S 1321 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 1321CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

June 30, 2011CommentsClose CommentsPermalink

Mr. LUGAR introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Practical Energy Plan Act of 2011’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--REDUCING FOREIGN OIL DEPENDENCE

Subtitle A--Expanded Domestic Oil Production

Sec. 101. Oil production through carbon dioxide sequestration.CommentsClose CommentsPermalink





Sec. 102. Restoring Gulf of Mexico oil production.CommentsClose CommentsPermalink





Sec. 103. Safety assessments.CommentsClose CommentsPermalink





Sec. 104. Restoring oil and gas lease sales.CommentsClose CommentsPermalink





Sec. 105. Equal treatment of permits in Alaska.CommentsClose CommentsPermalink





Sec. 106. Offshore resource review and seismic surveys.CommentsClose CommentsPermalink

Subtitle B--Vehicle Efficiency

Sec. 111. Fuel efficiency planning.CommentsClose CommentsPermalink

Subtitle C--Fuel Choice

Sec. 121. Competitive production incentives for advanced renewable fuels.CommentsClose CommentsPermalink





Sec. 122. Fuel options through the availability of dual fueled vehicles and light duty trucks.CommentsClose CommentsPermalink

Subtitle D--Federal Fleets

Sec. 131. Department of Defense alternative fuels contracting.CommentsClose CommentsPermalink





Sec. 132. Fuels for national security agencies.CommentsClose CommentsPermalink





Sec. 133. Savings from transportation energy performance contracts.CommentsClose CommentsPermalink

TITLE II--ENERGY EFFICIENCY

Subtitle A--Energy Performance in Buildings

Sec. 201. Saving energy in new buildings.CommentsClose CommentsPermalink





Sec. 202. Enabling homes and buildings energy retrofits.CommentsClose CommentsPermalink





Sec. 203. Rural energy savings.CommentsClose CommentsPermalink

Subtitle B--Federal Properties

Sec. 211. Energy efficient Federal buildings.CommentsClose CommentsPermalink





Sec. 212. Accelerating energy savings performance contracts.CommentsClose CommentsPermalink





Sec. 213. Sense of Congress on inclusion of energy efficiency as selection criteria for base closure and realignment decisions.CommentsClose CommentsPermalink





Sec. 214. Federal property realignment and savings.CommentsClose CommentsPermalink

Subtitle C--Industrial and Power Generation Energy Efficiency

Sec. 221. State partnership industrial energy efficiency revolving loan program.CommentsClose CommentsPermalink





Sec. 222. Study of new source review to encourage energy efficiency.CommentsClose CommentsPermalink

Subtitle D--Procurement, Equipment, and Appliance Efficiency

Sec. 231. Appliance and equipment efficiency.CommentsClose CommentsPermalink





Sec. 232. Federal procurement and usage of energy efficient products.CommentsClose CommentsPermalink

TITLE III--MEASUREMENT AND REVIEW

Sec. 301. Measurement and review.CommentsClose CommentsPermalink

TITLE I--REDUCING FOREIGN OIL DEPENDENCECommentsClose CommentsPermalink

Subtitle A--Expanded Domestic Oil ProductionCommentsClose CommentsPermalink

SEC. 101. OIL PRODUCTION THROUGH CARBON DIOXIDE SEQUESTRATION.

(a) Pioneer Projects-CommentsClose CommentsPermalink





(1) INVESTMENT TAX CREDIT-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘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.CommentsClose CommentsPermalink





‘(b) Qualified Investment-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A)(i) the construction, reconstruction, or erection of which is completed by the taxpayer, orCommentsClose CommentsPermalink





‘(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer, andCommentsClose CommentsPermalink





‘(B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(c) Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) QUALIFYING PIONEER PROJECT- The term ‘qualifying pioneer project’ means a project--CommentsClose CommentsPermalink





‘(A) which captures carbon dioxide which is--CommentsClose CommentsPermalink





‘(i) emitted in connection with--CommentsClose CommentsPermalink





‘(I) power generation, orCommentsClose CommentsPermalink





‘(II) industrial production,CommentsClose CommentsPermalink





‘(ii) subject to an eligible enhanced oil recovery contract, andCommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(C) which is certified by the Secretary under subsection (d).CommentsClose CommentsPermalink





‘(2) ELIGIBLE ENHANCED OIL RECOVERY CONTRACT- The term ‘eligible enhanced oil recovery contract’ means a contract--CommentsClose CommentsPermalink





‘(A) which requires the delivery of carbon dioxide which is--CommentsClose CommentsPermalink





‘(i) to be used in connection with a qualified enhanced oil recovery project (as so defined), andCommentsClose CommentsPermalink





