof), or
``(C) any other new technology motor vehicle
identified by the Secretary as offering a substantial
increase in fuel economy.
``(2) Eligible components.--The term `eligible component'
means any component inherent to any energy efficient motor
vehicle, including--
``(A) with respect to any gasoline-electric new
qualified hybrid motor vehicle--
``(i) electric motor or generator,
``(ii) power split device,
``(iii) power control unit,
``(iv) power controls,
``(v) integrated starter generator, or
``(vi) battery,
``(B) with respect to any new advanced lean burn
technology motor vehicle--
``(i) diesel engine,
``(ii) turbocharger,
``(iii) fuel injection system, or
``(iv) after-treatment system, such as a
particle filter or NOx absorber, and
``(C) with respect to any energy efficient motor
vehicle, any other component approved by the Secretary.
``(h) Engineering Integration Costs.--For purposes of subsection
(f)(1)(B), costs for engineering integration are costs incurred prior
to the market introduction of energy efficient vehicles for engineering
tasks related to--
``(1) incorporating eligible components into the design of
energy efficient motor vehicles, and
``(2) designing new tooling and equipment for production
facilities which produce eligible components or energy
efficient motor vehicles.
``(i) Eligible Taxpayer.--For purposes of this section, the term
`eligible taxpayer' means, with respect to any taxable year, any
taxpayer if more than 25 percent of the taxpayer's gross receipts for
the taxable year is derived from the manufacture of motor vehicles or
any component parts of such vehicles.
``(j) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for the taxable year shall not exceed the excess of--
``(1) the sum of--
``(A) the regular tax liability (as defined in
section 26(b)) for such taxable year, plus
``(B) the tax imposed by section 55 for such
taxable year, over
``(2) the sum of the credits allowable under subpart A and
sections 27, 30, 30B, and 30C for the taxable year.
``(k) Reduction in Basis.--For purposes of this subtitle, if a
credit is allowed under this section for any expenditure with respect
to any property, the increase in the basis of such property which would
(but for this paragraph) result from such expenditure shall be reduced
by the amount of the credit so allowed.
``(l) No Double Benefit.--
``(1) Coordination with other deductions and credits.--The
amount of any deduction or other credit allowable under this
chapter for any cost taken into account in determining the
amount of the credit under subsection (a) shall be reduced by
the amount of such credit attributable to such cost.
``(2) Research and development costs.--
``(A) In general.--Except as provided in
subparagraph (B), any amount described in subsection
(d) taken into account in determining the amount of the
credit under subsection (a) for any taxable year shall
not be taken into account for purposes of determining
the credit under section 41 for such taxable year.
``(B) Costs taken into account in determining base
period research expenses.--Any amounts described in
subsection (d) taken into account in determining the
amount of the credit under subsection (a) for any
taxable year which are qualified research expenses
(within the meaning of section 41(b)) shall be taken
into account in determining base period research
expenses for purposes of applying section 41 to
subsequent taxable years.
``(m) Business Carryovers Allowed.--If the credit allowable under
subsection (a) for a taxable year exceeds the limitation under
subsection (j) for such taxable year, such excess (to the extent of the
credit allowable with respect to property subject to the allowance for
depreciation) shall be allowed as a credit carryback and carryforward
under rules similar to the rules of section 39.
``(n) Definitions and Special Rules.--For purposes of this
section--
``(1) Definitions.--Any term which is used in this section
and in chapter 329 of title 49, United States Code, shall have
the meaning given such term by such chapter.
``(2) Special rules.--Rules similar to the rules of
paragraphs (4) and (5) of section 179A(e) and paragraphs (1)
and (2) of section 41(f) shall apply.
``(o) Election not to Take Credit.--No credit shall be allowed
under subsection (a) for any property if the taxpayer elects not to
have this section apply to such property.
``(p) Regulations.--The Secretary shall prescribe such regulations
as necessary to carry out the provisions of this section.
``(q) Termination.--This section shall not apply to any qualified
investment made after December 31, 2015.''.
(b) Conforming Amendments.--
(1) Section 1016(a) of such Code is amended by striking
``and'' at the end of paragraph (36), by striking the period at
the end of paragraph (37) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(38) to the extent provided in section 30D(k).''.
(2) Section 6501(m) of such Code is amended by inserting
``30D(o),'' after ``30C(e)(5),''.
(3) The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 30C the following new item:
``Sec. 30D. Energy efficient motor vehicles manufacturing credit.''.
(c) Effective Date.--The amendments made by this subsection shall
apply to amounts incurred in taxable years beginning after December 31,
2005.
SEC. 103. TRANSIT-ORIENTED DEVELOPMENT CORRIDORS.
(a) Definitions.--In this section, the following definitions apply:
(1) Definitions from title 49, united states code.--The
terms ``capital project'', ``local governmental authority'',
``mass transportation'', and ``urbanized area'' have the
meanings such terms have under section 5302 of title 49, United
States Code.
(2) State.--The term ``State'' means a State of the United
States, the District of Columbia, Puerto Rico, the Northern
Mariana Islands, Guam, American Samoa, and the United States
Virgin Islands.
(3) Transit-oriented development corridor.--The term
``transit-oriented development corridor'' means rights-of-way
for fixed-guideway mass transportation facilities, including
commercial development that is connected with any such facility
physically and functionally.
(b) In General.--In consultation with State transportation
departments and metropolitan planning organizations, the Secretary of
Transportation shall designate, in urbanized areas, at least 20
transit-oriented development corridors by 2015 and 50 transit-oriented
development corridors by 2025.
(c) Transit Grants.--The Secretary of Transportation shall award
grants to a State or local governmental authority to construct or
improve transit facilities, bicycle transportation facilities, and
pedestrian walkways in a transit-oriented development corridor,
including capital projects.
(d) Research and Development.--In order to support effective
deployment of grants and incentives under this section, the Secretary
of Transportation shall establish a transit-oriented development
corridors research and development program for the conduct of research
on best practices and performance criteria for transit-oriented
development corridors.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $500,000,000 for each of fiscal
years 2007 through 2016, of which $2,000,000 per fiscal year is
authorized for the research and development program under subsection
(d).
