Practical Energy Plan Act of 2011 - Amends the Internal Revenue Code to allow a new tax credit for investment in a qualifying pioneer project. Defines a "qualifying pioneer project" as a project which captures carbon dioxide that is emitted in connection with power generation or industrial production, that is subject to an eligible enhanced oil recovery contract, and that is delivered for use by a qualified carbon dioxide trunkline that has a free flow capacity of not less than 7.5 million metric tons and extends not less than 300 miles.
Allows business-related tax credits for: (1) pioneer project carbon dioxide production, and (2) deployment of carbon dioxide that is captured during a 10-year period and delivered by the taxpayer under an eligible enhanced oil recovery contract.
Requires the Secretary of the Treasury to make annual projections of the present value of the expected increase in federal revenues from oil production using carbon dioxide from qualifying pioneer projects and to suspend such a project if costs exceed expected increases in revenues.
Requires the Secretary of the Interior to submit: (1) a schedule for the issuance of final decisions on applications for permits to drill under an oil and gas lease under the Outer Continental Shelf Lands Act; (2) a report on critical safety system preparedness and oil spill response and containment preparedness prior to the issuance of each of the first 10 drilling permits for leases on the Atlantic, Pacific, and Arctic coasts or a permit to drill in a new area off the coast of a state; and (3) the results of a study on oil and natural gas resources in the Chukchi Sea and Beaufort Sea.
Directs the Secretary to: (1) require that geological and geophysical exploration plans for the Outer Continental Shelf (OCS) include a third-party reviewed response plan that describes the means and timeline for containment and termination of an ongoing discharge of oil, (2) conduct specified offshore oil and gas lease sales, and (3) promulgate regulations providing for the issuance of seismic surveying cost credits for the provision of data from seismic surveying of the OCS and use of such credits for payment of bonus bids owed for oil and gas lease sales.
Amends the Clean Air Act to exempt sources of pollution located offshore of Alaska from pollution control requirements for OCS activities.
Revises the Corporate Average Fuel Economy (CAFE) standards by requiring at least a 4% annual increase in the average fuel economy level beginning in model year 2017, unless the standards are technologically unachievable, cannot be achieved without materially reducing the overall safety of automobiles, or are not cost effective. Requires the Secretary of Transportation (DOT) to: (1) prescribe separate standards for passenger and non-passenger automobiles to achieve a combined fuel economy average of at least 34.1 miles per gallon for model year 2016 (currently 35 miles per gallon for model year 2020) for the total fleet of automobiles manufactured, and (2) determine the greatest achievable fuel efficiency improvement targets for rules pertaining to commercial medium- and heavy-duty vehicles and work trucks. Authorizes the Secretary to implement regulations for vehicle classes and components of such vehicles on an accelerated basis. Requires manufacturers to ensure that no less than 50% of light-duty vehicles manufactured in model years 2015-2017 (90% of such vehicles manufactured in 2018 and subsequent model years) are choice-enabling vehicles.
Requires the Secretary to: (1) certify the maximum feasible levels of advanced alternative fuel blend possible; and (2) develop a model label for pumps dispensing advanced alternative fuels that allows consumers to evaluate the relative value, energy density, and expected vehicle performance of any particular advanced alternative fuel blend.
Authorizes the Secretary to establish a fuel options standard credit trading program to allow manufacturers whose annual covered inventory exceeds the light-duty vehicle requirements to earn credits to be sold to manufacturers that are unable to achieve such requirements.
Revises requirements concerning agency procurement of liquid transportation fuel, alternative or synthetic fuel, and energy efficient products.
Amends the Energy Policy Act of 2005 to replace the incentive program for the production of cellulosic biofuels with one for the production of renewable fuels.
Amends the Energy Conservation and Production Act to require the Secretary of Energy (DOE) to: (1) update national model building energy codes at least every three years, and (2) establish targets for overall energy savings in buildings and minimum building efficiency standards. Establishes in DOE a Homes and Buildings Energy Retrofits Program that has an annual target energy efficiency retrofit rate of 5% for homes and 2% for commercial buildings.
Amends the Farm Security and Rural Investment Act of 2002 to direct the Secretary of Agriculture to make loans to eligible entities (defined as public power districts, public utility districts, or specified electric cooperatives that borrowed and repaid, prepaid, or are paying an electric loan made or guaranteed by the Rural Utilities Service) for making loans to consumers for implementing energy efficient measures.
Amends the National Energy Conservation Policy Act to direct federal agencies to ensure that new federal buildings are designed to enhance energy efficiency.
Amends the Energy Independence and Security Act of 2007 to: (1) prohibit agencies from entering into or renewing a lease of a commercial building unless there is clearly and publicly available information concerning the actual energy consumption of the building for each of the five most recent years, and (2) require each energy manager to implement energy- or water-saving measures that are life cycle cost-effective.
Sets forth provisions concerning reducing the inventory of federal civilian real property.
Amends the Energy Policy and Conservation Act to: (1) require the Secretary of Energy to carry out a grant program to pay the federal share of creating a revolving loan program for manufacturers to implement commercially available technologies or processes that significantly reduce system energy intensity; (2) include computer monitors and displays, personal computers, and cable, satellite, and fiber optic service set-top boxes as covered products under the energy conservation program for consumer products other than automobiles; and (3) require the Secretary to establish an energy conservation standard for each type or class of covered industrial equipment if certain conditions are met.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1321 Introduced in Senate (IS)]
112th CONGRESS
1st Session
S. 1321
To establish energy policies to make measurable gains in reducing
dependence on foreign oil, saving Americans money, increasing United
States competitiveness, improving energy security, improving
environmental stewardship, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 30, 2011
Mr. Lugar introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To establish energy policies to make measurable gains in reducing
dependence on foreign oil, saving Americans money, increasing United
States competitiveness, improving energy security, improving
environmental stewardship, and for other purposes.
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 ``Practical Energy
Plan Act of 2011''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--REDUCING FOREIGN OIL DEPENDENCE
Subtitle A--Expanded Domestic Oil Production
Sec. 101. Oil production through carbon dioxide sequestration.
Sec. 102. Restoring Gulf of Mexico oil production.
Sec. 103. Safety assessments.
Sec. 104. Restoring oil and gas lease sales.
Sec. 105. Equal treatment of permits in Alaska.
Sec. 106. Offshore resource review and seismic surveys.
Subtitle B--Vehicle Efficiency
Sec. 111. Fuel efficiency planning.
Subtitle C--Fuel Choice
Sec. 121. Competitive production incentives for advanced renewable
fuels.
Sec. 122. Fuel options through the availability of dual fueled vehicles
and light duty trucks.
Subtitle D--Federal Fleets
Sec. 131. Department of Defense alternative fuels contracting.
Sec. 132. Fuels for national security agencies.
Sec. 133. Savings from transportation energy performance contracts.
TITLE II--ENERGY EFFICIENCY
Subtitle A--Energy Performance in Buildings
Sec. 201. Saving energy in new buildings.
Sec. 202. Enabling homes and buildings energy retrofits.
Sec. 203. Rural energy savings.
Subtitle B--Federal Properties
Sec. 211. Energy efficient Federal buildings.
Sec. 212. Accelerating energy savings performance contracts.
Sec. 213. Sense of Congress on inclusion of energy efficiency as
selection criteria for base closure and
realignment decisions.
Sec. 214. Federal property realignment and savings.
Subtitle C--Industrial and Power Generation Energy Efficiency
Sec. 221. State partnership industrial energy efficiency revolving loan
program.
Sec. 222. Study of new source review to encourage energy efficiency.
Subtitle D--Procurement, Equipment, and Appliance Efficiency
Sec. 231. Appliance and equipment efficiency.
Sec. 232. Federal procurement and usage of energy efficient products.
TITLE III--MEASUREMENT AND REVIEW
Sec. 301. Measurement and review.
TITLE I--REDUCING FOREIGN OIL DEPENDENCE
Subtitle A--Expanded Domestic Oil Production
SEC. 101. OIL PRODUCTION THROUGH CARBON DIOXIDE SEQUESTRATION.
(a) Pioneer Projects.--
(1) Investment tax credit.--
(A) In general.--Subpart E of part IV of subchapter
A of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after section 48D the following
new section:
``SEC. 48E. PIONEER PROJECT INVESTMENT CREDIT.
``(a) In General.--For purposes of section 46, the pioneer project
investment credit for any taxable year is an amount equal to 70 percent
of the qualified investment for such taxable year with respect to any
qualifying pioneer project.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is basis of eligible
property placed in service by the taxpayer during such taxable
year which is part of a qualifying pioneer project--
``(A)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer, and
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable.
``(2) Special rule for certain subsidized property.--Rules
similar to section 48(a)(4) (without regard to subparagraph (D)
thereof) shall apply for purposes of this section.
``(3) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(c) Definitions.--For purposes of this section--
``(1) Qualifying pioneer project.--The term `qualifying
pioneer project' means a project--
``(A) which captures carbon dioxide which is--
``(i) emitted in connection with--
``(I) power generation, or
``(II) industrial production,
``(ii) subject to an eligible enhanced oil
recovery contract, and
``(iii) delivered for use in a qualified
enhanced oil recovery project (as defined in
section 43(c)(2)) by means of a qualified
carbon dioxide trunkline,
``(B) with respect to which carbon dioxide has not
been delivered for reuse, geological sequestration, or
enhanced oil recovery at any time before carbon dioxide
is delivered for use in a qualified enhanced oil
recovery project pursuant to the eligible enhanced oil
recovery contract, and
``(C) which is certified by the Secretary under
subsection (d).
``(2) Eligible enhanced oil recovery contract.--The term
`eligible enhanced oil recovery contract' means a contract--
``(A) which requires the delivery of carbon dioxide
which is--
``(i) to be used in connection with a
qualified enhanced oil recovery project (as so
defined), and
``(ii) to be disposed of in secure
geological storage (within the meaning of
section 45Q),
``(B) which specifies such delivery over a period
of not less than 10 years, and
``(C) under which the first such delivery occurs
after the date of the enactment of this section.
``(3) Qualified carbon dioxide trunkline.--The term
`qualified carbon dioxide trunkline' means a pipeline--
``(A) which is for the transportation of carbon
dioxide for use in qualified enhanced oil recovery
projects (as so defined),
``(B) which has a free flow capacity of not less
than 7,500,000 metric tons per year,
``(C) which extends not less than 300 miles, and
``(D) the construction of which is started after
the date of the enactment of this section.
``(4) Eligible property.--The term `eligible property'
means any property which is a part of a qualifying pioneer
project and--
``(A) in the case of any qualifying pioneer project
with respect to which the isolation and capture of
carbon dioxide is integral to the primary function of
the project (as determined by the Secretary in
consultation with the Secretary of Energy), which--
``(i) is necessary for the additional
compression of carbon dioxide, and
``(ii) would not be used in connection with
such project if such project were not designed
to compress carbon dioxide, and
``(B) in any other case, which--
``(i) is necessary for the isolation and
capture of carbon dioxide, and
``(ii) would not be used in connection with
such project if such project were not designed
to capture carbon dioxide.
``(d) Certification.--
``(1) In general.--Subject to the limitations under
paragraph (2), the Secretary, in consultation with the
Secretary of Energy, shall certify a project as a qualifying
pioneer project if the Secretary determines that such project
meets the requirements of subsection (c)(1)(A). Projects shall
be certified in the order in which requests for certification
are received by the Secretary.
``(2) Limitations.--
``(A) In general.--The aggregate amount of carbon
dioxide required to be delivered under eligible
enhanced oil recovery contracts for all qualifying
pioneer projects certified by the Secretary shall not
exceed 25,000,000 metric tons in any year.
``(B) Industrial production sources.--The aggregate
amount of carbon dioxide required to be delivered under
eligible enhanced oil recovery contracts for all
qualifying pioneer projects certified by the Secretary
with respect to sources described in subsection
(c)(1)(A)(i)(II) shall not exceed 12,500,000 metric
tons in any year.
``(C) Trunkline capacity.--The Secretary shall not
certify as a qualifying pioneer project any project if
the sum of--
``(i) the amount of carbon dioxide required
to be delivered under the eligible enhanced oil
recovery contract with respect to such project
in any year, plus
``(ii) the amount carbon dioxide required
to be delivered in such year under all other
qualifying pioneer projects previously
certified by the Secretary and using the same
qualified carbon dioxide trunkline as such
project,
exceeds 60 percent of the greater of the free flow or
operational capacity of such qualified carbon dioxide
trunkline.
``(3) Coordination with deployment project credit.--The
Secretary shall not certify any project under this subsection
if such project has been certified under section 45T.
``(e) Other Rules.--
``(1) Transfer of credit.--
``(A) In general.--A taxpayer who makes a qualified
investment may transfer the credit allowed under this
section with respect a qualifying pioneer project
through an assignment to any party to the eligible
enhanced oil recovery contract in connection with such
qualifying pioneer project. Such transfer may be
revoked only with the consent of the Secretary.
``(B) Regulations.--The Secretary shall prescribe
such regulations as necessary to ensure that any credit
transferred under subparagraph (A) is claimed once and
not reassigned by such other person.
``(2) Recapture.--The Secretary shall provide for
recapturing the benefit of any credit allowable under
subsection (a) with respect to any project which ceases to be a
qualifying pioneer project.''.
(B) Inclusion as part of investment credit.--
Section 46 of such Code is amended--
(i) by striking ``and'' at the end of
paragraph (5),
(ii) by striking the period at the end of
paragraph (6) and inserting ``, and'', and
(iii) by adding at the end the following
new paragraph:
``(7) the pioneer project investment credit.''.
(C) Conforming amendments.--Section 49(a)(1)(C) of
such Code is amended--
(i) by striking ``and'' at the end of
clause (v),
(ii) by striking the period at the end of
clause (vi) and inserting ``, and'', and
(iii) by adding at the end the following
new clause:
``(vii) the basis of any property which is
part of a qualifying pioneer project under such
section 48E.''.
(D) Clerical amendment.--The table of sections for
subpart E of part IV of subchapter A of chapter 1 of
such Code is amended by inserting after the item
relating to section 48D the following new item:
``Sec. 48E. Pioneer project investment credit.''.
