House Committee on Energy and Commerce Amendments to the American Clean Energy and Security Act

These amendments are based on Alliance interpretations of Committee passed amendments during the House Energy and Commerce Committee mark-up this week. All language, subtitles, sections, analysis, etc. are subject to change based on final bill text as released by the Committee. Please revisit our website in the coming days where these amendments will be included within our revised summary of Committee mark-up.

Amendment by Dingell to be added to the end of Title I

Subtitle J – Nuclear and Advanced Technologies

Sec. 191: Revisions to Loan Guarantee Program Authority

This section revises Section 1201 of the Energy Policy Act of 2005 by defining a conditional commitment – which would require a project's sponsor(s) to submit a final term sheet, complete with the acquisition of necessary permits and licenses, to be submitted to and agreed upon by DOE. The term sheet will be binding final loan guarantee agreement. Contractors and subcontractors of projects that receive loans must be paid the prevailing wage for their region.

Sec. 192: Purpose

The purpose of sections 193-199 is defined here as to promote the domestic development and deployment of clean energy technologies – including residential, commercial, and industrial energy efficiency technologies through the establishment of the financing mechanisms directed by the Clean Energy Deployment Administration.

Sec. 193: Definitions

Clean energy technology relates to technology that will contribute to the stabilization of atmospheric greenhouse as concentrations through reduction, avoidance, or sequestration of energy-related emissions. Only technologies for which the EPA determines there is insufficient commercial lending available to allow for widespread deployment are eligible for the loan program established in this amendment.

Sec. 194: Clean Energy Investment Fund

A revolving "Clean Energy Investment Fund" is to be established by the Treasury, with monthly transfers coming from the general fund. Such sums as are necessary will be appropriated to the Fund, with no limitations as to how the available amount is spent, (except that administrative expenses must not exceed 1.5%).

Sec. 195: Energy Technology Deployment Goals

EPA shall develop near-, medium-, and long-term goals with numerical performance targets for the deployment of clean energy technologies. These goals are to promote technologies that relate to such sectors as electricity generation, grid transmission, vehicles, fuels, manufacturing, and zero net energy buildings. The goals shall be elastic based on technological advancement.

Sec. 196: Clean Energy Deployment Administration

A new Clean Energy Deployment Administration (CEDA) will be established by DOE, but will act as an independent body outside its jurisdiction. The administration will oversee the portfolio of the Clean Energy Investment Fund to ensure that they are consistent with its stated purpose. CEDA shall also have an Energy Technology Advisory Council, comprised of representatives of the academic, research, and commercial financing communities, to develop a methodology to evaluate the cost-effectiveness of clean energy technology projects and to advise CEDA as to the best approaches for meeting deployment goals.

Sec. 197: Direct Support

CEDA may issue direct loans, letters of credit, loan guarantees, and other debt instruments that it considers would result in the benefit or acceleration of clean energy technologies deployment. A loan guarantee can be up to 80 percent of the estimated project cost. CEDA shall consider establishing an initial rate of 10 percent loan loss for portfolio investments. Borrowers must submit applications to CEDA and project contractors and subcontractors must meet prevailing wage requirements.

Sec. 198: Federal Credit Authority

Federal loan interest rates shall generally equal those of commercial rates. Breakthrough technologies will be charged a minimum fee to contribute to CEDA's long-term viability.

Sec. 199: General Provisions

CEDA is exempt from any state law in conducting business, and shall be considered a corporation in judicial procedure.

Amendment by Sutton to be added to Title I – Subtitle C

Sec. 128: Temporary Vehicle Trade-in Program

This section establishes in the Department of Transportation's National Highway Traffic Safety Administration the "Cash for Clunkers Temporary Vehicle Trade-in Program." This program would provide consumers with vehicles whose EPA-rated combined fuel economy is below 18 miles per gallon with vouchers toward the purchase of a new, more-efficient vehicle. The program would require that the engine and drivetrain of the old vehicle be crushed, while the rest of its parts can be recycled. The value of the voucher would vary according to the improvement in fuel economy that the vehicle swap achieves. In most cases, to qualify for a voucher the new vehicle must have a certain minimum EPA-rated combined fuel economy (varying by vehicle type)and must achieve a certain minimum improvement in fuel economy over the old vehicle (varying by vehicle type).

The section authorizes the appropriation of $4 billion for the Cash for Clunkers Temporary Vehicle Trade-in Program.

Amendment by Baldwin to Title I, Subtitle H

Renames the subtitle to simply 'Centers' and adds the following sections -

Sec. 172: Building Assessment Centers

This section directs the DOE to fund higher education institutions to create Building Assessment Centers which would conduct research and development in various areas of building energy efficiency and to provide training in efficiency-related building sciences. Renewable energy would also be included. These centers could also count as Centers for Energy and Environmental Knowledge and Outreach in section 173.