‘(ii) to be disposed of in secure geological storage (within the meaning of section 45Q),CommentsClose CommentsPermalink





‘(B) which specifies such delivery over a period of not less than 10 years, andCommentsClose CommentsPermalink





‘(C) under which the first such delivery occurs after the date of the enactment of this section.CommentsClose CommentsPermalink





‘(3) QUALIFIED CARBON DIOXIDE TRUNKLINE- The term ‘qualified carbon dioxide trunkline’ means a pipeline--CommentsClose CommentsPermalink





‘(A) which is for the transportation of carbon dioxide for use in qualified enhanced oil recovery projects (as so defined),CommentsClose CommentsPermalink





‘(B) which has a free flow capacity of not less than 7,500,000 metric tons per year,CommentsClose CommentsPermalink





‘(C) which extends not less than 300 miles, andCommentsClose CommentsPermalink





‘(D) the construction of which is started after the date of the enactment of this section.CommentsClose CommentsPermalink





‘(4) ELIGIBLE PROPERTY- The term ‘eligible property’ means any property which is a part of a qualifying pioneer project and--CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) is necessary for the additional compression of carbon dioxide, andCommentsClose CommentsPermalink





‘(ii) would not be used in connection with such project if such project were not designed to compress carbon dioxide, andCommentsClose CommentsPermalink





‘(B) in any other case, which--CommentsClose CommentsPermalink





‘(i) is necessary for the isolation and capture of carbon dioxide, andCommentsClose CommentsPermalink





‘(ii) would not be used in connection with such project if such project were not designed to capture carbon dioxide.CommentsClose CommentsPermalink





‘(d) Certification-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) LIMITATIONS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(C) TRUNKLINE CAPACITY- The Secretary shall not certify as a qualifying pioneer project any project if the sum of--CommentsClose CommentsPermalink





‘(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, plusCommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





exceeds 60 percent of the greater of the free flow or operational capacity of such qualified carbon dioxide trunkline.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(e) Other Rules-CommentsClose CommentsPermalink





‘(1) TRANSFER OF CREDIT-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(B) INCLUSION AS PART OF INVESTMENT CREDIT- Section 46 of such Code is amended--CommentsClose CommentsPermalink





(i) by striking ‘and’ at the end of paragraph (5),CommentsClose CommentsPermalink





(ii) by striking the period at the end of paragraph (6) and inserting ‘, and’, andCommentsClose CommentsPermalink





(iii) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(7) the pioneer project investment credit.’.CommentsClose CommentsPermalink





(C) CONFORMING AMENDMENTS- Section 49(a)(1)(C) of such Code is amended--CommentsClose CommentsPermalink





(i) by striking ‘and’ at the end of clause (v),CommentsClose CommentsPermalink





(ii) by striking the period at the end of clause (vi) and inserting ‘, and’, andCommentsClose CommentsPermalink





(iii) by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(vii) the basis of any property which is part of a qualifying pioneer project under such section 48E.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘Sec. 48E. Pioneer project investment credit.’.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(2) PRODUCTION TAX CREDIT-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘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.CommentsClose CommentsPermalink





‘(b) Quarterly Carbon Dioxide Production Credit- For purposes of this section--CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) the credit amount with respect to such calendar quarter, andCommentsClose CommentsPermalink





‘(B) the number of metric tons of carbon dioxide which is--CommentsClose CommentsPermalink





‘(i) captured by the taxpayer at qualifying pioneer projects during the portion of the calendar quarter which is within such taxpayer’s taxable year, andCommentsClose CommentsPermalink





‘(ii) subject to an eligible enhanced oil recovery contract.CommentsClose CommentsPermalink





‘(2) CREDIT AMOUNT-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(B) AMOUNT OF REDUCTION- The amount determined under this paragraph is the amount equal to 50 percent of the excess of--CommentsClose CommentsPermalink





‘(i) the average price per barrel of West Texas Intermediate crude oil for the preceding calendar quarter, overCommentsClose CommentsPermalink





‘(ii) $80.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(c) Definitions and Other Rules- For purposes of this section--CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) TRANSFER OF CREDIT-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(37) the pioneer project production credit determined under section 45S(a).’.CommentsClose CommentsPermalink





(C) COORDINATION WITH SECTION 45Q- Subsection (d) of section 45Q of such Code is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(D) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘Sec. 45S. Pioneer project carbon dioxide production credit.’.CommentsClose CommentsPermalink





(ii) Section 6501(m) of such Code is amended by inserting ‘45S(c)(4),’ after ‘45H(g),’.CommentsClose CommentsPermalink





(E) EFFECTIVE DATE- The amendments made by this paragraph shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink





(b) Deployment Projects-CommentsClose CommentsPermalink





(1) PRODUCTION TAX CREDIT-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘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--CommentsClose CommentsPermalink