(f) Labor Standards.--The Secretary of Transportation shall not
provide a grant under this section unless the Secretary receives
reasonable assurances from a State that laborers and mechanics employed
by contractors or subcontractors in the performance of construction or
modernization on the a transit project will be paid wages not less than
those prevailing on similar construction or modernization in the
locality as determined by the Secretary of Labor under the Act of March
3, 1931 (known as the Davis-Bacon Act) (40 U.S.C. 276a et seq.).
SEC. 104. AUTOMOBILE FUEL ECONOMY STANDARDS.
(a) Phased Increases in Fuel Economy Standards.--
(1) Passenger automobiles.--
(A) Minimum standards.--Section 32902(b) of title
49, United States Code, is amended to read as follows:
``(b) Passenger Automobiles.--Except as otherwise provided under
this section, the average fuel economy standard for passenger
automobiles manufactured by a manufacturer in a model year--
``(1) after model year 1984 and before model year 2008
shall be 25 miles per gallon;
``(2) after model year 2007 and before model year 2011
shall be 28 miles per gallon;
``(3) after model year 2010 and before model year 2014
shall be 32 miles per gallon;
``(4) after model year 2013 and before model year 2017
shall be 36 miles per gallon; and
``(5) after model year 2016 shall be 40 miles per
gallon.''.
(B) Higher standards set by regulation.--Section
32902(c) of title 49, United States Code, is amended--
(i) by striking paragraph (2); and
(ii) in paragraph (1)--
(I) by striking ``Subject to
paragraph (2) of this subsection, the''
and inserting ``The'';
(II) by striking ``amending the
standard'' and inserting ``increasing
the standard otherwise applicable'';
and
(III) by striking ``Section 553''
and inserting the following: ``(2)
Section 553''.
(b) Increased Inclusiveness of Definitions of Automobile and
Passenger Automobile.--
(1) Automobile.--
(A) In general.--Section 32901(a)(3) of title 49,
United States Code, is amended--
(i) by striking ``6,000 pounds'' each place
it appears and inserting ``12,000 pounds''; and
(ii) in subparagraph (B)--
(I) by striking ``10,000 pounds''
and inserting ``14,000 pounds''; and
(II) in clause (ii), by striking
``an average fuel economy standard''
and all that follows through
``conservation or''.
(B) Special rule.--Section 32908(a)(1) of such
title is amended by striking ``8,500 pounds'' and
inserting ``14,000 pounds''.
(2) Passenger automobile.--Section 32901(a)(16) of title
49, United States Code, is amended to read as follows:
``(16) `passenger automobile' means an automobile having a
gross vehicle weight of 10,000 pounds or less that is designed
to be used principally for the transportation of persons;''.
(3) Applicability.--The amendments made by this section
shall apply with respect to automobiles manufactured for model
years beginning after the date of enactment of this Act.
(c) Civil Penalties.--
(1) Increased penalty for violations of fuel economy
standards.--Section 32912(b) of title 49, United States Code,
is amended--
(A) by inserting ``(1)'' before ``Except as
provided'';
(B) by striking ``$5'' and inserting ``the dollar
amount applicable under paragraph (2)'';
(C) by redesignating paragraphs (1), (2), and (3)
as subparagraphs (A), (B), and (C), respectively; and
(D) by adding at the end the following:
``(2)(A) The dollar amount referred to in paragraph (1) is
$10, as increased from time to time under subparagraph (B);
``(B) Effective on October 1 of each year, the dollar
amount applicable under subparagraph (A) shall be increased by
the percentage (rounded to the nearest \1/10\ of 1 percent) by
which the price index for July of such year exceeds the price
index for July of the preceding year. The amount calculated
under the preceding sentence shall be rounded to the nearest
$0.10.
``(C) In this paragraph, the term `price index' means the
Consumer Price Index for all-urban consumers published monthly
by the Department of Labor.''.
(2) Conforming amendment.--Section 32912(c)(1) of title 49,
United States Code, is amended--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively.
(3) Applicability.--The amendments made by subsection (a)
shall apply with respect to automobiles manufactured for model
years beginning after the date of enactment of this Act.
SEC. 105. INCLUSION OF SPORTS UTILITY VEHICLES IN LIMITATION ON
DEPRECIATION OF CERTAIN LUXURY AUTOMOBILES.
(a) In General.--Subparagraph (A) of section 280F(d)(5) of the
Internal Revenue Code of 1986 (defining passenger automobile) is
amended by striking clause (ii) and all that follows and inserting the
following new clause:
``(ii)(I) except as provided in subclause
(II) or (III), which is rated at 6,000 pounds
unloaded gross vehicle weight or less,
``(II) in the case of a truck or van, which
is rated at 6,000 pounds gross vehicle weight
or less, or
``(III) in the case of a sports utility
vehicle not described in subclause (I), which
is rated at more than 6,000 pounds but not more
than 14,000 pounds gross vehicle weight.''.
(b) Definition.--Paragraph (5) of section 280F(d) of such Code is
amended by adding at the end the following new subparagraph:
``(C) Sports utility vehicles.--The term `sports
utility vehicle' does not include any vehicle which--
``(i) does not have the primary load
carrying device or container attached,
``(ii) has a seating capacity of more than
12 individuals,
``(iii) is designed for more than 9
individuals in seating rearward of the driver's
seat,
``(iv) is equipped with an open cargo area,
or a covered box not readily accessible from
the passenger compartment, of at least 72.0
inches in interior length, or
``(v) has an integral enclosure, fully
enclosing the driver compartment and load
carrying device, does not have seating rearward
of the driver's seat, and has no body section
protruding more than 30 inches ahead of the
leading edge of the windshield.''.
(c) Conforming Amendment.--Section 179(b) of such Code (relating to
limitations) is amended by striking paragraph (6).
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 106. FUEL EFFICIENCY STANDARDS FOR REPLACEMENT TIRES.
