[House Report 107-162]
[From the U.S. Government Publishing Office]
107th Congress Rept. 107-162
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
ENERGY ADVANCEMENT AND CONSERVATION ACT OF 2001
_______
July 25, 2001.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Tauzin, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 2587]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 2587) to enhance energy conservation, provide
for security and diversity in the energy supply for the
American people, and for other purposes, having considered the
same, report favorably thereon with an amendment and recommend
that the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 46
Background and Need for Legislation.............................. 46
Hearings......................................................... 49
Committee Consideration.......................................... 52
Committee Votes.................................................. 52
Committee Oversight Findings..................................... 71
Statement of General Performance Goals and Objectives............ 71
New Budget Authority, Entitlement Authority, and Tax Expenditures 71
Committee Cost Estimate.......................................... 71
Congressional Budget Office Estimate............................. 71
Federal Mandates Statement....................................... 71
Advisory Committee Statement..................................... 71
Constitutional Authority Statement............................... 71
Applicability to Legislative Branch.............................. 71
Exchange of Committee Correspondence............................. 72
Section-by-Section Analysis of the Legislation................... 73
Changes in Existing Law Made by the Bill, as Reported............ 91
Additional Views................................................. 135
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy Advancement
and Conservation Act of 2001''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
TITLE I--ENERGY CONSERVATION
Subtitle A--Reauthorization of Federal Energy Conservation Programs
Sec. 101. Authorization of appropriations.
Subtitle B--Federal Leadership in Energy Conservation
Sec. 121. Federal facilities and national energy security.
Sec. 122. Enhancement and extension of authority relating to Federal
energy savings performance contracts.
Sec. 123. Clarification and enhancement of authority to enter utility
incentive programs for energy savings.
Sec. 124. Federal central air conditioner and heat pump efficiency.
Sec. 125. Federal Energy Bank.
Sec. 126. Advanced building efficiency testbed.
Sec. 127. Use of interval data in Federal buildings.
Sec. 128. Review of Energy Savings Performance Contract Program.
Sec. 129. Capitol complex.
Subtitle C--State Programs
Sec. 131. Amendments to State energy programs.
Sec. 132. Reauthorization of energy conservation program for schools
and hospitals.
Sec. 133. Amendments to Weatherization Assistance Program.
Sec. 134. LIHEAP.
Sec. 135. High performance public buildings.
Subtitle D--Energy Efficiency for Consumer Products
Sec. 141. Energy Star program.
Sec. 142. Labeling of energy efficient appliances.
Sec. 143. Appliance standards.
Subtitle E--Energy Efficient Vehicles
Sec. 151. High occupancy vehicle exception.
Sec. 152. Railroad efficiency.
Sec. 153. Biodiesel fuel use credits.
Sec. 154. Mobile to stationary source trading.
Subtitle F--Other Provisions
Sec. 161. Review of regulations to eliminate barriers to emerging
energy technology.
Sec. 162. Advanced idle elimination systems.
Sec. 163. Study of benefits and feasibility of oil bypass filtration
technology.
Sec. 164. Gas flare study.
Sec. 165. Telecommuting study.
TITLE II--AUTOMOBILE FUEL ECONOMY
Sec. 201. Average fuel economy standards for nonpassenger automobiles.
Sec. 202. Consideration of prescribing different average fuel economy
standards for nonpassenger automobiles.
Sec. 203. Dual fueled automobiles.
Sec. 204. Fuel economy of the Federal fleet of automobiles.
Sec. 205. Hybrid vehicles and alternative vehicles.
Sec. 206. Federal fleet petroleum-based nonalternative fuels.
Sec. 207. Study of feasibility and effects of reducing use of fuel for
automobiles.
TITLE III--NUCLEAR ENERGY
Subtitle A--General Provisions
Sec. 301. Budget status of Nuclear Waste Fund.
Sec. 302. License period.
Sec. 303. Cost recovery from Government agencies.
Sec. 304. Depleted uranium hexafluoride.
Sec. 305. Nuclear Regulatory Commission meetings.
Subtitle B--Domestic Uranium Fuel Cycle
Sec. 311. Portsmouth cold standby.
Sec. 312. Paducah funding.
Sec. 313. Research and development.
Sec. 314. Short-term reliability of domestic uranium enrichment
capacity.
Sec. 315. Cooperative research and development and special
demonstration projects for the uranium mining industry.
Sec. 316. Maintenance of a viable domestic uranium conversion industry.
Sec. 317. Prohibition of commercial sales of uranium by the United
States until 2009.
Sec. 318. Paducah decontamination and decommissioning plan.
TITLE IV--HYDROELECTRIC ENERGY
Sec. 401. Alternative conditions and fishways.
Sec. 402. FERC data on hydroelectric licensing.
TITLE V--CLEAN COAL
Sec. 501. Short title.
Sec. 502. Findings.
Subtitle A--Accelerated Clean Coal Power Production Program
Sec. 511. Definitions.
Sec. 512. Cost and performance goals.
Sec. 513. Study.
Sec. 514. Production and generation of coal-based power.
Sec. 515. Authorization of appropriations.
Sec. 516. Clean coal power initiative.
Sec. 517. Financial assistance.
Subtitle B--Credit for Emission Reductions and Efficiency Improvements
in Existing Coal-Based Electricity Generation Facilities
Sec. 521. Credit for investment in qualifying clean coal technology.
Sec. 522. Credit for production from a qualifying clean coal technology
unit.
Subtitle C--Incentives for Early Commercial Applications of Advanced
Clean Coal Technologies
Sec. 531. Credit for investment in qualifying advanced clean coal
technology.
Sec. 532. Credit for production from qualifying advanced clean coal
technology.
Sec. 533. Risk pool for qualifying advanced clean coal technology.
Subtitle D--Treatment of Certain Governmental and Other Entities
Sec. 541. Credits for certain organizations and governmental units.
TITLE VI--FUELS
Sec. 601. Tank draining during transition to summertime RFG.
Sec. 602. Gasoline blendstock requirements.
Sec. 603. Boutique fuels.
Sec. 604. Funding for MTBE contamination.
TITLE VII--RENEWABLE ENERGY
Sec. 701. Assessment of renewable energy resources.
Sec. 702. Renewable energy production incentive.
TITLE VIII--PIPELINE INTEGRITY
Subtitle A--Pipeline Integrity
Sec. 801. Program for pipeline integrity research, development, and
demonstration.
Sec. 802. Pipeline Integrity Technical Advisory Committee.
Sec. 803. Authorization of appropriations.
Subtitle B-Other Pipeline Provisions
Sec. 811. Prohibition on certain pipeline route.
Sec. 812. Historic pipelines.
TITLE IX--MISCELLANEOUS PROVISIONS
Sec. 901. Waste reduction and use of alternatives.
Sec. 902. Annual report on United States energy independence.
Sec. 903. Study of aircraft emissions.
TITLE I--ENERGY CONSERVATION
Subtitle A--Reauthorization of Federal Energy Conservation Programs
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Section 660 of the Department of Energy Organization Act (42 U.S.C.
7270) is amended as follows:
(1) By inserting ``(a)'' before ``Appropriations''.
(2) By inserting at the end the following new subsection:
``(b) There are hereby authorized to be appropriated to the
Department of Energy for fiscal year 2002, $950,000,000; for fiscal
year 2003, $1,000,000,000; for fiscal year 2004, $1,050,000,000; for
fiscal year 2005, $1,100,000,000; and for fiscal year 2006,
$1,150,000,000, to carry out energy efficiency activities under the
following laws, such sums to remain available until expended:
``(1) Energy Policy and Conservation Act, including section
256(d)(42 U.S.C. 6276(d)) (promote export of energy efficient
products), sections 321 through 346 (42 U.S.C. 6291-6317)
(appliances program).
``(2) Energy Conservation and Production Act, including
sections 301 through 308 (42 U.S.C. 6831-6837) (energy
conservation standards for new buildings).
``(3) National Energy Conservation Policy Act, including
sections 541-551 (42 U.S.C. 8251-8259) (Federal Energy
Management Program).
``(4) Energy Policy Act of 1992, including sections 103 (42
U.S.C. 13458) (energy efficient lighting and building centers),
121 (42 U.S.C. 6292 note) (energy efficiency labeling for
windows and window systems), 125 (42 U.S.C. 6292 note) (energy
efficiency information for commercial office equipment), 126
(42 U.S.C. 6292 note) (energy efficiency information for
luminaires), 131 (42 U.S.C. 6348) (energy efficiency in
industrial facilities), and 132 (42 U.S.C. 6349) (process-
oriented industrial energy efficiency).''.
Subtitle B--Federal Leadership in Energy Conservation
SEC. 121. FEDERAL FACILITIES AND NATIONAL ENERGY SECURITY.
(a) Purpose.--Section 542 of the National Energy Conservation Policy
Act (42 U.S.C. 8252) is amended by inserting ``, and generally to
promote the production, supply, and marketing of energy efficiency
products and services and the production, supply, and marketing of
unconventional and renewable energy resources'' after ``by the Federal
Government''.
(b) Energy Management Requirements.--Section 543 of the National
Energy Conservation Policy Act (42 U.S.C. 8253) is amended as follows:
(1) In subsection (a)(1), by striking ``during the fiscal
year 1995'' and all that follows through the end and inserting
``during--
``(1) fiscal year 1995 is at least 10 percent;
``(2) fiscal year 2000 is at least 20 percent;
``(3) fiscal year 2005 is at least 30 percent;
``(4) fiscal year 2010 is at least 35 percent;
``(5) fiscal year 2015 is at least 40 percent; and
``(6) fiscal year 2020 is at least 45 percent,
less than the energy consumption per gross square foot of its Federal
buildings in use during fiscal year 1985. To achieve the reductions
required by this paragraph, an agency shall make maximum practicable
use of energy efficiency products and services and unconventional and
renewable energy resources, using guidelines issued by the Secretary
under subsection (d) of this section.''.
(2) In subsection (d), by inserting ``Such guidelines shall
include appropriate model technical standards for energy
efficiency and unconventional and renewable energy resources
products and services. Such standards shall reflect, to the
extent practicable, evaluation of both currently marketed and
potentially marketable products and services that could be used
by agencies to improve energy efficiency and increase
unconventional and renewable energy resources.'' after
``implementation of this part.''.
(3) By adding at the end the following new subsection:
``(e) Studies.--To assist in developing the guidelines issued by the
Secretary under subsection (d) and in furtherance of the purposes of
this section, the Secretary shall conduct studies to identify and
encourage the production and marketing of energy efficiency products
and services and unconventional and renewable energy resources. To
conduct such studies, there are authorized to be appropriated to the
Secretary $20,000,000 for each of the fiscal years 2003 through
2010.''.
(c) Definition.--Section 551 of the National Energy Conservation
Policy Act (42 U.S.C. 8259) is amended as follows:
(1) By striking ``and'' at the end of paragraph (8).
(2) By striking the period at the end of paragraph (9) and
inserting ``; and''.
(3) By adding at the end the following new paragraph:
``(10) the term `unconventional and renewable energy
resources' includes renewable energy sources, hydrogen, fuel
cells, cogeneration, combined heat and power, heat recovery
(including by use of a Stirling heat engine), and distributed
generation.''.
(d) Exclusions From Requirement.--The National Energy Conservation
Policy Act (42 U.S.C. 7201 and following) is amended as follows:
(1) In section 543(a)--
(A) by striking ``(1) Subject to paragraph (2)'' and
inserting ``Subject to subsection (c)''; and
(B) by striking ``(2) An agency'' and all that
follows through ``such exclusion.''.
(2) By amending subsection (c) of such section 543 to read as
follows:
``(c) Exclusions.--(1) A Federal building may be excluded from the
requirements of subsections (a) and (b) only if--
``(A) the President declares the building to require
exclusion for national security reasons; and
``(B) the agency responsible for the building has--
``(i) completed and submitted all federally required
energy management reports; and
``(ii) achieved compliance with the energy efficiency
requirements of this Act, the Energy Policy Act of
1992, Executive Orders, and other Federal law;
``(iii) implemented all practical, life cycle cost-
effective projects in the excluded building.
``(2) The President shall only declare buildings described in
paragraph (1)(A) to be excluded, not ancillary or nearby facilities
that are not in themselves national security facilities.''.
(3) In section 548(b)(1)(A)--
(A) by striking ``copy of the''; and
(B) by striking ``sections 543(a)(2) and 543(c)(3)''
and inserting ``section 543(c)''.
