Energy Independence and Security Act of 2007/Title IV/Subtitle D

Subtitle D — Industrial Energy Efficiency

Sec. 451. INDUSTRIAL ENERGY EFFICIENCY.

(a) In General—

Title III of the Energy Policy and Conservation Act (42 U.S.C. 6291 et seq.) is amended by inserting after part D the following:

`SEC. 371. DEFINITIONS.

`In this part:

`(1) ADMINISTRATOR— The term `Administrator' means the Administrator of the Environmental Protection Agency.

`(2) COMBINED HEAT AND POWER— The term `combined heat and power system' means a facility that—

`(A) simultaneously and efficiently produces useful thermal energy and electricity; and

`(B) recovers not less than 60 percent of the energy value in the fuel (on a higher-heating-value basis) in the form of useful thermal energy and electricity.

`(3) NET EXCESS POWER— The term `net excess power' means, for any facility, recoverable waste energy recovered in the form of electricity in quantities exceeding the total consumption of electricity at the specific time of generation on the site at which the facility is located.

`(4) PROJECT— The term `project' means a recoverable waste energy project or a combined heat and power system project.

`(5) RECOVERABLE WASTE ENERGY— The term `recoverable waste energy' means waste energy from which electricity or useful thermal energy may be recovered through modification of an existing facility or addition of a new facility.

`(6) REGISTRY— The term `Registry' means the Registry of Recoverable Waste Energy Sources established under section 372(d).

`(7) USEFUL THERMAL ENERGY— The term `useful thermal energy' means energy—

`(A) in the form of direct heat, steam, hot water, or other thermal form that is used in production and beneficial measures for heating, cooling, humidity control, process use, or other valid thermal end-use energy requirements; and

`(B) for which fuel or electricity would otherwise be consumed.

`(8) WASTE ENERGY— The term `waste energy' means—

`(A) exhaust heat or flared gas from any industrial process;

`(B) waste gas or industrial tail gas that would otherwise be flared, incinerated, or vented;

`(C) a pressure drop in any gas, excluding any pressure drop to a condenser that subsequently vents the resulting heat; and

`(D) such other forms of waste energy as the Administrator may determine.

`(9) OTHER TERMS— The terms `electric utility', `nonregulated electric utility', `State regulated electric utility', and other terms have the meanings given those terms in title I of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2611 et seq.).

`SEC. 372. SURVEY AND REGISTRY.

`(a) Recoverable Waste Energy Inventory Program-

`(1) IN GENERAL— The Administrator, in cooperation with the Secretary and State energy offices, shall establish a recoverable waste energy inventory program.

`(2) SURVEY— The program shall include—

`(A) an ongoing survey of all major industrial and large commercial combustion sources in the United States (as defined by the Administrator) and the sites at which the sources are located; and

`(B) a review of each source for the quantity and quality of waste energy produced at the source.

`(b) Criteria-

`(1) IN GENERAL— Not later than 270 days after the date of enactment of the Energy Independence and Security Act of 2007, the Administrator shall publish a rule for establishing criteria for including sites in the Registry.

`(2) INCLUSIONS— The criteria shall include—

`(A) a requirement that, to be included in the Registry, a project at the site shall be determined to be economically feasible by virtue of offering a payback of invested costs not later than 5 years after the date of first full project operation (including incentives offered under this part);

`(B) standards to ensure that projects proposed for inclusion in the Registry are not developed or used for the primary purpose of making sales of excess electric power under the regulatory provisions of this part; and

`(C) procedures for contesting the listing of any source or site on the Registry by any State, utility, or other interested person.

`(c) Technical Support— On the request of the owner or operator of a source or site included in the Registry, the Secretary shall—

`(1) provide to owners or operators of combustion sources technical support; and

`(2) offer partial funding (in an amount equal to not more than one-half of total costs) for feasibility studies to confirm whether or not investment in recovery of waste energy or combined heat and power at a source would offer a payback period of 5 years or less.

`(d) Registry-

`(1) ESTABLISHMENT-

`(A) IN GENERAL— Not later than 1 year after the date of enactment of the Energy Independence and Security Act of 2007, the Administrator shall establish a Registry of Recoverable Waste Energy Sources, and sites on which the sources are located, that meet the criteria established under subsection (b).

`(B) UPDATES; AVAILABILITY— The Administrator shall—

`(i) update the Registry on a regular basis; and

`(ii) make the Registry available to the public on the website of the Environmental Protection Agency.

`(C) CONTESTING LISTING— Any State, electric utility, or other interested person may contest the listing of any source or site by submitting a petition to the Administrator.