(E) Effective date.--The amendments made by this
paragraph shall apply to periods beginning after the
date of the enactment of this Act, under rules similar
to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of
1990).
(2) Production tax credit.--
(A) In general.--Subpart D of part IV of subchapter
A of chapter 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new section:
``SEC. 45S. PIONEER PROJECT CARBON DIOXIDE PRODUCTION CREDIT.
``(a) General Rule.--For purposes of section 38, the pioneer
project production credit for any taxable year is an amount equal to
the sum of the quarterly carbon dioxide production credits of the
taxpayer for such taxable year.
``(b) Quarterly Carbon Dioxide Production Credit.--For purposes of
this section--
``(1) In general.--The quarterly carbon dioxide production
credit of a taxpayer for the portion of any calendar quarter
within the taxable year of the taxpayer is equal to the product
of--
``(A) the credit amount with respect to such
calendar quarter, and
``(B) the number of metric tons of carbon dioxide
which is--
``(i) captured by the taxpayer at
qualifying pioneer projects during the portion
of the calendar quarter which is within such
taxpayer's taxable year, and
``(ii) subject to an eligible enhanced oil
recovery contract.
``(2) Credit amount.--
``(A) In general.--The credit amount with respect
to any calendar quarter is $30 reduced (but not below
zero) by the amount (if any) determined under
subparagraph (B).
``(B) Amount of reduction.--The amount determined
under this paragraph is the amount equal to 50 percent
of the excess of--
``(i) the average price per barrel of West
Texas Intermediate crude oil for the preceding
calendar quarter, over
``(ii) $80.
``(3) Limitation.--No amount of carbon dioxide shall taken
into account under paragraph (1)(B) with respect to a
qualifying pioneer project after the date which is 10 years
after the date on which such qualifying pioneer project begins
delivery of carbon dioxide for enhanced oil recovery but not
less than 1 year after the project is placed in service.
``(c) Definitions and Other Rules.--For purposes of this section--
``(1) Qualifying pioneer project; eligible enhanced oil
recovery contract.--The terms `qualifying pioneer project' and
`eligible enhanced oil recovery contract' have the meanings
given such terms in section 48E.
``(2) Transfer of credit.--
``(A) In general.--A taxpayer may transfer the
credit allowed under this section with respect a
qualifying pioneer project through an assignment to any
party to the eligible enhanced oil recovery contract
with respect to such qualifying pioneer project. Such
transfer may be revoked only with the consent of the
Secretary.
``(B) Regulations.--The Secretary shall prescribe
such regulations as necessary to ensure that any credit
transferred under subparagraph (A) is claimed once and
not reassigned by such other person.
``(3) Recapture.--The Secretary shall provide for
recapturing the benefit of any credit allowable under
subsection (a) with respect to any project which ceases to be a
qualifying pioneer project.
``(4) Election not to claim credit.--This section shall not
apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable year.''.
(B) Credit to be part of general business credit.--
Subsection (b) of section 38 of such Code is amended by
striking ``plus'' at the end of paragraph (35), by
striking the period at the end of paragraph (36) and
inserting ``, plus'', and by adding at the end the
following new paragraph:
``(37) the pioneer project production credit determined
under section 45S(a).''.
(C) Coordination with section 45q.--Subsection (d)
of section 45Q of such Code is amended by adding at the
end the following new paragraph:
``(8) No double benefit.--No credit shall be allowed under
this section for the capture of any carbon dioxide with respect
to which a credit is allowed under section 45S.''.
(D) Conforming amendments.--
(i) The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such
Code is amended by inserting after the item
relating to section 45R the following new item:
``Sec. 45S. Pioneer project carbon dioxide production credit.''.
(ii) Section 6501(m) of such Code is
amended by inserting ``45S(c)(4),'' after
``45H(g),''.
(E) Effective date.--The amendments made by this
paragraph shall apply to taxable years beginning after
the date of the enactment of this Act.
(b) Deployment Projects.--
(1) Production tax credit.--
(A) In general.--Subpart D of part IV of subchapter
A of chapter 1 of the Internal Revenue Code of 1986, as
amended by subsection (a)(2), is amended by adding at
the end the following new section:
``SEC. 45T. DEPLOYMENT PROJECT CARBON DIOXIDE PRODUCTION CREDIT.
``(a) General Rule.--For purposes of section 38, the deployment
project production credit for any taxable year is an amount equal to
the product of--
``(1) the applicable dollar amount, and
``(2) the number of metric tons of carbon dioxide which
is--
``(A) captured by the taxpayer at qualifying
deployment projects during the 10-year period beginning
on the date the project begins delivery of carbon
dioxide but not later then 1 year following the date
the project is certified under subsection (d), and
``(B) delivered by the taxpayer under an eligible
enhanced oil recovery contract during the taxable year.
``(b) Applicable Dollar Amount.--For purposes of this section--
``(1) In general.--The applicable dollar amount is the
lesser of--
``(A) the source cap dollar amount, or
``(B) the amount bid by the taxpayer in the
application submitted under subsection (d)(2).
``(2) Source cap dollar amount.--For purposes of paragraph
(1), the source cap dollar amount is--
``(A) $70, in the case of a qualifying deployment
project which captures carbon dioxide emitted in
connection with power generation,
``(B) $25, in the case of a qualifying deployment
project--
``(i) which captures carbon dioxide emitted
in connection with industrial production, and
``(ii) with respect to which the isolation
and capture of the carbon dioxide is integral
to the primary function of the project, and
``(C) $35, in the case of any other qualifying
deployment project which captures carbon dioxide
emitted in connection with industrial production.
``(c) Definitions.--For purposes of this section--
``(1) Qualifying deployment project.--The term `qualifying
deployment project' means a project--
``(A) which captures carbon dioxide which is--
``(i) emitted in connection with--
``(I) power generation, or
``(II) industrial production, and
``(ii) subject to an eligible enhanced oil
recovery contract,
``(B) with respect to which carbon dioxide has not
been delivered for reuse, geological sequestration, or
enhanced oil recovery at any time before carbon dioxide
is delivered for use in a qualified enhanced oil
recovery project pursuant to the eligible enhanced oil
recovery contract, and
``(C) which is certified by the Secretary under
subsection (d).
``(2) Eligible enhanced oil recovery contract.--The term
`eligible enhanced oil recovery contract' has the meaning given
such term under section 48E.
``(d) Qualifying Deployment Project Program.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this section, the Secretary, in
consultation with the Secretary of Energy, shall establish a
qualifying deployment project program for the certification of
qualifying deployment projects.
``(2) Certification.--
``(A) In general.--Each year, the Secretary shall
select projects for certification from among the
applications submitted for such year. No projects may
be certified in any calendar year after the 15th
calendar year in which certifications have been made
under the program.
``(B) Annual limitation on certifications.--
``(i) In general.--The aggregate amount of
carbon dioxide required to be delivered under
eligible enhanced oil recovery contracts for
all qualifying deployment projects certified by
the Secretary for any calendar year shall not
exceed 15,000,000 metric tons per year.
``(ii) Carryover of unused limitation.--If
the limitation under clause (i) exceeds the
aggregate amount of carbon dioxide required to
be delivered under eligible enhanced oil
recovery contracts for all qualifying
deployment projects certified by the Secretary
in any year, the limitation under clause (i)
for the succeeding year shall be increased by
the amount of such excess.
``(C) Requirements for applications for
certification.--An application submitted under
subparagraph (A) shall contain--
``(i) the applicable dollar amount which
the taxpayer bids for the project, and
``(ii) such other information as the
Secretary may require in order to make a
determination to accept or reject an
application for certification.
Any information contained in the application shall be
protected as provided in section 552(b)(4) of title 5,
United States Code.
``(D) Certification criteria.--The Secretary shall
certify those projects that are determined by bid to
provide the largest delivery of carbon dioxide for each
dollar of credit expected to be allowed under
subsection (a) in connection with such project.
``(E) Coordination with pioneer project credit.--
The Secretary shall not certify any project under this
subsection if such project has been certified under
section 48E.
``(3) Suspension.--The Secretary shall not certify any
project under this subsection during the 1-year period after
which an affirmative determination is made under section
105(b)(2)(B)(ii) of the Practical Energy Plan Act of 2011.
``(e) Other Rules.--
``(1) Transfer of credit.--
``(A) In general.--A taxpayer who makes a qualified
investment may transfer the credit allowed under this
section with respect a qualifying deployment project
through an assignment to any party to the eligible
enhanced oil recovery contract with respect to such
qualifying deployment project. Such transfer may be
revoked only with the consent of the Secretary.
``(B) Regulations.--The Secretary shall prescribe
such regulations as necessary to ensure that any credit
transferred under subparagraph (A) is claimed once and
not reassigned by such other person.
``(2) Recapture.--The Secretary shall provide for
recapturing the benefit of any credit allowable under
subsection (a) with respect to any project which ceases to be a
qualifying deployment project.
``(3) Election not to claim credit.--This section shall not
apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable year.''.
(B) Credit to be part of general business credit.--
Subsection (b) of section 38 of such Code, as amended
by subsection (a)(2), is amended by striking ``plus''
at the end of paragraph (36), by striking the period at
the end of paragraph (37) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(38) the deployment project production credit determined
under section 45T(a).''.
(C) Coordination with section 45q.--Paragraph (8)
of section 45Q(d) of such Code, as added by subsection
(a)(2), is amended by inserting ``or 45T'' after
``45S''.
(D) Conforming amendments.--
(i) The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such
Code, as amended by subsection (a)(2) is
amended by inserting after the item relating to
section 45S the following new item:
``Sec. 45T. Deployment project carbon dioxide production credit.''.
(ii) Section 6501(m) of such Code is
amended by inserting ``45T(e)(3),'' after
``45S(c)(4),''.
(E) Effective date.--The amendments made by this
paragraph shall apply to taxable years beginning after
the date of the enactment of this Act.
(F) Secretarial review of source cap dollar
amounts.--
(i) In general.--Each year, the Secretary
shall review the source cap dollar amounts
under section 45T(b)(2) to determine whether
such amounts are appropriate given the
technological advancement.
(ii) Report.--If the Secretary determines
that such source cap dollar amount should be
adjusted, the Secretary shall submit to
Congress a report detailing recommended
modifications to such dollar amounts.
(2) Revenue generating fail-safe.--
(A) Projections.--Beginning on the date that is 4
years after the date of the enactment of this Act, and
on an annual basis thereafter, the Secretary of the
Treasury (or the Secretary's delegate), in consultation
with the Securities and Exchange Commission and the
Secretary of Energy, shall--
(i) project the present value of--
(I) the expected increase in
Federal revenues (from income taxes,
royalties, and other sources)
attributable to increases in oil
production from enhanced oil recovery
methods using carbon dioxide from
qualifying pioneer projects (as defined
in section 48E of the Internal Revenue
Code) and qualifying deployment
projects (as defined in section 45T of
such Code), and
(II) the revenue costs associated
with the credits allowed under sections
45S, 45T, and 48E of such Code, and
(ii) project--
(I) the average well head price for
oil produced in the contiguous 48
States for the 11-year period beginning
with the year in which such projection
is made, and
(II) the cost of oil recovery
methods used in qualified enhanced oil
recovery projects (as defined in
section 43(c)(2) of the Internal
Revenue Code of 1986), as compared to
conventional oil recovery methods.
(B) Determination of unsustainable revenue.--
(i) In general.--Using the projections
under subparagraph (A), the Secretary (or the
Secretary's delegate) shall determine whether
Federal revenues generated by qualified
enhanced oil recovery projects (as so defined)
eligible for benefits under the amendments made
by this section are insufficient to sustain the
cost of such benefits.
(ii) Affirmative determination.--The
Secretary shall make an affirmative
determination under this subparagraph if the
Secretary finds that--
(I) the projected revenue costs
determined under subparagraph
(A)(i)(II) exceed the projected revenue
increases determined under subparagraph
(A)(i)(I), or
(II) the methods used to recover
oil through qualified enhanced oil
recovery projects (as so defined) will
not be cost-effective due to the
projected well head price for oil under
subparagraph (A)(ii)(II).
(iii) Special rule.--If the Secretary makes
an affirmative determination under this
subparagraph with respect to any year, the
Secretary shall not make a determination under
this subparagraph for the immediately
succeeding taxable year.
(C) Suspension of deployment credit and report to
congress.--If the Secretary makes an affirmative
determination under subparagraph (B)--
(i) no certifications may be made with
respect to the deployment project investment
credit under section 45T of the Internal
Revenue Code of 1986 for the 1-year period
following the date of such determination, and
(ii) the Secretary (or the Secretary's
delegate) shall submit to Congress a report
detailing the findings and projections that led
to such determination.
(c) Loan Guarantees for Carbon Dioxide Trunklines.--Section 1703(b)
of the Energy Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by
adding at the end the following new paragraph:
``(11) Qualified carbon dioxide trunklines (as defined in
section 48E(c)(3) of the Internal Revenue Code of 1986).''.
SEC. 102. RESTORING GULF OF MEXICO OIL PRODUCTION.
(a) Definition of Covered Application.--In this section, the term
``covered application'' means an application for a permit to drill
under an oil and gas lease under the Outer Continental Shelf Lands Act
(43 U.S.C. 1331 et seq.) in effect on the date of enactment of this
Act, that--
(1) represents a resubmission of an approved permit to
drill (including an application for a permit to sidetrack) that
was approved by the Secretary before May 27, 2010; and
(2) is received by the Secretary after October 12, 2010,
and before the end of the 15-day period beginning on the date
of enactment of this Act.
(b) Schedule Required.--Not later than 30 days after the date of
enactment of this Act, the Secretary of the Interior shall submit to
the Committee on Energy and Natural Resources of the Senate and the
Committee on Natural Resources of the House of Representatives a
schedule that provides that--
(1) not later than 75 days after the date of enactment of
this Act, final decisions shall be issued with respect to not
less than \1/2\ of the covered applications; and
(2) not later than 135 days after the date of enactment of
this Act, final decisions shall be issued with respect to all
of the covered applications.