(e) Acquisition Requirement.--Section 543(b) of such Act is amended--
(1) in paragraph (1), by striking ``(1) Not'' and inserting
``(1) Except as provided in paragraph (5), not''; and
(2) by adding at the end the following new paragraph:
``(5)(A)(i) Agencies shall select only Energy Star products when
available when acquiring energy-using products. For product groups
where Energy Star labels are not yet available, agencies shall select
products that are in the upper 25 percent of energy efficiency as
designated by FEMP. The Secretary of Energy shall develop guidelines
within 180 days after the enactment of this paragraph for exemptions to
this section when equivalent products do not exist, are impractical, or
do not meet the agency mission requirements.
``(ii) The Administrator of the General Services Administration and
the Secretary of Defense (acting through the Defense Logistics Agency),
with assistance from the Administrator of the Environmental Protection
Agency and the Secretary of Energy, shall create clear catalogue
listings that designate Energy Star products in both print and
electronic formats. After any existing federal inventories are
exhausted, Administrator of the General Services Administration and the
Secretary of Defense (acting through the Defense Logistics Agency)
shall only replace inventories with energy-using products that are
Energy Star, products that are rated in the top 25 percent of energy
efficiency, or products that are exempted as designated by FEMP and
defined in clause (i).
``(iii) Agencies shall incorporate energy-efficient criteria
consistent with Energy Star and other FEMP designated energy efficiency
levels into all guide specifications and project specifications
developed for new construction and renovation, as well as into product
specification language developed for Basic Ordering Agreements, Blanket
Purchasing Agreements, Government Wide Acquisition Contracts, and all
other purchasing procedures.
``(iv) The legislative branch shall be subject to this subparagraph
to the same extent and in the same manner as are the Federal agencies
referred to in section 521(1).
``(B) Not later than 6 months after the date of the enactment of this
paragraph, the Secretary of Energy shall establish guidelines defining
the circumstances under which an agency shall not be required to comply
with subparagraph (A). Such circumstances may include the absence of
Energy Star products, systems, or designs that serve the purpose of the
agency, issues relating to the compatibility of a product, system, or
design with existing buildings or equipment, and excessive cost
compared to other available and appropriate products, systems, or
designs.
``(C) Subparagraph (A) shall apply to agency acquisitions occurring
on or after October 1, 2002.''.
(f) Metering.--Section 543 of such Act (42 U.S.C. 8254) is amended by
adding at the end the following new subsection:
``(f) Metering.--(1) By October 1, 2004, all Federal buildings
including buildings owned by the legislative branch and the Federal
court system and other energy-using structures shall be metered or
submetered in accordance with guidelines established by the Secretary
under paragraph (2).
``(2) Not later than 6 months after the date of the enactment of this
subsection, the Secretary, in consultation with representatives from
the metering industry, energy services industry, national laboratories,
colleges of higher education, and federal facilities energy managers,
shall establish guidelines for agencies to carry out paragraph (1).
Such guidelines shall take into consideration each of the following:
``(A) Cost.
``(B) Resources, including personnel, required to maintain,
interpret, and report on data so that the meters are
continually reviewed.
``(C) Energy management potential.
``(D) Energy savings.
``(E) Utility contract aggregation.
``(F) Savings from operations and maintenance.
``(3) Any building excluded under subsection (c) shall be
individually metered or submetered as the Secretary determines
necessary.''.
(g) Retention of Energy Savings.--Section 546 of such Act (42 U.S.C.
8256) is amended by adding at the end the following new subsection:
``(e) Retention of Energy Savings.--An agency may retain any funds
appropriated to that agency for energy expenditures, at buildings
subject to the requirements of section 543(a) and (b), that are not
made because of energy savings. Such funds may be used only for energy
efficiency or unconventional and renewable energy resources
projects.''.
(h) Reports.--Section 548 of such Act (42 U.S.C. 8258) is amended as
follows:
(1) In subsection (a)--
(A) by inserting ``in accordance with guidelines
established by and'' after ``to the Secretary,'';
(B) by striking ``and'' at the end of paragraph (1);
(C) by striking the period at the end of paragraph
(2) and inserting a semicolon; and
(D) by adding at the end the following new
paragraphs:
``(3) an energy emergency response plan developed by the
agency;
``(4) the quantity, and a description of, products, systems,
and designs acquired by the agency that are not acquired as
provided in section 543(b)(5)(A); and
``(5) the percentage of the Agency's capital expenditures
that are used for energy efficiency and unconventional and
renewable energy resources capital improvements.''.
(2) In subsection (b)--
(A) by striking ``and'' at the end of paragraph (3);
(B) by striking the period at the end of paragraph
(4) and inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(5) all information transmitted to the Secretary under
subsection (a).''.
(3) By amending subsection (c) to read as follows:
``(c) Agency Reports to Congress.--Each agency shall annually report
to the Congress, as part of the agency's annual budget request, on all
of the agency's activities implementing any Federal energy management
requirement.''.
(i) Inspector General Energy Audits.--Section 160(c) of the Energy
Policy Act of 1992 (42 U.S.C. 8262f(c)) is amended by striking ``is
encouraged to conduct periodic'' and inserting ``shall conduct
periodic''.
(j) Federal Energy Management Reviews.--Section 543 of the National
Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at
the end the following:
``(g) Priority Response Reviews.--Each agency shall--
``(1) not later than 9 months after the date of the enactment
of this subsection, undertake a comprehensive review of all
practicable measures for--
``(A) increasing energy and water conservation, and
``(B) using renewable energy sources; and
``(2) not later than 180 days after completing the review,
implement measures to achieve not less than 50 percent of the
potential efficiency and renewable savings identified in the
review.''.
SEC. 122. ENHANCEMENT AND EXTENSION OF AUTHORITY RELATING TO FEDERAL
ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Cost Savings From Operation and Maintenance Efficiencies in
Replacement Facilities.--Section 801(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the
end the following new paragraph:
``(3)(A) In the case of an energy savings contract or energy savings
performance contract providing for energy savings through the
construction and operation of one or more buildings or facilities to
replace one or more existing buildings or facilities, benefits
ancillary to the purpose of such contract under paragraph (1) may
include savings resulting from reduced costs of operation and
maintenance at such replacement buildings or facilities when compared
with costs of operation and maintenance at the buildings or facilities
being replaced, established through a methodology set forth in the
contract.
``(B) Notwithstanding paragraph (2)(B), aggregate annual payments by
an agency under an energy savings contract or energy savings
performance contract referred to in subparagraph (A) may take into
account (through the procedures developed pursuant to this section)
savings resulting from reduced costs of operation and maintenance as
described in that subparagraph.''.
(b) Expansion of Definition of Energy Savings to Include Water and
Replacement Facilities.--
(1) Energy savings.--Section 804(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read
as follows:
``(2)(A) The term `energy savings' means a reduction in the
cost of energy or water, from a base cost established through a
methodology set forth in the contract, used in an existing
federally owned building or buildings or other federally owned
facilities as a result of--
``(i) the lease or purchase of operating equipment,
improvements, altered operation and maintenance, or
technical services;
``(ii) the increased efficient use of existing energy
sources by solar and ground source geothermal
resources, cogeneration or heat recovery (including by
the use of a Stirling heat engine), excluding any
cogeneration process for other than a federally owned
building or buildings or other federally owned
facilities; or
``(iii) the increased efficient use of existing water
sources.
``(B) The term `energy savings' also means, in the case of a
replacement building or facility described in section
801(a)(3), a reduction in the cost of energy, from a base cost
established through a methodology set forth in the contract,
that would otherwise be utilized in one or more existing
federally owned buildings or other federally owned facilities
by reason of the construction and operation of the replacement
building or facility.''.
(2) Energy savings contract.--Section 804(3) of the National
Energy Conservation Policy Act (42 U.S.C. 8287c(3)) is amended
to read as follows:
``(3) The terms `energy savings contract' and `energy savings
performance contract' mean a contract which provides for--
``(A) the performance of services for the design,
acquisition, installation, testing, operation, and,
where appropriate, maintenance and repair, of an
identified energy or water conservation measure or
series of measures at one or more locations; or
``(B) energy savings through the construction and
operation of one or more buildings or facilities to
replace one or more existing buildings or
facilities.''.
(3) Energy or water conservation measure.--Section 804(4) of
the National Energy Conservation Policy Act (42 U.S.C.
8287c(4)) is amended to read as follows:
``(4) The term `energy or water conservation measure' means--
``(A) an energy conservation measure, as defined in
section 551(4) (42 U.S.C. 8259(4)); or
``(B) a water conservation measure that improves
water efficiency, is life cycle cost effective, and
involves water conservation, water recycling or reuse,
improvements in operation or maintenance efficiencies,
retrofit activities, or other related activities, not
at a Federal hydroelectric facility.''.
(4) Conforming amendment.--Section 801(a)(2)(C) of the
National Energy Conservation Policy Act (42 U.S.C.
8287(a)(2)(C)) is amended by inserting ``or water'' after
``financing energy''.
(c) Extension of Authority.--Section 801(c) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.
(d) Contracting and Auditing.--Section 801(a)(2) of the National
Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by
adding at the end the following new subparagraph:
``(E) A Federal agency shall engage in contracting and auditing to
implement energy savings performance contracts as necessary and
appropriate to ensure compliance with the requirements of this Act,
particularly the energy efficiency requirements of section 543.''.
SEC. 123. CLARIFICATION AND ENHANCEMENT OF AUTHORITY TO ENTER UTILITY
INCENTIVE PROGRAMS FOR ENERGY SAVINGS.
Section 546(c) of the National Energy Conservation Policy Act (42
U.S.C. 8256(c)) is amended as follows:
(1) In paragraph (3) by adding at the end the following:
``Such a utility incentive program may include a contract or
contract term designed to provide for cost-effective
electricity demand management, energy efficiency, or water
conservation.''.
(2) By adding at the end of the following new paragraphs:
``(6) A utility incentive program may include a contract or contract
term for a reduction in the energy, from a base cost established
through a methodology set forth in such a contract, that would
otherwise be utilized in one or more federally owned buildings or other
federally owned facilities by reason of the construction or operation
of one or more replacement buildings or facilities, as well as benefits
ancillary to the purpose of such contract or contract term, including
savings resulting from reduced costs of operation and maintenance at
new or additional buildings or facilities when compared with the costs
of operation and maintenance at existing buildings or facilities.
``(7) Federal agencies are encouraged to participate in State or
regional demand side reduction programs, including those operated by
wholesale market institutions such as independent system operators,
regional transmission organizations and other entities. The
availability of such programs, and the savings resulting from such
participation, should be included in the evaluation of energy options
for Federal facilities.''.
SEC. 124. FEDERAL CENTRAL AIR CONDITIONER AND HEAT PUMP EFFICIENCY.
(a) Requirement.--Federal agencies shall be required to acquire
central air conditioners and heat pumps that meet or exceed the
standards established under subsection (b) or (c) in the case of all
central air conditioners and heat pumps acquired after the date of
enactment of this Act.
(b) Standards.--The standards referred to in subsection (a) are the
following:
(1) For air-cooled air conditioners with cooling capacities
of less than 65,000 Btu/hour, a Seasonal Energy Efficiency
Ratio of 12.0.
(2) For air-source heat pumps with cooling capacities less
than 65,000 Btu/hour, a Seasonal Energy Efficiency Ratio of 12
SEER, and a Heating Seasonal Performance Factor of 7.4.
(c) Modified Standards.--The Secretary of Energy may establish, after
appropriate notice and comment, revised standards providing for reduced
energy consumption or increased energy efficiency of central air
conditioners and heat pumps acquired by the Federal Government, but may
not establish standards less rigorous than those established by
subsection (b).
(d) Definitions.--For purposes of this section, the terms ``Energy
Efficiency Ratio'', ``Seasonal Energy Efficiency Ratio'', ``Heating
Seasonal Performance Factor'', and ``Coefficient of Performance'' have
the meanings used for those terms in Appendix M to Subpart B of Part
430 of title 10 of the Code of Federal Regulations, as in effect on May
24, 2001.
(e) Exemptions.--An agency shall be exempt from the requirements of
this section with respect to air conditioner or heat pump purchases for
particular uses where the agency head determines that purchase of a air
conditioner or heat pump for such use would be impractical. A finding
of impracticability shall be based on whether--
(1) the energy savings pay-back period for such purchase
would be less than 10 years;
(2) space constraints or other technical factors would make
compliance with this section cost-prohibitive; or
(3) in the case of the Departments of Defense and Energy,
compliance with this section would be inconsistent with the
proper discharge of national security functions.
SEC. 125. FEDERAL ENERGY BANK.
(a) Definitions.--In this section:
(1) Agency.--The term ``agency'' means each of the following:
(A) An Executive agency (as defined in section 105 of
title 5, United States Code, except that the term also
includes the United States Postal Service and the
United States Patent and Trademark Office).
(B) Congress and any other entity in the legislative
branch.