`(2) CONTENTS-

`(A) IN GENERAL— The Administrator shall register and include on the Registry all sites meeting the criteria established under subsection (b).

`(B) QUANTITY OF RECOVERABLE WASTE ENERGY— The Administrator shall—

`(i) calculate the total quantities of potentially recoverable waste energy from sources at the sites, nationally and by State; and

`(ii) make public—

`(I) the total quantities described in clause (i); and

`(II) information on the criteria pollutant and greenhouse gas emissions savings that might be achieved with recovery of the waste energy from all sources and sites listed on the Registry.

`(3) AVAILABILITY OF INFORMATION-

`(A) IN GENERAL— The Administrator shall notify owners or operators of recoverable waste energy sources and sites listed on the Registry prior to publishing the listing.

`(B) DETAILED QUANTITATIVE INFORMATION-

`(i) IN GENERAL— Except as provided in clause (ii), the owner or operator of a source at a site may elect to have detailed quantitative information concerning the site not made public by notifying the Administrator of the election.

`(ii) LIMITED AVAILABILITY— The information shall be made available to—

`(I) the applicable State energy office; and

`(II) any utility requested to support recovery of waste energy from the source pursuant to the incentives provided under section 374.

`(iii) STATE TOTALS— Information concerning the site shall be included in the total quantity of recoverable waste energy for a State unless there are fewer than 3 sites in the State.

`(4) REMOVAL OF PROJECTS FROM REGISTRY-

`(A) IN GENERAL— Subject to subparagraph (B), as a project achieves successful recovery of waste energy, the Administrator shall—

`(i) remove the related sites or sources from the Registry; and

`(ii) designate the removed projects as eligible for incentives under section 374.

`(B) LIMITATION— No project shall be removed from the Registry without the consent of the owner or operator of the project if—

`(i) the owner or operator has submitted a petition under section 374; and

`(ii) the petition has not been acted on or denied.

`(5) INELIGIBILITY OF CERTAIN SOURCES— The Administrator shall not list any source constructed after the date of the enactment of the Energy Independence and Security Act of 2007 on the Registry if the Administrator determines that the source—

`(A) was developed for the primary purpose of making sales of excess electric power under the regulatory provisions of this part; or

`(B) does not capture at least 60 percent of the total energy value of the fuels used (on a higher-heating-value basis) in the form of useful thermal energy, electricity, mechanical energy, chemical output, or any combination thereof.

`(e) Self-Certification-

`(1) IN GENERAL— Subject to any procedures that are established by the Administrator, an owner, operator, or third-party developer of a recoverable waste energy project that qualifies under standards established by the Administrator may self-certify the sites or sources of the owner, operator, or developer to the Administrator for inclusion in the Registry.

`(2) REVIEW AND APPROVAL— To prevent a fraudulent listing, a site or source shall be included on the Registry only if the Administrator reviews and approves the self-certification.

`(f) New Facilities— As a new energy-consuming industrial facility is developed after the date of enactment of the Energy Independence and Security Act of 2007, to the extent the facility may constitute a site with recoverable waste energy that may qualify for inclusion on the Registry, the Administrator may elect to include the facility on the Registry, at the request of the owner, operator, or developer of the facility, on a conditional basis with the site to be removed from the Registry if the development ceases or the site fails to qualify for listing under this part.

`(g) Optimum Means of Recovery— For each site listed in the Registry, at the request of the owner or operator of the site, the Administrator shall offer, in cooperation with Clean Energy Application Centers operated by the Secretary of Energy, suggestions for optimum means of recovery of value from waste energy stream in the form of electricity, useful thermal energy, or other energy-related products.

`(h) Revision— Each annual report of a State under section 548(a) of the National Energy Conservation Policy Act (42 U.S.C. 8258(a)) shall include the results of the survey for the State under this section.

`(i) Authorization of Appropriations— There are authorized to be appropriated to—

`(1) the Administrator to create and maintain the Registry and services authorized by this section, $1,000,000 for each of fiscal years 2008 through 2012; and

`(2) the Secretary—

`(A) to assist site or source owners and operators in determining the feasibility of projects authorized by this section, $2,000,000 for each of fiscal years 2008 through 2012; and

`(B) to provide funding for State energy office functions under this section, $5,000,000.

`SEC. 373. WASTE ENERGY RECOVERY INCENTIVE GRANT PROGRAM.