‘(1) the applicable dollar amount, andCommentsClose CommentsPermalink





‘(2) the number of metric tons of carbon dioxide which is--CommentsClose CommentsPermalink





‘(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), andCommentsClose CommentsPermalink





‘(B) delivered by the taxpayer under an eligible enhanced oil recovery contract during the taxable year.CommentsClose CommentsPermalink





‘(b) Applicable Dollar Amount- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The applicable dollar amount is the lesser of--CommentsClose CommentsPermalink





‘(A) the source cap dollar amount, orCommentsClose CommentsPermalink





‘(B) the amount bid by the taxpayer in the application submitted under subsection (d)(2).CommentsClose CommentsPermalink





‘(2) SOURCE CAP DOLLAR AMOUNT- For purposes of paragraph (1), the source cap dollar amount is--CommentsClose CommentsPermalink





‘(A) $70, in the case of a qualifying deployment project which captures carbon dioxide emitted in connection with power generation,CommentsClose CommentsPermalink





‘(B) $25, in the case of a qualifying deployment project--CommentsClose CommentsPermalink





‘(i) which captures carbon dioxide emitted in connection with industrial production, andCommentsClose CommentsPermalink





‘(ii) with respect to which the isolation and capture of the carbon dioxide is integral to the primary function of the project, andCommentsClose CommentsPermalink





‘(C) $35, in the case of any other qualifying deployment project which captures carbon dioxide emitted in connection with industrial production.CommentsClose CommentsPermalink





‘(c) Definitions- For purposes of this section--CommentsClose CommentsPermalink





‘(1) QUALIFYING DEPLOYMENT PROJECT- The term ‘qualifying deployment project’ means a project--CommentsClose CommentsPermalink





‘(A) which captures carbon dioxide which is--CommentsClose CommentsPermalink





‘(i) emitted in connection with--CommentsClose CommentsPermalink





‘(I) power generation, orCommentsClose CommentsPermalink





‘(II) industrial production, andCommentsClose CommentsPermalink





‘(ii) subject to an eligible enhanced oil recovery contract,CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(C) which is certified by the Secretary under subsection (d).CommentsClose CommentsPermalink





‘(2) ELIGIBLE ENHANCED OIL RECOVERY CONTRACT- The term ‘eligible enhanced oil recovery contract’ has the meaning given such term under section 48E.CommentsClose CommentsPermalink





‘(d) Qualifying Deployment Project Program-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) CERTIFICATION-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(B) ANNUAL LIMITATION ON CERTIFICATIONS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(C) REQUIREMENTS FOR APPLICATIONS FOR CERTIFICATION- An application submitted under subparagraph (A) shall contain--CommentsClose CommentsPermalink





‘(i) the applicable dollar amount which the taxpayer bids for the project, andCommentsClose CommentsPermalink





‘(ii) such other information as the Secretary may require in order to make a determination to accept or reject an application for certification.CommentsClose CommentsPermalink





Any information contained in the application shall be protected as provided in section 552(b)(4) of title 5, United States Code.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(e) Other Rules-CommentsClose CommentsPermalink





‘(1) TRANSFER OF CREDIT-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(38) the deployment project production credit determined under section 45T(a).’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(D) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘Sec. 45T. Deployment project carbon dioxide production credit.’.CommentsClose CommentsPermalink





(ii) Section 6501(m) of such Code is amended by inserting ‘45T(e)(3),’ after ‘45S(c)(4),’.CommentsClose CommentsPermalink





(E) EFFECTIVE DATE- The amendments made by this paragraph shall apply to taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink





(F) SECRETARIAL REVIEW OF SOURCE CAP DOLLAR AMOUNTS-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) REVENUE GENERATING FAIL-SAFE-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(i) project the present value of--CommentsClose CommentsPermalink





(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), andCommentsClose CommentsPermalink





(II) the revenue costs associated with the credits allowed under sections 45S, 45T, and 48E of such Code, andCommentsClose CommentsPermalink





(ii) project--CommentsClose CommentsPermalink





(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, andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(B) DETERMINATION OF UNSUSTAINABLE REVENUE-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(ii) AFFIRMATIVE DETERMINATION- The Secretary shall make an affirmative determination under this subparagraph if the Secretary finds that--CommentsClose CommentsPermalink





(I) the projected revenue costs determined under subparagraph (A)(i)(II) exceed the projected revenue increases determined under subparagraph (A)(i)(I), orCommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(C) SUSPENSION OF DEPLOYMENT CREDIT AND REPORT TO CONGRESS- If the Secretary makes an affirmative determination under subparagraph (B)--CommentsClose CommentsPermalink





(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, andCommentsClose CommentsPermalink





(ii) the Secretary (or the Secretary’s delegate) shall submit to Congress a report detailing the findings and projections that led to such determination.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(11) Qualified carbon dioxide trunklines (as defined in section 48E(c)(3) of the Internal Revenue Code of 1986).’.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 103. SAFETY ASSESSMENTS.