(c) Directed Suspension.--A lease under which a covered application
is submitted to the Secretary of the Interior shall be considered to be
in directed suspension during the period beginning May 27, 2010, and
ending on the date on which the Secretary issues a final decision on
the application, if the Secretary does not issue a final decision on
the application before the end of the 120-day period beginning on the
date of enactment of this Act, in the case of a covered application
submitted before the date of enactment of this Act or before the end of
the 15-day period beginning on the date of enactment of this Act.
SEC. 103. SAFETY ASSESSMENTS.
(a) Report to Congress.--
(1) Definition of covered permit.--In this subsection, the
term ``covered permit'' means--
(A) each of the first 10 drilling permits for
leases on the Atlantic coast issued after the date of
enactment of this Act;
(B) each of the first 10 drilling permits for
leases on the Pacific coast issued after the enactment
of this Act;
(C) each of the first 10 drilling permits for
leases on the Arctic coast issued after the enactment
of this Act; and
(D) a permit to drill in a new area off the coast
of a State as requested by the governor of the State or
the Governor of a State with contiguous waters.
(2) Safety assessment.--At least 30 days before the
issuance of a covered permit, the Secretary shall submit to the
Committee on Energy and Natural Resources of the Senate and the
Committee on Natural Resources of the House a Representatives a
report that includes an assessment of--
(A) critical safety system preparedness, including
blowout prevention; and
(B) oil spill response and containment
preparedness.
(b) Spill Response Assessment.--Section 11(c) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1340(c)) is amended by adding at
the end the following:
``(5) Spill response assessment.--
``(A) In general.--The Secretary shall require that
each exploration plan submitted after the date of
enactment of the Practical Energy Plan Act of 2011
include a third-party reviewed response plan that
describes the means and timeline for containment and
termination of an ongoing discharge of oil (other than
a de minimis discharge, as determined by the Secretary)
at the depth at which the exploration, development, or
production authorized under the exploration plan is to
take place.
``(B) Technological feasibility.--Before
determining whether to approve an exploration plan that
includes a response plan under subparagraph (A), the
Secretary shall certify the technological feasibility
of the methods proposed to be used under the response
plan, as demonstrated by the lessee through simulation,
demonstration, or other means.''.
SEC. 104. RESTORING OIL AND GAS LEASE SALES.
(a) Definitions.--In this section:
(1) Environment impact statement for the 2007-2012 5-year
ocs plan.--The term ``Environmental Impact Statement for the
2007-2012 5-Year OCS Plan'' means the Final Environmental
Impact Statement for the Outer Continental Shelf Oil and Gas
Leasing Program: 2007-2012 prepared by the Secretary and dated
April 2007.
(2) Multi-sale environmental impact statement.--The term
``Multi-Sale Environmental Impact Statement'' means the
Environmental Impact Statement for Proposed OCS Oil and Gas
Lease Sales 193, 204, 205, 206, 207, 208, 209, 210, 212, 213,
215, 216, and 222 prepared by the Secretary and dated September
2008.
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Requirement To Conduct Certain Proposed Oil and Gas Lease
Sales.--
(1) In general.--As soon as practicable, but not later than
1 year, after the date of enactment of this Act, in accordance
with section 8 of the Outer Continental Shelf Lands Act (43
U.S.C. 1337), the Secretary shall conduct--
(A) offshore oil and gas lease sale 216;
(B) offshore oil and gas lease sale 218;
(C) offshore oil and gas lease sale 220; and
(D) offshore oil and gas lease sale 222.
(2) Prohibition on conflicts with military operations.--The
Secretary shall not make any tract available for leasing under
paragraph (1)(C) if the President, acting through the Secretary
of Defense, determines that drilling activity on the tract
would create an unreasonable conflict with military operations.
(3) Environmental review.--For the purposes of each of the
lease sales authorized under subparagraphs (A), (B), and (D) of
paragraph (1), the Environmental Impact Statement for the 2007-
2012 5-Year OCS Plan and the Multi-Sale Environmental Impact
Statement shall be considered to satisfy the requirements of
the National Environmental Policy Act of 1969 (42 U.S.C. 4321
et seq.).
SEC. 105. EQUAL TREATMENT OF PERMITS IN ALASKA.
Section 328 of the Clean Air Act (42 U.S.C. 7627) is amended--
(1) in subsection (a)(1)--
(A) in the first sentence, by inserting before the
period at the end the following: ``, provided that any
air pollution requirements established for Arctic outer
Continental Shelf sources shall only apply to impacts
located onshore as of the date of enactment of the
Practical Energy Plan Act of 2011''; and
(B) in the fourth sentence, by inserting ``and this
Act'' before the period at the end; and
(2) in the first sentence of subsection (b)--
(A) by striking ``Gulf Coast''; and
(B) by inserting ``Alaska,'' before `` and
Alabama''.
SEC. 106. OFFSHORE RESOURCE REVIEW AND SEISMIC SURVEYS.
(a) Chukchi Sea and Beaufort Sea.--Not later than 180 days after
the date of enactment of this Act, the Secretary of the Interior shall
submit to the Committee on Energy and Natural Resources of the Senate
and the Committee on Natural Resources of the House of Representatives
the results of a study of oil and natural gas resources in the Chukchi
Sea and Beaufort Sea that includes--
(1) resource assessments;
(2) an assessment of preparedness for accident response;
(3) targets for expanding oil and natural gas production
over the 5-, 10-, 15-, and 20-year periods beginning on the
termination date of leases in effect on the date of enactment
of this Act; and
(4) a schedule for new lease sales required to meet
production targets.
(b) State Subdivision of Outer Continental Shelf Planning Area.--At
the request of a Governor of a State, the Secretary shall conduct, and
submit to the State the results of, a study of any State subdivision of
an outer Continental Shelf planning area that includes--
(1) resource assessments;
(2) an assessment of preparedness for accident response;
(3) targets for expanding oil and natural gas production
over 10-, 15-, and 20-year periods; and
(4) a nonbinding schedule for new lease sales required to
meet production targets.
(c) Seismic Surveys.--Section 18 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1344) is amended by adding at the end the
following:
``(i) Seismic Surveys.--
``(1) In general.--Not later than 360 days after the date
of enactment of this subsection, the Secretary shall issue
regulations providing for--
``(A) issuance by the Secretary of seismic
surveying cost credits for the provision of data from
seismic surveying of the outer Continental Shelf; and
``(B) use of the credits by a person to whom the
cost credits were issued under subparagraph (A) or
transferred under paragraph (4), for payment of bonus
bids owed by the person for oil and gas lease sales
under this section in the planning area in which the
seismic survey was conducted.
``(2) Issuance.--The regulations issued under paragraph (1)
shall provide for the issuance of credits on the date of the
submission to the Secretary of the data produced by seismic
surveying authorized under section 11 of any area for which the
most recent seismic data held by the Secretary at the time of
the survey is at least 10 years old.
``(3) Value.--The value of the cost credits issued under
paragraph (1)(A) shall be equal to 50 percent of the costs
incurred in conducting seismic surveying to produce the data
for which the credits are issued.
``(4) Transfer.--A person to whom a credit is issued by the
Secretary--
``(A) may transfer the credit once; and
``(B) shall notify the Secretary of the transfer
under subparagraph (A).
``(5) Expiration.--A seismic surveying cost credit shall
expire 10 years after the date of submission of the date for
which the credit is issued.''.
Subtitle B--Vehicle Efficiency
SEC. 111. FUEL EFFICIENCY PLANNING.
(a) Standards for Light Vehicles.--Section 32902 of title 49,
United States Code, is amended--
(1) in subsection (a), by inserting ``, reflecting at least
a 4 percent annual increase beginning in model year 2017
(rounded to the nearest \1/10\ mile per gallon)'' before the
period at the end;
(2) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) in the subparagraph heading, by
striking ``2020'' and inserting
``2016'';
(II) by striking ``2020'' and
inserting ``2016''; and
(III) by striking ``35'' and
inserting ``34.1'';
(ii) in subparagraph (B)--
(I) in the subparagraph heading, by
striking ``2021'' and insert ``2017'';
(II) by striking ``2021'' and
inserting ``2017''; and
(III) by inserting ``, reflecting
at least a 4 percent annual increase
for each model year'' before the period
at the end; and
(iii) in subparagraph (C)--
(I) by striking ``subparagraph
(A)'' and inserting ``subparagraphs (A)
and (B)'';
(II) by striking ``and ending with
model year 2020''; and
(III) by adding at the end the
following: ``The projected aggregate
level of average fuel economy for model
year 2017 and each succeeding model
year shall reflect at least a 4 percent
increase from the level for the prior
model year (rounded to the nearest \1/
10\ mile per gallon).''; and
(B) by adding at the end the following:
``(5) Unified regulatory requirements.--Regulations under
this subsection and amendments to regulations under subsection
(c) shall, to the maximum extent practicable, be promulgated
(including through joint rulemaking), coordinated, and
implemented in conjunction with pollutant regulations
promulgated by the the Administrator of the Environmental
Protection Agency.'';
(3) in subsection (c)--
(A) by inserting ``(1)'' before ``The Secretary'';
(B) by striking ``that model year.'' and inserting
the following: ``model year, including to a level lower
than a 4 percent annual increase if the Secretary
determines the standards prescribed under subsection
(b) for each model year--
``(A) are technologically unachievable;
``(B) cannot be achieved without materially reducing the
overall safety of automobiles manufactured or sold in the
United States; or
``(C) is shown, by clear and convincing evidence, not to be
cost effective.
``(2) If a standard reflecting a level lower than a 4 percent
annual increase is prescribed for a model year under subsection (b),
such standard shall be the maximum standard that--
``(A) is technologically achievable;
``(B) can be achieved without materially reducing the
overall safety of automobiles manufactured or sold in the
United States; and
``(C) is cost effective.'';
(C) by striking ``Section 553'' and inserting the
following:
``(3) Section 553''; and
(D) by adding at the end the following:
``(4) Not later than 90 days before issuing an amended standard
that would lower the fuel economy standards below the level prescribed
under subsection (b), the Secretary shall--
``(A) provide written notification to the Committee on
Energy and Commerce of the House of Representatives, the
Committee on Commerce, Science, and Transportation of the
Senate, and the Committee on Energy and Natural Resources of
the Senate, regarding the amendments made to the fuel economy
standards prescribed in subsection (b); and
``(B) make publicly available non-proprietary documentation
regarding the amendment decision''; and
(4) in subsection (f)--
(A) by striking ``When deciding'' and inserting
``(1) In determining'';
(B) by inserting ``cost-benefit considerations,''
after ``economic practicability,''; and
(C) by adding at the end the following:
``(2) In conducting a cost-benefit analysis under paragraph (1),
the Secretary of Transportation (in consultation with the Secretary of
Energy, the Secretary of State, and the Secretary of Defense) shall
take into account the total value to the United States of reduced
petroleum use, including the value of reducing external costs of
petroleum use, using a value for such costs equal to 50 percent of the
value of a gallon of gasoline saved or the amount determined in an
analysis of the external costs of petroleum use that considers--
``(A) value to consumers;
``(B) economic security;
``(C) national security;
``(D) foreign policy;
``(E) the impact of oil use on--
``(i) sustained cartel rents paid to foreign
suppliers;
``(ii) long-run potential gross domestic product
due to higher normal-market oil price levels, including
inflationary impacts;
``(iii) import costs, wealth transfers, and
potential gross domestic product due to increased trade
imbalances;
``(iv) import costs and wealth transfers during oil
shocks;
``(v) macroeconomic dislocation and adjustment
costs during oil shocks;
``(vi) the cost of existing energy security
policies, including the management of the Strategic
Petroleum Reserve;
``(vii) the timing and severity of the oil peaking
problem;
``(viii) the risk, probability, size, and duration
of oil supply disruptions;
``(ix) OPEC strategic behavior and long-run oil
pricing;
``(x) the short term elasticity of energy demand
and the magnitude of price increases resulting from a
supply shock;
``(xi) oil imports, military costs, and related
security costs, including intelligence, homeland
security, sea lane security and infrastructure, and
other military activities;
``(xii) oil imports, diplomatic and foreign policy
flexibility, and connections to geopolitical strife,
terrorism, and international development activities;
and
``(xiii) the cost of pollutants;
``(F) the impact of the oil or energy intensity of the
United States economy on the sensitivity of the economy to oil
price changes, including the magnitude of gross domestic
product losses in response to short-term price shocks or long-
term price increases;
``(G) the impact of United States payments for oil imports
on political, economic, and military developments in unstable
or unfriendly oil exporting countries;
``(H) the uninternalized costs of pipeline and storage oil
seepage, and for risk of oil spills from production, handling,
transport, and related landscape damage; and
``(I) additional relevant factors, as determined by the
Secretary in consultation with the Secretary of Energy, the
Administrator of the Environmental Protection Agency, the
Secretary of State, the Secretary of Defense, the Secretary of
Homeland Security, and the Director of National Intelligence.
``(3) In considering the value to consumers of a gallon of gasoline
saved, the Secretary of Transportation may not use a value that is less
than the greatest of--
``(A) the average national cost of a gallon of gasoline
sold in the United States during the 12-month period ending on
the date on which the new fuel economy standard is proposed;
``(B) the most recent weekly estimate by the Energy
Information Administration of the Department of Energy of the
average national cost of a gallon of gasoline (all grades) sold
in the United States; or
``(C) the gasoline prices projected by the Energy
Information Administration for the 20-year period beginning in
the year following the year in which the standards are
established.''.