`(a) Establishment— The Secretary shall establish in the Department of Energy a waste energy recovery incentive grant program to provide incentive grants to—

`(1) owners and operators of projects that successfully produce electricity or incremental useful thermal energy from waste energy recovery;

`(2) utilities purchasing or distributing the electricity; and

`(3) States that have achieved 80 percent or more of recoverable waste heat recovery opportunities.

`(b) Grants to Projects and Utilities-

`(1) IN GENERAL— The Secretary shall make grants under this section—

`(A) to the owners or operators of waste energy recovery projects; and

`(B) in the case of excess power purchased or transmitted by a electric utility, to the utility.

`(2) PROOF— Grants may only be made under this section on receipt of proof of waste energy recovery or excess electricity generation, or both, from the project in a form prescribed by the Secretary.

`(3) EXCESS ELECTRIC ENERGY-

`(A) IN GENERAL— In the case of waste energy recovery, a grant under this section shall be made at the rate of $10 per megawatt hour of documented electricity produced from recoverable waste energy (or by prevention of waste energy in the case of a new facility) by the project during the first 3 calendar years of production, beginning on or after the date of enactment of the Energy Independence and Security Act of 2007.

`(B) UTILITIES— If the project produces net excess power and an electric utility purchases or transmits the excess power, 50 percent of so much of the grant as is attributable to the net excess power shall be paid to the electric utility purchasing or transporting the net excess power.

`(4) USEFUL THERMAL ENERGY— In the case of waste energy recovery that produces useful thermal energy that is used for a purpose different from that for which the project is principally designed, a grant under this section shall be made to the owner or operator of the waste energy recovery project at the rate of $10 for each 3,412,000 Btus of the excess thermal energy used for the different purpose.

`(c) Grants to States— In the case of any State that has achieved 80 percent or more of waste heat recovery opportunities identified by the Secretary under this part, the Administrator shall make a 1-time grant to the State in an amount of not more than $1,000 per megawatt of waste-heat capacity recovered (or a thermal equivalent) to support State-level programs to identify and achieve additional energy efficiency.

`(d) Eligibility— The Secretary shall—

`(1) establish rules and guidelines to establish eligibility for grants under subsection (b);

`(2) publicize the availability of the grant program known to owners or operators of recoverable waste energy sources and sites listed on the Registry; and

`(3) award grants under the program on the basis of the merits of each project in recovering or preventing waste energy throughout the United States on an impartial, objective, and not unduly discriminatory basis.

`(e) Limitation— The Secretary shall not award grants to any person for a combined heat and power project or a waste heat recovery project that qualifies for specific Federal tax incentives for combined heat and power or for waste heat recovery.

`(f) Authorization of Appropriations— There are authorized to be appropriated to the Secretary—

`(1) to make grants to projects and utilities under subsection (b)—

`(A) $100,000,000 for fiscal year 2008 and $200,000,000 for each of fiscal years 2009 through 2012; and

`(B) such additional amounts for fiscal year 2008 and each fiscal year thereafter as may be necessary for administration of the waste energy recovery incentive grant program; and

`(2) to make grants to States under subsection (b), $10,000,000 for each of fiscal years 2008 through 2012, to remain available until expended.

`SEC. 374. ADDITIONAL INCENTIVES FOR RECOVERY, USE, AND PREVENTION OF INDUSTRIAL WASTE ENERGY.

`(a) Consideration of Standard-

`(1) IN GENERAL— Not later than 180 days after the receipt by a State regulatory authority (with respect to each electric utility for which the authority has ratemaking authority), or nonregulated electric utility, of a request from a project sponsor or owner or operator, the State regulatory authority or nonregulated electric utility shall—

`(A) provide public notice and conduct a hearing respecting the standard established by subsection (b); and

`(B) on the basis of the hearing, consider and make a determination whether or not it is appropriate to implement the standard to carry out the purposes of this part.

`(2) RELATIONSHIP TO STATE LAW— For purposes of any determination under paragraph (1) and any review of the determination in any court, the purposes of this section supplement otherwise applicable State law.

`(3) NONADOPTION OF STANDARD— Nothing in this part prohibits any State regulatory authority or nonregulated electric utility from making any determination that it is not appropriate to adopt any standard described in paragraph (1), pursuant to authority under otherwise applicable State law.

`(b) Standard for Sales of Excess Power— For purposes of this section, the standard referred to in subsection (a) shall provide that an owner or operator of a waste energy recovery project identified on the Registry that generates net excess power shall be eligible to benefit from at least 1 of the options described in subsection (c) for disposal of the net excess power in accordance with the rate conditions and limitations described in subsection (d).