(a) Standards for Tires Manufactured for Interstate Commerce.--
Section 30123 of title 49, United States Code, is amended--
(1) in subsection (b), by inserting after the first
sentence the following: ``The grading system shall include
standards for rating the fuel efficiency of tires designed for
use on passenger cars and light trucks.''; and
(2) by adding at the end of the following:
``(d) National Tire Fuel Efficiency Program.--(1) The Secretary
shall develop and carry out a national tire efficiency program for
tires designed for use on passenger cars and light trucks.
``(2) The program shall include the following:
``(A) Policies and procedures for testing and labeling
tires for fuel economy to enable tire buyers to make informed
purchasing decisions about the fuel economy of tires.
``(B) Policies and procedures to promote the purchase of
energy-efficient replacement tires, including purchase
incentives, website listings on the Internet, printed fuel
economy guide booklets, and mandatory requirements for tire
retailers to provide tire buyers with fuel-efficiency
information on tires.
``(C) Minimum fuel economy standards for tires, promulgated
by the Secretary.
``(3) The minimum fuel economy standards for tires shall--
``(A) ensure that, in conjunction with the requirements of
paragraph (2)(B), the average fuel economy of replacement tires
is equal to or better than the average fuel economy of tires
sold as original equipment;
``(B) secure the maximum technically feasible and cost-
effective fuel savings; and
``(C) not adversely affect tire safety;
``(D) not adversely affect the average tire life of
replacement tires;
``(E) incorporate the results from--
``(i) laboratory testing; and
``(ii) to the extent appropriate and available, on-
road fleet testing programs conducted by manufacturers;
and
``(F) not adversely affect efforts to manage scrap tires.
``(4) The policies, procedures, and standards developed under
paragraph (2) shall apply to all tire types an models that are covered
by the Uniform Tire Quality Grading Standards in section 575.104 of
title 49, Code of Federal Regulations (or any successor regulation).
``(5) Not less than every 3 years, the Secretary shall review the
minimum fuel economy standards in effect for tires under this
subsection and revise the standards as necessary to ensure compliance
with requirements under paragraph (3). The Secretary may not reduce the
average fuel economy standards applicable to replacement tires.
``(6) Nothing in this section shall be construed to preempt any
provisions of State law relating to higher fuel economy standards
applicable to replacement tires designed for use on passenger cars and
light trucks. Nothing in this chapter shall apply to--
``(A) a tire or group of tires with the same product
identification number, plant, and year, for which the volume of
tires produced or imported is less than 15,000 annually;
``(B) a deep tread, winter-type snow tire, space-saver
tire, or temporary use spare tire;
``(C) a tire with a normal rim diameter of 12 inches or
less;
``(D) a motorcycle tire; or
``(E) a tire manufactured specifically for use in an off-
road motorized recreational vehicle.
``(7) In this subsection, the term `fuel economy', with respect to
tires, means the extent to which the tire contribute to the fuel
economy of the motor vehicles on which the tire are mounted.''.
(b) Conforming Amendment.--Section 30103(b)(1) of title 49, United
States Code, is amended by striking ``When'' and inserting ``Except as
provided in section 30123(d) of this title, when''.
(c) Implementation.--The Secretary of Transportation shall ensure
that the national tire fuel efficiency program required under
subsection (d) of section 30123 of title 49, United States Code, (as
added by subsection (a)(2)), is administered so as to apply the
policies, procedures, and standards developed under paragraph (2) of
such subsection beginning not later than March 31, 2008.
TITLE II--REDUCE HEAT AND ELECTRIC BILLS
SEC. 201. WEATHERIZATION ASSISTANCE.
Section 422 of the Energy Conservation and Production Act (42
U.S.C. 6872) is amended--
(1) by striking ``$500,000,000'' and inserting
``$1,000,000,000'';
(2) by striking ``$600,000,000'' and inserting
``$1,200,000,000''; and
(3) by striking ``$700,000,000'' and inserting
``$1,400,000,000''.
SEC. 202. ENERGY STAR PROGRAMS.
There are authorized to be appropriated for carrying out the Energy
Star program under section 324A of the Energy Policy and Conservation
Act--
(1) to the Administrator of the Environmental Protection
Agency $100,000,000 for each fiscal year; and
(2) to the Secretary of Energy $12,000,000 for each fiscal
year.
SEC. 203. RENEWABLE ELECTRICITY PRODUCTION CREDIT.
(a) Extension.--Section 45(d) of the Internal Revenue Code of 1986
(relating to qualified facilities) is amended--
(1) by striking ``January 1, 2008'' each place it appears
in paragraphs (1), (2), (3), (5), (6), and (7) and inserting
``January 1, 2012'', and
(2) by striking ``January 1, 2006'' in paragraph (4) and
inserting ``January 1, 2012 (January 1, 2010, in the case of a
facility using solar energy)''.
(b) Repeal of Municipal Solid Waste as Qualified Resource.--
Paragraph (1) of section 45(c) of such Code is amended by striking
subparagraph (G).
(c) Extension of Credit for Residential Energy Efficient
Property.--Subsection (g) of section 25D of such Code (relating to
termination) is amended by striking ``December 31, 2007'' and inserting
``December 31, 2012''.
SEC. 204. EFFICIENCY RESOURCE STANDARD.
(a) Amendment.--Title VII of the Public Utility Regulatory Policies
Act of 1978 is amended by adding the following new section at the end
thereof:
``SEC. 610. EFFICIENCY RESOURCE STANDARD FOR RETAIL ELECTRICITY AND
NATURAL GAS SUPPLIERS.
``(a) Resource Standard.--Each retail electricity and natural gas
supplier shall undertake energy savings measures in each calendar year
from 2006 through 2015 that produce electricity demand savings and
electricity and natural gas usage savings, as a percentage of the
supplier's base amount as shown in the following table. These targets
represent savings realized from measures installed in the current year,
plus cumulative savings realized from measures installed in all
previous years. Each retail electricity and natural gas supplier
subject to this subsection may use any electricity or natural gas
savings measures available to it to achieve compliance with the
performance standard established under this section, so long as the
electricity and natural gas savings achieved by such measures can be
calculated and verified pursuant to the rules promulgated under
subsection (b).