(C) A court and any other entity in the judicial
branch.
(2) Bank.--The term ``Bank'' means the Federal Energy Bank
established by subsection (b).
(3) Energy efficiency project.--The term ``energy efficiency
project'' means a project that assists an agency in meeting or
exceeding the energy efficiency requirements of--
(A) part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.);
(B) subtitle F of title I of the Energy Policy Act of
1992 and the amendments made by that subtitle (106
Stat. 2843); and
(C) applicable Executive orders, including Executive
Order Nos. 12759 and 13123.
Such term shall include water conservation and renewable energy
projects.
(4) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
(5) Total utility payments.--The term ``total utility
payments'' means payments made to supply electricity, natural
gas, water, and any other form of energy to provide the
heating, ventilation, air conditioning, lighting, and other
energy needs of an agency facility.
(b) Establishment of Bank.--
(1) In general.--There is established in the Treasury of the
United States a trust fund to be known as the ``Federal Energy
Bank'', consisting of--
(A) such amounts as are appropriated to the Bank
under subsection (f);
(B) such amounts as are transferred to the Bank under
paragraph (2);
(C) such amounts as are repaid to the Bank under
subsection (c)(2)(D); and
(D) any interest earned on investment of amounts in
the Bank under paragraph (3).
(2) Transfers to bank.--
(A) In general.--At the beginning of each of fiscal
years 2002, 2003, and 2004, each agency shall transfer
to the Secretary of the Treasury, for deposit in the
Bank, an amount equal to 5 percent of the total utility
payments paid by the agency in the preceding fiscal
year.
(B) Utilities paid for as part of rental payments.--
The Secretary shall by regulation establish a formula
by which the appropriate portion of a rental payment
that covers the cost of utilities shall be considered
to be a utility payment for the purposes of
subparagraph (A).
(3) Investment of funds.--The Secretary of the Treasury shall
invest such portion of funds in the Bank as is not, in the
Secretary's judgment, required to meet current withdrawals.
Investments may be made only in interest-bearing obligations of
the United States.
(c) Loans From the Bank.--
(1) In general.--The Secretary of the Treasury shall transfer
from the Bank to the Secretary such amounts as are appropriated
to carry out the loan program under paragraph (2).
(2) Loan program.--
(A) In general.--In accordance with subsection (d),
the Secretary, in consultation with the Secretary of
Defense, Administrator of the General Services
Administration and the Office of Administration and
Budget within the Executive Office of the President,
shall establish a program to loan amounts from the Bank
to any agency that submits an application satisfactory
to the Secretary in order to finance an energy
efficiency project. The Bank is authorized to begin
operation in fiscal year 2003 and receive and approve
funding for energy efficiency projects subject to
funding availability in fiscal year 2003.
(B) Performance contracting funding.--The Secretary
shall not make a loan under this section for a project
for which funding is available and is acceptable to the
requesting agency under title VIII of the National
Energy Conservation Policy Act (42 U.S.C. 8287 et
seq.).
(C) Purposes of loan.--
(i) In general.--A loan under this section
may be made to pay the costs of--
(I) an energy efficiency project
identification and design of an energy
efficiency project, and energy metering
plans and equipment for purposes of new
and existing building energy systems
and verifications of energy savings of
an energy savings performance contract;
or
(II) development and administration
of an energy savings performance
contract or utility energy service
agreement.
(ii) Limitation.--An agency may use not more
than 15 percent of the amount of a loan under
clause (i)(I) to pay the costs of
administration and proposal development
(including data collection and energy surveys).
(D) Repayments.--
(i) In general.--An agency shall repay to the
Bank the principal amount of the energy
efficiency project loan plus interest at a rate
determined by the President, in consultation
with the Secretary and the Secretary of the
Treasury. The repayment period shall be 10
years in the case of water conservation and
renewable energy projects.
(ii) Waiver.--The Secretary may waive the
requirement of clause (i) if the Secretary
determines that payment of interest by an
agency is not required to sustain the needs of
the Bank in making energy efficiency project
loans.
(E) Agency energy budgets.--Until a loan is repaid,
an agency budget submitted to Congress for a fiscal
year shall not be reduced by the value of energy
savings accrued as a result of the energy conservation
measure implemented with funds from the Bank.
(F) Availability of funds.--An agency shall not
rescind or reprogram funds made available by this
section. Funds loaned to an agency shall be retained by
the agency until expended, without regard to fiscal
year limitation.
(d) Selection Criteria.--
(1) In general.--The Secretary shall establish criteria for
the selection of energy efficiency projects to be awarded loans
in accordance with paragraph (2).
(2) Selection criteria.--The Secretary may make loans only
for energy efficiency projects that--
(A) are technically feasible;
(B) are determined to be cost-effective using life
cycle cost methods established by the Secretary by
regulation;
(C) include a measurement and management component
to--
(i) commission energy savings for new Federal
facilities; and
(ii) monitor and improve energy efficiency
management at existing Federal facilities;
(D) have a project payback period of 10 years or
less; and
(E) gives funding priority to projects with the
quickest payback and least total cost.
(e) Reports and Audits.--
(1) Reports to the secretary.--Not later than 1 year after
the installation of an energy efficiency project that has a
total cost of more than $1,000,000, and each year thereafter,
an agency shall submit to the Secretary a report that--
(A) states whether the project meets or fails to meet
the energy savings projections for the project; and
(B) for each project that fails to meet the energy
savings projections, states the reasons for the failure
and describes proposed remedies.
(2) Audits.--The Secretary may audit any energy efficiency
project financed with funding from the Bank to assess the
project's performance.
(3) Reports to congress.--At the end of each fiscal year, the
Secretary shall submit to the Committee on Energy and Commerce
of the House of Representatives and the Committee on Energy and
Natural Resources of the Senate a report on the operations of
the Bank, including a statement of the total receipts into the
Bank, and the total expenditures from the Bank to each agency.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary for each of the fiscal years
2002 through 2008 to carry out this section.
SEC. 126. ADVANCED BUILDING EFFICIENCY TESTBED.
(a) Establishment.--The Secretary of Energy shall establish an
Advanced Building Efficiency Testbed program for the development,
testing, and demonstration of advanced engineering systems, components,
and materials to enable innovations in building technologies. The
program shall evaluate government and industry building efficiency
concepts, and demonstrate the ability of next generation buildings to
support individual and organizational productivity and health as well
as flexibility and technological change to improve environmental
sustainability.
(b) Participants.--The program established under subsection (a) shall
be led by a university having demonstrated experience with the
application of intelligent workplaces and advanced building systems in
improving the quality of built environments. Such university shall also
have the ability to combine the expertise from more than 12 academic
fields, including electrical and computer engineering, computer
science, architecture, urban design, and environmental and mechanical
engineering. Such university shall partner with other universities and
entities who have established programs and the capability of advancing
innovative building efficiency technologies.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy to carry out this section
$18,000,000 for fiscal year 2002, to remain available until expended,
of which $6,000,000 shall be provided to the lead university described
in subsection (b), and the remainder shall be provided equally to each
of the other participants referred to in subsection (b).
SEC. 127. USE OF INTERVAL DATA IN FEDERAL BUILDINGS.
Section 543 of the National Energy Conservation Policy Act (42 U.S.C.
8253) is amended by adding at the end the following new subsection:
``(h) Use of Interval Data in Federal Buildings.--Not later than
January 1, 2003, each agency shall utilize, to the maximum extent
practicable, for the purposes of efficient use of energy and reduction
in the cost of electricity consumed in its Federal buildings, interval
consumption data that measure on a real time or daily basis consumption
of electricity in its Federal buildings. To meet the requirements of
this subsection each agency shall prepare and submit at the earliest
opportunity pursuant to section 548(a) to the Secretary, a plan
describing how the agency intends to meet such requirements, including
how it will designate personnel primarily responsible for achieving
such requirements, and otherwise implement this subsection.''.
SEC. 128. REVIEW OF ENERGY SAVINGS PERFORMANCE CONTRACT PROGRAM.
Within 180 days after the date of the enactment of this Act, the
Secretary of Energy shall complete a review of the Energy Savings
Performance Contract program to identify statutory, regulatory, and
administrative obstacles that prevent Federal agencies from fully
utilizing the program. In addition, this review shall identify all
areas for increasing program flexibility and effectiveness, including
audit and measurement verification requirements, accounting for energy
use in determining savings, contracting requirements, and energy
efficiency services covered. The Secretary shall report these findings
to the Committee on Energy and Commerce of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate, and
shall implement identified administrative and regulatory changes to
increase program flexibility and effectiveness to the extent that such
changes are consistent with statutory authority.
SEC. 129. CAPITOL COMPLEX.
(a) Energy Infrastructure.--The Architect of the Capitol, building on
the Master Plan Study completed in July 2000, shall commission a study
to evaluate the energy infrastructure of the Capital Complex to
determine how the infrastructure could be augmented to become more
energy efficient, using unconventional and renewable energy resources,
in a way that would enable the Complex to have reliable utility service
in the event of power fluctuations, shortages, or outages.
(b) Authorization.--There is authorized to be appropriated to the
Architect of the Capitol to carry out this section, not more than
$2,000,000 for fiscal years after the enactment of this Act.
Subtitle C--State Programs
SEC. 131. AMENDMENTS TO STATE ENERGY PROGRAMS.
(a) State Energy Conservation Plans.--Section 362 of the Energy
Policy and Conservation Act (42 U.S.C. 6322) is amended by inserting at
the end the following new subsection:
``(g) The Secretary shall, at least once every three years, invite
the Governor of each State to review and, if necessary, revise the
energy conservation plan of such State submitted under subsection (b)
or (e). Such reviews should consider the energy conservation plans of
other States within the region, and identify opportunities and actions
carried out in pursuit of common energy conservation goals.''.
(b) State Energy Efficiency Goals.--Section 364 of the Energy Policy
and Conservation Act (42 U.S.C. 6324) is amended by inserting ``Each
State energy conservation plan with respect to which assistance is made
available under this part on or after the date of the enactment of
Energy Advancement and Conservation Act of 2001, shall contain a goal,
consisting of an improvement of 25 percent or more in the efficiency of
use of energy in the State concerned in the calendar year 2010 as
compared to the calendar year 1990, and may contain interim goals.''
after ``contain interim goals.''.
(c) Authorization of Appropriations.--Section 365(f) of the Energy
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking
``for fiscal years 1999 through 2003 such sums as may be necessary''
and inserting ``$75,000,000 for fiscal year 2002, $100,000,000 for
fiscal years 2003 and 2004, $125,000,000 for fiscal year 2005''.
SEC. 132. REAUTHORIZATION OF ENERGY CONSERVATION PROGRAM FOR SCHOOLS
AND HOSPITALS.
Section 397 of the Energy Policy and Conservation Act (42 U.S.C.
6371f) is amended by striking ``2003'' and inserting ``2010''.
SEC. 133. AMENDMENTS TO WEATHERIZATION ASSISTANCE PROGRAM.
Section 422 of the Energy Conservation and Production Act (42 U.S.C.
6872) is amended by striking ``for fiscal years 1999 through 2003 such
sums as may be necessary'' and inserting ``$250,000,000 for fiscal year
2002, $325,000,000 for fiscal year 2003, $400,000,000 for fiscal year
2004, and $500,000,000 for fiscal year 2005''.
SEC. 134. LIHEAP.
(a) Authorization of Appropriations.--Section 2602(b) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is
amended by striking the first sentence and inserting the following:
``There are authorized to be appropriated to carry out the provisions
of this title (other than section 2607A), $3,400,000,000 for each of
fiscal years 2001 through 2005.''.
(b) GAO Study.--The Comptroller General of the United States shall
conduct a study to determine--
(1) the extent to which Low-Income Home Energy Assistance
(LIHEAP) and other government energy subsidies paid to
consumers discourage energy conservation and energy efficiency
investments; and
(2) the extent to which the goals of conservation and
assistance for low income households could be simultaneously
achieved through cash income supplements that do not
specifically target energy, thereby maintaining incentives for
wise use of expensive forms of energy, or through other means.
SEC. 135. HIGH PERFORMANCE PUBLIC BUILDINGS.
(a) Program Establishment and Administration.--
(1) Establishment.--There is established in the Department of
Energy the High Performance Public Buildings Program (in this
section referred to as the ``Program'').
(2) In general.--The Secretary of Energy may, through the
Program, make grants--
(A) to assist units of local government in the
production, through construction or renovation of
buildings and facilities they own and operate, of high
performance public buildings and facilities that are
healthful, productive, energy efficient, and
environmentally sound;
(B) to State energy offices to administer the program
of assistance to units of local government pursuant to
this section; and
(C) to State energy offices to promote participation
by units of local government in the Program.