`(c) Options— The options referred to in subsection (b) are as follows:

`(1) SALE OF NET EXCESS POWER TO UTILITY— The electric utility shall purchase the net excess power from the owner or operator of the eligible waste energy recovery project during the operation of the project under a contract entered into for that purpose.

`(2) TRANSPORT BY UTILITY FOR DIRECT SALE TO THIRD PARTY— The electric utility shall transmit the net excess power on behalf of the project owner or operator to up to 3 separate locations on the system of the utility for direct sale by the owner or operator to third parties at those locations.

`(3) TRANSPORT OVER PRIVATE TRANSMISSION LINES— The State and the electric utility shall permit, and shall waive or modify such laws as would otherwise prohibit, the construction and operation of private electric wires constructed, owned, and operated by the project owner or operator, to transport the power to up to 3 purchasers within a 3-mile radius of the project, allowing the wires to use or cross public rights-of-way, without subjecting the project to regulation as a public utility, and according the wires the same treatment for safety, zoning, land use, and other legal privileges as apply or would apply to the wires of the utility, except that—

`(A) there shall be no grant of any power of eminent domain to take or cross private property for the wires; and

`(B) the wires shall be physically segregated and not interconnected with any portion of the system of the utility, except on the customer side of the revenue meter of the utility and in a manner that precludes any possible export of the electricity onto the utility system, or disruption of the system.

`(4) AGREED ON ALTERNATIVES— The utility and the owner or operator of the project may reach agreement on any alternate arrangement and payments or rates associated with the arrangement that is mutually satisfactory and in accord with State law.

`(d) Rate Conditions and Criteria-

`(1) DEFINITIONS— In this subsection:

`(A) PER UNIT DISTRIBUTION COSTS— The term `per unit distribution costs' means (in kilowatt hours) the quotient obtained by dividing—

`(i) the depreciated book-value distribution system costs of a utility; by

`(ii) the volume of utility electricity sales or transmission during the previous year at the distribution level.

`(B) PER UNIT DISTRIBUTION MARGIN— The term `per unit distribution margin' means—

`(i) in the case of a State-regulated electric utility, a per-unit gross pretax profit equal to the product obtained by multiplying—

`(I) the State-approved percentage rate of return for the utility for distribution system assets; by

`(II) the per unit distribution costs; and

`(ii) in the case of a nonregulated utility, a per unit contribution to net revenues determined multiplying—

`(I) the percentage (but not less than 10 percent) obtained by dividing—

`(aa) the amount of any net revenue payment or contribution to the owners or subscribers of the nonregulated utility during the prior year; by

`(bb) the gross revenues of the utility during the prior year to obtain a percentage; by

`(II) the per unit distribution costs.

`(C) PER UNIT TRANSMISSION COSTS— The term `per unit transmission costs' means the total cost of those transmission services purchased or provided by a utility on a per-kilowatt-hour basis as included in the retail rate of the utility.

`(2) OPTIONS— The options described in paragraphs (1) and (2) in subsection (c) shall be offered under purchase and transport rate conditions that reflect the rate components defined under paragraph (1) as applicable under the circumstances described in paragraph (3).

`(3) APPLICABLE RATES-

`(A) RATES APPLICABLE TO SALE OF NET EXCESS POWER-

`(i) IN GENERAL— Sales made by a project owner or operator of a facility under the option described in subsection (c)(1) shall be paid for on a per kilowatt hour basis that shall equal the full undiscounted retail rate paid to the utility for power purchased by the facility minus per unit distribution costs, that applies to the type of utility purchasing the power.

`(ii) VOLTAGES EXCEEDING 25 KILOVOLTS— If the net excess power is made available for purchase at voltages that must be transformed to or from voltages exceeding 25 kilovolts to be available for resale by the utility, the purchase price shall further be reduced by per unit transmission costs.

`(B) RATES APPLICABLE TO TRANSPORT BY UTILITY FOR DIRECT SALE TO THIRD PARTIES-

`(i) IN GENERAL— Transportation by utilities of power on behalf of the owner or operator of a project under the option described in subsection (c)(2) shall incur a transportation rate that shall equal the per unit distribution costs and per unit distribution margin, that applies to the type of utility transporting the power.

`(ii) VOLTAGES EXCEEDING 25 KILOVOLTS— If the net excess power is made available for transportation at voltages that must be transformed to or from voltages exceeding 25 kilovolts to be transported to the designated third-party purchasers, the transport rate shall further be increased by per unit transmission costs.