Sec. 173: Centers for Energy and Environmental Knowledge and Outreach

The DOE is directed to establish ten 'Centers for Energy and Environmental Knowledge and Outreach' within higher education institutions. Each center must include at least one of the following: An industrial research assessment center, a clean energy application center, or a building assessment center. The centers would be regionally distributed around the country and would include in their research approaches to specifically regional issues and the development of regionally-specific technical resources. The centers would coordinate with government entities and regional government and private bodies to improve efficiency, implement clean energy solutions, reduce greenhouse gas emissions, and provide workforce training in these areas. The Federal government would cover 50% of the cost of workforce training internships.

The Small Business Administration would be directed to expedite loans to small businesses to implement recommendations from these centers.

A Clean Energy Application Center, as established in the Energy Policy and Conservation Act, or an Industrial Research and Assessment Center as established under the Energy Independence and Security Act, could serve as a center under this section. Funding is increased for Clean Energy Application Centers from $10 million to $30 million from fiscal years 2010 onwards.

Amendment by Eshoo to Title 1

Subtitle J: Clean Technology Business Competition Grant Program

Sec. 191: Clean Technology Business Competition Grant Program

Authorizes the Secretary of Energy to provide grants to organizations to conduct business competitions that provide incentives, traning, and mentorship to entrepreneurs and early state start-up companies throughout the United States to meet economic, environmental, and energy security goals in areas to include energy efficiency, renewable energy, air quality, water quality, and conservation, transportation, smart grid, green building, and waste management. Any 501(c)(3) or sponsored entity of a 501(c)(3) organization that is operated as a non-profit would be eligible for these grants. This grant program is authorized at $20 million.

Amendment by Rush to Title 1, Subtitle D

(changes to original provision as underlined)

Sec . 132: Support of State Renewable Energy and Energy Efficiency Programs

Emissions allowances for energy efficiency and renewable energy are to be distributed to states according to the following formula: 1/3 allocated equally among states, 1/3 allocated ratably per capita of each state, and 1/3 allocated ratably by the energy consumption of each state, as determined by the most recent EIA data. Pursuant to section 732(g), 9.5 percent of national allowances will be distributed to state SEED Accounts, with a declining allocation over time. The uses of SEED funds are as follows:

• At least 15 percent must be used for energy efficiency programs: building energy efficiency programs (described in Title 2, Subtitle A), developing smart grid, transportation planning, low-income community energy efficiency assistance, and other cost-effective energy efficiency programs administered by the state and other entities.
• At least 5 percent must be used exclusively for the implementation of the Retrofit for Energy and Environmental Performance (REEP) program, described in section 202.
• At least 20 percent must be used for grants, loans, loan guarantees, forgivable loans, tax credits, production incentives, interest rate buy-downs for the deployment and manufacture of renewable energy systems and electricity storage systems.
• At least 12.5 percent must be distributed by the states to local governments for the above purposes.
• The remaining 47.5 percent must be used by the state government for the first three purposes listed above, but cannot include "other cost-effective energy efficiency programs."
• At least 1% of emission allowances must be used for low-income community energy efficiency assistance

Amendment by Shakowsky to Title I

Subtitle J: Office of Consumer Advocacy

Section 191: Office of Consumer Advocacy

Establishes an Office of Consumer Advocacy and Consumer Advocacy Advisory committee within the Federal Energy Regulatory Commission to represent on behalf of energy customers on matters concerning rates or service of public utilities and natural gas companies under FERC's jurisdiction. This office must represent consumers at hearings and judicial proceedings, monitor and review customer complaints, investigate services, develop means to ensure that interests of energy customers are represented, collect data concerning rates, and prepare and issue reports and recommendations.

Amendment by Matsui to Title II, Subtitle A

Section 205: Tree Planting Programs

This section would authorize DOE to provide financial and technical assistance for tree planting programs that are operated by retail electric power utilities in partnership with non-profit organizations. If no qualified non-profit tree-planting organization exists in a given service area, a utility may partner with one of a number of public or private entities. To be eligible, the program must optimize the electricity-consumption reduction benefit of the trees by planting them in strategic locations around a residence or small office. The federal share of a given tree-planting project cannot be more than 50 percent; the federal contribution can be matched by any governmental or non-governmental entity. There are authorized to be appropriated such sums as may be necessary for the implementation of this section.

Amendment by Welch to Title II

Subtitle G – National Energy Efficiency Goals

Sec 271: National Energy Efficiency Goals

This section directs DOE, EPA and appropriate Federal agencies to develop a strategic plan to increase the energy productivity of the United State by 2.5 percent each year from 2012 to 2030. Energy productivity is to be measured in GDP per unit of energy input. The plan must identify regulatory, funding and policy priorities that would assist the United States in meeting the national goal and establish sector by sector data collection methodologies to establish baseline energy use and savings.