(3) Grants to assist units of local government.--Grants under
paragraph (2)(A) for new public buildings shall be used to
achieve energy efficiency performance that reduces energy use
at least 30 percent below that of a public building constructed
in compliance with standards prescribed in Chapter 8 of the
2000 International Energy Conservation Code, or a similar State
code intended to achieve substantially equivalent results.
Grants under paragraph (2)(A) for existing public buildings
shall be used to achieve energy efficiency performance that
reduces energy use below the public building baseline
consumption, assuming a 3-year, weather-normalized average for
calculating such baseline. Grants under paragraph (2)(A) shall
be made to units of local government that have--
(A) demonstrated a need for such grants in order to
respond appropriately to increasing population or to
make major investments in renovation of public
buildings; and
(B) made a commitment to use the grant funds to
develop high performance public buildings in accordance
with a plan developed and approved pursuant to
paragraph (5)(A).
(4) Other grants.--
(A) Grants for administration.--Grants under
paragraph (2)(B) shall be used to evaluate compliance
by units of local government with the requirements of
this section, and in addition may be used for--
(i) distributing information and materials to
clearly define and promote the development of
high performance public buildings for both new
and existing facilities;
(ii) organizing and conducting programs for
local government personnel, architects,
engineers, and others to advance the concepts
of high performance public buildings;
(iii) obtaining technical services and
assistance in planning and designing high
performance public buildings; and
(iv) collecting and monitoring data and
information pertaining to the high performance
public building projects.
(B) Grants to promote participation.--Grants under
paragraph (2)(C) may be used for promotional and
marketing activities, including facilitating private
and public financing, promoting the use of energy
service companies, working with public building users,
and communities, and coordinating public benefit
programs.
(5) Implementation.--
(A) Plans.--A grant under paragraph (2)(A) shall be
provided only to a unit of local government that, in
consultation with its State office of energy, has
developed a plan that the State energy office
determines to be feasible and appropriate in order to
achieve the purposes for which such grants are made.
(B) Supplementing grant funds.--State energy offices
shall encourage qualifying units of local government to
supplement their grant funds with funds from other
sources in the implementation of their plans.
(b) Allocation of Funds.--
(1) In general.--Except as provided in paragraph (3), funds
appropriated to carry out this section shall be provided to
State energy offices.
(2) Purposes.--Except as provided in paragraph (3), funds
appropriated to carry out this section shall be allocated as
follows:
(A) Seventy percent shall be used to make grants
under subsection (a)(2)(A).
(B) Fifteen percent shall be used to make grants
under subsection (a)(2)(B).
(C) Fifteen percent shall be used to make grants
under subsection (a)(2)(C).
(3) Other funds.--The Secretary of Energy may retain not to
exceed $300,000 per year from amounts appropriated under
subsection (c) to assist State energy offices in coordinating
and implementing the Program. Such funds may be used to develop
reference materials to further define the principles and
criteria to achieve high performance public buildings.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy to carry out this section such
sums as may be necessary for each of the fiscal years 2002 through
2010.
(d) Report to Congress.--The Secretary of Energy shall conduct a
biennial review of State actions implementing this section, and the
Secretary shall report to Congress on the results of such reviews. In
conducting such reviews, the Secretary shall assess the effectiveness
of the calculation procedures used by the States in establishing
eligibility of units of local government for funding under this
section, and may assess other aspects of the State program to determine
whether they have been effectively implemented.
(e) Definitions.--For purposes of this section:
(1) High performance public building.--The term ``high
performance public building'' means a public building which, in
its design, construction, operation, and maintenance, maximizes
use of unconventional and renewable energy resources and energy
efficiency practices, is cost-effective on a life cycle basis,
uses affordable, environmentally preferable, durable materials,
enhances indoor environmental quality, protects and conserves
water, and optimizes site potential.
(2) Renewable energy.--The term ``renewable energy'' means
energy produced by solar, wind, geothermal, hydroelectric, or
biomass power.
(3) Unconventional and renewable energy resources.--The term
``unconventional and renewable energy resources'' means
renewable energy, hydrogen, fuel cells, cogeneration, combined
heat and power, heat recovery (including by use of a Stirling
heat engine), and distributed generation.
Subtitle D--Energy Efficiency for Consumer Products
SEC. 141. ENERGY STAR PROGRAM.
(a) Amendment.--The Energy Policy and Conservation Act (42 U.S.C.
6201 and following) is amended by inserting the following after section
324:
``SEC. 324A. ENERGY STAR PROGRAM.
``(a) In General.--There is established at the Department of Energy
and the Environmental Protection Agency a program to identify and
promote energy-efficient products and buildings in order to reduce
energy consumption, improve energy security, and reduce pollution
through labeling of products and buildings that meet the highest energy
efficiency standards. Responsibilities under the program shall be
divided between the Department of Energy and the Environmental
Protection Agency consistent with the terms of agreements between the
two agencies. The Administrator and the Secretary shall--
``(1) promote Energy Star compliant technologies as the
preferred technologies in the marketplace for achieving energy
efficiency and to reduce pollution;
``(2) work to enhance public awareness of the Energy Star
label; and
``(3) preserve the integrity of the Energy Star label.
For the purposes of carrying out this section, there is authorized to
be appropriated for fiscal years 2002 through 2006 such sums as may be
necessary, to remain available until expended.
``(b) Study of Certain Products and Buildings.--Within 180 days after
the date of enactment of this section, the Secretary and the
Administrator, consistent with the terms of agreements between the two
agencies, shall determine whether the Energy Star label should be
extended to additional products and buildings, including the following:
``(1) Air cleaners.
``(2) Ceiling fans.
``(3) Light commercial heating and cooling products.
``(4) Reach-in refrigerators and freezers.
``(5) Telephony.
``(6) Vending machines.
``(7) Residential water heaters.
``(8) Refrigerated beverage merchandisers.
``(9) Commercial ice makers.
``(10) School buildings.
``(11) Retail buildings.
``(12) Health care facilities.
``(13) Homes.
``(14) Hotels and other commercial lodging facilities.
``(15) Restaurants and other food service facilities.
``(16) Solar water heaters.
``(17) Building-integrated photovoltaic systems.
``(18) Reflective pigment coatings.
``(19) Windows.
``(20) Boilers.
``(21) Devices to extend the life of motor vehicle oil.
``(c) Cool Roofing.--In determining whether the Energy Star label
should be extended to roofing products, the Secretary and the
Administrator shall work with the roofing products industry to
determine the appropriate solar reflective index of roofing
products.''.
(b) Table of Contents Amendment.--The table of contents of the Energy
Policy and Conservation Act is amended by inserting after the item
relating to section 324 the following new item:
``Sec. 324A. Energy Star program.''.
SEC. 142. LABELING OF ENERGY EFFICIENT APPLIANCES.
(a) Study.--Section 324(e) of the Energy Policy and Conservation Act
(42 U.S.C. 6294(e)) is amended as follows:
(1) By inserting ``(1)'' before ``The Secretary, in
consultation''.
(2) By redesignating paragraphs (1) and (2) as subparagraphs
(A) and (B), respectively.
(3) By adding the following new paragraph at the end:
``(2) The Secretary shall make recommendations to the Commission
within 180 days of the date of enactment of this paragraph regarding
labeling of consumer products that are not covered products in
accordance with this section, where such labeling is likely to assist
consumers in making purchasing decisions and is technologically and
economically feasible.''.
(b) Noncovered Products.--Section 324(a)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding the
following at the end:
``(F) Not later than one year after the date of enactment of this
subparagraph, the Commission shall initiate a rulemaking to prescribe
labeling rules under this section applicable to consumer products that
are not covered products if it determines that labeling of such
products is likely to assist consumers in making purchasing decisions
and is technologically and economically feasible.
``(G) Not later than three months after the date of enactment of this
subparagraph, the Commission shall initiate a rulemaking to consider
the effectiveness of the current consumer products labeling program in
assisting consumers in making purchasing decisions and improving energy
efficiency and to consider changes to the label that would improve the
effectiveness of the label. Such rulemaking shall be completed within
15 months of the date of enactment of this subparagraph.''.
SEC. 143. APPLIANCE STANDARDS.
(a) Standards for Household Appliances in Standby Mode.--Section 325
of the Energy Policy and Conservation Act (42 U.S.C. 6295) is amended
by adding at the end the following:
``(u) Standby Mode Electric Energy Consumption by Household
Appliances.--(1) In this subsection:
``(A) The term `household appliance' means any device that
uses household electric current and operates in a standby mode
except digital televisions, digital set top boxes, and digital
video recorders.
``(B) The term `standby mode' means a mode in which a
household appliance consumes the least amount of electric
energy that the household appliance is capable of consuming
without being completely switched off.
``(2)(A) Except as provided in subparagraph (B), a household
appliance that is manufactured in, or imported for sale in, the United
States on or after the date that is 2 years after the date of enactment
of this subsection shall not consume in standby mode more than 1 watt.
``(B)(i) A household appliance model that, as of the date of
enactment of this subsection, is recognized under the Energy Star
program administered by the Administrator of the Environmental
Protection Agency and the Secretary shall have until January 1, 2005,
to meet the standard under subparagraph (A).
``(ii) In the case of analog televisions, the Secretary shall
prescribe, on or after the date that is 2 years after the date of
enactment of this subsection, in accordance with subsections (o) and
(p) of section 325, an energy conservation standard that is
technologically feasible and economically justified under section
325(o)(2)(A) (in lieu of the 1 watt standard under subparagraph (A)).
``(3)(A) A manufacturer or importer of a household appliance may
submit to the Secretary an application for an exemption of the
household appliance from the standard under paragraph (2).
``(B) The Secretary shall grant an exemption for a household
appliance for which an application is made under subparagraph (A) if
the applicant provides evidence showing that, and the Secretary
determines that--
``(i) it is not technically feasible to modify the household
appliance to enable the household appliance to meet the
standard;
``(ii) the standard is incompatible with an energy efficiency
standard applicable to the household appliance under another
subsection; or
``(iii) the cost of electricity that a typical consumer would
save in operating the household appliance meeting the standard
would not equal the increase in the price of the household
appliance that would be attributable to the modifications that
would be necessary to enable the household appliance to meet
the standard by the earlier of--
``(I) the date that is 7 years after the date of
purchase of the household appliance; or
``(II) the end of the useful life of the household
appliance.
``(C) If the Secretary determines that it is not technically feasible
to modify a household appliance to meet the standard under paragraph
(2), the Secretary shall establish a different standard for the
household appliance in accordance with the criteria under subsection
(l).
``(4)(A) Not later than 1 year after the date of enactment of this
subsection, the Secretary shall establish a test procedure for
determining the amount of consumption of power by a household appliance
operating in standby mode.
``(B) In establishing the test procedure, the Secretary shall
consider--
``(i) international test procedures under development;
``(ii) test procedures used in connection with the Energy
Star program; and
``(iii) test procedures used for measuring power consumption
in standby mode in other countries.
``(5) Further reduction of standby power consumption.--The Secretary
shall provide technical assistance to manufacturers in achieving
further reductions in standby mode electric energy consumption by
household appliances.
``(v) Standby Mode Electric Energy Consumption by Digital
Televisions, Digital Set Top Boxes, and Digital Video Recorders.--The
Secretary shall initiate on January 1, 2007 a rulemaking to prescribe,
in accordance with subsections (o) and (p), an energy conservation
standard of standby mode electric energy consumption by digital
television sets, digital set top boxes, and digital video recorders.
The Secretary shall issue a final rule prescribing such standards not
later than 18 months thereafter. In determining whether a standard
under this section is technologically feasible and economically
justified under section 325(o)(2)(A), the Secretary shall consider the
potential effects on market penetration by digital products covered
under this section, and shall consider any recommendations by the FCC
regarding such effects.''.
(2) Section 325(n)(1) of the Energy Policy and Conservation Act (42
U.S.C. 6295(n)(1)) is amended by striking ``(11), and in paragraphs
(13) and''.
(b) Standards for Noncovered Products.--Section 325(m) of the Energy
Policy and Conservation Act (42 U.S.C. 6295(m)) is amended as follows:
(1) Inserting ``(1)'' before ``After''.
(2) Inserting the following at the end:
(2) ``Not later than one year after the date of enactment of the
Energy Advancement and Conservation Act of 2001, the Secretary shall
conduct a rulemaking to determine whether consumer products not
classified as a covered product under section 322(a)(1) through (18)
meet the criteria of section 322(b)(1). If the Secretary finds that a
consumer product not classified as a covered product meets the criteria
of section 322(b)(1), he shall prescribe, in accordance with
subsections (o) and (p), an energy conservation standard for such
consumer product, if such standard is reasonably probable to be
technologically feasible and economically justified within the meaning
of subsection (o)(2)(A).''.