(a) Report to Congress-CommentsClose CommentsPermalink





(1) DEFINITION OF COVERED PERMIT- In this subsection, the term ‘covered permit’ means--CommentsClose CommentsPermalink





(A) each of the first 10 drilling permits for leases on the Atlantic coast issued after the date of enactment of this Act;CommentsClose CommentsPermalink





(B) each of the first 10 drilling permits for leases on the Pacific coast issued after the enactment of this Act;CommentsClose CommentsPermalink





(C) each of the first 10 drilling permits for leases on the Arctic coast issued after the enactment of this Act; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) critical safety system preparedness, including blowout prevention; andCommentsClose CommentsPermalink





(B) oil spill response and containment preparedness.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(5) SPILL RESPONSE ASSESSMENT-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

SEC. 104. RESTORING OIL AND GAS LEASE SALES.

(a) Definitions- In this section:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(3) SECRETARY- The term ‘Secretary’ means the Secretary of the Interior.CommentsClose CommentsPermalink





(b) Requirement To Conduct Certain Proposed Oil and Gas Lease Sales-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) offshore oil and gas lease sale 216;CommentsClose CommentsPermalink





(B) offshore oil and gas lease sale 218;CommentsClose CommentsPermalink





(C) offshore oil and gas lease sale 220; andCommentsClose CommentsPermalink





(D) offshore oil and gas lease sale 222.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.).CommentsClose CommentsPermalink

SEC. 105. EQUAL TREATMENT OF PERMITS IN ALASKA.

Section 328 of the Clean Air Act (42 U.S.C. 7627) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)(1)--CommentsClose CommentsPermalink





(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’; andCommentsClose CommentsPermalink





(B) in the fourth sentence, by inserting ‘and this Act’ before the period at the end; andCommentsClose CommentsPermalink





(2) in the first sentence of subsection (b)--CommentsClose CommentsPermalink





(A) by striking ‘Gulf Coast’; andCommentsClose CommentsPermalink





(B) by inserting ‘Alaska,’ before ‘ and Alabama’.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) resource assessments;CommentsClose CommentsPermalink





(2) an assessment of preparedness for accident response;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(4) a schedule for new lease sales required to meet production targets.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) resource assessments;CommentsClose CommentsPermalink





(2) an assessment of preparedness for accident response;CommentsClose CommentsPermalink





(3) targets for expanding oil and natural gas production over 10-, 15-, and 20-year periods; andCommentsClose CommentsPermalink





(4) a nonbinding schedule for new lease sales required to meet production targets.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(i) Seismic Surveys-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than 360 days after the date of enactment of this subsection, the Secretary shall issue regulations providing for--CommentsClose CommentsPermalink





‘(A) issuance by the Secretary of seismic surveying cost credits for the provision of data from seismic surveying of the outer Continental Shelf; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(4) TRANSFER- A person to whom a credit is issued by the Secretary--CommentsClose CommentsPermalink





‘(A) may transfer the credit once; andCommentsClose CommentsPermalink





‘(B) shall notify the Secretary of the transfer under subparagraph (A).CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

Subtitle B--Vehicle EfficiencyCommentsClose CommentsPermalink

SEC. 111. FUEL EFFICIENCY PLANNING.

(a) Standards for Light Vehicles- Section 32902 of title 49, United States Code, is amended--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) in paragraph (2)--CommentsClose CommentsPermalink





(i) in subparagraph (A)--CommentsClose CommentsPermalink





(I) in the subparagraph heading, by striking ‘2020’ and inserting ‘2016’;CommentsClose CommentsPermalink





(II) by striking ‘2020’ and inserting ‘2016’; andCommentsClose CommentsPermalink





(III) by striking ‘35’ and inserting ‘34.1’;CommentsClose CommentsPermalink





(ii) in subparagraph (B)--CommentsClose CommentsPermalink





(I) in the subparagraph heading, by striking ‘2021’ and insert ‘2017’;CommentsClose CommentsPermalink





(II) by striking ‘2021’ and inserting ‘2017’; andCommentsClose CommentsPermalink





(III) by inserting ‘, reflecting at least a 4 percent annual increase for each model year’ before the period at the end; andCommentsClose CommentsPermalink





(iii) in subparagraph (C)--CommentsClose CommentsPermalink





(I) by striking ‘subparagraph (A)’ and inserting ‘subparagraphs (A) and (B)’;CommentsClose CommentsPermalink