(b) Standards for Medium- and Heavy-Duty Vehicles.--Section
32902(k) of title 49, United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (C), by striking ``and'' at the
end;
(B) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(E) greatest achievable fuel efficiency
improvement targets for rules pertaining to commercial
medium- and heavy-duty vehicles and work trucks, taking
into consideration the national security and economic
benefits of reduced petroleum consumption and relevant
factors in the manufacture and work accomplished of
such vehicles.'';
(2) in paragraph (2)--
(A) by striking ``Not later'' and inserting the
following:
``(A) Implementation.--Not later'';
(B) by striking ``fuel economy standards'' and
inserting ``fuel efficiency standards (taking into
consideration the national security and economic
benefits of reduced petroleum consumption)'';
(C) by striking ``The Secretary may'' and inserting
the following:
``(B) Separate standards.--The Secretary may'';
(D) in subparagraph (B), as designated by
subparagraph (C) of this paragraph, by adding at the
end the following: ``Recognizing the differentiated
level of technological development and data available
between classes, as identified by the National
Academies of Science report `Technologies and
Approaches to Reducing the Fuel Consumption of Medium-
and Heavy-Duty Vehicles,' the Secretary may implement
regulations for certain vehicle classes and vehicle
components authorized under this subsection, as
designated by the Secretary, on an accelerated
basis.''; and
(E) by adding at the end the following:
``(C) Applicability; adjustments.--Standards issued
under this subsection--
``(i) may apply to--
``(I) vehicle components;
``(II) whole vehicles based on 1 or
more attributes; or
``(III) any combination of (I) and
(II);
``(ii) shall, subject to paragraph (3)--
``(I) be implemented for vehicles
manufactured for sale in the United
States during or before model year
2017; and
``(II) allow for fuel efficiency
regulation of vehicle components or
whole vehicles before such model year;
and
``(iii) shall periodically, but not less
frequently than every 4 model years, be
adjusted to achieve the maximum technologically
feasible fuel efficiency improvements (taking
into account considerations of oil import
dependence) which do not materially affect
vehicle safety and that are cost effective.
``(D) Cost effective criteria.--As used in
subparagraph (C)(iii), the term `cost effective' shall
be subject to considerations established under
subsection (f) and other criteria determined by the
Secretary;
``(E) Waiver; notification; review.--The Secretary
may waive adjustments to the standards issued under
this subsection if the Secretary determines that any
such adjustment is not necessary to achieve the maximum
technologically feasible fuel efficiency improvements.
If such a determination is made, the Secretary shall
provide written notification to the Committee on Energy
and Commerce of the House of Representatives, the
Committee on Commerce, Science, and Transportation of
the Senate, and the Committee on Energy and Natural
Resources of the Senate, not later than 180 days before
the day that is 4 years after the day on which the most
recent standards came into effect. The Secretary shall
review any determination made under this subparagraph
every 2 years.''; and
(3) by adding at the end the following:
``(4) Unified regulatory requirements.--Regulations issued
pursuant to paragraph (2) shall, to the maximum extent
practicable, be established (including through joint
rulemaking), coordinated, and implemented in conjunction with
pollutant regulations administered by the Environmental
Protection Agency.''.
Subtitle C--Fuel Choice
SEC. 121. COMPETITIVE PRODUCTION INCENTIVES FOR ADVANCED RENEWABLE
FUELS.
Section 942 of the Energy Policy Act of 2005 (42 U.S.C. 16251) is
amended--
(1) in the section heading, by striking ``cellulosic
biofuels'' and inserting ``renewable fuels'';
(2) by striking ``cellulosic biofuels'' each place it
appears (other than subsection (b)(1)) and inserting
``renewable fuels'';
(3) in subsection (a), by striking ``biofuels'' each place
it appears and inserting ``renewable fuels'';
(4) in subsection (b)--
(A) by striking paragraph (1);
(B) by redesignating paragraph (2) as paragraph
(1); and
(C) by inserting after paragraph (1) (as so
redesignated) the following:
``(2) Renewable fuel.--
``(A) In general.--The term `renewable fuel' has
the meaning given the term in section 211(o)(1) of the
Clean Air Act (42 U.S.C. 7545(o)(1)).
``(B) Inclusion.--The term `renewable fuel'
includes algae.
``(C) Exclusion.--The term `renewable fuel' does
not include grain.''; and
(5) in subsection (f), by inserting ``for each of fiscal
years 2012 through 2016'' before the period at the end.
SEC. 122. FUEL OPTIONS THROUGH THE AVAILABILITY OF DUAL FUELED VEHICLES
AND LIGHT DUTY TRUCKS.
Chapter 329 of title 49, United States Code, is amended by adding
at the end the following:
``SEC. 32920. FUEL OPTIONS FOR TRANSPORTATION.
``(a) Definitions.--In this section:
``(1) Advanced alternative fuel.--The term `advanced
alternative fuel' means--
``(A) a mixture containing--
``(i) at least 85 percent denatured ethanol
by volume (or a lower percentage prescribed by
the Secretary pursuant to section 32901(b));
and
``(ii) gasoline or other fuels;
``(B) a mixture containing--
``(i) at least 70 percent methanol by
volume (or a lower percentage prescribed by the
Secretary pursuant to section 32901(b)); and
``(ii) gasoline and other fuels; and
``(C) other alcohols or liquid fuels certified by
the Secretary pursuant to subsection (b)(2)(B)(i).
``(2) Advanced alternative fuel blend.--The term `advanced
alternative fuel blend' means a liquid fuel that contains
gasoline blended with a percentage of advanced alternative fuel
certified under subsection (b)(2).
``(3) Annual covered inventory.--The term `annual covered
inventory' means the number of vehicles that a manufacturer,
during a given calendar year, manufactures in the United States
or imports from outside of the United States, for sale in the
United States.
``(4) Fuel choice-enabling vehicle.--The term `fuel choice-
enabling vehicle' means a light-duty vehicle warranted by its
manufacturer to operate on--
``(A) a mixture containing at least 85 percent
denatured ethanol, methanol, or other alcohols by
volume (or a lower percentage prescribed by the
Secretary pursuant to section 32901(b)), including
drop-in liquid fuel for use in gasoline engines;
``(B) an advanced alternative fuel blend;
``(C) natural gas;
``(D) hydrogen;
``(E) batteries;
``(F) a hybrid electric engine;
``(G) 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 5 percent biodiesel (commonly known as
`B20'); or
``(H) any other fuel or means of powering covered
vehicles prescribed by the Secretary, by regulation,
that contains not more than 10 percent petroleum, by
volume.
``(5) Light-duty vehicle.--The term `light-duty vehicle'
means a 4-wheeled vehicle manufactured primarily for use on
public streets, roads, and highways with a gross vehicle weight
of less than 10,000 pounds.
``(b) Fuel Options Standard.--
``(1) In general.--Except as provided in paragraph (3),
each light-duty vehicle manufacturer's annual covered inventory
shall be comprised of--
``(A) not less than 50 percent fuel choice-enabling
vehicles in model years 2015, 2016, and 2017; and
``(B) not less than 90 percent fuel choice-enabling
vehicles in model year 2018 and each subsequent model
year.
``(2) Certification.--
``(A) In general.--The Secretary of Transportation,
in consultation with the Administrator of the
Environmental Protection Agency, shall certify the
maximum feasible levels of advanced alternative fuel
blend possible based on technological feasibility,
economic practicality, consumer cost impacts,
maximizing the potential number of domestic
nonpetroleum feedstock sources, and reducing foreign
oil imports.
``(B) Contents.--The certification under
subparagraph (A) should include--
``(i) the type and blend of advanced
alternative fuel that can be utilized by
vehicles qualifying as a fuel choice-enabling
vehicle;
``(ii) the type and blend of advanced
alternative fuel that can be utilized by
specific vehicles in use as of the date of the
enactment of the Practical Energy Plan Act of
2011; and
``(iii) the type and blend of advanced
alternative fuel that can be utilized by new
and existing components of the Nation's
transportation fueling infrastructure for fuel-
choice enabled vehicles.
``(C) Trigger.--Upon completion of the
certification under subparagraph (B)(i), new light-duty
vehicles may not be classified as fuel choice-enabling
vehicles unless the manufacturer warrants that such
vehicles can be operated on fuels described in
subparagraphs (A) and (B) of subsection (a)(4).
``(3) Drop-in fuel.--Any drop-in liquid fuel for use in
gasoline engines that is described in section (a)(4)(H) shall
also be warranted to operate with fuel described in
subparagraphs (A) and (B) of subsection (a)(4) pursuant to
paragraph (2)(C).
``(4) Small manufacturer exemption.--At the request of a
manufacturer, the Secretary of Transportation shall exempt the
manufacturer from the requirement described in paragraph (1) if
the manufacturer's annual covered inventory is fewer than
10,000.
``(5) Credit trading among manufacturers.--
``(A) In general.--The Secretary may establish, by
regulation, a fuel options standard credit trading
program to allow manufacturers whose annual covered
inventory exceeds the requirement described in
paragraph (1) to earn credits to be sold to
manufacturers that are unable to achieve the prescribed
requirements.
``(B) Dual fuel credit.--Beginning in model year
2018, any vehicle used to qualify for the fuel options
standard under this subsection cannot be used to
receive the dual fuel credit under section 32903.
``(c) Fuel Choice Comparison Tool.--The Secretary of
Transportation, in consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency, shall develop a
model label for pumps in the United States dispensing advanced
alternative fuels to consumers that identifies a single, readily
comprehensible metric that allows consumers to evaluate the relative
value, energy density, and expected vehicle performance of any
particular advanced alternative fuel blend. The Secretary shall make
the label available for voluntary reproduction and adoption.''.
Subtitle D--Federal Fleets
SEC. 131. DEPARTMENT OF DEFENSE ALTERNATIVE FUELS CONTRACTING.
(a) Authority.--Subchapter II of chapter 173 of title 10, United
States Code, is amended by adding at the end the following:
``Sec. 2922h. Liquid fuels: contracts for procurement of certain
transportation fuels
``(a) Authority To Contract.--The Secretary of Defense may enter
into 1 or more contracts for the procurement of fuels described in
subsection (b) for the Department of Defense.
``(b) Covered Fuels.--A fuel described in this subsection is a
liquid transportation fuel, including jet fuel, that is derived from
domestic and Indian land sources of biomass, coal, or other
nonpetroleum products.
``(c) Period of Contract.--The period of a contract entered into
under subsection (a) may not exceed 20 years.
``(d) Reports on Contracts.--Not later than 3 years after the date
of enactment of this section, the Secretary of Defense shall submit to
Congress a report assessing the impact of contracting under subsection
(a) on the vulnerability of the Department of Defense to disruptions in
the global oil supply, including an assessment of whether lengthening
the maximum authorized period of contract under subsection (c), could
further reduce the vulnerability of the Department to such
disruptions.''.
(b) Clerical Amendment.--The table of sections at the beginning of
subchapter II of chapter 173 of such title is amended by adding at the
end the following:
``2922h. Liquid fuels: contracts for procurement of certain
transportation fuels.''.
SEC. 132. FUELS FOR NATIONAL SECURITY AGENCIES.
(a) In General.--Section 526 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17142) is amended by inserting ``(other
than the Department of Defense, the Department of Homeland Security,
the Department of State, and the National Aeronautics and Space
Administration)'' after ``Federal agency''.
(b) Sense of Congress.--It the sense of Congress that national
security agencies not covered by section 526 of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17142) are encouraged to use, to
the maximum extent practicable, clean fuels derived from nonpetroleum
feedstocks.
SEC. 133. SAVINGS FROM TRANSPORTATION ENERGY PERFORMANCE CONTRACTS.
(a) Authority To Enter Into Contracts.--Section 801(a)(1) of the
National Energy Conservation Policy Act (42 U.S.C. 8287(a)(1)) is
amended in the first sentence by inserting before the period at the end
the following: ``, including savings and benefits involving nonbuilding
applications''.
(b) Payment of Costs.--Section 801(a)(2)(B) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)(2)(B)) is amended in the
first sentence by striking ``for utilities'' and inserting ``for
utilities or fuel, or both,''.
(c) Definitions.--
(1) Energy savings.--Section 804(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended--
(A) in subparagraph (A), by striking ``or other
federally owned facilities'' each place it appears and
inserting ``, other federally owned facilities, or
other buildings or facilities at which an Executive
agency pays for utilities'';
(B) in subparagraph (C)--
(i) by inserting ``(including new
hydroelectric generation at Federal dams that
do not have hydroelectric generation
facilities)'' after ``cogeneration''; and
(ii) by striking ``and'' after the
semicolon at the end;
(C) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(E) the increased efficient use of nonbuilding
applications; and
``(F) the savings realized from reduced fuel use,
including secondary savings.''.
(2) Nonbuilding application; secondary savings.--Section
804 of the National Energy Conservation Policy Act (42 U.S.C.
8287c) is amended by adding at the end the following:
``(5) Nonbuilding application.--The term `nonbuilding
application' means--
``(A) any class of vehicles, devices, or equipment
that is transportable under the power of the applicable
vehicle, device, or equipment by land, sea, or air and
that consumes energy from any fuel source for the
purpose of--
``(i) that transportation; or
``(ii) maintaining a controlled environment
within the vehicle, device, or equipment; and
``(B) any federally owned equipment use to generate
electricity or transport water.
``(6) Secondary savings.--The term `secondary savings'
means additional energy, fuel, or cost savings that are a
direct consequence of the energy savings that result from the
energy efficiency improvements that are financed and
implemented pursuant to an energy savings performance
contract.''.
(d) Guidance.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Energy, in consultation with the Secretary
of Defense and the Administrator of General Services, shall issue
guidance and rules to Executive agencies to implement the amendments
made by this section.
TITLE II--ENERGY EFFICIENCY
Subtitle A--Energy Performance in Buildings
SEC. 201. SAVING ENERGY IN NEW BUILDINGS.
(a) In General.--Section 304 of the Energy Conservation and
Production Act (42 U.S.C. 6833) is amended to read as follows:
``SEC. 304. UPDATING BUILDING ENERGY EFFICIENCY.
``(a) Updating National Model Building Energy Codes.--
``(1) Targets.--
``(A) In general.--The Secretary shall support
updating the national model building energy codes and
standards at least every 3 years to achieve overall
energy savings, compared to the 2009 IECC for
residential buildings and ASHRAE Standard 90.1-2007 for
commercial buildings.
``(B) State and local building energy codes.--The
Secretary shall encourage and support the adoption of
building energy codes by States and, as appropriate,
local governments that--
``(i) meet or exceed the national model
building energy codes; or
``(ii) achieve equivalent or greater energy
savings.