------------------------------------------------------------------------
Reductions in
Reductions in peak electricity
``Year electricity demand and natural
gas usage
------------------------------------------------------------------------
2006............................. 0.25%................ 0.25%
------------------------------------------------------------------------
2007............................. 0.75%................ 0.75%
------------------------------------------------------------------------
2008............................. 1.75%................ 1.5%
------------------------------------------------------------------------
2009............................. 2.75%................ 2.25%
------------------------------------------------------------------------
2010 and thereafter.............. 3.75%................ 3.0%
------------------------------------------------------------------------
``(b) Determination of Compliance.--The Secretary shall promulgate
rules not later than one year after the enactment of this section
regarding the means to be used to calculate and verify compliance with
the performance standard established under subsection (a). Each retail
electric and natural gas supplier subject to this section shall
calculate its compliance with such standard in accordance with such
rules. The rules shall include each of the following:
``(1) Procedures and standards for defining and measuring
electricity savings achieved or obtained by electricity and
natural gas suppliers (hereinafter in this section referred to
as `electricity and natural gas savings') from customer
facility end-uses that occur in a calendar year from all
measures in place in that year (including measures implemented
in previous years that produce electricity and natural gas
savings in such calendar year).
``(2) Procedures and standards for verification of
electricity and natural gas savings reported by the retail
electricity and natural gas supplier.
``(3) Requirements for the contents and format of a bi-
annual report from each retail electricity and natural gas
supplier demonstrating its compliance with the requirements of
subsection (a). The bi-annual report must include sufficient
detail regarding the calculation of electricity and natural gas
savings to enable the regulatory authority to verify and
enforce compliance with the requirements of this section and
the regulations under this section.
``(c) Credit and Trading System.--(1) After consultation with the
Administrator of the Environmental Protection Agency, the Secretary
shall promulgate rules establishing a nationwide credit and credit
trading system for electricity and natural gas savings. Under such
rules the Secretary may certify as credits electricity or natural
savings achieved by a retail electricity or natural gas supplier in a
given year in excess of the quantity of electricity or natural gas
savings required that calendar year for such supplier to meet the
resource standard, as long as such savings comply with the rules
established under subsection (b). The Secretary shall also certify as
credits customer energy savings created by retail electric or natural
gas suppliers or other entities, as long as such savings comply with
the rules established under subsection (b). An electricity savings
credit shall equal one kilowatt hour; a natural gas savings credit
shall constitute one therm.
``(2) The Secretary shall not award credits to any retail
electricity or natural gas supplier subject to State administration and
enforcement under subsection (d) unless the Secretary has determined
that such administration and enforcement are at least equivalent to
administration and enforcement by the Secretary.
``(3) An electricity or natural gas savings credit is not a
property right. Nothing in this or any other provision of law shall be
construed to limit the authority of the United States to terminate or
limit such credits.
``(4) A retail electric or natural gas supplier may sell such
credit to any other entity, and other entities may sell such credits to
retail electric or natural gas suppliers, in accordance with the
accounting and verification rules established by the Secretary. Such
credit may be used by a purchasing retail electricity or natural gas
supplier for purposes of complying with the resource standards set
forth in subsection (a).
``(5) In order to receive an electricity or natural gas savings
credit, the recipient of an electricity savings credit shall pay a fee,
calculated by the Secretary, in an amount that is equal to the
administrative costs of issuing, recording, monitoring the sale or
exchange of, and tracking the credit or does not exceed five percent of
the dollar value of the credit, whichever is lower. The Secretary shall
retain the fee and use it to pay these administrative costs.
``(6) A credit may be counted toward compliance with subsection (a)
only once. A retail electricity or natural gas supplier may satisfy the
requirements of subsection (a) through the accumulation of
``(A) electricity or natural gas savings credits obtained
by purchase or exchange under paragraph (7);
``(B) electricity or natural gas savings credits borrowed
against future years under paragraph (8); or
``(C) any combination of credits under subparagraphs (A)
and (B).
``(7) An electricity or natural gas savings credit may be sold or
exchanged by the entity to whom issued or by any other entity that
acquires the credit. An energy efficiency credit for any year that is
not used to satisfy the minimum energy savings requirement of
subsection (a) for that year may be carried forward for use within the
next 4 years.
``(8) During the first year covered by the standards, a retail
electricity or natural gas supplier that has reason to believe that it
will not have sufficient electricity savings credits to comply with
subsection (a) may
``(A) submit a plan to the Secretary demonstrating that the
retail electricity or natural gas supplier will earn sufficient
credits within the next two calendar years which, when taken
into account, will enable the retail electricity or natural gas
supplier to meet the requirements of subsection (a) for the
calendar year involved; and
``(B) upon the approval of the plan by the Secretary, apply
credits that the plan demonstrates will be earned within the
next two calendar years to meet the requirements of subsection
(a) for the calendar year involved.
``(9) Any retail electricity or natural gas supplier may elect to
comply with the requirements of this section in any calendar year by
paying a fee of 3 cents per kilowatt hour, and 30 cents per therm, for
any portion of the electricity or natural gas savings it would be
obligated to achieve in that year by not later than March 31 of the
following year. Funds produced from such fees shall be deposited in an
escrow account established by the Secretary, and shall be distributed
to the States for their use in creating electricity or natural gas
savings at customer facilities.
``(d) Enforcement of Compliance.--(1) If the State regulatory
authority with ratemaking jurisdiction over a State-regulated retail
electricity or natural gas supplier notifies the Secretary that it will
enforce compliance by such supplier with the performance standards
under subsection (a) of this section, such State regulatory authority
shall have the authority to administer and enforce such standards for
such supplier under State law. If the State regulatory authority does
not so notify the Secretary, the Secretary shall exercise such
authority until receiving such notice from the State regulatory
authority.