(II) by striking ‘and ending with model year 2020’; andCommentsClose CommentsPermalink





(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).’; andCommentsClose CommentsPermalink





(B) by adding at the end the following:CommentsClose CommentsPermalink





‘(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.’;CommentsClose CommentsPermalink





(3) in subsection (c)--CommentsClose CommentsPermalink





(A) by inserting ‘(1)’ before ‘The Secretary’;CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





‘(A) are technologically unachievable;CommentsClose CommentsPermalink





‘(B) cannot be achieved without materially reducing the overall safety of automobiles manufactured or sold in the United States; orCommentsClose CommentsPermalink





‘(C) is shown, by clear and convincing evidence, not to be cost effective.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) is technologically achievable;CommentsClose CommentsPermalink





‘(B) can be achieved without materially reducing the overall safety of automobiles manufactured or sold in the United States; andCommentsClose CommentsPermalink





‘(C) is cost effective.’;CommentsClose CommentsPermalink





(C) by striking ‘Section 553’ and inserting the following:CommentsClose CommentsPermalink





‘(3) Section 553’; andCommentsClose CommentsPermalink





(D) by adding at the end the following:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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); andCommentsClose CommentsPermalink





‘(B) make publicly available non-proprietary documentation regarding the amendment decision’; andCommentsClose CommentsPermalink





(4) in subsection (f)--CommentsClose CommentsPermalink





(A) by striking ‘When deciding’ and inserting ‘(1) In determining’;CommentsClose CommentsPermalink





(B) by inserting ‘cost-benefit considerations,’ after ‘economic practicability,’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) value to consumers;CommentsClose CommentsPermalink





‘(B) economic security;CommentsClose CommentsPermalink





‘(C) national security;CommentsClose CommentsPermalink





‘(D) foreign policy;CommentsClose CommentsPermalink





‘(E) the impact of oil use on--CommentsClose CommentsPermalink





‘(i) sustained cartel rents paid to foreign suppliers;CommentsClose CommentsPermalink





‘(ii) long-run potential gross domestic product due to higher normal-market oil price levels, including inflationary impacts;CommentsClose CommentsPermalink





‘(iii) import costs, wealth transfers, and potential gross domestic product due to increased trade imbalances;CommentsClose CommentsPermalink





‘(iv) import costs and wealth transfers during oil shocks;CommentsClose CommentsPermalink





‘(v) macroeconomic dislocation and adjustment costs during oil shocks;CommentsClose CommentsPermalink





‘(vi) the cost of existing energy security policies, including the management of the Strategic Petroleum Reserve;CommentsClose CommentsPermalink





‘(vii) the timing and severity of the oil peaking problem;CommentsClose CommentsPermalink





‘(viii) the risk, probability, size, and duration of oil supply disruptions;CommentsClose CommentsPermalink





‘(ix) OPEC strategic behavior and long-run oil pricing;CommentsClose CommentsPermalink





‘(x) the short term elasticity of energy demand and the magnitude of price increases resulting from a supply shock;CommentsClose CommentsPermalink





‘(xi) oil imports, military costs, and related security costs, including intelligence, homeland security, sea lane security and infrastructure, and other military activities;CommentsClose CommentsPermalink





‘(xii) oil imports, diplomatic and foreign policy flexibility, and connections to geopolitical strife, terrorism, and international development activities; andCommentsClose CommentsPermalink





‘(xiii) the cost of pollutants;CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(G) the impact of United States payments for oil imports on political, economic, and military developments in unstable or unfriendly oil exporting countries;CommentsClose CommentsPermalink





‘(H) the uninternalized costs of pipeline and storage oil seepage, and for risk of oil spills from production, handling, transport, and related landscape damage; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(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; orCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(b) Standards for Medium- and Heavy-Duty Vehicles- Section 32902(k) of title 49, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (1)--CommentsClose CommentsPermalink





(A) in subparagraph (C), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(B) in subparagraph (D), by striking the period at the end and inserting ‘; and’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(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.’;CommentsClose CommentsPermalink





(2) in paragraph (2)--CommentsClose CommentsPermalink





(A) by striking ‘Not later’ and inserting the following:CommentsClose CommentsPermalink





‘(A) IMPLEMENTATION- Not later’;CommentsClose CommentsPermalink





(B) by striking ‘fuel economy standards’ and inserting ‘fuel efficiency standards (taking into consideration the national security and economic benefits of reduced petroleum consumption)’;CommentsClose CommentsPermalink





(C) by striking ‘The Secretary may’ and inserting the following:CommentsClose CommentsPermalink





‘(B) SEPARATE STANDARDS- The Secretary may’;CommentsClose CommentsPermalink





(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.’; andCommentsClose CommentsPermalink