`(iii) STATES WITH COMPETITIVE RETAIL MARKETS FOR ELECTRICITY— In a State with a competitive retail market for electricity, the applicable transportation rate for similar transportation shall be applied in lieu of any rate calculated under this paragraph.

`(4) LIMITATIONS-

`(A) IN GENERAL— Any rate established for sale or transportation under this section shall—

`(i) be modified over time with changes in the underlying costs or rates of the electric utility; and

`(ii) reflect the same time-sensitivity and billing periods as are established in the retail sales or transportation rates offered by the utility.

`(B) LIMITATION— No utility shall be required to purchase or transport a quantity of net excess power under this section that exceeds the available capacity of the wires, meter, or other equipment of the electric utility serving the site unless the owner or operator of the project agrees to pay necessary and reasonable upgrade costs.

`(e) Procedural Requirements for Consideration and Determination-

`(1) PUBLIC NOTICE AND HEARING-

`(A) IN GENERAL— The consideration referred to in subsection (a) shall be made after public notice and hearing.

`(B) ADMINISTRATION— The determination referred to in subsection (a) shall be—

`(i) in writing;

`(ii) based on findings included in the determination and on the evidence presented at the hearing; and

`(iii) available to the public.

`(2) INTERVENTION BY ADMINISTRATOR— The Administrator may intervene as a matter of right in a proceeding conducted under this section—

`(A) to calculate—

`(i) the energy and emissions likely to be saved by electing to adopt 1 or more of the options; and

`(ii) the costs and benefits to ratepayers and the utility; and

`(B) to advocate for the waste-energy recovery opportunity.

`(3) PROCEDURES-

`(A) IN GENERAL— Except as otherwise provided in paragraphs (1) and (2), the procedures for the consideration and determination referred to in subsection (a) shall be the procedures established by the State regulatory authority or the nonregulated electric utility.

`(B) MULTIPLE PROJECTS— If there is more than 1 project seeking consideration simultaneously in connection with the same utility, the proceeding may encompass all such projects, if full attention is paid to individual circumstances and merits and an individual judgment is reached with respect to each project.

`(f) Implementation-

`(1) IN GENERAL— The State regulatory authority (with respect to each electric utility for which the authority has ratemaking authority) or nonregulated electric utility may, to the extent consistent with otherwise applicable State law—

`(A) implement the standard determined under this section; or

`(B) decline to implement any such standard.

`(2) NONIMPLEMENTATION OF STANDARD-

`(A) IN GENERAL— If a State regulatory authority (with respect to each electric utility for which the authority has ratemaking authority) or nonregulated electric utility declines to implement any standard established by this section, the authority or nonregulated electric utility shall state in writing the reasons for declining to implement the standard.

`(B) AVAILABILITY TO PUBLIC— The statement of reasons shall be available to the public.

`(C) ANNUAL REPORT— The Administrator shall include in an annual report submitted to Congress a description of the lost opportunities for waste-heat recovery from the project described in subparagraph (A), specifically identifying the utility and stating the quantity of lost energy and emissions savings calculated.

`(D) NEW PETITION— If a State regulatory authority (with respect to each electric utility for which the authority has ratemaking authority) or nonregulated electric utility declines to implement the standard established by this section, the project sponsor may submit a new petition under this section with respect to the project at any time after the date that is 2 years after the date on which the State regulatory authority or nonregulated utility declined to implement the standard.

`SEC. 375. CLEAN ENERGY APPLICATION CENTERS.

`(a) Renaming-

`(1) IN GENERAL— The Combined Heat and Power Application Centers of the Department of Energy are redesignated as Clean Energy Application Centers.

`(2) REFERENCES— Any reference in any law, rule, regulation, or publication to a Combined Heat and Power Application Center shall be treated as a reference to a Clean Energy Application Center.

`(b) Relocation-

`(1) IN GENERAL— In order to better coordinate efforts with the separate Industrial Assessment Centers and to ensure that the energy efficiency and, when applicable, the renewable nature of deploying mature clean energy technology is fully accounted for, the Secretary shall relocate the administration of the Clean Energy Application Centers to the Office of Energy Efficiency and Renewable Energy within the Department of Energy.

`(2) OFFICE OF ELECTRICITY DELIVERY AND ENERGY RELIABILITY— The Office of Electricity Delivery and Energy Reliability shall—

`(A) continue to perform work on the role of technology described in paragraph (1) in support of the grid and the reliability and security of the technology; and

`(B) shall assist the Clean Energy Application Centers in the work of the Centers with regard to the grid and with electric utilities.