``(C) Minimum requirements.--The targets for
overall energy savings shall be at least a--
``(i) 15 percent reduction in energy use
relative to a comparable building constructed
in compliance with the 2009 IECC by January 1,
2015;
``(ii) 15 percent reduction in energy use
relative to a comparable building constructed
in compliance with the ASHRAE Standard 90.1-
2007 by May 1, 2014;
``(iii) 30 percent reduction in energy use
relative to a comparable building constructed
in compliance with the 2009 IECC by January 1,
2018; and
``(iv) 45 percent reduction in energy use
relative to a comparable building constructed
in compliance with the ASHRAE Standard 90.1-
2007 by January 1, 2019.
``(D) Specific years.--
``(i) In general.--Targets for specific
dates subsequent to the dates established under
clauses (i) and (ii) of subparagraph (C) shall
be set by the Secretary at least 3 years in
advance of each target date, coordinated with
the IECC and ASHRAE Standard 90.1 cycles, at
the maximum level of energy efficiency that is
technologically feasible and life-cycle cost
effective and higher than the preceding target.
``(ii) Different target years.--
``(I) In general.--Subject to
paragraph (2)(D), not later than 3
years prior to implementation of
clauses (iii) and (iv) of subparagraph
(C), the Secretary may set a different
target date for the targets established
under those clauses if the Secretary
determines that the target cannot be
met by the target date.
``(II) Notice.--Not later than 15
days prior to a determination made
under subclause (I), the Secretary
shall inform the Committee on Energy
and Natural Resources of the Senate and
the Committee on Energy and Commerce of
the House of Representatives of the
determination.
``(E) Technical assistance to model code-setting
and standard development organizations.--
``(i) In general.--The Secretary shall, on
a timely basis, provide technical assistance to
model code-setting and standard development
organizations.
``(ii) Assistance.--The assistance shall,
to the maximum extent practicable, include
technical assistance identified by the
organizations such as for--
``(I) evaluating codes or standards
proposals or revisions;
``(II) building energy analysis and
design tools;
``(III) building demonstrations;
and
``(IV) design assistance and
training.
``(F) Amendment proposals.--
``(i) In general.--The Secretary shall
submit codes and standards amendment proposals
to the model code-setting and standards
development organizations, with supporting
evidence, sufficient to enable the national
model building energy codes and standards to
meet the targets established under subparagraph
(C).
``(ii) Calculation methodology.--The
Secretary shall make available the calculation
methodology (including input assumptions and
data) used by the Secretary to estimate the
energy savings of codes, including proposals
and revisions of codes.
``(2) Revision of building energy use standards.--
``(A) In general.--If the provisions of the IECC or
ASHRAE Standard 90.1 regarding building energy use are
revised, the Secretary shall make a determination not
later than 180 days after the date of the revision, on
whether the revision will--
``(i) improve energy efficiency in
buildings; and
``(ii) meet the targets under paragraph
(1).
``(B) Codes or standards not meeting targets.--
``(i) In general.--If the Secretary makes a
determination under subparagraph (A)(ii) that a
code or standard does not meet the targets
established under paragraph (1), not later than
1 year after the date of the determination, the
Secretary shall provide the model code or
standard developer with proposed changes that
would result in a model code or standard that
meets the targets (including supporting
evidence), taking into consideration--
``(I) whether the modified code is
technically feasible and life-cycle
cost effective; and
``(II) potential costs, savings,
and other benefits for consumer and
building owners, including the impact
on overall building ownership and
operating costs.
``(ii) Consultation with secretary.--On
receipt of the proposed changes, the model code
or standard developer shall have an additional
period of 90 days to provide input to the
Secretary regarding the proposed changes and to
consult with the Secretary before a revised
model code or standard is released.
``(iii) Implementation of changes.--
``(I) In general.--After release of
a revised model code or standard, the
Secretary shall grant an additional
period of 90 days for the model code or
standard developer to implement the
model code or standard developed in
consultation with the Secretary.
``(II) Modified code or standard.--
If the proposed changes are not
incorporated into the model code or
standard of the developer during the
90-day period described in subclause
(I), the Secretary shall establish a
modified code or standard that meets
the established targets.
``(iv) Administration.--Any code or
standard modified under this subparagraph
shall--
``(I) achieve a level of energy
savings that is technologically
feasible and life-cycle cost-effective;
``(II) be based on the latest
edition of the IECC or ASHRAE Standard
90.1, including any subsequent
amendments, addenda, or additions, but
may also consider other model codes or
standards; and
``(III) serve as the baseline for
the next determination under
subparagraph (A)(i).
``(C) Codes or standards not updated for 3 years.--
``(i) In general.--If the model code or
standard is not revised by a target date under
paragraph (1)(C), the Secretary shall, not
later than 1 year after the target date,
establish a modified code or standard that
meets the targets under paragraph (1)(C).
``(ii) Requirements.--Any modified code or
standard shall--
``(I) achieve a level of energy
savings that is technologically
feasible and life-cycle cost-effective;
``(II) be based on the latest
revision of the IECC or ASHRAE Standard
90.1, including any amendments or
additions to the code or standard, but
may also consider other model codes or
standards; and
``(III) serve as the baseline for
the next determination under
subparagraph (A)(i).
``(D) Administration.--The Secretary shall--
``(i) provide an opportunity for public
comment on targets, determinations, and
modified codes and standards under this
subsection;
``(ii) publish in the Federal Register
notice of targets, determinations, and modified
codes and standards under this subsection; and
``(iii) consult with key model code-setting
and standard development organizations during
the code development process.
``(b) Establishing Voluntary Model Codes.--
``(1) Determination of voluntary model code.--
``(A) In general.--If the Secretary makes an
affirmative determination or establishes a modified
code or standard under paragraph (2), the Secretary
shall establish the modified code or standard as the
Voluntary Model Code.
``(B) State notification.--The Secretary shall
notify each State of the determination of the Voluntary
Model Code not later than 30 days after establishing or
modifying the Code.
``(2) Initial voluntary model code.--As of the date of
enactment of the Practical Energy Plan Act of 2011, the
Voluntary Model Code shall be--
``(A) the 2009 IECC for residential buildings; and
``(B) the ASHRAE Standard 90.1-2010 for commercial
buildings.
``(c) State Certification of Building Energy Code Updates.--
``(1) Review and updating of codes by each state.--
``(A) In general.--Not later than 2 years after the
date on which the Voluntary Model Code is established
under subsection (b), each State shall certify to the
Secretary whether or not the State has reviewed and
updated the provisions of the residential and
commercial building codes of the State regarding energy
efficiency.
``(B) Demonstration.--For a State to be in
compliance with this section, the certification under
subparagraph (A) shall include a demonstration that the
code provisions that are in effect throughout the
State--
``(i) meet or exceed the Voluntary Model
Code; or
``(ii) achieve equivalent or greater energy
savings.
``(d) State Certification of Compliance With Building Codes.--
``(1) Requirement.--
``(A) In general.--Not later than 3 years after the
date of a certification under subsection (c), each
State shall certify whether or not the State has--
``(i) achieved compliance under paragraph
(3) with the certified State building energy
code or the Voluntary Model Code; or
``(ii) made significant progress under
paragraph (4) toward achieving compliance with
the certified State building energy code or the
Voluntary Model Code.
``(B) Repeat certifications.--If a State certifies
progress toward achieving compliance, the State shall
repeat the certification each year until the State
certifies that the State has achieved compliance.
``(2) Measurement of compliance.--A certification under
paragraph (1) shall include documentation of the rate of
compliance based on--
``(A) independent inspections of a random sample of
the new and renovated buildings covered by the code in
the preceding year; or
``(B) an alternative method that yields an accurate
measure of compliance.
``(3) Achievement of compliance.--A State shall be
considered to achieve compliance under paragraph (1) if--
``(A) at least 90 percent of new building space
covered by the code in the preceding year substantially
meets all the requirements of the code regarding energy
efficiency, or achieves equivalent or greater energy
savings; or
``(B) the estimated excess energy use of new and
renovated buildings that did not meet the code in the
preceding year, compared to a baseline of comparable
buildings that meet the code, is not more than 5
percent of the estimated energy use of all new and
renovated buildings covered by the code during the
preceding year.
``(4) Significant progress toward achievement of
compliance.--
``(A) In general.--For purposes of paragraph (1), a
State shall be considered to have made significant
progress toward achieving compliance if the State--
``(i) has developed and is implementing a
plan for achieving compliance not later than 8
years after the date of enactment of the
Practical Energy Plan Act of 2011, assuming
continued adequate funding, including active
training and enforcement programs;
``(ii) after 1 or more years of adequate
funding, has demonstrated progress, in
conformance with the plan described in clause
(i), toward compliance;
``(iii) after 5 or more years of adequate
funding, meets the requirements of paragraph
(3) if `80 percent' is substituted for `90
percent' or `10 percent' is substituted for `5
percent'; and
``(iv) has not had more than 8 years of
adequate funding.
``(B) Adequate funding.--For purposes of this
paragraph, funding shall be considered adequate if the
Federal Government provides to the States at least
$50,000,000 for a fiscal year in funding and support
for development and implementation of State building
energy codes, including for training and enforcement.
``(C) Technical assistance to states.--The
Secretary shall make available technical assistance to
States to implement this section, including procedures
and technical analysis for States--
``(i) to demonstrate that the code
provisions of the States achieve equivalent or
greater energy savings than the Voluntary Model
Code;
``(ii) to document the rate of compliance
with a building energy code; and
``(iii) to improve and implement State
residential and commercial building energy
efficiency codes.
``(D) Voluntary advanced codes and standards.--
``(i) In general.--The Secretary shall
support the development of voluntary advanced
model codes and standards for residential and
commercial buildings that achieve energy
savings of at least 30 percent compared to the
Voluntary Model Code, for use in--
``(I) building design;
``(II) voluntary and market
transformation programs;
``(III) incentive criteria; and
``(IV) voluntary adoption by
States.
``(ii) Updates.--The voluntary advanced
model codes and standards shall be updated at
least once every 3 years.
``(e) Compliance.--
``(1) Validation of certification.--
``(A) In general.--Subject to subparagraph (B), not
later than 60 days after the date of receipt of
certification required by subsection (c), the Secretary
shall inform the submitting State in writing of whether
the Secretary validates the certification and, if not
validated, the reasons for not validating the
certification as submitted.
``(B) Deferral.--On the request of the State, the
Secretary may defer the validation decision for an
additional 90 days.
``(C) Noncompliance.--Any State for which the
Secretary has not accepted a certification by a
deadline under subsection (c) or (d) shall be
considered out of compliance with this section.
``(2) Local government.--In any State that is out of
compliance with this section, a local government may be
considered in compliance with this section by meeting the
certification requirements under subsections (c) and (d).
``(3) Annual reports by secretary.--
``(A) In general.--The Secretary shall annually
submit to Congress, and publish in the Federal
Register, a report that describes--
``(i) the status of Voluntary Model Codes;
``(ii) the status of code adoption and
compliance in the States; and
``(iii) implementation of this section.
``(B) Impacts.--The report shall include estimates
of impacts of past action under this section, and
potential impacts of further action, on lifetime energy
use by buildings and resulting energy costs to
individuals and businesses.
``(4) Consideration in grant process.--The Secretary shall
consider as a factor of any grants to be awarded by the
Department to States whether or not the State is in compliance
with this section under paragraph (1).
``(f) Availability of Implementation Assistance Funding.--
``(1) In general.--
``(A) Requirement.--The Secretary shall provide
implementation assistance funding to States and local
governments to implement this section, and to improve
and implement State residential and commercial building
energy efficiency codes, including increasing and
verifying compliance with the codes and training of
State and local building code officials.
``(B) State actions.--In determining whether, and
in what amount, to provide implementation assistance
funding under this subsection, the Secretary shall
consider the actions proposed by the State--
``(i) to implement this section;
``(ii) to improve and implement residential
and commercial building energy efficiency
codes; and
``(iii) to promote building energy
efficiency through the use of the codes.
``(2) Additional funding.--Additional funding shall be
provided under this subsection for implementation of a plan to
achieve and document at least a 90-percent rate of compliance
with residential and commercial building energy efficiency
codes, based on energy performance--
``(A) to a State that is in compliance with this
section under subsection (e)(1); and
``(B) in a State in which there is no statewide
energy code for residential or commercial buildings, or
in which State codes fail to comply with subparagraph
(A), to a local government that is in compliance with
this section under subsection (e)(2).
``(3) Training.--Of the amounts made available under this
subsection, the State may use amounts required, but not to
exceed $500,000 per State, to train State and local building
code officials to implement and enforce codes described in
paragraph (2).
``(4) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection--
``(A) $300,000,000 for each of fiscal years 2012
through 2016; and
``(B) such sums as are necessary for fiscal year
2016 and each fiscal year thereafter.''.
(b) Definition of IECC.--Section 303 of the Energy Conservation and
Production Act (42 U.S.C. 6832) is amended by adding at the end the
following:
``(17) IECC.--The term `IECC' means the International
Energy Conservation Code.''.
SEC. 202. ENABLING HOMES AND BUILDINGS ENERGY RETROFITS.
(a) Definitions.--In this section:
(1) Cost.--The term ``cost'' has the meaning given the term
in section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a).
(2) Direct loan.--The term ``direct loan'' has the meaning
given the term in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(3) Loan guarantee.--The term ``loan guarantee'' has the
meaning given the term in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a).
(4) Program.--The term ``Program'' means the Homes and
Buildings Energy Retrofits Program established by subsection
(b).
(5) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(6) Security.--The term ``security'' has the meaning given
the term in section 2 of the Securities Act of 1933 (15 U.S.C.
77b).
(7) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(b) Establishment.--There is established in the Department of
Energy a program to be known as the Homes and Buildings Energy
Retrofits Program, which shall--
(1) have annual target energy efficiency retrofit rates
of--
(A) 5 percent for homes; and
(B) 2 percent for commercial buildings; and
(2) encourage private lending for energy retrofits.
(c) Eligibility Criteria.--
(1) In general.--In administering the Program, the
Secretary shall establish eligibility criteria for applicants
for financial assistance under subsection (d) who can offer
financial products and programs consistent with the purposes of
this section.