Amendment by Matheson to Title II

(changes to original provision as underlined)

Sec. 201: Greater Energy Efficiency in Building Codes

This provision establishes national energy efficiency building codes for homes and commercial buildings, with independent code-setting organizations developing the codes and state and local governments adopting and enforcing them, and with DOE assistance and backstop. It sets targets for the codes of 30% savings by one year after enactment, 50% savings by the end of 2014 for residential buildings and 2015 for commercial buildings, and 5% additional savings every three years thereafter through 2029 and 2030 respectively, compared to a baseline of the 2006 International Energy Conservation Code for homes and American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 90.1-2004 for commercial buildings. DOE can raise or lower the targets to achieve the maximum level of energy efficiency that is technically feasible and life-cycle cost effective. If a code-setting organization such as the International Code Council or ASHRAE develops a code that meets the target by the deadline, DOE would adopt it; otherwise DOE is to set the code. DOE is to provide technical and financial assistance to the code-setting organizations.

States are required within one year of a revision of a national code to adopt the national code, update their building code to achieve at least as much energy savings, or show that local governments in the state have done so. In any jurisdiction where neither the state nor a local government has adopted such a code within a year, the national code is made the applicable energy efficiency building code.

States or local governments are to implement and enforce the energy codes. States are to demonstrate within two years after adoption of a code that at least 90% of new and renovated building space in the state in the preceding year meets the code requirements, including documentation of the rate of compliance. For seven years after enactment states can document instead that they are making progress to better compliance, and that at least 50% of covered building space meets the code requirements.

DOE is to use 0.5% of the allowances under this bill to provide grants to states and local governments that meet the requirements of this section for development, adoption, implementation, and enforcement of energy efficiency building codes. The allocation of the grants is 1/5 equal for each state and territory, 2/5 based on energy use in buildings in the state, and 2/5 based on building activity in the state. States that do not meet the requirements cannot receive this funding, any State Energy Program funds beyond an allocation based on $125 million per year, or a percentage of all funding under this bill (primarily the SEED grants) rising to 100% in the fourth year of noncompliance.

If the state and local governments fail to enforce the building codes, DOE is to enforce them, based on a rule issued within three years of enactment on what shall determine a violation and the penalties to violators. DOE must report back to Congress if they determine that the authority to adopt and impose the penalties requires additional statutory authority.

Amendment by Baldwin to Title II, Subtitle D

Sec. 244: Motor Efficiency Rebate Program

This section establishes a program to provide rebates for the purchase and installation of a new electric motor that has a nominal full load efficiency that is not less than the nominal full load efficiency of table 12-12 of NEMA Standards Publication MG 1-2006 for random wound motors rated 600 volts or lower or table 12-13 for form wound motors rated 5,000 volts or lower and to replace an installed motor to meet the specifications established by the Department of Energy. The rebate granted would be determined by formula that is equal to the product obtained by multiplying the nameplate horsepower of the electric motor purchased and $25.00. This program is authorized at $80 million for 2011, and reduced by $5 million in each subsequent year through 2015.

Amendment by Baldwin to Title II, Subtitle D

Sec. 244: Motor Market Assessment and Commercial Awareness Program

This section requires DOE to conduct a study of electric motors and the electric motor market in the United States that include important subsectors of the industrial and commercial electric motor market including the stock of motors and motor-driven equipment, efficiency categories of the motor population, and motor systems that use drives, servos and other control technologies. DOE then must estimate the opportunities for improvement in the energy efficiency of motor systems by market segment and provide recommendations to update motor profile and methods to estimate the energy savings and market penetration attributable to the Save Energy Now Program. Based on these findings, DOE is to establish a national program targeted at motor end-users in increase the awareness of energy and cost-saving opportunities in the commercial and industrial facilities using higher efficiency motors, improvements in motor system procurement, and criteria for making decisions for new, replacement, or repair motor and motor system components.

Amendment by Eshoo to Title II

Subtitle G – Energy Efficient Information and Communication Technologies

Sec. 721: Energy Efficient Information and Communication Technologies

Each federal agency, in collaboration with OMB, must create an implementation strategy for the purchase and use of energy efficient information and communications technologies and practices within agency facilities. Strategies must be cost-effective, based on stakeholder input, and where possible, include existing best practices. Agencies can consider, among other things, to incorporate advanced metering infrastructure, efficient data centers, building systems efficiency, and telework. Their efforts to be more energy efficient through these technologies will be evaluated by performance goals established by OMB , including a measurement of costs over 3-5 year period.