(c) Consumer Education on Energy Efficiency Benefits of Air
Conditioning, Heating and Ventilation Maintenance.--Section 337 of the
Energy Policy and Conservation Act (42 U.S.C. 6307) is amended by
adding the following new subsection after subsection (b):
``(c) HVAC Maintenance.--For the purpose of ensuring that installed
air conditioning and heating systems operate at their maximum rated
efficiency levels, the Secretary shall, within 180 days of the date of
enactment of this subsection, develop and implement a public education
campaign to educate homeowners and small business owners concerning the
energy savings resulting from regularly scheduled maintenance of air
conditioning, heating, and ventilating systems. In developing and
implementing this campaign, the Secretary shall consider support by the
Department of public education programs sponsored by trade and
professional or energy efficiency organizations. The public service
information shall provide sufficient information to allow consumers to
make informed choices from among professional, licensed (where State or
local licensing is required) contractors. There are authorized to be
appropriated to carry out this subsection $5,000,000 for fiscal years
2002 and 2003 in addition to amounts otherwise appropriated in this
part.''.
(d) Efficiency Standards for Furnace Fans, Ceiling Fans, and Cold
Drink Vending Machines..--
(1) Definitions.--Section 321 of the Energy Policy and
Conservation Act (42 U.S.C. 6291) is amended by adding the
following at the end thereof:
``(32) The term `residential furnace fan' means an electric
fan installed as part of a furnace for purposes of circulating
air through the system air filters, the heat exchangers or
heating elements of the furnace, and the duct work.
``(33) The terms `residential central air conditioner fan'
and `heat pump circulation fan' mean an electric fan installed
as part of a central air conditioner or heat pump for purposes
of circulating air through the system air filters, the heat
exchangers of the air conditioner or heat pump, and the duct
work.
``(34) The term `suspended ceiling fan' means a fan intended
to be mounted to a ceiling outlet box, ceiling building
structure, or to a vertical rod suspended from the ceiling, and
which as blades which rotate below the ceiling and consists of
an electric motor, fan blades (which rotate in a direction
parallel to the floor), an optional lighting kit, and one or
more electrical controls (integral or remote) governing fan
speed and lighting operation.
``(35) The term `refrigerated bottled or canned beverage
vending machine' means a machine that cools bottled or canned
beverages and dispenses them upon payment.''.
(2) Testing requirements.--Section 323 of the Energy Policy
and Conservation Act (42 U.S.C. 6293) is amended by adding the
following at the end thereof:
``(f) Additional Consumer Products.--The Secretary shall within 18
months after the date of enactment of this subsection prescribe testing
requirements for residential furnace fans, residential central air
conditioner fans, heat pump circulation fans, suspended ceiling fans,
and refrigerated bottled or canned beverage vending machines. Such
testing requirements shall be based on existing test procedures used in
industry to the extent practical and reasonable. In the case of
residential furnace fans, residential central air conditioner fans,
heat pump circulation fans, and suspended ceiling fans, such test
procedures shall include efficiency at both maximum output and at an
output no more than 50 percent of the maximum output.''.
(3) Standards for additional consumer products.--Section 325
of the Energy Policy and Conservation Act (42 U.S.C. 6295) is
amended by adding the following at the end thereof:
``(w) Residential Furnace Fans, Central Air and Heat Pump Circulation
Fans, Suspended Ceiling Fans, and Vending Machines.--(1) The Secretary
shall, within 18 months after the date of enactment of this subsection,
assess the current and projected future market for residential furnace
fans, residential central air conditioner and heat pump circulation
fans, suspended ceiling fans, and refrigerated bottled or canned
beverage vending machines. This assessment shall include an examination
of the types of products sold, the number of products in use, annual
sales of these products, energy used by these products sold, the number
of products in use, annual sales of these products, energy used by
these products, estimates of the potential energy savings from specific
technical improvements to these products, and an examination of the
cost-effectiveness of these improvements. Prior to the end of this time
period, the Secretary shall hold an initial scoping workshop to discuss
and receive input to plans for developing minimum efficiency standards
for these products.
``(2) The Secretary shall within 24 months after the date on which
testing requirements are prescribed by the Secretary pursuant to
section 323(f), prescribe, by rule, energy conservation standards for
residential furnace fans, residential central air conditioner and heat
pump circulation fans, suspended ceiling fans, and refrigerated bottled
or canned beverage vending machines. In establishing these standards,
the Secretary shall use the criteria and procedures contained in
subsections (l) and (m). Any standard prescribed under this section
shall apply to products manufactured 36 months after the date such rule
is published.''.
(4) Labeling.--Section 324(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)) is amended by adding the
following at the end thereof:
``(5) The Secretary shall within 6 months after the date on which
energy conservation standards are prescribed by the Secretary for
covered products referred to in section 325(w), prescribe, by rule,
labeling requirements for such products. These requirements shall take
effect on the same date as the standards prescribed pursuant to section
325(w).''.
(5) Covered products.--Section 322(a) of the Energy Policy
and Conservation Act (42 U.S.C. 6292(a)) is amended by
redesignating paragraph (19) as paragraph (20) and by inserting
after paragraph (18) the following:
``(19) Beginning on the effective date for standards
established pursuant to subsection (v) of section 325, each
product referred to in such subsection (v).''.
Subtitle E--Energy Efficient Vehicles
SEC. 151. HIGH OCCUPANCY VEHICLE EXCEPTION.
(a) In General.--Notwithstanding section 102(a)(1) of title 23,
United States Code, a State may, for the purpose of promoting energy
conservation, permit a vehicle with fewer than 2 occupants to operate
in high occupancy vehicle lanes if such vehicle is a hybrid vehicle or
is fueled by an alternative fuel.
(b) Hybrid Vehicle Defined.--In this section, the term ``hybrid
vehicle'' means a motor vehicle--
(1) which draws propulsion energy from onboard sources of
stored energy which are both--
(A) an internal combustion or heat engine using
combustible fuel; and
(B) a rechargeable energy storage system;
(2) which, in the case of a passenger automobile or light
truck--
(A) for 2002 and later model vehicles, has received a
certificate of conformity under section 206 of the
Clean Air Act (42 U.S.C. 7525) and meets or exceeds the
equivalent qualifying California low emission vehicle
standard under section 243(e)(2) of the Clean Air Act
(42 U.S.C. 7583(e)(2)) for that make and model year;
and
(B) for 2004 and later model vehicles, has received a
certificate that such vehicle meets the Tier II
emission level established in regulations prescribed by
the Administrator of the Environmental Protection
Agency under section 202(i) of the Clean Air Act (42
U.S.C. 7521(i)) for that make and model year vehicle;
and
(3) which is made by a manufacturer.
(c) Alternative Fuel Defined.--In this section, the term
``alternative fuel'' has the meaning such term has under section 301(2)
of the Energy Policy Act of 1992 (42 U.S.C. 13211(2)).
SEC. 152. RAILROAD EFFICIENCY.
(a) Locomotive Technology Demonstration.--The Secretary of Energy
shall establish a public-private research partnership with railroad
carriers, locomotive manufacturers, and a world-class research and test
center dedicated to the advancement of railroad technology, efficiency,
and safety that is owned by the Federal Railroad Administration and
operated in the private sector, for the development and demonstration
of locomotive technologies that increase fuel economy, reduce
emissions, improve safety, and lower costs.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy $25,000,000 for fiscal year
2002, $30,000,000 for fiscal year 2003, and $35,000,000 for fiscal year
2004 for carrying out this section.
SEC. 153. BIODIESEL FUEL USE CREDITS.
Section 312(c) of the Energy Policy Act of 1992 (42 U.S.C. 13220(c))
is amended--
(1) by striking ``Not'' in the subsection heading; and
(2) by striking ``not''.
SEC. 154. MOBILE TO STATIONARY SOURCE TRADING.
Within 90 days after the enactment of this section, the Administrator
of the Environmental Protection Agency is directed to commence a review
of the Agency's policies regarding the use of mobile to stationary
source trading of emission credits under the Clean Air Act to determine
whether such trading can provide both nonattainment and attainment
areas with additional flexibility in achieving and maintaining healthy
air quality and increasing use of alternative fuel and advanced
technology vehicles, thereby reducing United States dependence on
foreign oil.
Subtitle F--Other Provisions
SEC. 161. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO EMERGING
ENERGY TECHNOLOGY.
(a) In General.--Each Federal agency shall carry out a review of its
regulations and standards to determine those that act as a barrier to
market entry for emerging energy-efficient technologies, including, but
not limited to, fuel cells, combined heat and power, and distributed
generation (including small-scale renewable energy).
(b) Report to Congress.--No later than 18 months after the date of
enactment of this section, each agency shall provide a report to
Congress and the President detailing all regulatory barriers to
emerging energy-efficient technologies, along with actions the agency
intends to take, or has taken, to remove such barriers.
(c) Periodic Review.--Each agency shall subsequently review its
regulations and standards in the manner specified in this section no
less frequently than every 5 years, and report their findings to
Congress and the President. Such reviews shall include a detailed
analysis of all agency actions taken to remove existing barriers to
emerging energy technologies.
SEC. 162. ADVANCED IDLE ELIMINATION SYSTEMS.
(a) Definitions.--
(1) Advanced idle elimination system.--The term ``advanced
idle elimination system'' means a device or system of devices
that is installed at a truck stop or other location (for
example, a loading, unloading, or transfer facility) where
vehicles (such as trucks, trains, buses, boats, automobiles,
and recreational vehicles) are parked and that is designed to
provide to the vehicle the services (such as heat, air
conditioning, and electricity) that would otherwise require the
operation of the auxiliary or drive train engine or both while
the vehicle is stationary and parked.
(2) Extended idling.--The term ``extended idling'' means the
idling of a motor vehicle for a period greater than 60 minutes.
(b) Recognition of Benefits of Advanced Idle Elimination Systems.--
Within 90 days after the date of enactment of this subsection, the
Administrator of the Environmental Protection Agency is directed to
commence a review of the Agency's mobile source air emissions models
used under the Clean Air Act to determine whether such models
accurately reflect the emissions resulting from extended idling of
heavy-duty trucks and other vehicles and engines, and shall update
those models as the Administrator deems appropriate. Additionally,
within 90-days after the date of enactment of this subsection, the
Administrator shall commence a review as to the appropriate emissions
reductions credit that should be allotted under the Clean Air Act for
the use of advanced idle elimination systems, and whether such credits
should be subject to an emissions trading system, and shall revise
Agency regulations and guidance as the Administrator deems appropriate.
SEC. 163. STUDY OF BENEFITS AND FEASIBILITY OF OIL BYPASS FILTRATION
TECHNOLOGY.
(a) Study.--The Secretary of Energy and the Administrator of the
Environmental Protection Agency shall jointly conduct a study of oil
bypass filtration technology in motor vehicle engines. The study shall
analyze and quantify the potential benefits of such technology in terms
of reduced demand for oil and the potential environmental benefits of
the technology in terms of reduced waste and air pollution. The
Secretary and the Administrator shall also examine the feasibility of
using such technology in the Federal motor vehicle fleet.
(b) Report.--Not later than 6 months after the enactment of this Act,
the Secretary of Energy and the Administrator of the Environmental
Protection Agency shall jointly submit a report containing the results
of the study conducted under subsection (a) to the Committee on Energy
and Commerce of the United States House of Representatives and to the
Committee on Energy and Natural Resources of the United States Senate.
SEC. 164. GAS FLARE STUDY.
(a) Study.--The Secretary of Energy shall conduct a study of the
economic feasibility of installing small cogeneration facilities
utilizing excess gas flares at petrochemical facilities to provide
reduced electricity costs to customers living within 3 miles of the
petrochemical facilities. The Secretary shall solicit public comment to
assist in preparing the report required under subsection (b).
(b) Report.--Not later than 18 months after the date of the enactment
of this Act, the Secretary of Energy shall transmit a report to the
Congress on the results of the study conducted under subsection (a).
SEC. 165. TELECOMMUTING STUDY.
(a) Study Required.--The Secretary, in consultation with Commission,
and the NTIA, shall conduct a study of the energy conservation
implications of the widespread adoption of telecommuting in the United
States.
(b) Required Subjects of Study.--The study required by subsection (a)
shall analyze the following subjects in relation to the energy saving
potential of telecommuting:
(1) Reductions of energy use and energy costs in commuting
and regular office heating, cooling, and other operations.
(2) Other energy reductions accomplished by telecommuting.
(3) Existing regulatory barriers that hamper telecommuting,
including barriers to broadband telecommunications services
deployment.