(E) by adding at the end the following:CommentsClose CommentsPermalink





‘(C) APPLICABILITY; ADJUSTMENTS- Standards issued under this subsection--CommentsClose CommentsPermalink





‘(i) may apply to--CommentsClose CommentsPermalink





‘(I) vehicle components;CommentsClose CommentsPermalink





‘(II) whole vehicles based on 1 or more attributes; orCommentsClose CommentsPermalink





‘(III) any combination of (I) and (II);CommentsClose CommentsPermalink





‘(ii) shall, subject to paragraph (3)--CommentsClose CommentsPermalink





‘(I) be implemented for vehicles manufactured for sale in the United States during or before model year 2017; andCommentsClose CommentsPermalink





‘(II) allow for fuel efficiency regulation of vehicle components or whole vehicles before such model year; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(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.’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

Subtitle C--Fuel ChoiceCommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) in the section heading, by striking ‘cellulosic biofuels’ and inserting ‘renewable fuels’;CommentsClose CommentsPermalink





(2) by striking ‘cellulosic biofuels’ each place it appears (other than subsection (b)(1)) and inserting ‘renewable fuels’;CommentsClose CommentsPermalink





(3) in subsection (a), by striking ‘biofuels’ each place it appears and inserting ‘renewable fuels’;CommentsClose CommentsPermalink





(4) in subsection (b)--CommentsClose CommentsPermalink





(A) by striking paragraph (1);CommentsClose CommentsPermalink





(B) by redesignating paragraph (2) as paragraph (1); andCommentsClose CommentsPermalink





(C) by inserting after paragraph (1) (as so redesignated) the following:CommentsClose CommentsPermalink





‘(2) RENEWABLE FUEL-CommentsClose CommentsPermalink





‘(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)).CommentsClose CommentsPermalink





‘(B) INCLUSION- The term ‘renewable fuel’ includes algae.CommentsClose CommentsPermalink





‘(C) EXCLUSION- The term ‘renewable fuel’ does not include grain.’; andCommentsClose CommentsPermalink





(5) in subsection (f), by inserting ‘for each of fiscal years 2012 through 2016’ before the period at the end.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

‘SEC. 32920. FUEL OPTIONS FOR TRANSPORTATION.

‘(a) Definitions- In this section:CommentsClose CommentsPermalink





‘(1) ADVANCED ALTERNATIVE FUEL- The term ‘advanced alternative fuel’ means--CommentsClose CommentsPermalink





‘(A) a mixture containing--CommentsClose CommentsPermalink





‘(i) at least 85 percent denatured ethanol by volume (or a lower percentage prescribed by the Secretary pursuant to section 32901(b)); andCommentsClose CommentsPermalink





‘(ii) gasoline or other fuels;CommentsClose CommentsPermalink





‘(B) a mixture containing--CommentsClose CommentsPermalink





‘(i) at least 70 percent methanol by volume (or a lower percentage prescribed by the Secretary pursuant to section 32901(b)); andCommentsClose CommentsPermalink





‘(ii) gasoline and other fuels; andCommentsClose CommentsPermalink





‘(C) other alcohols or liquid fuels certified by the Secretary pursuant to subsection (b)(2)(B)(i).CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(4) FUEL CHOICE-ENABLING VEHICLE- The term ‘fuel choice-enabling vehicle’ means a light-duty vehicle warranted by its manufacturer to operate on--CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(B) an advanced alternative fuel blend;CommentsClose CommentsPermalink





‘(C) natural gas;CommentsClose CommentsPermalink





‘(D) hydrogen;CommentsClose CommentsPermalink





‘(E) batteries;CommentsClose CommentsPermalink





‘(F) a hybrid electric engine;CommentsClose CommentsPermalink





‘(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’); orCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(b) Fuel Options Standard-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Except as provided in paragraph (3), each light-duty vehicle manufacturer’s annual covered inventory shall be comprised of--CommentsClose CommentsPermalink





‘(A) not less than 50 percent fuel choice-enabling vehicles in model years 2015, 2016, and 2017; andCommentsClose CommentsPermalink





‘(B) not less than 90 percent fuel choice-enabling vehicles in model year 2018 and each subsequent model year.CommentsClose CommentsPermalink





‘(2) CERTIFICATION-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(B) CONTENTS- The certification under subparagraph (A) should include--CommentsClose CommentsPermalink





‘(i) the type and blend of advanced alternative fuel that can be utilized by vehicles qualifying as a fuel choice-enabling vehicle;CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(5) CREDIT TRADING AMONG MANUFACTURERS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

Subtitle D--Federal FleetsCommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