``(2) Not later than July 1 of the calendar years 2007, 2009. 2011,
2013, and 2015, each retail electricity and natural gas supplier shall
submit the compliance report required under subsection (b) to:
``(A) the appropriate State regulatory authority, if such
authority has notified the Secretary under subsection (d), or
``(B) the Secretary to determine and enforce compliance
with the standards.
``(3) In the case of any retail electricity or natural gas supplier
for which the Secretary is enforcing compliance with the standards
under this section, if such supplier fails to comply with such
standards for two consecutive calendar years, the Secretary shall
determine the number of kilowatt hours of electricity savings, or
therms of natural gas savings, by which the supplier has fallen short
of the standards, and, by order, require such supplier, after notice
and opportunity for hearing, to deposit in an escrow account to be
designated by the Secretary an amount equal to 3.5 cents per kilowatt
hour for each such kilowatt hour, and 35 cents per therm for each such
therm. The holder of such escrow account shall annually distribute the
total amount of such account to the States to be used by the States for
the purpose of achieving customer electricity and natural gas savings.
Any retail electricity or natural gas supplier required to make such a
payment may, within 60 calendar days after the issuance of such order,
bring an action in the United States Court of Appeals for the District
of Columbia for judicial review of such order. Such court shall have
jurisdiction to enter a judgment affirming, modifying, or setting aside
such order or remanding such order in whole or in part to the
Secretary.
``(e) Information Collection.--The Secretary may collect the
information necessary to verify and audit--
``(1) the annual electric energy sales, natural gas sales,
electricity savings, and natural gas savings of any entity
applying for electricity or natural gas savings credits under
this section,
``(2) the validity of electricity or natural gas savings
credits submitted by a retail electricity or natural gas
supplier to the Secretary, and
``(3) the quantity of electricity and natural gas sales of
all retail electricity and natural gas suppliers.
``(f) State Law.--Nothing in this section shall supersede or
otherwise affect any State or local law requiring or otherwise relating
to reductions in total annual electricity or natural gas energy
consumption by or peak power consumption by electric consumers to the
extent that such State or local law requires more stringent reductions
than those required under this section. Any retail electricity or
natural gas supplier that achieves reductions referred to in this
section in accordance with State requirements shall be entitled to full
credit under this section for such reductions to the extent that such
reductions meet the requirements of this section and the regulations
under this section (including verification and monitoring
requirements).
``(g) Definitions.--For purposes of this section:
``(1) The term `retail electricity or natural supplier'
means a person that sells electric energy or natural gas to
consumers and sold not less than 1,000,000 megawatt-hours of
electric energy or 20,000,000 therms of natural gas to
consumers for purposes other than resale during the preceding
calendar year; except that such term does not include the
United States, a State or any political subdivision of a State,
or any agency, authority, or instrumentality of any one or more
of the foregoing, or a rural electric cooperative.
``(2) The term `retail electricity or natural gas
supplier's base amount' means the total amount of electric
energy or natural gas sold by the retail electricity or natural
gas supplier to customers during the most recent calendar year
for which information is available.
``(3) The term `electricity savings' means reductions in
end-use electricity consumption in customer facilities relative
to consumption at those same facilities in a base year as
defined in rules issued by the Secretary, or in the case of new
facilities, relative to reference facilities defined in rules
issued by the Secretary, or distributed generation efficiency
measures, including fuel cells and combined heat and power
(CHP) technologies, that provide electricity only for onsite
customer use.
``(4) The term `natural gas savings' means reductions in
end-use natural gas consumption in customer facilities relative
to consumption at those same facilities in a base year as
defined in rules issued by the Secretary, or in the case of new
facilities, relative to reference facilities defined in rules
issued by the Secretary.''.
(b) Table of Contents.--The table of contents for title VII of the
Public Utility Regulatory Policies Act of 1978 is amended by adding the
following new item at the end thereof:
``Sec. 610. Efficiency resource standard for retail electricity and
natural gas suppliers.''.
SEC. 205. FEDERAL RENEWABLE PORTFOLIO STANDARD.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 is amended by adding at the end the following:
``SEC. 611. FEDERAL RENEWABLE PORTFOLIO STANDARD.
``(a) Minimum Renewable Generation Requirement.--For each calendar
year beginning in calendar year 2007, each retail electric supplier
shall submit to the Secretary, not later than April 1 of the following
calendar year, renewable energy credits in an amount equal to the
required annual percentage specified in subsection (b).
``(b) Required Annual Percentage.--For calendar years 2007 through
2025, the required annual percentage of the retail electric supplier's
base amount that shall be generated from renewable energy resources, or
otherwise credited towards such percentage requirement pursuant to
subsection (c), shall be the percentage specified in the following
table:
Required annual
``Calendar Years percentage
2007 through 2008.......................... 1
2009 through 2010.......................... 2.2
2010 through 2011.......................... 3.4
2012 through 2013.......................... 4.6
2014 through 2015.......................... 5.8
2016 through 2017.......................... 7.0
2018 through 2019.......................... 8.5
2020 through 2021.......................... 10.0
2022 through 2023.......................... 12.0
2024 through 2025.......................... 14.0
2026 through 2027.......................... 16.0
2028 through 2029.......................... 18.0
2030 through 2031.......................... 20.0.
``(c) Submission of Credits.--(1) A retail electric supplier may
satisfy the requirements of subsection (a) through the submission of
renewable energy credits--
``(A) issued to the retail electric supplier under
subsection (d);
``(B) obtained by purchase or exchange under subsection
(e); or
``(C) borrowed under subsection (f).
``(2) A renewable energy credit may be counted toward compliance
with subsection (a) only once.
``(d) Issuance of Credits.--(1) The Secretary shall establish by
rule, not later than 1 year after the date of enactment of this
section, a program to issue and monitor the sale or exchange of, and
track, renewable energy credits.
``(2) Under the program established by the Secretary, an entity
that generates electric energy through the use of a renewable energy
resource may apply to the Secretary for the issuance of renewable
energy credits. The application shall indicate--
``(A) the type of renewable energy resource used to produce
the electricity;
``(B) the location where the electric energy was produced;
and
``(C) any other information the Secretary determines
appropriate.
