F:\TB\EC\ECOREC09_003.XML AMENDMENT IN THE NATURE OF A SUBSTITUTE TO THE COMMITTEE PRINT OFFERED BY MR. WAXMAN OF CALIFORNIA Strike all and insert the following: 1 SEC. 5001. TECHNICAL CORRECTIONS TO THE ENERGY 2 INDEPENDENCE AND SECURITY ACT OF 2007. 3 (a) Section 543(a) of the Energy Independence and 4 Security Act of 2007 (42 U.S.C. 17153(a)) is amended 5 (1) by redesignating paragraphs (2) through 6 (4) as paragraphs (3) through (5), respectively; and 7 (2) by striking paragraph (1) and inserting the 8 following: 9 "(1) 34 percent to eligible units of local govern 10 ment-alternative 1, in accordance with subsection 11 (b); 12 "(2) 34 percent to eligible units of local govern 13 ment-alternative 2, in accordance with subsection 14 (b);". 15 (b) Section 543(b) of the Energy Independence and 16 Security Act of 2007 (42 U.S.C. 17153(b)) is amended 17 by striking "subsection (a)(1)" and inserting "subsection 18 (a)(l) or (2)". f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 2 1 (c) Section 548(a)(1) of the Energy Independence 2 and Security Act of 2007 (42 U.S.C. 17158(a)(1)) is 3 amending .by striking "; provided" and all that follows 4 through "541(3)(B)". 5 SEC. 5002. AMENDMENTS TO TITLE XIII OF THE ENERGY 6 INDEPENDENCE AND SECURITY ACT OF 2007. 7 Title XIII of the Energy Independence and Security 8 Act of 2007 (42 U.S.C. 17381 and following) is amended 9 as follows: 10 (1) By amending subparagraph (A) of section 11 1304(b)(3) to read as follows: 12 "(A) IN GENERAL.-In carrymg out the 13 initiative, the Secretary shall provide financial 14 support to smart grid demonstration projects in 15 urban, suburban, and rural areas, including 16 areas where electric system assets are controlled 17 by tax-exempt entities and areas where electric 18 system assets are controlled by investor-owned 19 utilities.". 20 (2) By amending subparagraph (C) of section 21 1304(b)(3) to read as follows: 22 "(C) FEDERAL SHARE OF COST OF TECH- 23 NOLOGY INVESTMENTs.-The Secretary shall 24 provide to an electric utility described in sub 25 paragraph (B) or to other parties financial as- f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 3 1 sistance for use in paying an amount equal to 2 not more than 50 percent of the cost of quali 3 fying advanced grid technology investments 4 made by the electric utility or other party to 5 carry out a demonstration project.". 6 (3) By inserting after section 1304(b)(3)(D) 7 the following new subparagraphs: 8 "(E) AVAILABILITY OF DATA.-The Sec 9 retary shall establish and maintain a smart grid 10 information clearinghouse in a timely manner 11 which will make data from smart grid dem 12 onstration projects and other sources available 13 to the public. As a condition of receiving finan 14 cial assistance under this subsection, a utility or 15 other participant in a smart grid demonstration 16 project shall provide such information as the 17 Secretary may require to become available 18 through the smart grid information clearing 19 house in the form and within the timeframes as 20 directed by the Secretmy. The Secretary shall 21 assure that business proprietary information 22 and individual customer information is not in 23 cluded in the information made available 24 through the clearinghouse. f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 4 1 "(F) OPEN INTERNET-BASED PROTOCOLS 2 AND STANDARDS.-The Secretary shall require 3 as a condition of receiving funding under this 4 subsection that demonstration projects utilize 5 open Internet-based protocols and standards if 6 available.". 7 (4) By amending paragraph (2) of section 8 1304(c) to read as follows: 9 "(2) to carry out subsection (b), such sums as 10 may be necessary.". 11 (5) By amending subsection (a) of section 1306 12 by striking "reimbursement of one-fifth (20 per- 13 cent)" and inserting "grants of up to one-half (50 14 percent)". 15 (6) By striking the last sentence of subsection 16 (b)(9) of section 1306. 17 (7) By striking "are eligible for" in subsection 18 (c)(l) of section 1306 and inserting "utilize". 19 (8) By amending subsection (e) of section 1306 20 to read as follows: 21 "(e) PROCEDURES Al\lD RULES.