(4) Collateral benefits to the environment, family life, and
other values.
(c) Report Required.--The Secretary shall submit to the President and
the Congress a report on the study required by this section not later
than 6 months after the date of enactment of this Act. Such report
shall include a description of the results of the analysis of each of
the subject described in subsection (b).
(d) Definitions.--As used in this section:
(1) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration of the
Department of Commerce.
(4) Telecommuting.--The term ``telecommuting'' means the
performance of work functions using communications
technologies, thereby eliminating or substantially reducing the
need to commute to and from traditional worksites.
TITLE II--AUTOMOBILE FUEL ECONOMY
SEC. 201. AVERAGE FUEL ECONOMY STANDARDS FOR NONPASSENGER AUTOMOBILES.
Section 32902(a) of title 49, United States Code, is amended--
(1) by inserting ``(1)'' after ``NonPassenger Automobiles.--
''; and
(2) by adding at the end the following:
``(2) The Secretary shall prescribe under paragraph (1) average fuel
economy standards for automobiles (except passenger automobiles)
manufactured in model years 2004 through 2010 that are calculated to
ensure that the aggregate amount of gasoline projected to be used in
those model years by automobiles to which the standards apply is at
least 5 billion gallons less than the aggregate amount of gasoline that
would be used in those model years by such automobiles if they achieved
only the fuel economy required under the average fuel economy standard
that applies under this subsection to automobiles (except passenger
automobiles) manufactured in model year 2002.''.
SEC. 202. CONSIDERATION OF PRESCRIBING DIFFERENT AVERAGE FUEL ECONOMY
STANDARDS FOR NONPASSENGER AUTOMOBILES.
(a) In General.--The Secretary of Transportation shall, in
prescribing average fuel economy standards under section 32902(a) of
title 49, United States Code, for automobiles (except passenger
automobiles) manufactured in model year 2004, consider the potential
benefits of--
(1) establishing a weight-based system for automobiles, that
is based on the inertia weight, curb weight, gross vehicle
weight rating, or another appropriate measure of such
automobiles; and
(2) prescribing different fuel economy standards for
automobiles that are subject to the weight-based system.
(b) Specific Considerations.--In implementing this section the
Secretary--
(1) shall consider any recommendations made in the National
Academy of Sciences study completed pursuant to the Department
of Transportation and Related Agencies Appropriations Act, 2000
(Public Law 106-346; 114 Stat. 2763 et seq.); and
(2) shall evaluate the merits of any weight-based system in
terms of motor vehicle safety, energy conservation, and
competitiveness of and employment in the United States
automotive sector, and if a weight-based system is established
by the Secretary a manufacturer may trade credits between or
among the automobiles (except passenger automobiles)
manufactured by the manufacturer.
SEC. 203. DUAL FUELED AUTOMOBILES.
(a) Purposes.--The purposes of this section are--
(1) to extend the manufacturing incentives for dual fueled
automobiles, as set forth in subsections (b) and (d) of section
32905 of title 49, United States Code, through the 2008 model
year; and
(2) to similarly extend the limitation on the maximum average
fuel economy increase for such automobiles, as set forth in
subsection (a)(1) of section 32906 of title 49, United States
Code.
(b) Amendments.--
(1) Manufacturing incentives.--Section 32905 of title 49,
United States Code, is amended as follows:
(A) Subsections (b) and (d) are each amended by
striking ``model years 1993-2004'' and inserting
``model years 1993-2008''.
(B) Subsection (f) is amended by striking ``Not later
than December 31, 2001, the Secretary'' and inserting
``Not later than December 31, 2005, the Secretary''.
(C) Subsection (f)(1) is amended by striking ``model
year 2004'' and inserting ``model year 2008''.
(D) Subsection (g) is amended by striking ``Not later
than September 30, 2000'' and inserting ``Not later
than September 30, 2004''.
(2) Maximum fuel economy increase.--Subsection (a)(1) of
section 32906 of title 49, United States Code, is amended as
follows:
(A) Subparagraph (A) is amended by striking ``the
model years 1993-2004'' and inserting ``model years
1993-2008''.
(B) Subparagraph (B) is amended by striking ``the
model years 2005-2008'' and inserting ``model years
2009-2012''.
SEC. 204. FUEL ECONOMY OF THE FEDERAL FLEET OF AUTOMOBILES.
Section 32917 of title 49, United States Code, is amended to read as
follows:
``Sec. 32917. Standards for executive agency automobiles
``(a) Baseline Average Fuel Economy.--The head of each executive
agency shall determine, for all automobiles in the agency's fleet of
automobiles that were leased or bought as a new vehicle in fiscal year
1999, the average fuel economy for such automobiles. For the purposes
of this section, the average fuel economy so determined shall be the
baseline average fuel economy for the agency's fleet of automobiles.
``(b) Increase of Average Fuel Economy.--The head of an executive
agency shall manage the procurement of automobiles for that agency in
such a manner that--
``(1) not later than September 30, 2003, the average fuel
economy of the new automobiles in the agency's fleet of
automobiles is not less than 1 mile per gallon higher than the
baseline average fuel economy determined under subsection (a)
for that fleet; and
``(2) not later than September 30, 2005, the average fuel
economy of the new automobiles in the agency's fleet of
automobiles is not less than 3 miles per gallon higher than the
baseline average fuel economy determined under subsection (a)
for that fleet.
``(c) Calculation of Average Fuel Economy.--Average fuel economy
shall be calculated for the purposes of this section in accordance with
guidance which the Secretary of Transportation shall prescribe for the
implementation of this section.
``(d) Definitions.--In this section:
``(1) The term `automobile' does not include any vehicle
designed for combat-related missions, law enforcement work, or
emergency rescue work.
``(2) The term `executive agency' has the meaning given that
term in section 105 of title 5.
``(3) The term `new automobile', with respect to the fleet of
automobiles of an executive agency, means an automobile that is
leased for at least 60 consecutive days or bought, by or for
the agency, after September 30, 1999.''.
SEC. 205. HYBRID VEHICLES AND ALTERNATIVE VEHICLES.
(a) In General.--Section 303(b)(1) of the Energy Policy Act of 1992
is amended by adding the following at the end: ``Of the total number of
vehicles acquired by a Federal fleet in fiscal years 2004 and 2005, at
least 5 percent of the vehicles in addition to those covered by the
preceding sentence shall be alternative fueled vehicles or hybrid
vehicles and in fiscal year 2006 and thereafter at least 10 percent of
the vehicles in addition to those covered by the preceding sentence
shall be alternative fueled vehicles or hybrid vehicles.''.
(b) Definition.--Section 301 of such Act is amended by striking
``and'' at the end of paragraph (13), by striking the period at the end
of paragraph (14) and inserting ``; and'' and by adding at the end the
following:
``(15) The term `hybrid vehicle' means a motor vehicle which draws
propulsion energy from onboard sources of stored energy which are
both--
``(A) an internal combustion or heat engine using combustible
fuel; and
``(B) a rechargeable energy storage system.''.
SEC. 206. FEDERAL FLEET PETROLEUM-BASED NONALTERNATIVE FUELS.
(a) In General.--Title III of the Energy Policy Act of 1992 (42
U.S.C. 13212 et seq.) is amended as follows:
(1) By adding at the end thereof the following:
``SEC. 313. CONSERVATION OF PETROLEUM-BASED FUELS BY THE FEDERAL
GOVERNMENT FOR LIGHT-DUTY MOTOR VEHICLES.
``(a) Purposes.--The purposes of this section are to complement and
supplement the requirements of section 303 of this Act that Federal
fleets, as that term is defined in section 303(b)(3), acquire in the
aggregate a minimum percentage of alternative fuel vehicles, to
encourage the manufacture and sale or lease of such vehicles
nationwide, and to achieve, in the aggregate, a reduction in the amount
of the petroleum-based fuels (other than the alternative fuels defined
in this title) used by new light-duty motor vehicles acquired by the
Federal Government in model years 2004 through 2010 and thereafter.
``(b) Implementation.--In furtherance of such purposes, such Federal
fleets in the aggregate shall reduce the purchase of petroleum-based
nonalternative fuels for such fleets beginning October 1, 2003, through
September 30, 2009, from the amount purchased for such fleets over a
comparable period since enactment of this Act, as determined by the
Secretary, through the annual purchase, in accordance with section 304,
and the use of alternative fuels for the light-duty motor vehicles of
such Federal fleets, so as to achieve levels which reflect total
reliance by such fleets on the consumptive use of alternative fuels
consistent with the provisions of section 303(b) of this Act. The
Secretary shall, within 120 days after the enactment of this section,
promulgate, in consultation with the Administrator of the General
Services Administration and the Director of the Office of Management
and Budget and such other heads of entities referenced in section 303
within the executive branch as such Director may designate, standards
for the full and prompt implementation of this section by such
entities. The Secretary shall monitor compliance with this section and
such standards by all such fleets and shall report annually to the
Congress, based on reports by the heads of such fleets, on the extent
to which the requirements of this section and such standards are being
achieved. The report shall include information on annual reductions
achieved of petroleum-based fuels and the problems, if any, encountered
in acquiring alternative fuels and in requiring their use.''.
(2) By amending section 304(b) of such Act to read as
follows:
``(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary or, as appropriate, the head of each
Federal fleet subject to the provisions of this section and section 313
of this Act, such sums as may be necessary to achieve the purposes of
section 313(a) and the provisions of this section. Such sums shall
remain available until expended.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
such Act is amended by adding at the end of the items relating to title
III the following:
``Sec. 313. Conservation of petroleum-based fuels by the Federal
Government for light-duty motor vehicles.''.
SEC. 207. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL FOR
AUTOMOBILES.
(a) In General.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of Transportation shall enter into
an arrangement with the National Academy of Sciences under which the
Academy shall study the feasibility and effects of reducing by model
year 2010, by a significant percentage, the use of fuel for
automobiles.
(b) Subjects of Study.--The study under this section shall include--
(1) examination of, and recommendation of alternatives to,
the policy under current Federal law of establishing average
fuel economy standards for automobiles and requiring each
automobile manufacturer to comply with average fuel economy
standards that apply to the automobiles it manufactures;
(2) examination of how automobile manufacturers could
contribute toward achieving the reduction referred to in
subsection (a);
(3) examination of the potential of fuel cell technology in
motor vehicles in order to determine the extent to which such
technology may contribute to achieving the reduction referred
to in subsection (a); and
(4) examination of the effects of the reduction referred to
in subsection (a) on--
(A) gasoline supplies;
(B) the automobile industry, including sales of
automobiles manufactured in the United States;
(C) motor vehicle safety; and
(D) air quality.
(c) Report.--The Secretary shall require the National Academy of
Sciences to submit to the Secretary and the Congress a report on the
findings, conclusion, and recommendations of the study under this
section by not later than 1 year after the date of the enactment of
this Act.
TITLE III--NUCLEAR ENERGY
Subtitle A--General Provisions
SEC. 301. BUDGET STATUS OF NUCLEAR WASTE FUND.
(a) In General.--Notwithstanding any other provision of law, the
receipts and disbursements of the Nuclear Waste Fund established under
section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222)
shall not be counted as new budget authority, outlays, receipts, or
deficit or surplus for purposes of--
(1) the budget of the United States Government as submitted
by the President;
(2) the congressional budget; or
(3) the Balanced Budget and Emergency Deficit Control Act of
1985.
(b) Effect on Paygo Scorecard.--Upon the enactment of this Act, the
Director of the Office of Management and Budget shall not make any
estimates of changes in direct spending outlays and receipts under
section 252(d) of the Balanced Budget and Emergency Deficit Control Act
of 1985 resulting from the enactment of subsection (a) of this section.
SEC. 302. LICENSE PERIOD.
Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2133(c))
is amended--
(1) by striking ``c. Each such'' and inserting the following:
``c. License Period.--
``(1) In general.--Each such''; and
(2) by adding at the end the following:
``(2) Combined licenses.--In the case of a combined
construction and operating license issued under section 185 b.,
the initial duration of the license may not exceed 40 years
from the date on which the Commission finds, before operation
of the facility, that the acceptance criteria required by
section 185 b. are met.''.
SEC. 303. COST RECOVERY FROM GOVERNMENT AGENCIES.
Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(w))
is amended--
(1) by striking ``for or is issued'' and all that follows
through ``1702'' and inserting ``to the Commission for, or is
issued by the Commission, a license or certificate'';
(2) by striking ``483a'' and inserting ``9701''; and
(3) by striking ``, of applicants for, or holders of, such
licenses or certificates''.
SEC. 304. DEPLETED URANIUM HEXAFLUORIDE.
Section 1(b) of Public Law 105-204 is amended by striking ``fiscal
year 2002'' and inserting ``fiscal year 2005''.