``(3)(A) Except as provided in subparagraphs (B), (C), and (D), the
Secretary shall issue to each entity that generates electric energy one
renewable energy credit for each kilowatt hour of electric energy the
entity generates from the date of enactment of this section and in each
subsequent calendar year through the use of a renewable energy resource
at an eligible facility.
``(B) For incremental hydropower the renewable energy credits shall
be calculated based on the expected increase in average annual
generation resulting from the efficiency improvements or capacity
additions. The number of credits shall be calculated using the same
water flow information used to determine a historic average annual
generation baseline for the hydroelectric facility and certified by the
Secretary or the Federal Energy Regulatory Commission. The calculation
of the renewable energy credits for incremental hydropower shall not be
based on any operational changes at the hydroelectric facility not
directly associated with the efficiency improvements or capacity
additions.
``(C) The Secretary shall issue two renewable energy credits for
each kilowatt hour of electric energy generated and supplied to the
grid in that calendar year through the use of a renewable energy
resource at an eligible facility located on Indian land. For purposes
of this paragraph, renewable energy generated by biomass cofired with
other fuels is eligible for two credits only if the biomass was grown
on such land.
``(D) For electric energy resources produced from a generation
offset, the Secretary shall issue two renewable energy credits for each
kilowatt hour generated.
``(F) To be eligible for a renewable energy credit, the unit of
electric energy generated through the use of a renewable energy
resource may be sold or may be used by the generator. If both a
renewable energy resource and a non-renewable energy resource are used
to generate the electric energy, the Secretary shall issue renewable
energy credits based on the proportion of the renewable energy
resources used. The Secretary shall identify renewable energy credits
by type and date of generation.
``(4) When a generator sells electric energy generated through the
use of a renewable energy resource to a retail electric supplier under
a contract subject to section 210 of this Act, the retail electric
supplier is treated as the generator of the electric energy for the
purposes of this section or the duration of the contract.
``(5) The Secretary shall issue renewable energy credits for
existing facility offsets to be applied against a retail electric
supplier's required annual percentage. Such credits are not tradeable
and may be used only in the calendar year generation actually occurs.
``(e) Credit Trading.--A renewable energy credit, may be sold or
exchanged by the entity to whom issued or by any other entity who
acquires the renewable energy credit. A renewable energy credit for any
year that is not used to satisfy the minimum renewable generation
requirement of subsection (a) for that year may be carried forward for
use within the next 4 years.
``(f) Credit Borrowing.--At any time before the end of calendar
year 2006, a retail electric supplier that has reason to believe it
will not have sufficient renewable energy credits to comply with
subsection (a) may--
``(1) submit a plan to the Secretary demonstrating that the
retail electric supplier will earn sufficient credits within
the next 3 calendar years which, when taken into account, will
enable the retail electric supplier to meet the requirements of
subsection (a) for calendar year 2007 and the subsequent
calendar years involved; and
``(2) upon the approval of the plan by the Secretary, apply
renewable energy credits that the plan demonstrates will be
earned within the next 3 calendar years to meet the
requirements of subsection (a) for each calendar year involved.
The retail electric supplier must repay all of the borrowed renewable
energy credits by submitting an equivalent number of renewable energy
credits, in addition to those otherwise required under subsection (a),
by calendar year 2008 or any earlier deadlines specified in the
approved plan. Failure to repay the borrowed renewable energy credits
shall subject the retail electric supplier to civil penalties under
subsection (h) for violation of the requirements of subsection (a) for
each calendar year involved.
``(g) Credit Cost Cap.--The Secretary shall offer renewable energy
credits for sale at the lesser of 3 cents per kilowatt-hour or 200
percent of the average market value of renewable credits for the
applicable compliance period. On January 1 of each year following
calendar year 2006, the Secretary shall adjust for inflation the price
charged per credit for such calendar year, based on the Gross Domestic
Product Implicit Price Deflator.
``(h) Enforcement.--The Secretary may bring an action in the
appropriate United States district court to impose a civil penalty on a
retail electric supplier that does not comply with subsection (a),
unless the retail electric supplier was unable to comply with
subsection (a) for reasons outside of the supplier's reasonable control
(including weather-related damage, mechanical failure, lack of
transmission capacity or availability, strikes, lockouts, actions of a
governmental authority). A retail electric supplier who does not submit
the required number of renewable energy credits under subsection (a)
shall be subject to a civil penalty of not more than the greater of 3
cents or 200 percent of the average market value of credits for the
compliance period for each renewable energy credit not submitted..
``(i) Information Collection.--The Secretary may collect the
information necessary to verify and audit--
``(1) the annual electric energy generation and renewable
energy generation of any entity applying for renewable energy
credits under this section;
``(2) the validity of renewable energy credits submitted by
a retail electric supplier to the Secretary; and
``(3) the quantity of electricity sales of all retail
electric suppliers.
``(j) Environmental Savings Clause.--Incremental hydropower shall
be subject to all applicable environmental laws and licensing and
regulatory requirements.
``(k) Existing Programs.--This section does not preclude a State
from imposing additional renewable energy requirements in that State,
including specifying eligible technologies under such State
requirements.
``(l) Definitions.--For purposes of this section:
``(1) Biomass.--The term `biomass' means any organic
material that is available on a renewable or recurring basis,
including dedicated energy crops, trees grown for energy
production, wood waste and wood residues, plants (including
aquatic plants, grasses, and agricultural crops), residues,
fibers, animal wastes and other organic waste materials (but
not including unsegregated municipal solid waste (garbage)),
and fats and oils, except that with respect to material removed
from National Forest System lands the term includes only
organic material from--
``(A) thinnings from trees that are less than 12
inches in diameter;
``(B) slash;
``(C) brush; and
``(D) mill residues.