-The Secretary 22 shall 23 "(1) establish within 60 days after the enact 24 ment of the American Recovery and Reinvestment 25 Act of 2009 procedures by which applicants can ob- f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 5 1 tain grants of not more than one-half of their docu 2 mented costs; 3 "(2) require as a condition of receiving a grant 4 under this section that grant recipients utilize open 5 Internet-based protocols and standards if available; 6 "(3) establish procedures to ensure that there is 7 no duplication or multiple payment or recovery for 8 the same investment or costs, that the grant goes to 9 the party making the actual expenditures for quali 10 fying smart grid investments, and that the grants 11 made have significant effect in encouraging and fa 12 cilitating the development of a smart grid; 13 "(4) maintain public records of grants made, 14 recipients, and qualifying smart grid investments 15 which have received grants; 16 "(5) establish procedures to provide advance 17 payment of moneys up to the fll amount of the 18 grant award; and 19 "(6) have and exercIse the discretion to deny 20 grants for investments that do not qualify in the 21 reasonable judgment of the Secretary.". f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 6 1 SEC. 5003. RENEWABLE ENERGY AND ELECTRIC POWER 2 TRANSMISSION LOAN GUARANTEE PROGRAM. 3 (a) AMENDNrENT.-Title XVII of the Energy Policy 4 Act of 2005 (42 U.S.C. 16511 et seq.) is amended by add 5 ing the following at the end: 6 "SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOY 7 MENT OF RENEWABLE ENERGY AND ELEC 8 TRIC POWER TRANSMISSION PROJECTS. 9 "(a) I' GENERAL.-Notwithstanding section 1703, 10 the Secretary may make guarantees under this section 11 only for commercial technology projects under subsection 12 (b) that will commence construction not later than Sep- 13 tember 30, 2011. 14 "(b) CATEGORIEs.-Projects from only the following 15 categories shall be eligible for support under this section: 16 "(1) Renewable energy systems that generate 17 electricity. 18 "(2) Electric power transmission systems, in- 19 cluding upgrading and reconductoring projects. 20 "(c) FACTORS RELATING TO ELECTRIC POWER 21 TRASMISSION SYSTEMS.-In determining to make guar- 22 antees to projects described in subsection (b)(2), the Sec23 retary shall consider the following factors: 24 "(1) The viability of the project without guar- 25 antees. f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 7 1 "(2) The availability of other Federal and State 2 incentives. 3 "(3) The importance of the project in meeting 4 reliability needs. 5 "(4) The effect of the project in meeting a 6 State or region's environment (including climate 7 change) and energy goals. 8 "(d) WAGE RATE REQUIREMENTs.-The Secretary 9 shall require that each recipient of support under this sec- 10 tion provide reasonable assurance that all laborers and 11 mechanics employed in the performance of the project for 12 which the assistance is provided, including those employed 13 by contractors or subcontractors, will be paid wages at 14 rates not less than those prevailing on similar work in the 15 locality as determined by the Secretary of Labor in accord- 16 ance 'with subchapter IV of chapter 31 of part A of subtitle 17 II of title 40, United States Code (conmmonly referred to 18 as the 'Davis-Bacon Act'). 19 "(e) SUNSET.-The authority to enter into guaran- 20 tees under this section shall expire on September 30, 21 2011.". 22 (b) TABLE OF CONTENTS AMMENDMENT.-The table 23 of contents for the Energy Policy Act of 2005 is amended 24 by inserting after the item relating to section 1704 the 25 following new item: f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 8 "Sec. 1705. Temporary program for rapid deployment of renewable enengy and electric power transmission projects.". 1 SEC. 5005. WEATHERIZATION ASSISTANCE PROGRAM 2 AMENDMENTS. 3 (a) INCOME LEVEL.-Section 412(7) of the Energy 4 Conservation and Production Act (42 U.S.C. 6862(7)) is 5 amended by striking "150 percent" both places it appears 6 and inserting "200 percent". 7 (b) ASSISTANCE LEVEL PER DWELLING UNIT.- 8 Section 415(c)(1) of the Energy Conservation and Produc- 9 tion Act (42 U.S.C. 6865(c)(1)) is amended by striking 10 "$2,500" and inserting "$5,000". 11 (c) EFFECTIVE USE OF FUNDS.-In providing funds 12 made available by this Act for the Weatherization Assist- 13 ance Program, the Secretary may encourage States to give 14 priority to using such Dmds for the most cost-effective ef- 15 ficiency activities, which may include insulation of attics, 16 if, in the Secretary's view, such use of funds would in- 17 crease the effectiveness of the program. 18 SEC. 5007. RENEWABLE ELECTRICITY TRANSMISSION 19 STUDY. 