`(c) Grants-

`(1) IN GENERAL— The Secretary shall make grants to universities, research centers, and other appropriate institutions to ensure the continued operations and effectiveness of 8 Regional Clean Energy Application Centers in each of the following regions (as designated for such purposes as of the date of the enactment of the Energy Independence and Security Act of 2007):

`(A) Gulf Coast.

`(B) Intermountain.

`(C) Mid-Atlantic.

`(D) Midwest.

`(E) Northeast.

`(F) Northwest.

`(G) Pacific.

`(H) Southeast.

`(2) ESTABLISHMENT OF GOALS AND COMPLIANCE— In making grants under this subsection, the Secretary shall ensure that sufficient goals are established and met by each Center throughout the program duration concerning outreach and technology deployment.

`(d) Activities-

`(1) IN GENERAL— Each Clean Energy Application Center shall—

`(A) operate a program to encourage deployment of clean energy technologies through education and outreach to building and industrial professionals; and other individuals and organizations with an interest in efficient energy use; and

`(B) provide project specific support to building and industrial professionals through assessments and advisory activities.

`(2) TYPES OF ACTIVITIES— Funds made available under this section may be used—

`(A) to develop and distribute informational materials on clean energy technologies, including continuation of the 8 websites in existence on the date of enactment of the Energy Independence and Security Act of 2007;

`(B) to develop and conduct target market workshops, seminars, Internet programs, and other activities to educate end users, regulators, and stakeholders in a manner that leads to the deployment of clean energy technologies;

`(C) to provide or coordinate onsite assessments for sites and enterprises that may consider deployment of clean energy technology;

`(D) to perform market research to identify high profile candidates for clean energy deployment;

`(E) to provide consulting support to sites considering deployment of clean energy technologies;

`(F) to assist organizations developing clean energy technologies to overcome barriers to deployment; and

`(G) to assist companies and organizations with performance evaluations of any clean energy technology implemented.

`(e) Duration-

`(1) IN GENERAL— A grant awarded under this section shall be for a period of 5 years

`(2) ANNUAL EVALUATIONS— Each grant shall be evaluated annually for the continuation of the grant based on the activities and results of the grant.

`(f) Authorization— There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2008 through 2012.'.

(b) Table of Contents—

The table of contents of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by inserting after the items relating to part D of title III the following:

`Part E—Industrial Energy Efficiency

`Sec. 371. Definitions.

`Sec. 372. Survey and Registry.

`Sec. 373. Waste energy recovery incentive grant program.

`Sec. 374. Additional incentives for recovery, utilization and prevention of industrial waste energy.

`Sec. 375. Clean Energy Application Centers.'.

SEC. 452. ENERGY-INTENSIVE INDUSTRIES PROGRAM.

(a) Definitions—

In this section:

(1) ELIGIBLE ENTITY—

The term `eligible entity' means—

(A) an energy-intensive industry;

(B) a national trade association representing an energy-intensive industry; or

(C) a person acting on behalf of 1 or more energy-intensive industries or sectors, as determined by the Secretary.

(2) ENERGY-INTENSIVE INDUSTRY—

The term `energy-intensive industry' means an industry that uses significant quantities of energy as part of its primary economic activities, including—

(A) information technology, including data centers containing electrical equipment used in processing, storing, and transmitting digital information;

(B) consumer product manufacturing;

(C) food processing;

(D) materials manufacturers, including—

(i) aluminum;

(ii) chemicals;

(iii) forest and paper products;

(iv) metal casting;

(v) glass;

(vi) petroleum refining;

(vii) mining; and

(viii) steel;

(E) other energy-intensive industries, as determined by the Secretary.

(3) FEEDSTOCK—

The term `feedstock' means the raw material supplied for use in manufacturing, chemical, and biological processes.

(4) PARTNERSHIP—

The term `partnership' means an energy efficiency partnership established under subsection (c)(1)(A).

(5) PROGRAM—

The term `program' means the energy-intensive industries program established under subsection (b).

(b) Establishment of Program—

The Secretary shall establish a program under which the Secretary, in cooperation with energy-intensive industries and national industry trade associations representing the energy-intensive industries, shall support, research, develop, and promote the use of new materials processes, technologies, and techniques to optimize energy efficiency and the economic competitiveness of the United States' industrial and commercial sectors.

(c) Partnerships-

(1) IN GENERAL—

As part of the program, the Secretary shall establish energy efficiency partnerships between the Secretary and eligible entities to conduct research on, develop, and demonstrate new processes, technologies, and operating practices and techniques to significantly improve the energy efficiency of equipment and processes used by energy-intensive industries, including the conduct of activities to—

(A) increase the energy efficiency of industrial processes and facilities;

(B) research, develop, and demonstrate advanced technologies capable of energy intensity reductions and increased environmental performance; and

(C) promote the use of the processes, technologies, and techniques described in subparagraphs (A) and (B).