SEC. 305. NUCLEAR REGULATORY COMMISSION MEETINGS.
If a quorum of the Nuclear Regulatory Commission gathers to discuss
official Commission business the discussions shall be recorded, and the
Commission shall notify the public of such discussions within 15 days
after they occur. The Commission shall promptly make a transcript of
the recording available to the public on request, except to the extent
that public disclosure is exempted or prohibited by law. This section
shall not apply to a meeting, within the meaning of that term under
section 552b(a)(2) of title 5, United States Code.
Subtitle B--Domestic Uranium Fuel Cycle
SEC. 311. PORTSMOUTH COLD STANDBY.
The Secretary of Energy (in this subtitle referred to as the
``Secretary'') may use, without need for further appropriations, funds
from the United States Enrichment Corporation Fund established under
section 1308 of the Atomic Energy Act of 1954 (other than amounts
reserved under Public Law 105-204) for the implementation of cold
standby status at the Portsmouth Gaseous Diffusion Plant, consistent
with the plan required under section 314(b), in the following amounts:
(1) $36,000,000 for fiscal year 2002.
(2) $43,000,000 for fiscal year 2003.
(3) $43,000,000 for fiscal year 2004.
(4) $47,000,000 for fiscal year 2005.
SEC. 312. PADUCAH FUNDING.
The Secretary may use, without need for further appropriations, funds
from the United States Enrichment Corporation Fund established under
section 1308 of the Atomic Energy Act of 1954 (other than amounts
reserved under Public Law 105-204) for the Paducah Gaseous Diffusion
Plant for activities that do not duplicate the transfer and storage
operations at the Portsmouth Gaseous Diffusion Plant, $169,000,000 for
the period encompassing fiscal years 2002 through 2005.
SEC. 313. RESEARCH AND DEVELOPMENT.
(a) Plan.--Not later than 5 months after the date of the enactment of
this Act, the Secretary shall transmit to the Congress a detailed
research and development plan with respect to advanced gas centrifuge
technology for uranium enrichment.
(b) Elements.--The plan required under subsection (a) shall--
(1) identify the technical obstacles to the deployment of an
advanced gas centrifuge technology that will be cost
competitive with advanced gas centrifuge technologies deployed
in other nations, and propose a strategy to overcome those
obstacles;
(2) include plans for the construction of a pilot facility at
a Department of Energy-owned Gaseous Diffusion Plant, and for
full-scale deployment of advanced gas centrifuge technology, as
necessary to move gas centrifuge technology for uranium
enrichment from the laboratory to the marketplace, taking into
consideration--
(A) confirmation of technical performance; and
(B) initiation of preliminary plant design and
engineering that validates economic projections and
considers cost effectiveness, accessibility to
infrastructure, turnover activities, schedule,
financing mechanisms, and risks of construction;
(3) provide a process to validate and demonstrate commercial
feasibility, if the pilot facility described in paragraph (2)
is not constructed;
(4) set forth a schedule to ensure full-scale deployment, and
a strategy to provide a reliable and economical domestic source
of uranium enrichment services until such full-scale deployment
is completed;
(5) evaluate the relative merits of full-scale deployment
by--
(A) private sector companies;
(B) a government-owned corporation;
(C) a partnership between the private and public
sectors; and
(D) the Department of Energy,
using facilities and property at the Portsmouth Gaseous
Diffusion Plant or the Paducah Gaseous Diffusion Plant; and
(6) provide for a competitive process for deployment of the
full-scale technology, and assignment of rights to use
Department of Energy patents if the Department of Energy does
not deploy the technology.
(c) Public Comment.--Not later than 3 months after the date of the
enactment of this Act, the Secretary shall make available a draft
version of the plan for a public comment period of 30 days.
(d) Implementation.--One month after the plan is transmitted to the
Congress under subsection (a), the Secretary shall begin to implement
the plan.
(e) Funding.--
(1) Authorization of appropriations.--For the purposes of
implementing the plan developed under this section, the
Secretary may use, without need for further appropriations, the
following amounts from the United States Enrichment Corporation
Fund established under section 1308 of the Atomic Energy Act of
1954 (other than amounts reserved under Public Law 105-204):
(A) $27,000,000 for fiscal year 2002.
(B) $40,000,000 for fiscal year 2003.
(C) $58,000,000 for fiscal year 2004.
(D) $67,000,000 for fiscal year 2005.
(E) $62,000,000 for fiscal year 2006.
(2) Plan.--The Secretary may use, without need for further
appropriations, funds from the United States Enrichment
Corporation Fund established under section 1308 of the Atomic
Energy Act of 1954 (other than amounts reserved under Public
Law 105-204) to pay the costs of developing the plan under this
section.
SEC. 314. SHORT-TERM RELIABILITY OF DOMESTIC URANIUM ENRICHMENT
CAPACITY.
(a) Criteria.--Not later than 4 months after the date of the
enactment of this Act, the Secretary shall prepare, and make available
for a 30-day period of public comment, draft criteria for determining
when the hot restart of facilities at the Portsmouth Gaseous Diffusion
Plant may be necessary, if supplies of nuclear fuel are disrupted or
anticipated to be disrupted, to mitigate the impacts on--
(1) the supply of nuclear fuel to power plants in the United
States; and
(2) uranium enrichment supply contracts with foreign
utilities for which the United States Government is liable for
performance in the event of nonperformance by the United States
Enrichment Corporation or its successors, or where the United
States has obligations under Federal law or treaty.
(b) Plan.--Not later than 6 months after the date of the enactment of
this Act, the Secretary shall prepare, and make available for a 30-day
period of public comment, a plan for the hot restart of facilities at
the Portsmouth Gaseous Diffusion Plant. Such plan shall--
(1) incorporate the criteria developed under subsection (a);
(2) provide for uranium enrichment capabilities of up to
3,000,000 separative work units per year;
(3) ensure the capability of producing both higher assay (up
to 10 percent U 235) and lower assay (0.7 percent to 4.95
percent U 235) fuels;
(4) include options for the use of the Department of Energy's
inventory of natural uranium;
(5) provide for the retention of sufficient R-114 refrigerant
to operate the Portsmouth Gaseous Diffusion Plant for 15 years
or until there is equivalent replacement uranium enrichment
capacity deployed in the United States; and
(6) include cost estimates for hot restart and annual
operating costs of the facility.
(c) Transmittal to Congress.--Not later than 8 months after the date
of the enactment of this Act, the Secretary shall transmit to the
Congress the plan described in subsection (b), including the criteria
developed under subsection (a).
(d) Funding.--The Secretary may use, without need for further
appropriations, funds from the United States Enrichment Corporation
Fund established under section 1308 of the Atomic Energy Act of 1954
(other than amounts reserved under Public Law 105-204) to pay the costs
of developing the criteria and plan under this section.
SEC. 315. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL
DEMONSTRATION PROJECTS FOR THE URANIUM MINING
INDUSTRY.
(a) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary $10,000,000 for each of fiscal years
2002, 2003, and 2004 for--
(1) cooperative, cost-shared, agreements between the
Department of Energy and domestic uranium producers to
identify, test, and develop improved in situ leaching mining
technologies, including low-cost environmental restoration
technologies that may be applied to sites after completion of
in situ leaching operations; and
(2) funding for competitively selected demonstration projects
with domestic uranium producers relating to--
(A) enhanced production with minimal environmental
impacts;
(B) restoration of well fields; and
(C) decommissioning and decontamination activities.
(b) Domestic Uranium Producer.--For purposes of this section, the
term ``domestic uranium producer'' has the meaning given that term in
section 1018(4) of the Energy Policy Act of 1992 (42 U.S.C. 2296b-
7(4)), except that the term shall not include any producer that has not
produced uranium from domestic reserves on or after July 30, 1998.
SEC. 316. MAINTENANCE OF A VIABLE DOMESTIC URANIUM CONVERSION INDUSTRY.
There are authorized to be appropriated to the Secretary $800,000 for
contracting with the Nation's sole remaining uranium converter for the
purpose of performing research and development to improve the
environmental and economic performance of United States uranium
conversion operations.
SEC. 317. PROHIBITION OF COMMERCIAL SALES OF URANIUM BY THE UNITED
STATES UNTIL 2009.
Section 3112 of the USEC Privatization Act (42 U.S.C. 2297h-10) is
amended by adding at the end the following new subsection:
``(g) Prohibition on Sales.--Notwithstanding any other provision of
law, the United States Government shall not sell or transfer any
uranium (including natural uranium concentrates, natural uranium
hexafluoride, enriched uranium, depleted uranium, or uranium in any
other form) through March 23, 2009 (except sales or transfers for use
by the Tennessee Valley Authority in relation to the Department of
Energy's HEU or Tritium programs, or the Department or Energy research
reactor sales program, or any depleted uranium hexaflouride to be
transferred to a designated Department of Energy contractor in
conjunction with the planned construction of the Depleted Uranium
Hexaflouride conversion plants in Portsmouth, Ohio, and Paducah,
Kentucky, or for emergency purposes in the event of a disruption in
supply to end users in the United States). The aggregate of sales or
transfers of uranium by the United States Government after March 23,
2009, shall not exceed 3,000,000 pounds U3O8 per
calendar year.''.
SEC. 318. PADUCAH DECONTAMINATION AND DECOMMISSIONING PLAN.
The Secretary of Energy shall prepare and submit a plan to Congress
within 180 days after the date of the enactment of this Act that
establishes scope, cost, schedule, sequence of activities, and
contracting strategy for--
(1) the decontamination and decommissioning of the Department
of Energy's surplus buildings and facilities at the Paducah
Gaseous Diffusion Plant that have no future anticipated reuse;
and
(2) the remediation of Department of Energy Material Storage
Areas at the Paducah Gaseous Diffusion Plant.
Such plan shall inventory all surplus facilities and buildings, and
identify and rank health and safety risks associated with such
facilities and buildings. Such plan shall inventory all Department of
Energy Material Storage Areas, and identify and rank health and safety
risks associated with such Department of Energy Material Storage Areas.
The Department of Energy shall incorporate these risk factors in
designing the sequence and schedule for the plan. Such plan shall
identify funding requirements that are in addition to the expected
outlays included in the Department of Energy's Environmental Management
Plan for the Paducah Gaseous Diffusion Plan.
TITLE IV--HYDROELECTRIC ENERGY
SEC. 401. ALTERNATIVE CONDITIONS AND FISHWAYS.
(a) Alternative Mandatory Conditions.--Section 4 of the Federal Power
Act (16 U.S.C. 797) is amended by adding at the end the following:
``(h)(1) Whenever any person applies for a license for any project
works within any reservation of the United States, and the Secretary of
the department under whose supervision such reservation falls deems a
condition to such license to be necessary under the first proviso of
subsection (e), the license applicant or any other party to the
licensing proceeding may propose an alternative condition.
``(2) Notwithstanding the first proviso of subsection (e), the
Secretary of the department under whose supervision the reservation
falls shall accept the proposed alternative condition referred to in
paragraph (1), and the Commission shall include in the license such
alternative condition, if the Secretary of the appropriate department
determines, based on substantial evidence provided by the party
proposing such alternative condition, that the alternative condition--
``(A) provides no less protection for the reservation than
provided by the condition deemed necessary by the Secretary;
and
``(B) will either--
``(i) cost less to implement, or
``(ii) result in improved operation of the project
works for electricity production
as compared to the condition deemed necessary by the Secretary.
``(3) Within one year after the enactment of this subsection, each
Secretary concerned shall, by rule, establish a process to
expeditiously resolve conflicts arising under this subsection.''.
(b) Alternative Fishways.--Section 18 of the Federal Power Act (16
U.S.C. 811) is amended by--
(1) inserting ``(a)'' before the first sentence; and
(2) adding at the end the following:
``(b)(1) Whenever the Commission shall require a licensee to
construct, maintain, or operate a fishway prescribed by the Secretary
of the Interior or the Secretary of Commerce under this section, the
licensee or any other party to the proceeding may propose an
alternative to such prescription to construct, maintain, or operate a
fishway.
``(2) Notwithstanding subsection (a), the Secretary of the Interior
or the Secretary of Commerce, as appropriate, shall accept and
prescribe, and the Commission shall require, the proposed alternative
referred to in paragraph (1), if the Secretary of the appropriate
department determines, based on substantial evidence provided by the
party proposing such alternative, that the alternative--
``(A) will be no less effective than the fishway initially
prescribed by the Secretary, and
``(B) will either--
``(i) cost less to implement, or
``(ii) result in improved operation of the project
works for electricity production
as compared to the fishway initially prescribed by the
Secretary.