20 In completing the 2009 National Electric Trans- 21 misslon Congestion Study, the Secretary of Energy shall 22 include- 23 (1) an analysis of the significant potential 24 sources of renewable energy that are constrained in f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 9 1 accessing appropriate market areas by lack of ade- 2 quate transmission capacity; 3 (2) an analysis of the reasons for failure to de- 4 velop the adequate transmission capacity; 5 (3) recommendations for achieving adequate 6 transmission capacity; and 7 (4) an explanation of assumptions and proJec- 8 tions made in the Study, including9 (A) assumptions and projections relating 10 to energy efficiency improvements in each load 11 center; 12 (B) assumptions and projections regarding 13 the location and type of projected new genera- 14 tion capacity; and 15 (C) assumptions and projections regarding 16 projected deployment of distributed generation 17 infrastructure. 18 TITLE VI-ADDITIONAL ENERGY 19 PROVISIONS 20 SEC. 6001. ADDITIONAL STATE ENERGY GRANTS, 21 (a) IN GENERAL.-Amounts appropriated under 22 [section in bill appropriating funds for program] shall be 23 available to the Secretary of Energy for making additional 24 grants under part D of title III of the Energy Policy and 25 Conservation Act (42 U.S.C. 6321 et seq.). The Secretary f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 10 1 shall make grants under this section in excess of the base 2 allocation established for a State under regulations issued 3 pursuant to the authorization provided in section 365 (f) 4 of such Act only if the governor of the recipient State noti- 5 fies the Secretary of Energy that the governor will seek, 6 to the extent of his or her authority, to ensure that each 7 of the following will occur: 8 (1) The applicable State regulatory authority 9 will implement the following regulatory policies for 10 each electric and gas utility with respect to which 11 the State regulatory authority has ratemaking au- 12 thority: 13 (A) Policies that ensure that a utility's re- 14 covery of prudent fixed costs of service is timely 15 and independent of its retail sales, without in 16 the process shifting prudent costs from variable 17 to fixed charges. This cost shifting constraint 18 shall not apply to rate designs adopted prior to 19 the date of enactment of this Act. 20 (B) Cost recovery for prudent investments 21 by utilities in energy efficiency. 22 (C) An earnings opportunity for utilities 23 associated with cost-effective energy efficiency 24 savmgs. f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 11 1 (2) The State, or the applicable units of local 2 government that have authority to adopt building 3 codes, will implement the following: 4 (A) A building energy code (or codes) for 5 residential buildings that meets or exceeds the 6 most recently published International Energy 7 Conservation Code, or achieves equivalent or 8 greater energy savings. 9 (B) A building energy code (or codes) for 10 commercial buildings throughout the State that 11 meets or exceeds the ANSI/ASHRAE/IESNA 12 Standard 90.1-2007, or achieves equivalent or 13 greater energy savings. 14 (C) A plan for the jurisdiction achieving 15 compliance with the building energy code or 16 codes described in subparagTaphs (A) and (B) 17 within 8 years of the date of enactment of this 18 Act in at least 90 percent of new and renovated 19 residential and commercial building space. Such 20 plan shall include active trailiing and enforce- 21 ment programs and measurement of the rate of 22 compliance each year. 23 (b) STATE MATCH.-The State cost share require- 24 ment under the item relating to "DEPARTMENT OF 25 ENERGY; energy conservation" in title II of the Depart- f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML 12 1 ment of the Interior and Related Agencies Appropriations 2 Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not 3 apply to assistance provided under this section. 4 (c) EQUIPMENT AND MATERIALS FOR ENERGY EFFI- 5 CIENCY MEASURES.-No limitation on the percentage of 6 funding that may be used for the purchase and installation 7 of equipment and materials for energy efficiency measures 8 under grants provided under part D of title III of the En- 9 ergy Policy and Conservation Act (42 U.S.C. 6321 et seq.) 10 shall apply to assistance provided under this section. 11 SEC. 6002. INAPPLICABILITY OF LIMITATION. 12 The limitations in section 399A(f)(2), (3), and (4) 13 of the Energy Policy and Conservation Act (42 U.S.C. 14 6371h-1(f)(2), (3), and (4)) shall not apply to grants 15 funded with appropriations provided by this Act, except 16 that such grant funds shall be available for not more than 17 an amount equal to 80 percent of the costs of the project 18 for which the grant is provided. X f:\VHLC\012209\012209.073.xml (420810/6) January 22, 2009 (10:27 a.m.) F:\TB\EC\ECOREC09_003.XML