‘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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(c) Period of Contract- The period of a contract entered into under subsection (a) may not exceed 20 years.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘2922h. Liquid fuels: contracts for procurement of certain transportation fuels.’.CommentsClose CommentsPermalink

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’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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’.CommentsClose CommentsPermalink





(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,’.CommentsClose CommentsPermalink





(c) Definitions-CommentsClose CommentsPermalink





(1) ENERGY SAVINGS- Section 804(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is amended--CommentsClose CommentsPermalink





(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’;CommentsClose CommentsPermalink





(B) in subparagraph (C)--CommentsClose CommentsPermalink





(i) by inserting ‘(including new hydroelectric generation at Federal dams that do not have hydroelectric generation facilities)’ after ‘cogeneration’; andCommentsClose CommentsPermalink





(ii) by striking ‘and’ after the semicolon at the end;CommentsClose CommentsPermalink





(C) in subparagraph (D), by striking the period at the end and inserting ‘; and’; andCommentsClose CommentsPermalink





(D) by adding at the end the following:CommentsClose CommentsPermalink





‘(E) the increased efficient use of nonbuilding applications; andCommentsClose CommentsPermalink





‘(F) the savings realized from reduced fuel use, including secondary savings.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(5) NONBUILDING APPLICATION- The term ‘nonbuilding application’ means--CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) that transportation; orCommentsClose CommentsPermalink





‘(ii) maintaining a controlled environment within the vehicle, device, or equipment; andCommentsClose CommentsPermalink





‘(B) any federally owned equipment use to generate electricity or transport water.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

TITLE II--ENERGY EFFICIENCYCommentsClose CommentsPermalink

Subtitle A--Energy Performance in BuildingsCommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

‘SEC. 304. UPDATING BUILDING ENERGY EFFICIENCY.

‘(a) Updating National Model Building Energy Codes-CommentsClose CommentsPermalink





‘(1) TARGETS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) meet or exceed the national model building energy codes; orCommentsClose CommentsPermalink





‘(ii) achieve equivalent or greater energy savings.CommentsClose CommentsPermalink





‘(C) MINIMUM REQUIREMENTS- The targets for overall energy savings shall be at least a--CommentsClose CommentsPermalink





‘(i) 15 percent reduction in energy use relative to a comparable building constructed in compliance with the 2009 IECC by January 1, 2015;CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(iii) 30 percent reduction in energy use relative to a comparable building constructed in compliance with the 2009 IECC by January 1, 2018; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(D) SPECIFIC YEARS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(ii) DIFFERENT TARGET YEARS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(E) TECHNICAL ASSISTANCE TO MODEL CODE-SETTING AND STANDARD DEVELOPMENT ORGANIZATIONS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- The Secretary shall, on a timely basis, provide technical assistance to model code-setting and standard development organizations.CommentsClose CommentsPermalink





‘(ii) ASSISTANCE- The assistance shall, to the maximum extent practicable, include technical assistance identified by the organizations such as for--CommentsClose CommentsPermalink





‘(I) evaluating codes or standards proposals or revisions;CommentsClose CommentsPermalink





‘(II) building energy analysis and design tools;CommentsClose CommentsPermalink





‘(III) building demonstrations; andCommentsClose CommentsPermalink





‘(IV) design assistance and training.CommentsClose CommentsPermalink





‘(F) AMENDMENT PROPOSALS-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) REVISION OF BUILDING ENERGY USE STANDARDS-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) improve energy efficiency in buildings; andCommentsClose CommentsPermalink





‘(ii) meet the targets under paragraph (1).CommentsClose CommentsPermalink





‘(B) CODES OR STANDARDS NOT MEETING TARGETS-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(I) whether the modified code is technically feasible and life-cycle cost effective; andCommentsClose CommentsPermalink





‘(II) potential costs, savings, and other benefits for consumer and building owners, including the impact on overall building ownership and operating costs.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(iii) IMPLEMENTATION OF CHANGES-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(iv) ADMINISTRATION- Any code or standard modified under this subparagraph shall--CommentsClose CommentsPermalink





‘(I) achieve a level of energy savings that is technologically feasible and life-cycle cost-effective;CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(III) serve as the baseline for the next determination under subparagraph (A)(i).CommentsClose CommentsPermalink





‘(C) CODES OR STANDARDS NOT UPDATED FOR 3 YEARS-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(ii) REQUIREMENTS- Any modified code or standard shall--CommentsClose CommentsPermalink





‘(I) achieve a level of energy savings that is technologically feasible and life-cycle cost-effective;CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(III) serve as the baseline for the next determination under subparagraph (A)(i).CommentsClose CommentsPermalink





‘(D) ADMINISTRATION- The Secretary shall--CommentsClose CommentsPermalink





‘(i) provide an opportunity for public comment on targets, determinations, and modified codes and standards under this subsection;CommentsClose CommentsPermalink