(2) Criteria.--Criteria for applicants shall--
(A) take into account--
(i) expected energy savings;
(ii) percentage electricity rate increases
in areas to be served by the applicant that are
attributable to implementation of environmental
controls on power generation;
(iii) the number and type of buildings that
can be served by the applicant, the size of the
potential market, and the scope of the program
(in terms of measures or technologies to be
used);
(iv) the ability of the applicant to
successfully execute the proposed program and
maintain the performance of the proposed
projects and investments;
(v) financial criteria, as applicable,
including the ability of the applicant to raise
private capital or other sources of funds for
the proposed program;
(vi) criteria that enable the Secretary to
determine sound program design, including--
(I) an assurance of credible energy
efficiency or renewable energy
generation performance; and
(II) financial product or program
design that effectively reduces
barriers posed by traditional financing
programs;
(vii) such criteria, standards, guidelines,
and mechanisms as will enable the Secretary, to
the maximum extent practicable, to communicate
to program sponsors and originators, servicers,
and sellers of financial obligations the
eligibility of loans for resale;
(viii) the ability of the applicant to
report relevant data on program performance;
and
(ix) the ability of the applicant to use
incentives or marketing techniques that are
likely to result in successful market
penetration; and
(B) encourage--
(i) use of technologies that are either
well-established or new, but demonstrated to be
reliable;
(ii) applicants that can offer building
owners or lessees payment plans generally
designed to permit the combination of energy
payments and assessments or charges from the
installation or payments associated with
financing to be lower than the energy payments
prior to installing energy efficiency measures
or on-site renewable energy technologies;
(iii) applicants that will use repayment
mechanisms convenient for building owners, such
as tax-increment financing, special tax
districts, on-utility-bill repayment, or other
mechanisms;
(iv) applicants that can provide
convenience for building owners by combining
participation in the lending program with--
(I) processing for tax credits and
other incentives; and
(II) technical assistance in
selecting and working with vendors to
provide energy efficiency measures or
on-site renewable energy generation
systems;
(v) applicants the projects of which will
use contractors that hire within a 50-mile
radius of the project, or as close as is
practicable;
(vi) applicants that will use materials and
technologies manufactured in the United States;
(vii) partnerships with or other
involvement of State workforce investment
boards, labor organizations, community-based
organizations, State-approved apprenticeship
programs, and other job training entities; and
(viii) applicants that can provide
financing programs or financial products that
mitigate barriers other than the initial
expense of installing measures or technologies,
such as unfavorable lease terms.
(3) Diverse portfolio.--In establishing criteria and
selecting applicants to receive financial assistance under
subsection (d), the Secretary shall select a portfolio of
investments that reaches a diversity of building owners and
lessees, including--
(A) individual homeowners or lessees;
(B) multifamily apartment building owners or
lessees;
(C) condominium owners associations;
(D) commercial building owners or lessees,
including multi-tenant commercial properties;
(E) industrial building owners or lessees; and
(F) schools, hospitals, and other buildings
designated by the Secretary.
(d) Financial Assistance.--
(1) In general.--For applicants determined to be eligible
under criteria established under subsection (c), the Secretary
may provide financial assistance in the form of direct loans,
letters of credit, loan guarantees, insurance products, other
credit enhancements or debt instruments (including
securitization or indirect credit support), or other financial
products to promote the widespread deployment of, and mobilize
private sector support of credit and investment institutions
for, energy efficiency measures and on-site renewable energy
generation systems in buildings.
(2) Financial products.--The Secretary--
(A) in cooperation with Federal, State, local, and
private sector entities, shall develop debt instruments
that provide for the aggregation of, or directly
aggregate, programs for the deployment of energy
efficiency measures and on-site renewable energy
generation systems on a scale appropriate for
residential, commercial, or industrial applications;
and
(B) may insure, guarantee, purchase, and make
commitments to purchase any debt instrument associated
with the deployment of clean energy technologies
(including subordinated securities) for the purpose of
enhancing the availability of private financing for the
deployment of energy efficiency measures and on-site
renewable energy generation systems.
(3) Application review.--
(A) In general.--To the maximum extent practicable
and consistent with sound business practices, the
Secretary shall seek to expedite reviews of
applications for credit support under this section in
order to communicate to applicants in a timely manner
the likelihood of support so that the applicants can
seek private capital in order to receive final
approval.
(B) Mechanisms.--In carrying out this paragraph,
the Secretary shall consider using mechanisms such as--
(i) a system for conditional pre-approval
that informs applicants that final applicants
will be approved, if established conditions are
met;
(ii) clear guidelines that communicate to
applicants what level of performance on
eligibility criteria will ensure approval for
credit support or resale;
(iii) in the case of an applicant portfolio
of more than 300 loans or other financial
arrangement, an expedited review based on
statistical sampling to ensure that the loan or
other financial arrangement meets the
eligibility criteria; and
(iv) in the case of an applicant with a
demonstrated track record with respect to
successfully originating eligible loans or
other financial arrangements and who meets
appropriate other criteria determined by the
Secretary, a system for delegating
responsibility for meeting eligibility criteria
that includes appropriate protections such as
buy-back mechanisms in the event criteria are
determined not to have been met.
(C) Disposition of debt or interest.--The Secretary
may acquire, hold, and sell or otherwise dispose of,
pursuant to commitments or otherwise, any debt
associated with the deployment of clean energy
technologies or interest in the debt.
(D) Pricing.--
(i) In general.--The Secretary may
establish requirements, and impose charges or
fees, which may be regarded as elements of
pricing, for different classes of applicants,
originators, sellers, servicers, or services.
(ii) Classification of applicants,
originators, sellers and servicers.--For the
purpose of clause (i), the Secretary may
classify applicants, originators, sellers and
servicers as necessary to promote transparency
and liquidity and properly characterize the
risk of default.
(E) Secondary market support.--
(i) In general.--The Secretary may lend on
the security of, and make commitments to lend
on the security of, any debt that the Secretary
has insured, guaranteed, issued or is
authorized to purchase under this section.
(ii) Authorized actions.--On such terms and
conditions as the Secretary may prescribe, the
Secretary may--
(I) give security;
(II) insure;
(III) guarantee;
(IV) purchase;
(V) sell;
(VI) pay interest or other return;
and
(VII) issue notes, debentures,
bonds, or other obligations or
securities.
(F) Lending activities.--
(i) In general.--The Secretary shall
determine--
(I) the volume of the lending
activities of the Program; and
(II) the types of loan ratios, risk
profiles, interest rates, maturities,
and charges or fees in the secondary
market operations of the Program.
(ii) Objectives.--Determinations under
clause (i) shall be consistent with the
objectives of--
(I) providing an attractive
investment environment for programs
that install energy efficiency measures
or on-site renewable energy generation
technologies;
(II) making the operations of the
Program self-supporting over a
reasonable time frame;
(III) encouraging, and not crowding
out, reasonably priced private
financing mechanisms and institutions;
and
(IV) advancing the goals
established under this section.
(G) Exempt securities.--All securities issued,
insured, or guaranteed by the Secretary shall, to the
same extent as securities that are direct obligations
of or obligations guaranteed as to principal or
interest by the United States, be considered to be
exempt securities within the meaning of the laws
administered by the Securities and Exchange Commission.
(e) Periodic Reports.--Not later than 1 year after commencement of
operation of the Program and at least biannually thereafter, the
Secretary shall submit to the Committee on Energy and Natural Resources
of the Senate and the Committee on Energy and Commerce of the House of
Representatives a report that includes a description of the Program in
meeting the purpose and goals established by or pursuant to this
section.
(f) Audits by the Comptroller General.--
(1) In general.--The programs, activities, receipts,
expenditures, and financial transactions of the Program shall
be subject to audit by the Comptroller General of the United
States under such rules and regulations as may be prescribed by
the Comptroller General.
(2) Access.--The representatives of the Government
Accountability Office shall--
(A) have access to the personnel and to all books,
accounts, documents, records (including electronic
records), reports, files, and all other papers,
automated data, things, or property belonging to, under
the control of, or in use by the Program, or any agent,
representative, attorney, advisor, or consultant
retained by the Program, and necessary to facilitate
the audit;
(B) be afforded full facilities for verifying
transactions with the balances or securities held by
depositories, fiscal agents, and custodians;
(C) be authorized to obtain and duplicate any such
books, accounts, documents, records, working papers,
automated data and files, or other information relevant
to the audit without cost to the Comptroller General;
and
(D) have the right of access of the Comptroller
General to such information pursuant to section 716(c)
of title 31, United States Code.
(3) Assistance and cost.--
(A) In general.--For the purpose of conducting an
audit under this subsection, the Comptroller General
may, in the discretion of the Comptroller General,
employ by contract, without regard to section 3709 of
the Revised Statutes (41 U.S.C. 5), professional
services of firms and organizations of certified public
accountants for temporary periods or for special
purposes.
(B) Reimbursement.--
(i) In general.--On the request of the
Comptroller General, the Secretary shall
reimburse the General Accountability Office for
the full cost of any audit conducted by the
Comptroller General under this subsection.
(ii) Crediting.--Such reimbursements
shall--
(I) be credited to the
appropriation account entitled
``Salaries and Expenses, Government
Accountability Office'' at the time at
which the payment is received; and
(II) remain available until
expended.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,000,000,000.
SEC. 203. RURAL ENERGY SAVINGS.
Title VI of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 7901 note et seq.) is amended by adding at the end the
following:
``SEC. 6407. RURAL ENERGY SAVINGS PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) any public power district, public utility
district, or similar entity, or any electric
cooperative described in sections 501(c)(12) or
1381(a)(2)(C) of the Internal Revenue Code of 1986,
that borrowed and repaid, prepaid, or is paying an
electric loan made or guaranteed by the Rural Utilities
Service (or any predecessor agency); or
``(B) any entity primarily owned or controlled by
an entity or entities described in subparagraph (A).
``(2) Energy efficiency measures.--The term `energy
efficiency measures' means, for or at property served by an
eligible entity, structural improvements and investments in
cost-effective, commercial technologies to increase energy
efficiency.
``(3) Qualified consumer.--The term `qualified consumer'
means a consumer served by an eligible entity that has the
ability to repay a loan made under subsection (c), as
determined by an eligible entity.
``(4) Secretary.--The term `Secretary' means the Secretary
of Agriculture, acting through the Administrator of the Rural
Utilities Service.
``(b) Loans to Eligible Entities.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall make loans to eligible entities that agree to use the
loan funds to make loans to qualified consumers as described in
subsection (c) for the purpose of implementing energy
efficiency measures.
``(2) Requirements.--
``(A) In general.--As a condition to receiving a
loan under this subsection, an eligible entity shall--
``(i) establish a list of energy efficiency
measures that is expected to decrease energy
use or costs of qualified consumers;
``(ii) prepare an implementation plan for
use of the loan funds; and
``(iii) provide for appropriate measurement
and verification to ensure the effectiveness of
the energy efficiency loans made by the
eligible entity and that there is no conflict
of interest in the carrying out of this
section.
``(B) Revision of list of energy efficiency
measures.--An eligible entity may update the list
required under subparagraph (A)(i) to account for newly
available efficiency technologies, subject to the
approval of the Secretary.
``(C) Existing energy efficiency programs.--An
eligible entity that, on or before the date of the
enactment of this section or within 60 days after such
date, has already established an energy efficiency
program for qualified consumers may use an existing
list of energy efficiency measures, implementation
plan, or measurement and verification system of that
program to satisfy the requirements of subparagraph (A)
if the Secretary determines the list, plans, or systems
are consistent with the purposes of this section.
``(3) No interest.--A loan under this subsection shall bear
no interest.
``(4) Repayment.--In the case of a loan made under
paragraph (1)--
``(A) the term shall not exceed 20 years after the
date the loan is closed; and
``(B) except as provided in paragraph (6), the
repayment of each advance shall be amortized for a
period of not to exceed 10 years.
``(5) Amount of advances.--Any advance of loan funds to an
eligible entity in any single year shall not exceed 50 percent
of the approved loan amount.
``(6) Special advance for start-up activities.--
``(A) In general.--To assist an eligible entity in
defraying appropriate start-up costs (as determined by
the Secretary) of establishing new programs or
modifying existing programs to carry out subsection
(d), the Secretary shall allow an eligible entity to
request a special advance.
``(B) Amount.--No eligible entity may receive a
special advance under this paragraph for an amount that
is more than 4 percent of the loan amount received by
the eligible entity under paragraph (1).
``(C) Repayment.--Repayment--
``(i) shall be required not later than the
end of the 10-year period beginning on the date
the advance is received; and
``(ii) at the election of the eligible
entity, may be deferred to the end of the 10-
year period.
``(c) Loans to Qualified Consumers.--
``(1) Terms of loans.--Loans made by an eligible entity to
qualified consumers using loan funds provided by the Secretary
under subsection (b)--
``(A) may bear interest, not to exceed 3 percent,
to be used for purposes that include establishing a
loan loss reserve and to offset personnel and program
costs of eligible entities to provide the loans;
``(B) shall finance energy efficiency measures for
the purpose of decreasing energy usage or costs of the
qualified consumer by an amount such that a loan term
of not more than 10 years will not pose an undue
financial burden on the qualified consumer, as
determined by the eligible entity;
``(C) shall not be used to fund energy efficiency
measures made to personal property unless the personal
property--
``(i) is or becomes attached to real
property as a fixture; or
``(ii) is a manufactured home;
``(D) shall be repaid through charges added to the
electric bill for the property for, or at which, energy
efficiency measures are or will be implemented, on the
condition that this requirement does not prohibit--
``(i) the voluntary prepayment of a loan by
the owner of the property; or
``(ii) the use of any additional repayment
mechanisms that are--
``(I) demonstrated to have
appropriate risk mitigation features,
as determined by the eligible entity;
or
``(II) required if the qualified
consumer is no longer a customer of the
eligible entity; and
``(E) shall require an energy audit by an eligible
entity to determine the impact of proposed energy
efficiency measures on the energy costs and consumption
of the qualified consumer.