(2) ELIGIBLE ACTIVITIES—

Partnership activities eligible for funding under this subsection include—

(A) feedstock and recycling research, development, and demonstration activities to identify and promote—

(i) opportunities for meeting industry feedstock requirements with more energy efficient and flexible sources of feedstock or energy supply;

(ii) strategies to develop and deploy technologies that improve the quality and quantity of feedstocks recovered from process and waste streams; and

(iii) other methods using recycling, reuse, and improved industrial materials;

(B) research to develop and demonstrate technologies and processes that utilize alternative energy sources to supply heat, power, and new feedstocks for energy-intensive industries;

(C) research to achieve energy efficiency in steam, power, control system, and process heat technologies, and in other manufacturing processes; and

(D) industrial and commercial energy efficiency and sustainability assessments to—

(i) assist individual industrial and commercial sectors in developing tools, techniques, and methodologies to assess—

(I) the unique processes and facilities of the sectors;

(II) the energy utilization requirements of the sectors; and

(III) the application of new, more energy efficient technologies; and

(ii) conduct energy savings assessments;

(E) the incorporation of technologies and innovations that would significantly improve the energy efficiency and utilization of energy-intensive commercial applications; and

(F) any other activities that the Secretary determines to be appropriate.

(3) PROPOSALS-

(A) IN GENERAL—

To be eligible for funding under this subsection, a partnership shall submit to the Secretary a proposal that describes the proposed research, development, or demonstration activity to be conducted by the partnership.

(B) REVIEW

After reviewing the scientific, technical, and commercial merit of a proposals submitted under subparagraph (A), the Secretary shall approve or disapprove the proposal.

(C) COMPETITIVE AWARDS—

The provision of funding under this subsection shall be on a competitive basis.

(4) COST-SHARING REQUIREMENT—

In carrying out this section, the Secretary shall require cost sharing in accordance with section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).

(d) Grants—

The Secretary may award competitive grants for innovative technology research, development and demonstrations to universities, individual inventors, and small companies, based on energy savings potential, commercial viability, and technical merit.

(e) Institution of Higher Education-Based Industrial Research and Assessment Centers—

The Secretary shall provide funding to institution of higher education-based industrial research and assessment centers, whose purpose shall be—

(1) to identify opportunities for optimizing energy efficiency and environmental performance;

(2) to promote applications of emerging concepts and technologies in small- and medium-sized manufacturers;

(3) to promote research and development for the use of alternative energy sources to supply heat, power, and new feedstocks for energy-intensive industries;

(4) to coordinate with appropriate Federal and State research offices, and provide a clearinghouse for industrial process and energy efficiency technical assistance resources; and

(5) to coordinate with State-accredited technical training centers and community colleges, while ensuring appropriate services to all regions of the United States.

(f) Authorization of Appropriations-

(1) IN GENERAL—

There are authorized to be appropriated to the Secretary to carry out this section—

(A) $184,000,000 for fiscal year 2008;

(B) $190,000,000 for fiscal year 2009;

(C) $196,000,000 for fiscal year 2010;

(D) $202,000,000 for fiscal year 2011;

(E) $208,000,000 for fiscal year 2012; and

(F) such sums as are necessary for fiscal year 2013 and each fiscal year thereafter.

(2) PARTNERSHIP ACTIVITIES—

Of the amounts made available under paragraph (1), not less than 50 percent shall be used to pay the Federal share of partnership activities under subsection (c).

(3) COORDINATION AND NONDUPLICATION—

The Secretary shall coordinate efforts under this section with other programs of the Department and other Federal agencies to avoid duplication of effort.

SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.

(a) Definitions—

In this section:

(1) DATA CENTER—

The term `data center' means any facility that primarily contains electronic equipment used to process, store, and transmit digital information, which may be—

(A) a free-standing structure; or

(B) a facility within a larger structure, that uses environmental control equipment to maintain the proper conditions for the operation of electronic equipment.

(2) DATA CENTER OPERATOR—

The term `data center operator' means any person or government entity that builds or operates a data center or purchases data center services, equipment, and facilities.

(b) Voluntary National Information Program-

(1) IN GENERAL—

Not later than 90 days after the date of enactment of this Act, the Secretary and the Administrator of the Environmental Protection Agency shall, after consulting with information technology industry and other interested parties, initiate a voluntary national information program for those types of data centers and data center equipment and facilities that are widely used and for which there is a potential for significant data center energy savings as a result of the program.