``(2) Eligible facility.--The term `eligible facility'
means--
``(A) a facility for the generation of electric
energy from a renewable energy resource that is placed
in service on or after the date of enactment of this
section; or
``(B) a repowering or cofiring increment that is
placed in service on or after the date of enactment of
this section at a facility for the generation of
electric energy from a renewable energy resource that
was placed in service before that date.
``(3) Eligible renewable energy resource.--The term
`renewable energy resource' means solar, wind, ocean, or
geothermal energy, biomass (excluding solid waste and paper
that is commonly recycled), landfill gas, a generation offset,
or incremental hydropower.
``(4) Generation offset.--The term `generation offset'
means reduced electricity usage metered at a site where a
customer consumes energy from a renewable energy technology.
``(5) Existing facility offset.--The term `existing
facility offset' means renewable energy generated from an
existing facility, not classified as an eligible facility, that
is owned or under contract, directly or indirectly, to a retail
electric supplier on the date of enactment of this section.
``(6) Incremental hydropower.--The term `incremental
hydropower' means additional generation that is achieved from
increased efficiency or additions of capacity on or after the
date of enactment of this section or the effective date of the
applicable State renewable portfolio standard program, at a
hydroelectric facility that was placed in service before that
date.
``(7) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any Indian
reservation, pueblo, or rancheria;
``(B) any land not within the limits of any Indian
reservation, pueblo, or rancheria title to which was on
the date of enactment of this paragraph either held by
the United States for the benefit of any Indian tribe
or individual or held by any Indian tribe or individual
subject to restriction by the United States against
alienation;
``(C) any dependent Indian community; and
``(D) any land conveyed to any Alaska Native
corporation under the Alaska Native Claims Settlement
Act.
``(8) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community, including any Alaskan Native village or regional or
village corporation as defined in or established pursuant to
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized as eligible for the special programs
and services provided by the United States to Indians because
of their status as Indians.
``(9) Renewable energy.--The term `renewable energy' means
electric energy generated by a renewable energy resource.
``(10) Renewable energy resource.--The term `renewable
energy resource' means solar, wind, ocean, geothermal energy,
biomass (not inlcuding municipal solid wate), landfill gas, a
generation offset, or incremental hydropower.
``(11) Repowering or cofiring increment.--The term
`repowering or cofiring increment' means--
``(A) the additional generation from a modification
that is placed in service on or after the date of
enactment of this section to expand electricity
production at a facility used to generate electric
energy from a renewable energy resource or to cofire
biomass that was placed in service before the date of
enactment of this section, or
``(B) the additional generation above the average
generation in the 3 years preceding the date of
enactment of this section to expand electricity
production at a facility used to generate electric
energy from a renewable energy resource or to cofire
biomass that was placed in service before the date of
enactment of this section.
``(12) Retail electric supplier.--The term `retail electric
supplier' means a person that sells electric energy to electric
consumers and sold not less than 1,000,000 megawatt-hours of
electric energy to electric consumers for purposes other than
resale during the preceding calendar year; except that such
term does not include the United States, a State or any
political subdivision of a State, or any agency, authority, or
instrumentality of any one or more of the foregoing.
``(13) Retail electric supplier's base amount.--The term
`retail electric supplier's base amount' means means the total
amount of electric energy sold by the retail electric supplier
to electric customers during the most recent calendar year for
which information is available, excluding electric energy
generated by--
``(A) an eligible renewable energy resource; or
``(B) a hydroelectric facility.
``(m) Sunset.--This section expires December 31, 2030.''.
(b) Table of Contents.--The table of contents for such title is
amended by adding the following new item at the end:
``Sec. 611. Federal renewable portfolio standard.''.
SEC. 206. NET METERING.
(a) Adoption of Standard.--Section 111(d)(11) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended to read
as follows:
``(11) Net metering.--(A) Each electric utility shall make
available upon request net metering service to any electric
consumer that the electric utility serves.
``(B) For purposes of implementing this paragraph, any
reference contained in this section to the date of enactment of
the Public Utility Regulatory Policies Act of 1978 shall be
deemed to be a reference to the date of enactment of this
paragraph.
``(C) Notwithstanding subsections (b) and (c) of section
112, each State regulatory authority may consider and make a
determination concerning whether it is appropriate in the
public interest to not implement the standard set out in
subparagraph (A) not later than 1 year after the date of
enactment of this paragraph.
``(D) Nothing in this section shall preclude a State from
establishing additional incentives or to encourage on-site
generating facilities and net metering in addition to that
required under this section.
``(E) The Department shall report within 11 months of
enactment and annually thereafter on the public benefit
provided by adoption of net metering and interconnection
standards, and the status of state adoption of such.''.
(b) Special Rules for Net Metering.--Section 115 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by
adding at the end the following:
``(i) Net Metering.--In undertaking the consideration and making
the determination under section 111 with respect to the standard
concerning net metering established by section 111(d)(11), the term net
metering service shall mean a service provided in accordance with the
following standards:
``(1) An electric utility--
``(A) shall charge the owner or operator of an on-
site generating facility rates and charges that are
identical to those that would be charged other electric
consumers of the electric utility in the same rate
class; and
``(B) shall not charge the owner or operator of an
on-site generating facility any additional standby,
capacity, interconnection, or other rate or charge.
``(2) An electric utility that sells electric energy to the
owner or operator of an on-site generating facility shall
measure the quantity of electric energy produced by the on-site
facility and the quantity of electric energy consumed by the
owner or operator of an on-site generating facility during a
billing period with a single bi-directional meter or otherwise
in accordance with reasonable metering practices.
``(3) If the quantity of electric energy sold by the
electric utility to an on-site generating facility exceeds the
quantity of electric energy supplied by the on-site generating
facility to the electric utility during the billing period, the
electric utility may bill the owner or operator for the net
quantity of electric energy sold, in accordance with reasonable
metering practices.