Amendment by McNerny to Title II, Subtitle B

Sec. 216[?]: Watersense

This section establishes the WaterSense program within EPA to identify and promote water efficient products, buildings and landscapes, and services in order to reduce water use, reduce the strain on water, wastewater, and stormwater infrastructure, to conserve energy used to pump, heat, transport, and treat water, and to preserve water resources for future generations. This program would be modeled after the EPA and DOE's Energy Star label.

Amendment by Christensen to Title II

Subtitle G- Affiliated Island Energy Independence

Sec. 271: Affiliated Island Energy Independence Team

This section requires DOE to assemble a team to address the energy needs of affiliated islands, as defined in the section, to improve their energy infrastructure through projects that improve the energy efficiency of their power generation, transmission, and distribution and increase consumer energy efficiency, among other schemes.

Amendment by Baldwin to Title II, Subtitle G

Sec. 271: Product Carbon Disclosure Program

This section would require the EPA to study the feasibility of a national program that would measure, label, publicly disclose and add to product labels the carbon content of products and materials sold in the United States. It would also require the EPA to establish, within 36 months of the enactment of the Act, a voluntary national program for the disclosure of products' carbon content. The EPA would include incentives for program participation, provide for a public outreach campaign to increase consumer awareness, and develop protocols for measuring and verifying a product's carbon content.

This section defines "carbon content" as "the amount of greenhouse gas emissions and their warming impact on the atmosphere expressed in carbon dioxide equivalent associated with a product's value chain."

This section authorizes $5 million for the EPA study and $25 million per year from 2010 to 2025 for EPA to implement the Product Carbon Disclosure Program.

Amendment by Welch to Title II, Subtitle B

Sec. 214: Certified Stoves Program

The EPA is directed by this section to establish a program to facilitate the replacement of wood or pellet stoves that do not meet federal performance standards, or are exempt from such standards but fall within the same efficiency levels, and to require that all wood or pellet stoves sold in the US meet such standards. 25% of the authorized-to-be-appropriated funds would be directed to Indian tribes and three percent to Alaskan Native entities.

Funds provided by this legislation could not be used for the purposes of mandated emissions reductions from local, state, or federal law. Entities may conduct wood stove replacement programs as part of a settlement of an 'alleged violation of environmental law' provided the entity certifies that they would have conducted a different, yet comparable, project were the EPA precluded from accepting wood or pellet stove replacement as part of such a settlement.

Amendment by Space to Title VII, Subtitle B

Clarifies that allowances distributed to local distribution companies (LDCs) are to be allocated exclusively for the benefit of the retail ratepayer.

Amendment by Butterfield and Hill to Title II, Subtitle C

This amends Section 221 such that it now prescribes the following:

Sec. 221: Emissions Standards

This section requires the EPA to promulgate standards for the emission of greenhouse gases, from new heavy-duty motor vehicles and engines that are not covered by EPA's Tier II standards, that ensure the greatest achievable emissions reductions. It specifies that these standards should apply to vehicles and engines for at least 3 model years, and should not take effect for at least 4 model years after they are promulgated.

This section also requires the EPA to examine the various classes and categories of non-road vehicles and engines to determine those classes and categories that both contribute significantly to the emission of greenhouse gases and have the potential for significant cost-effective improvement.

This section also allows EPA to establish trading rules of greenhouse gas emission credits among and between these categories

Amendment by Inslee and Eshoo to Title I, Subtitle F

Sec. 152: Support for Qualified Advanced Electric Transmission Manufacturing Plants, Qualified High Efficiency Transmission Property, and Qualified Advanced Electric Transmission Property

This section makes the construction or upgrading of certain advanced, highly-efficient transmission equipment eligible for certain federal loan guarantee and grant programs. Eligible technologies must be expected to become commercially viable within ten years and meet specified technology and capacity levels.

Amendment by Baldwin to Title I, Subtitle A

Sec. 101

This amendment adds solar light pipes and solar water heaters as eligible energy efficiency measures under a Renewable Electricity Standard.

Amendment by Baldwin to Title I, Subtitle A, Section 101

This amendment includes solar light pipes and solar water heaters as eligible energy efficiency measures under a Renewable Electricity Standard.

Amendment by Weiner to Title II, Subtitle B

Sec. 215: Energy Star Standards

This section would require the EPA to review every three years the Energy Star standards for the ten products in each product category that consume the most energy, and to update the standards as necessary. It would also require the EPA to periodically test Energy-Star-labeled products from the market to ensure that they meet Energy Star criteria, and would require the EPA to consider products that are in near-term development when establishing Energy Star categories, specifications, and criteria.

This section would direct the EPA and DOE to establish a rating system for Energy Star products to communicate to consumers the relative energy efficiency of the products with the Energy Star label. However, if the EPA and DOE agree that such a system would diminish the value of the Energy Star brand to consumers, they will not have to establish such a system.

$10 million per year, from FY 2010 onward, is authorized to be appropriated for this section.