(2) REQUIREMENTS—

The program described in paragraph (1) shall—

(A) address data center efficiency holistically, reflecting the total energy consumption of data centers as whole systems, including both equipment and facilities;

(B) consider prior work and studies undertaken in this area, including by the Environmental Protection Agency and the Department of Energy;

(C) consistent with the objectives described in paragraph (1), determine the type of data center and data center equipment and facilities to be covered under the program;

(D) produce specifications, measurements, best practices, and benchmarks that will enable data center operators to make more informed decisions about the energy efficiency and costs of data centers, and that take into account—

(i) the performance and use of servers, data storage devices, and other information technology equipment;

(ii) the efficiency of heating, ventilation, and air conditioning, cooling, and power conditioning systems, provided that no modification shall be required of a standard then in effect under the Energy Policy and Conservation Act (42 U.S.C. 6201 et seq.) for any covered heating, ventilation, air-conditioning, cooling or power-conditioning product;

(iii) energy savings from the adoption of software and data management techniques; and

(iv) other factors determined by the organization described in subsection (c);

(E) allow for creation of separate specifications, measurements, and benchmarks based on data center size and function, as well as other appropriate characteristics;

(F) advance the design and implementation of efficiency technologies to the maximum extent economically practical;

(G) provide to data center operators in the private sector and the Federal Government information about best practices and purchasing decisions that reduce the energy consumption of data centers; and

(H) publish the information described in subparagraph (G), which may be disseminated through catalogs, trade publications, the Internet, or other mechanisms, that will allow data center operators to assess the energy consumption and potential cost savings of alternative data centers and data center equipment and facilities.

(3) PROCEDURES—

The program described in paragraph (1) shall be developed in consultation with and coordinated by the organization described in subsection (c) according to commonly accepted procedures for the development of specifications, measurements, and benchmarks.

(c) Data Center Efficiency Organization-

(1) IN GENERAL—

After the establishment of the program described in subsection (b), the Secretary and the Administrator shall jointly designate an information technology industry organization to consult with and to coordinate the program.

(2) REQUIREMENTS—

The organization designated under paragraph (1), whether preexisting or formed specifically for the purposes of subsection (b), shall—

(A) consist of interested parties that have expertise in energy efficiency and in the development, operation, and functionality of computer data centers, information technology equipment, and software, as well as representatives of hardware manufacturers, data center operators, and facility managers;

(B) obtain and address input from Department of Energy National Laboratories or any college, university, research institution, industry association, company, or public interest group with applicable expertise in any of the areas listed in paragraph (1);

(C) follow commonly accepted procedures for the development of specifications and accredited standards development processes;

(D) have a mission to develop and promote energy efficiency for data centers and information technology; and

(E) have the primary responsibility to consult in the development and publishing of the information, measurements, and benchmarks described in subsection (b) and transmission of the information to the Secretary and the Administrator for consideration under subsection (d).

(d) Measurements and Specifications-

(1) IN GENERAL—

The Secretary and the Administrator shall consider the specifications, measurements, and benchmarks described in subsection (b) for use by the Federal Energy Management Program, the Energy Star Program, and other efficiency programs of the Department of Energy and Environmental Protection Agency, respectively.

(2) REJECTIONS—

If the Secretary or the Administrator rejects 1 or more specifications, measurements, or benchmarks described in subsection (b), the rejection shall be made consistent with section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; Public Law 104-113).

(3) DETERMINATION OF IMPRACTICABILITY—

A determination that a specification, measurement, or benchmark described in subsection (b) is impractical may include consideration of the maximum efficiency that is technologically feasible and economically justified.

(e) Monitoring—

The Secretary and the Administrator shall—

(1) monitor and evaluate the efforts to develop the program described in subsection (b); and

(2) not later than 3 years after the date of enactment of this Act, make a determination as to whether the program is consistent with the objectives of subsection (b).

(f) Alternative System—

If the Secretary and the Administrator make a determination under subsection (e) that a voluntary national information program for data centers consistent with the objectives of subsection (b) has not been developed, the Secretary and the Administrator shall, after consultation with the National Institute of Standards and Technology and not later than 2 years after the determination, develop and implement the program under subsection (b).

(g) Protection of Proprietary Information—

The Secretary, the Administrator, or the data center efficiency organization shall not disclose any proprietary information or trade secrets provided by any individual or company for the purposes of carrying out this section or the program established under this section.