``(4) If the quantity of electric energy supplied by the
on-site generating facility to the electric utility exceeds the
quantity of electric energy sold by the electric utility to the
on-site generating facility during the billing period--
``(A) the electric utility may bill the owner or
operator of the on-site generating facility for the
appropriate charges for the billing period in
accordance with paragraph; and
``(B) the owner or operator of the on-site
generating facility shall be credited for the excess
kilowatt-hours generated during the billing period,
with the kilowatt-hour credit appearing on the bill for
the following billing period.
``(5) An eligible on-site generating facility and net
metering system used by an electric consumer shall meet all
applicable safety, performance, reliability, and
interconnection standards established by the National
Electrical Code, the Institute of Electrical and Electronics
Engineers, and Underwriters Laboratories.
``(6) The Commission, after consultation with State
regulatory authorities and unregulated electric utilities and
after notice and opportunity for comment, may adopt, by rule,
additional control and testing and interconnection requirements
for on-site generating facilities and net metering systems that
the Commission determines are necessary to protect public
safety and system reliability.
``(7) For purposes of this subsection:
``(A) The term `eligible on-site generating
facility' means a facility on the site of a residential
electric consumer with a maximum generating capacity of
10 kilowatts or less that is fueled by solar energy,
wind energy, or fuel cells; or a facility on the site
of a commercial electric consumer with a maximum
generating capacity of 500 1000 kilowatts or less that
is fueled solely by a renewable energy resource,
landfill gas, or a high efficiency system.
``(B) The term `renewable energy resource' means
solar, wind, biomass, micro-freeflow hydro, or
geothermal energy.
``(C) The term `high efficiency system' means fuel
cells or combined heat and power.
``(D) The term `net metering service' means service
to an electric consumer under which electric energy
generated by that electric consumer from an eligible
on-site generating facility and delivered to the local
distribution facilities may be used to offset electric
energy provided by the electric utility to the electric
consumer during the applicable billing period.''.
TITLE III--SAVE TAX PAYERS MONEY
SEC. 301. REPEAL OF CERTAIN PROVISIONS OF THE ENERGY POLICY ACT OF
2005.
(a) Repeals.--The following provisions of the Energy Policy Act of
2005, and the items relating thereto in the table of contents of that
Act, are repealed:
(1) Section 342 (relating to program on oil and gas
royalties in-kind).
(2) Section 343 (relating to marginal property production
incentives).
(3) Section 344 (relating to incentives for natural gas
production from deep wells in the shallow waters of the Gulf of
Mexico).
(4) Section 345 (relating to royalty relief for deep water
production).
(5) Section 357 (relating to comprehensive inventory of OCS
oil and natural gas resources).
(6) Subtitle J of title IX (relating to ultra-deepwater and
unconventional natural gas and other petroleum resources).
(b) Repeal of Alaska Offshore Royalty Suspension.--Section
8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)(B)) is amended by striking ``and in the Planning Areas
offshore Alaska''.
SEC. 302. REPEAL OF CERTAIN TAX PROVISIONS OF THE ENERGY POLICY ACT OF
2005.
(a) Repeal.--The following provisions, and amendments made by such
provisions, of the Energy Policy Act of 2005 are hereby repealed:
(1) Section 1306 (relating to credit for production from
advanced nuclear power facilities).
(2) Section 1307 (relating to credit for investment in
clean coal facilities).
(3) Section 1308 (relating to electric transmission
property treated as 15-year property).
(4) Section 1309 (relating to expansion of amortization for
certain atmospheric pollution control facilities).
(5) Section 1310 (relating to modifications to special
rules for nuclear decommissioning costs).
(6) Section 1321 (relating to extension of credit for
producing fuel from nonconventional source (coke or coke gas).
(7) Section 1323 (relating to temporary expensing for
equipment used in refining of liquid fuels).
(8) Section 1325 (relating to natural gas distribution
lines treated as 15-year property).
(9) Section 1326 (relating to natural gas gathering lines
treated as 7-year property).
(10) Section 1328 (relating to determination of small
refiner exception to oil depletion deduction).
(11) Section 1329 (relating to amortization of geological
and geophysical expenditures).
(b) Administration of Internal Revenue Code of 1986.--The Internal
Revenue Code of 1986 shall be applied and administered as if the
provisions, and amendments, specified in subsection (a) had never been
enacted.
TITLE IV--STATE AND LOCAL AUTHORITY
SEC. 401. STATE CONSUMER PRODUCT ENERGY EFFICIENCY STANDARDS.
Section 327 of the Energy Policy and Conservation Act (42 U.S.C.
6297) is amended by adding at the end the following new subsection:
``(h) Limitation on Preemption.--Subsections (a), (b), and (c)
shall not apply with respect to State regulation of energy consumption
or water use of any covered product during any period of time--
``(1) after the expiration of 3 years after the required
date of issuance of a final rule determining whether Federal
standards for such consumption or use will be established or
revised, if such rule has not been issued; and
``(2) before the date on which such rule is issued.''.
SEC. 402. APPEALS FROM CONSISTENCY DETERMINATIONS UNDER COASTAL ZONE
MANAGEMENT ACT OF 1972.
Section 319 of the Coastal Zone Management Act of 1972 (16 U.S.C.
1465) is amended to read as if section 381 of the Energy Policy Act of
2005 (119 Stat. 737) were not enacted.
SEC. 403. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
Section 216 of the Federal Power Act (16 U.S.C. 824p) is repealed.
SEC. 404. NEW NATURAL GAS STORAGE FACILITIES.
Subsection (f) of section 4 of the Natural Gas Act (15 U.S.C.
717c(f)) is repealed.
SEC. 405. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE.
The amendments to the Natural Gas Act made by section 313 of the
Energy Policy Act of 2005 are repealed, and the Natural Gas Act shall
be administered as if those amendments were never enacted.
SEC. 406. REPEAL OF PREEMPTION OF STATE LAW RELATING TO AUTOMOBILE FUEL
ECONOMY STANDARDS.
Section 32919 of title 49, United States Code, is repealed.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Resources, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Resources, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Resources, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Resources, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Resources, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Referred to the Subcommittee on Highways, Transit and Pipelines.
Referred to the Subcommittee on Energy and Air Quality.