‘(ii) publish in the Federal Register notice of targets, determinations, and modified codes and standards under this subsection; andCommentsClose CommentsPermalink





‘(iii) consult with key model code-setting and standard development organizations during the code development process.CommentsClose CommentsPermalink





‘(b) Establishing Voluntary Model Codes-CommentsClose CommentsPermalink





‘(1) DETERMINATION OF VOLUNTARY MODEL CODE-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) the 2009 IECC for residential buildings; andCommentsClose CommentsPermalink





‘(B) the ASHRAE Standard 90.1-2010 for commercial buildings.CommentsClose CommentsPermalink





‘(c) State Certification of Building Energy Code Updates-CommentsClose CommentsPermalink





‘(1) REVIEW AND UPDATING OF CODES BY EACH STATE-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) meet or exceed the Voluntary Model Code; orCommentsClose CommentsPermalink





‘(ii) achieve equivalent or greater energy savings.CommentsClose CommentsPermalink





‘(d) State Certification of Compliance With Building Codes-CommentsClose CommentsPermalink





‘(1) REQUIREMENT-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) achieved compliance under paragraph (3) with the certified State building energy code or the Voluntary Model Code; orCommentsClose CommentsPermalink





‘(ii) made significant progress under paragraph (4) toward achieving compliance with the certified State building energy code or the Voluntary Model Code.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) MEASUREMENT OF COMPLIANCE- A certification under paragraph (1) shall include documentation of the rate of compliance based on--CommentsClose CommentsPermalink





‘(A) independent inspections of a random sample of the new and renovated buildings covered by the code in the preceding year; orCommentsClose CommentsPermalink





‘(B) an alternative method that yields an accurate measure of compliance.CommentsClose CommentsPermalink





‘(3) ACHIEVEMENT OF COMPLIANCE- A State shall be considered to achieve compliance under paragraph (1) if--CommentsClose CommentsPermalink





‘(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; orCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(4) SIGNIFICANT PROGRESS TOWARD ACHIEVEMENT OF COMPLIANCE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- For purposes of paragraph (1), a State shall be considered to have made significant progress toward achieving compliance if the State--CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(ii) after 1 or more years of adequate funding, has demonstrated progress, in conformance with the plan described in clause (i), toward compliance;CommentsClose CommentsPermalink





‘(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’; andCommentsClose CommentsPermalink





‘(iv) has not had more than 8 years of adequate funding.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) to demonstrate that the code provisions of the States achieve equivalent or greater energy savings than the Voluntary Model Code;CommentsClose CommentsPermalink





‘(ii) to document the rate of compliance with a building energy code; andCommentsClose CommentsPermalink





‘(iii) to improve and implement State residential and commercial building energy efficiency codes.CommentsClose CommentsPermalink





‘(D) VOLUNTARY ADVANCED CODES AND STANDARDS-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(I) building design;CommentsClose CommentsPermalink





‘(II) voluntary and market transformation programs;CommentsClose CommentsPermalink





‘(III) incentive criteria; andCommentsClose CommentsPermalink





‘(IV) voluntary adoption by States.CommentsClose CommentsPermalink





‘(ii) UPDATES- The voluntary advanced model codes and standards shall be updated at least once every 3 years.CommentsClose CommentsPermalink





‘(e) Compliance-CommentsClose CommentsPermalink





‘(1) VALIDATION OF CERTIFICATION-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(B) DEFERRAL- On the request of the State, the Secretary may defer the validation decision for an additional 90 days.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(3) ANNUAL REPORTS BY SECRETARY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall annually submit to Congress, and publish in the Federal Register, a report that describes--CommentsClose CommentsPermalink





‘(i) the status of Voluntary Model Codes;CommentsClose CommentsPermalink





‘(ii) the status of code adoption and compliance in the States; andCommentsClose CommentsPermalink





‘(iii) implementation of this section.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(f) Availability of Implementation Assistance Funding-CommentsClose CommentsPermalink





‘(1) IN GENERAL-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) to implement this section;CommentsClose CommentsPermalink





‘(ii) to improve and implement residential and commercial building energy efficiency codes; andCommentsClose CommentsPermalink





‘(iii) to promote building energy efficiency through the use of the codes.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) to a State that is in compliance with this section under subsection (e)(1); andCommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(4) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this subsection--CommentsClose CommentsPermalink





‘(A) $300,000,000 for each of fiscal years 2012 through 2016; andCommentsClose CommentsPermalink





‘(B) such sums as are necessary for fiscal year 2016 and each fiscal year thereafter.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(17) IECC- The term ‘IECC’ means the International Energy Conservation Code.’.CommentsClose CommentsPermalink