``(2) Contractors.--In addition to any other qualified
general contractor, eligible entities may serve as general
contractors.
``(d) Measurement and Verification, Training, and Technical
Assistance.--
``(1) Contract authorized.--Not later than 90 days after
the date of enactment of this section, the Secretary--
``(A) shall establish a plan for measurement and
verification, training, and technical assistance of the
program; and
``(B) may enter into 1 or more contracts for the
purposes of--
``(i) providing measurement and
verification activities; and
``(ii) developing a program to provide
technical assistance and training to the
employees of eligible entities to carry out
this section.
``(2) Use of subcontractors authorized.--A qualified entity
that enters into a contract under paragraph (1) may use
subcontractors to assist the qualified entity in carrying out
the contract.
``(e) Fast Start Demonstration Projects.--
``(1) Demonstration projects authority.--The Secretary may
enter into agreements with eligible entities (or groups of
eligible entities) that have energy efficiency programs
described in subsection (b)(2)(C) to establish energy
efficiency loan demonstration projects consistent with the
purposes of this section.
``(2) Evaluation criteria.--In determining which eligible
entities to award loans under this section, the Secretary shall
take into consideration entities that--
``(A) implement approaches to energy audits or
investments in energy efficiency measures that yield
measurable and predictable savings;
``(B) use measurement and verification processes to
determine the effectiveness of energy efficiency loans
made by eligible entities;
``(C) include training for employees of eligible
entities, including any contractors of such entities,
to implement or oversee the activities described in
subparagraphs (A) and (B);
``(D) provide for the participation of a majority
of eligible entities in a State;
``(E) reduce the need for generating capacity;
``(F) provide efficiency loans to--
``(i) not fewer than 20,000 consumers, in
the case of a single eligible entity; or
``(ii) not fewer than 80,000 consumers, in
the case of a group of eligible entities; and
``(G) serve areas in which, as determined by the
Secretary, a large percentage of consumers reside--
``(i) in manufactured homes; or
``(ii) in housing units that are more than
50 years old.
``(3) Deadline for implementation.--The agreements required
by paragraph (1) shall, to the maximum extent practicable, be
entered into not later than 90 days after the date of enactment
of this section.
``(4) Effect on availability of loans nationally.--Nothing
in this subsection shall delay the availability of loans to
eligible entities on a national basis beginning not later than
180 days after the date of enactment of this section.
``(5) Additional demonstration project authority.--
``(A) In general.--The Secretary may conduct
demonstration projects in addition to the project
authorized by paragraph (1).
``(B) Inapplicability of certain criteria.--The
additional demonstration projects may be carried out
without regard to subparagraphs (D), (F), or (G) of
paragraph (2).
``(f) Additional Authority.--The authority provided in this section
is in addition to any authority of the Secretary to offer loans under
any other law.
``(g) Regulations.--
``(1) In general.--Except as otherwise provided in this
subsection, not later than 180 days after the date of enactment
of this section, the Secretary shall promulgate such
regulations as are necessary to implement this section.
``(2) Procedure.--The promulgation of the regulations and
administration of this section shall be made without regard
to--
``(A) chapter 35 of title 44, United States Code
(commonly known as the `Paperwork Reduction Act'); and
``(B) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804), relating to notices of proposed rulemaking and
public participation in rulemaking.
``(3) Congressional review of agency rulemaking.--In
carrying out this section, the Secretary shall use the
authority provided under section 808 of title 5, United States
Code.
``(4) Interim regulations.--Notwithstanding paragraphs (1)
and (2), to the extent regulations are necessary to carry out
any provision of this section, the Secretary shall implement
such regulations through the promulgation of an interim rule.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary to carry out this section $760,000,000,
to remain available until expended.''.
Subtitle B--Federal Properties
SEC. 211. ENERGY EFFICIENT FEDERAL BUILDINGS.
(a) In General.--
(1) Requirements.--Section 543 of the National Energy
Conservation Policy Act (42 U.S.C. 8253) is amended--
(A) by redesignating the second subsection (f)
(relating to large capital energy investments) as
subsection (g); and
(B) by adding at the end the following:
``(h) Energy Efficient Federal Buildings.--
``(1) In general.--To the maximum extent practicable, each
Federal agency shall ensure that any new Federal building is
designed in a manner to enhance energy efficiency, including--
``(A) by complying with paragraphs (2) and (3); and
``(B) by identifying and analyzing impacts from
energy usage and alternative energy sources in all
environmental impact statements or similar analyses
required under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) for proposals covering
new or expanded Federal facilities.
``(2) First stage.--To the maximum extent practicable, each
Federal agency shall ensure that any Federal building that
enters the design phase on or after January 1, 2012--
``(A) is designed to exceed national building
performance standards updated in accordance with
section 304 of the Energy Conservation and Production
Act (42 U.S.C. 6833);
``(B) accelerates use of cost-effective, innovative
technologies and strategies to minimize consumption of
energy, water, and materials; and
``(C) is located in accordance with a process that
considers sites with convenient access to public
transportation alternatives.
``(3) Second stage.--To the maximum extent practicable,
each Federal agency shall ensure that any Federal building that
enters the design phase on or after January 1, 2020, is
designed to achieve net-zero energy use by January 1, 2030.''.
(2) Conforming amendments.--Section 305(a)(3) of the Energy
Conservation and Production Act (42 U.S.C. 6834(a)(3)) is
amended--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively.
(b) Leases.--
(1) In general.--Section 435(a) of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17091(a)) is amended--
(A) by striking ``Except as'' and inserting the
following:
``(1) Energy star label.--Except as''; and
(B) by adding at the end the following:
``(2) Energy consumption information.--Effective beginning
on the date that is 180 days after the date of enactment of the
Practical Energy Plan Act of 2011, no Federal agency shall
enter into or renew a lease of a commercial building unless
there is clearly and publicly available for the building
information concerning the actual energy consumption of the
building for each of the 5 most recent years for which data are
available, in a normalized data format that permits data
comparability, as determined by the Administrator of General
Services.''.
(2) Exception.--Section 435(b)(1) of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17091(b)(1))
is amended by striking subparagraph (B) and inserting the
following:
``(B) the agency--
``(i) proposes to remain in the building
that the agency has occupied previously; and
``(ii) conducts a cost-benefit analysis
that compares--
``(I) the financial savings from
moving to a building that meets the
standards described in subsection (a);
to
``(II) the cost of relocating
personnel and equipment;''.
(c) Congressional Approval of Proposed Projects.--Section 3307 of
title 40, United States Code, is amended by adding at the end the
following:
``(i) Availability of Funds for Design Updates.--
``(1) In general.--Subject to paragraph (2), for any
project for which congressional approval is received under
subsection (a) and for which the design has been substantially
completed but construction has not begun, the Administrator of
General Services may use appropriated funds to update the
project design to meet applicable Federal building energy
efficiency standards established under section 305 of the
Energy Conservation and Production Act (42 U.S.C. 6834) and
other requirements established under section 3312.
``(2) Limitation.--The use of funds under paragraph (1)
shall not exceed 125 percent of the estimated energy or other
cost savings associated with the updates as determined by a
life-cycle cost analysis under section 544 of the National
Energy Conservation Policy Act (42 U.S.C. 8254).''.
SEC. 212. ACCELERATING ENERGY SAVINGS PERFORMANCE CONTRACTS.
Section 543(f)(4) of the National Energy Conservation Policy Act
(42 U.S.C. 8253(f)(4)) is amended by striking ``may'' and inserting
``shall''.
SEC. 213. SENSE OF CONGRESS ON INCLUSION OF ENERGY EFFICIENCY AS
SELECTION CRITERIA FOR BASE CLOSURE AND REALIGNMENT
DECISIONS.
It is the sense of Congress that the energy efficiency of military
installations, including operating costs, independence from the energy
grid, and utilization of private sector resources and new technologies,
should be one of the criteria used by the Secretary of Defense in
making recommendations for the closure or realignment of military
installations inside the United States under the Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note) or any other provision of law.
SEC. 214. FEDERAL PROPERTY REALIGNMENT AND SAVINGS.
(a) Definitions.--In this section--
(1) the term ``agency''--
(A) means an Executive agency as defined under
section 105 of title 5, United States Code; and
(B) does not include the United States Postal
Service;
(2) the term ``Director'' means the Director of the Office
of Management and Budget;
(3) the term ``disposal'' means any action that constitutes
the removal of a property from the Federal inventory or that
produces revenue for the Federal Government from its inventory,
including sale, deed, demolition, or exchange;
(4) the term ``Federal civilian real property''--
(A) means Federal real property assets, including
buildings, land, warehouses, facilities, or other
physical structures under the custody and control of
any agency that are used for civilian purposes;
(B) does not include--
(i) military installations;
(ii) any property that is excluded for
reasons of national security or homeland
security by the Director;
(iii) any property that is excepted from
the definition of the term ``property'' under
section 102(9) of title 40, United States Code,
however any constructed asset that may reside
upon the property excepted from that definition
shall be included as Federal civilian real
property;
(iv) land managed as part of the national
wildlife refuge system, but not any constructed
asset within or on that land;
(v) Indian lands, as defined under section
203 of the Public Lands Corps Act of 1993 (16
U.S.C. 1722), but not any constructed asset
within or on the land;
(vi) property governed by the first section
of the Tennessee Valley Authority Act of 1933
(16 U.S.C. 831); or
(vii) real property owned by the United
States Postal Service; and
(5) the term ``military installation''--
(A) means a base, camp, post, station, yard,
center, homeport facility for any ship, or other
activity under the jurisdiction of the Department of
Defense, including any leased facility; and
(B) does not include any facility used primarily
for civil works, rivers and harbors projects, or flood
control.
(b) Interagency Review Process.--
(1) Reduction of inventory.--The General Services
Administration shall identify opportunities for the Federal
Government to significantly reduce the inventory of Federal
civilian real property.
(2) Independent analysis.--
(A) In general.--The Director shall perform an
independent analysis of the inventory of Federal
civilian real property.
(B) Recommendations.--To assist in the analysis,
the Director shall obtain recommendations from
agencies, which shall include the identification of--
(i) Federal civilian real properties that
can be sold for proceeds and otherwise disposed
of, transferred, consolidated, co-located, or
reconfigured, so as to reduce the Federal
civilian real property inventory and operating
costs of the Federal Government;
(ii) operational efficiencies that the
Federal Government can realize in its operation
and maintenance of Federal civilian real
properties;
(iii) the anticipated cost of disposal,
transfer, consolidation, co-location, or
reconfiguration of Federal civilian real
properties identified under paragraph (1); and
(iv) the environmental effects of the
disposal, transfer, consolidation, co-location,
or reconfiguration of the Federal civil real
properties identified under paragraph (1) and
of any reasonable alternatives to such Federal
civil real properties, and potential mitigation
of any of the adverse environmental effects.
(3) Review of the recommendations.--In consultation with
the Administrator of General Services and the Secretary of
Energy, the Director shall conduct a review of the
recommendations provided by agencies.
(4) Final recommendations.--The Director shall notify each
agency of the final recommendation of the Director of actions
to be taken by the agency with respect to the applicable
Federal civilian real property.
(c) Implementation of Director Recommendations.--
(1) In general.--Notwithstanding any other provision of
law, each agency shall prepare and carry out each
recommendation of the Director.
(2) Schedule.--Each agency shall--
(A) begin preparations to implement recommendations
of the Director as soon as practicable; and
(B) complete implementation of all recommendations
of the Director not later than the end of the 5-year
period beginning on the date the agency received
notification with respect to the applicable Federal
civilian real property.
(3) Extenuating circumstances.--For any recommendation that
will take longer than the 5-year period due to extenuating
circumstances, an agency shall notify the Director as soon as
the circumstance occurs with an estimated time to complete the
recommendation. In such cases, the Director may extend the
period for completion of the recommendation for a period of up
to an additional 2 years.
(d) Agency Implementation Authority.--In implementing any
recommendation under this section, an agency may--
(1) acquire such land, construct such replacement
facilities, and conduct such advance planning and design as may
be required to transfer functions from 1 location to another;
(2) provide outplacement assistance to civilian employees
employed by the agency at a location subject to a
recommendation;
(3) carry out activities for purposes of environmental
restoration and mitigation at any such installation; and
(4) reimburse other agencies for actions performed at the
request of the Director with respect to any such
recommendation.
(e) Specific Authorities.--
(1) Authority under this section.--
(A) In general.--Notwithstanding any other
provision of the laws that govern the disposal
authorities of agencies, all disposals implemented as a
result of a recommendation of the Director shall be
implemented in accordance with this section. If any
other disposal authority for an agency is inconsistent
with this section, the provisions of this section shall
control the implementation of a disposal recommended by
the Director.
(B) Other authorities.--To the extent that the
other disposal authorities are otherwise consistent
with this section, an agency shall implement a
recommendation of the Director to dispose a property by
using those other disposal authorities of the agency,
regardless of whether the agency--
(i) has been delegated disposal authority
by the Administrator of the General Services
Administration under subtitle I of title 40 or
subtitle I of title 41, United States Code;
(ii) has an independent disposal authority;
or
(iii) is required to work in partnership
with the General Services Administration
property disposal unit.
(2) Authorized actions.--In accordance with this
subsection, when implementing a recommendation to consolidate,
reconfigure, co-locate, or realign a real property asset all
agencies may take such action as necessary to implement the
recommendations of the Director. Consistent with this section,
the Director may instruct an agency to use the expertise of the
General Services Administration in carrying out a recommended
consolidation, reconfiguration, co-location, or realignment.
Consistent with law and available funding, any agency may
contract with the General Services Administration for
assistance or consultation on implementing a recommendation to
consolidate, reconfigure, co-locate, or realign a real property
asset.
(3) Suspension of transactions.--If any Federal civilian
real property is identified as an asset to be disposed,
consolidated, reconfigured, or otherwise realigned in a
recommendation of the Director, any transaction with respect to
that property that would prevent a recommendation from being
carried out shall be suspended during a 45-day period beginning
on the date of the notification received by an agency with
respect to the applicable Federal civilian real property.
(f) Determinations Regarding Certain Transactions.--Notwithstanding
any other provision of law, for any transaction identified,
recommended, or commenced as a result of this section, the Director
shall determine whether and to what extent an agency shall implement
the transaction consistent with any legal priorities or requirements to
enter into a transaction to convey a Federal civilian real property for
less than fair market value or in a transaction that mandates the
exclusion of other market participants.
(g) Statutes Not Applicable.--Notwithstanding any other provision
of law, any recommendation or commencement under this section of a
disposal, consolidation, reconfiguration, co-location, or realignment
of civilian real property shall not be subject to--
(1) section 545(b)(8) of title 40, United States Code;
(2) sections 550, 554, and 553 of title 40, United States
Code;
(3) section 501 of Public Law 100-77 (42 U.S.C. 11411);
(4) any section of An Act Authorizing the Transfer of
Certain Real Property for Wildlife, or other Purposes (16
U.S.C. 667b);
(5) section 47151 of title 49, United States Code;
(6) sections 107 and 317 of title 23, United States Code;
(7) section 1304(b) of title 40, United States Code;
(8) section 13(d) of the Surplus Property Act of 1944 (50
U.S.C. App. 1622(d));
(9) any other provision of law authorizing the conveyance
of real property owned by the Federal Government for no
consideration; or
(10) any congressional notification requirement other than
that in section 545 of title 40, United States Code.
(h) No Restriction on Use of Funds.--No provision of law shall be
construed as restricting the use of funds for disposing or realigning
Federal civilian real property in accordance with a recommendation of
the Director, except in the case of a provision of law which
specifically refers to a particular asset of Federal civilian real
property and expressly states that such restriction shall apply to such
asset notwithstanding this section.
(i) Funding.--
(1) Definitions.--In this subsection--
(A) the term ``gross proceeds'' means the gross
proceeds received from the disposal of any Federal
civilian real property in accordance with a
recommendation of the Director under this section;
(B) the term ``related costs'' means amounts--
(i) to cover the necessary costs associated
with--
(I) the disposal of property;
(II) consolidation, co-location,
and reconfiguration actions; and
(III) other actions taken to
otherwise realize operational
efficiencies, including such actions as
environmental restoration; and
(ii) for outplacement assistance to Federal
employees who work at a Federal property that
is affected by actions taken under this
section, and whose employment would be
terminated as a result of such disposal,
consolidation, or other realignment.
(2) Use of funds.--
(A) In general.--The Director shall determine the
amounts of gross proceeds to be deposited--
(i) as miscellaneous receipts in the
General Fund of the United States Treasury; and
(ii) in appropriations accounts of agencies
in accordance with subparagraph (B).
(B) Agency funding.--Amounts deposited under
subparagraph (A)(ii) may be deposited in an applicable
agency appropriation account relating to--
(i) related costs;
(ii) real property management reinvestment;
or
(iii) the funding of any program
established under section 121, 201, 202, 203,
or 221 or an amendment made by that section.
(C) Availability.--Any amounts deposited in an
appropriations account under this subsection--
(i) shall be available for any authorized
purpose of that account; and
(ii) shall remain available until expended.
Subtitle C--Industrial and Power Generation Energy Efficiency
SEC. 221. STATE PARTNERSHIP INDUSTRIAL ENERGY EFFICIENCY REVOLVING LOAN
PROGRAM.
Section 399A of the Energy Policy and Conservation Act (42 U.S.C.
6371h-1) is amended--
(1) in the section heading, by inserting ``and industry''
before the period at the end;
(2) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively; and
(3) by inserting after subsection (g) the following:
``(h) State Partnership Industrial Energy Efficiency Revolving Loan
Program.--
``(1) In general.--The Secretary shall carry out a program
under which the Secretary shall provide grants to eligible
lenders to pay the Federal share of creating a revolving loan
program under which loans are provided to commercial and
industrial manufacturers to implement commercially available
technologies or processes that significantly reduce systems
energy intensity, including the use of energy intensive
feedstocks and improved recycling of materials.
``(2) Eligible lenders.--To be eligible to receive cost-
matched Federal funds under this subsection, a lender shall--
``(A) be a community or economic development
lender;
``(B) be part of a partnership that includes
participation by, at a minimum--
``(i) a State or local government agency;
and
``(ii) a private financial institution or
other provider of loan capital;
``(C) submit an application to the Secretary, and
receive the approval of the Secretary, for cost-matched
Federal funds to carry out a loan program described in
paragraph (1); and
``(D) ensure that non-Federal funds are provided to
match, on at least a dollar-for-dollar basis, the
amount of Federal funds that are provided to carry out
a revolving loan program described in paragraph (1).
``(3) Award.--The amount of cost-matched Federal funds
provided to an eligible lender shall not exceed $100,000,000
for any fiscal year.
``(4) Recapture of awards.--
``(A) In general.--An eligible lender that receives
an award under paragraph (1) shall be required to repay
to the Secretary an amount of cost-match Federal funds,
as determined by the Secretary under subparagraph (B),
if the eligible lender is unable or unwilling to
operate a program described in this subsection for a
period of not less than 10 years beginning on the date
on which the eligible lender first receives funds made
available through the award.
``(B) Determination by secretary.--The Secretary
shall determine the amount of cost-match Federal funds
that an eligible lender shall be required to repay to
the Secretary under subparagraph (A) based on the
consideration by the Secretary of--
``(i) the amount of non-Federal funds
matched by the eligible lender;
``(ii) the amount of loan losses incurred
by the revolving loan program described in
paragraph (1); and
``(iii) any other appropriate factor, as
determined by the Secretary.
``(C) Use of recaptured cost-match federal funds.--
The Secretary may distribute to eligible lenders under
this subsection each amount received by the Secretary
under this paragraph.
``(5) Eligible projects.--A program for which cost-matched
Federal funds are provided under this subsection shall be
designed to accelerate the implementation, at facilities
located in the United States, of industrial and commercial
applications of technologies or processes that substantially
reduce the energy intensity of operations or production of the
facility, including reduction of energy intensive feedstocks
and improved recycling of materials in manufacturing.
``(6) Evaluation.--The Secretary shall evaluate
applications for cost-matched Federal funds under this
subsection taking into consideration--
``(A) the commitment to provide non-Federal funds
in accordance with paragraph (2)(D);
``(B) the plan of the program to encourage private
lending for energy efficiency upgrades;
``(C) program economic sustainability;
``(D) the capability of the applicant to administer
the program;
``(E) the quantity of energy savings or energy
feedstock minimization;
``(F) the energy intensity of areas to be served by
the program;
``(G) percentage electricity rate increases in
areas to be served by the applicant that are
attributable to implementation of environmental
controls on existing power generation facilities and
new power generation facilities;
``(H) State adoption and progress on implementation
of energy efficiency building codes as established in
section 304 of the Energy Conservation and Production
Act (42 U.S.C. 6833); and
``(I) the ability to fund energy efficient projects
on a timely basis after the date of the grant award.
``(7) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $500,000,000
for each of fiscal years 2012 through 2016.''.
SEC. 222. STUDY OF NEW SOURCE REVIEW TO ENCOURAGE ENERGY EFFICIENCY.
(a) In General.--The Comptroller General of the United States shall
conduct a review to examine--
(1) the impact of new source review requirements under the
Clean Air Act (42 U.S.C. 7401 et seq.) and related laws on the
ability of plant owners to improve energy efficiency of
regulated major sources, including power generation for
commercial sale and covered industrial sources;
(2) the implementation of new source review requirements by
the Administrator of the Environmental Protection Agency,
including transparency and consistency in measurement and
procedures;
(3) the potential to increase energy efficiency in power
generation, including--
(A) likely consumer rates and emissions (at both
the individual facility and system-wide levels);
(B) the impact of the improvements; and
(C) the impact of new source review requirements
and implementation by the Administrator on achieving
efficiency gains; and
(4) existing Federal programs to improve energy efficiency
in power generation applications.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Comptroller General shall submit to the Committee on
Energy and Natural Resources of the Senate and the Committee on Natural
Resources of the House of Representatives a report on the results of
the study conducted under subsection (a).
Subtitle D--Procurement, Equipment, and Appliance Efficiency
SEC. 231. APPLIANCE AND EQUIPMENT EFFICIENCY.
(a) Coverage.--Section 322(a) of the Energy Policy and Conservation
Act (42 U.S.C. 6292(a)) is amended--
(1) by designating paragraph (20) as paragraph (21); and
(2) by inserting after paragraph (19) the following:
``(20) Computer monitors and displays, personal computers,
and cable, satellite, and fiber optic service set top boxes.''.
(b) Energy Conservation Standards.--Section 325(l) of the Energy
Policy and Conservation Act (42 U.S.C. 6295(l)) is amended--
(1) by striking ``paragraph (19)'' each place it appears
and inserting ``paragraph (21)'';
(2) in the first sentence of paragraph (3), by inserting
``and computer monitors and displays, personal computers, and
cable, satellite, and fiber optic service set top boxes'' after
``television sets''; and
(3) by adding at the end the following:
``(5) Notice.--If the Secretary finds that a covered
product meets the criteria established under paragraph (1) but
does not establish an energy conservation standard for the
covered product, the Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate and the Committee on
Energy and Commerce of the House of Representatives a notice
indicating that the standard has not been established.''.
(c) Definition of Industrial Equipment.--Section 340(2)(B) of the
Energy Policy and Conservation Act (42 U.S.C. 6311(2)(B)) is amended--
(1) in clause (xi), by striking ``and'' at the end;
(2) in clause (xii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(xiii) other equipment.''.
(d) Covered Equipment.--Section 342 of the Energy Policy and
Conservation Act (42 U.S.C. 6313) is amended by adding at the end the
following:
``(g) Covered Equipment.--The Secretary shall establish an energy
conservation standard for each type or class of covered equipment
described in section 340(1) if--
``(1) the requirements of subsections (o) and (p) of
section 325 are met for the type or class;
``(2) substantial improvement in the energy efficiency of
products of the type or class is technologically feasible; and
``(3) the application of a labeling rule or voluntary
labeling program to the type or class is not likely to be
sufficient to induce manufacturers to produce, and consumers
and other persons to purchase, covered products of the type or
class that achieve the maximum energy efficiency that is
technologically feasible and economically justified.''.
(e) Report on Efficiency Standards for Additional Consumer Products
and Commercial and Industrial Equipment.--Not later than 1 year after
the date of enactment of this Act, the Secretary of Energy shall submit
to the Committee on Energy and Commerce of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate a
report that identifies--
(1) consumer products and commercial and industrial
equipment not covered by efficiency standards (as of the date
of enactment of this Act) that have significant national energy
savings potential (including through usage of natural gas), as
determined by the Secretary;
(2) levels of potential energy savings for products and
equipment identified under paragraph (1);
(3) which of the products and equipment identified under
paragraph (1) are likely, prima facie, to qualify as covered
under authority of the Secretary in existence on the date of
enactment of this Act, and a plan for formal review of those
products and equipment under existing authority; and
(4) which of the products identified under paragraph (1)
require additional authority for the Secretary to be covered.
SEC. 232. FEDERAL PROCUREMENT AND USAGE OF ENERGY EFFICIENT PRODUCTS.
(a) In General.--Section 553(b) of the National Energy Conservation
Policy Act (42 U.S.C. 8259b(b)) is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Requirement.--Except as provided in paragraph (4),
beginning on the date of enactment of the Practical Energy Plan
Act of 2011, the head of an agency shall procure, for not less
than 95 percent of the new contract actions, task orders, and
delivery orders for products and services (other than for
weapon systems) for the agency--
``(A) an Energy Star rated product;
``(B) a FEMP designated product; or
``(C) any other highly energy efficient product
that is--
``(i) reasonably expected to exceed Energy
Star ratings; and
``(ii) procured for the purposes of testing
and demonstrating new technologies to encourage
commercial application.''; and
(2) by adding at the end the following:
``(4) Exemption.--Paragraph (1) shall not apply if there
are less than 2 products available that meet applicable energy
efficiency criteria.''.
(b) Guidance.--Not later than 1 year after the date of enactment of
this Act, the Administrator of General Services, in consultation with
the Secretary of Energy, shall issue guidance for Executive agencies to
employ tools that achieve energy savings through the use of computer
hardware, energy efficiency software, and power tools.
(c) Reports on Plans and Savings.--Not later than 180 days after
the date of the issuance of the guidance under subsection (b), each
Executive agency shall submit to the Administrator of General Services
and make publicly available a report that describes--
(1) the plan of the Executive agency for implementing the
guidance within the Executive agency; and
(2) estimated energy and financial savings from employing
the tools described in subsection (b).
TITLE III--MEASUREMENT AND REVIEW
SEC. 301. MEASUREMENT AND REVIEW.
(a) In General.--Not later than 90 days after the date of enactment
of this Act, the Secretary of Energy, in consultation with the
Administrator of the Environmental Protection Agency and the Secretary
of Transportation, shall submit to the appropriate committees of
Congress a list of Federal programs (including programs established or
modified under this Act and the amendments made by this Act), for which
the Comptroller General of the United States shall carry out a study
that monitors the progress of the programs in meeting the energy
security, economic competitiveness, and pollution reduction goals under
this Act and the amendments made by this Act.
(b) Study.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act and every 3 years thereafter for the 12-
year period beginning on the date of enactment of this Act, the
Comptroller General of the United States shall--
(A) carry out a study that monitors the progress of
the programs described in subsection (a);
(B) submit to the appropriate committees of
Congress a report containing the findings of the study
carried out under this subsection; and
(C) publish reports and, to the maximum extent
practicable, accompanying data for public view on the
Internet.
(2) Contents.--A study and report carried out under
paragraph (1) shall include--
(A) an examination of the effects the programs
described in subsection (a) have had on--
(i) Federal fiscal issues;
(ii) the consumption, production, and
import of oil and petroleum products;
(iii) national energy production and
demand;
(iv) pollution levels and greenhouse gas
emissions;
(v) power and fuel costs;
(vi) energy intensity and economic
productivity; and
(vii) the advancement and deployment of
technology;
(B) any recommendations of the Comptroller General
on improving the performance of the programs.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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