``(3) Within one year after the enactment of this subsection, the
Secretary of the Interior and the Secretary of Commerce shall each, by
rule, establish a process to expeditiously resolve conflicts arising
under this subsection.''
SEC. 402. FERC DATA ON HYDROELECTRIC LICENSING.
(a) Data Collection Procedures.--The Federal Energy Regulatory
Commission shall revise its procedures regarding the collection of data
in connection with the Commission's consideration of hydroelectric
licenses under the Federal Power Act. Such revised data collection
procedures shall be designed to provide the Commission with complete
and accurate information concerning the time and costs to parties
involved in the licensing process. Such data shall be available for
each significant stage in the licensing process and shall be designed
to identify projects with similar characteristics so that analyses can
be made of the time and costs involved in licensing proceedings based
upon the different characteristics of those proceedings.
(b) Reports.--Within 6 months after the date of enactment of this
Act, the Commission shall notify the Committee on Energy and Commerce
of the United States House of Representatives and the Committee on
Energy and Natural Resources of the United States Senate of the
progress made by the Commission under subsection (a), and within one
year after such date of enactment, the Commission shall submit a report
to such Committees specifying the measures taken by the Commission
pursuant to subsection (a).
TITLE V--CLEAN COAL
SEC. 501. SHORT TITLE.
This title may be cited as the ``National Electricity and
Environmental Improvement Act''.
SEC. 502. FINDINGS.
Congress finds that--
(1) reliable, affordable, increasingly clean electricity will
continue to power the growing United States economy;
(2) an increasing use of electrotechnologies, the desire for
continuous environmental improvement, a more competitive
electricity market, and concerns about rising energy prices add
importance to the need for reliable, affordable, increasingly
clean electricity;
(3) coal, which, as of the date of enactment of this Act,
accounts for more than \1/2\ of all electricity generated in
the United States, is the most abundant fossil energy resource
of the United States;
(4) coal comprises more than 85 percent of all fossil
resources in the United States and exists in quantities
sufficient to supply the United States for 250 years at current
usage rates;
(5) investments in electricity generating facility emissions
control technology over the past 30 years have reduced the
aggregate emissions of pollutants from coal-based generating
facilities by 21 percent, even as coal use for electricity
generation has nearly tripled;
(6) continuous improvement in efficiency and environmental
performance from electricity generating facilities would allow
continued use of coal and preserve less abundant energy
resources for other energy uses;
(7) new methods and equipment for converting coal into
electricity can effectively eliminate health-threatening
emissions and improve efficiency by as much as 50 percent, but
initial deployment of new coal generation methods and equipment
entails significant risk that generators may be unable to
accept in a newly competitive electricity market; and
(8) continued environmental improvement in coal-based
generation and increasing the production and supply of power
generation facilities with less air emissions, with the
ultimate goal of near-zero emissions, is important and
desirable.
Subtitle A--Accelerated Clean Coal Power Production Program
SEC. 511. DEFINITIONS.
In this subtitle:
(1) Cost and performance goals.--The term ``cost and
performance goals'' means the cost and performance goals
established under section 512.
(2) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
SEC. 512. COST AND PERFORMANCE GOALS.
(a) In General.--The Secretary shall perform an assessment that
establishes cost and performance goals with respect to various coal-
based electric generation facilities, power production strategies, and
other efforts that would permit the continued cost-competitive use of
coal for electricity generation, as chemical feedstocks, and as
transportation fuel in 2007, 2015, and 2020.
(b) Consultation.--In establishing the cost and performance goals,
the Secretary shall consult with representatives of--
(1) the United States coal industry;
(2) State coal development agencies;
(3) the electric utility industry;
(4) railroads and other transportation industries;
(5) manufacturers of advanced coal-based equipment;
(6) organizations representing workers;
(7) organizations formed to--
(A) promote the use of coal;
(B) further the goals of environmental protection;
and
(C) promote the production and generation of coal-
based power from advanced facilities; and
(8) other appropriate Federal and State agencies.
(c) Timing.--The Secretary shall--
(1) not later than 120 days after the date of enactment of
this Act, issue a set of draft cost and performance goals for
public comment; and
(2) not later than 180 days after the date of enactment of
this Act, after taking into consideration any public comments
received, submit to Congress the final cost and performance
goals.
SEC. 513. STUDY.
(a) In General.--Not later than 1 year after the date of enactment of
this Act, and once every 2 years thereafter through 2016, the
Secretary, in cooperation with the Secretary of the Interior and the
Administrator of the Environmental Protection Agency, shall transmit to
the Congress a report containing the results of a study to--
(1) identify methods and equipment that, by themselves or in
combination with other efforts, may be capable of achieving the
cost and performance goals;
(2) assess the costs that would be incurred by, and the
period of time that would be required for, the production of
power generation methods and equipment that, by themselves or
in combination with other methods and equipment, contribute to
the achievement of the cost and performance goals;
(3) develop recommendations for the Department of Energy, in
cooperation with industry, to develop and implement methods and
equipment that, by themselves or in combination with other
efforts, achieve the production and generation of coal-based
power meeting the cost and performance goals; and
(4) develop recommendations for additional authorities
required to achieve the cost and performance goals.
(b) Expert Advice.--In carrying out this section, the Secretary shall
give due weight to the expert advice of representatives of the entities
described in section 512(b).
SEC. 514. PRODUCTION AND GENERATION OF COAL-BASED POWER.
(a) In General.--The Secretary shall carry out a program to
facilitate production and generation of coal-based power through
methods and equipment under--
(1) this subtitle;
(2) the Federal Nonnuclear Energy Research and Development
Act of 1974 (42 U.S.C. 5901 et seq.);
(3) the Energy Reorganization Act of 1974 (42 U.S.C. 5801 et
seq.); and
(4) title XIII of the Energy Policy Act of 1992 (42 U.S.C.
13331 et seq.).
(b) Conditions.--The program described in subsection (a) shall be
designed to achieve the cost and performance goals.
SEC. 515. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated to the
Secretary to carry out sections 512, 513, and 514, $100,000,000 for
each of the fiscal years 2002 through 2012, to remain available until
expended.
(b) Conditions of Authorization.--The authorization of appropriations
under subsection (a)--
(1) shall be in addition to authorizations of appropriations
in effect on the date of enactment of this Act; and
(2) shall not be a cap on Department of Energy fossil energy
research and development and clean coal technology
appropriations.
SEC. 516. CLEAN COAL POWER INITIATIVE.
(a) In General.--The Secretary shall establish a clean coal power
initiative to facilitate the production and generation of power from
advanced coal-based methods and equipment applicable to new or existing
power plants, including coproduction plants.
(b) Requirements.--The methods and equipment to be addressed under
the initiative--
(1) shall be methods and equipment that, by themselves or in
combination with other methods and equipment, advance
efficiency and environmental performance, and increase the
supply of power and promote cost competitiveness, well beyond
that which is in operation or has been demonstrated as of the
date of enactment of this Act; and
(2) may include methods and equipment that have not
previously been envisioned for the production and generation of
coal-based power.
(c) Plan.--Not later than 120 days after the date of enactment of
this Act, the Secretary shall transmit to Congress a plan to carry out
subsection (a) that includes a description of--
(1) the program elements and management structure to be used;
(2) milestones to be achieved with respect to the production
and generation of coal-based power methods and equipment; and
(3) the activities proposed to be conducted at facilities
that serve or are located at new or existing coal-based
electric generation units having at least 50 megawatts
nameplate rating, including improvements to allow the units to
achieve 1 or more of the following:
(A) An overall design efficiency improvement of not
less than 3 percent as compared with the efficiency of
the unit as operated as of the date of enactment of
this Act and before any retrofit, repowering,
replacement, or installation.
(B) A significant improvement in, or new alternative
method or equipment to enhance, the environmental
performance related to the control of sulfur dioxide,
nitrogen oxide, or mercury in a manner that is
different and well below the cost of activities at
facilities that are in operation or have been in
operation as of the date of enactment of this Act.
(C) A means of recycling or reusing a significant
portion of coal combustion or gasification wastes or
byproducts produced by coal-based generating units,
excluding practices that are generally available as of
the date of enactment of this Act.
(D) A means to capture, separate, and reuse or
dispose of carbon dioxide that is different and well
below the cost of methods and equipment that are in
operation or have been in operation as of the date of
enactment of this Act.
SEC. 517. FINANCIAL ASSISTANCE.
(a) In General.--Not later than 180 days after the date on which the
Secretary transmits to Congress the plan under section 516(c), the
Secretary shall solicit proposals for projects that serve or are
located at new or existing facilities designed to achieve 1 or more of
the levels of performance set forth in section 516(c)(3).
(b) Project Criteria.--A solicitation under subsection (a) may
include solicitation of a proposal for a project to demonstrate--
(1) an overall design efficiency improvement of not less 3
percentage points as compared with the efficiency of the unit
as operated as of the date of enactment of this Act and with no
increase in the potential to emit sulfur dioxide, nitrogen
oxide, particulate matter, mercury, or carbon monoxide;
(2) a reduction of emissions to a level of not more than--
(A)(i) in the case of sulfur dioxide--
(I) in the case of coal with a potential
combustion concentration sulfur emission of 1.2
or more pounds per million British thermal
units of heat input, 5 percent of the potential
combustion concentration sulfur dioxide
emissions; or
(II) in the case of a coal with a potential
combustion concentration of less than 1.2
pounds of per million British thermal units of
heat input, 15 percent of the potential
combustion concentration of sulfur dioxide
emissions;
(ii) in the case of nitrogen oxide--
(I) in the case of a boiler other than a
cyclone-fired boiler, emissions of 0.1 pound
per million British thermal units of heat; or
(II) in the case of a cyclone-fired boiler,
15 percent of the uncontrolled nitrogen oxide
emissions from the boiler; or
(iii) in the case of particulate matter, emissions of
0.02 pound per million British thermal units of heat
input; or
(B) the emission levels for the pollutants identified
in subparagraph (A) that are specified in the new
source performance standards of the Clean Air Act (42
U.S.C. 7411) in effect at the time of construction,
installation, or retrofitting of the advanced coal-
based method or equipment for the category of source if
they are lower than the levels specified in
subparagraph (A); or
(3) the production of coal combustion byproducts that are
capable of obtaining economic values significantly greater than
byproducts produced as of the date of enactment of this Act
with no increase in the potential to emit sulfur dioxide,
nitrogen oxide, particulate matter, mercury, or carbon
monoxide.
(c) Financial Assistance.--The Secretary shall provide financial
assistance to projects that are likely to--
(1) achieve overall cost reductions in the utilization of
coal to generate useful forms of energy;
(2) improve the competitiveness of coal among various forms
of energy in order to maintain a diversity of fuel choices in
the United States to meet electricity generation requirements;
(3) achieve, in a cost-effective manner, 1 or more of the
criteria described in the solicitation; and
(4) demonstrate methods and equipment that are applicable to
25 percent of the electricity generating facilities that use
coal as the primary feedstock as of the date of enactment of
this Act.
(d) Federal Share.--The Federal share of the cost of a project funded
under this section shall not exceed 50 percent.
(e) Funding.--To carry out this section, the Secretary may use any
unobligated funds available to the Secretary and any funds obligated to
any project selected under the clean coal technology program that
become unobligated.
Subtitle B--Credit for Emission Reductions and Efficiency Improvements
in Existing Coal-Based Electricity Generation Facilities
SEC. 521. CREDIT FOR INVESTMENT IN QUALIFYING CLEAN COAL TECHNOLOGY.
(a) Allowance of Qualifying Clean Coal Technology Unit Credit.--
Section 46 of the Internal Revenue Code of 1986 (relating to amount of
credit) is amended by striking ``and'' at the end of paragraph (2), by
striking the period at the end of paragraph (3) and inserting ``,
and'', and by adding at the end the following:
``(4) the qualifying clean coal technology unit credit.''.
(b) Amount of Qualifying Clean Coal Technology Unit Credit.--Subpart
E of part IV of subchapter A of chapter 1 of the Internal Revenue Code
of 1986 (relating to rules for computing investment credit) is amended
by inserting after section 48 the following:
``SEC. 48A. QUALIFYING CLEAN COAL TECHNOLOGY UNIT CREDIT.
``(a) In General.--For purposes of section 46, the qualifying clean
coal technology unit credit for any taxable year is an amount equal to
10 percent of the qualified investment in a qualifying system of
continuous emission control for such taxable year.
``(b) Qualifying System of Continuous Emission Control.--
``(1) In general.--For purposes of subsection (a), the term
`qualifying system of continuous emission control' means a
system of the taxpayer which--
``(A) serves, is added to, or retrofits an existing
coal-based electricity generation unit, the
construction, installation, or retrofitting of which is
completed by the taxpayer (but only with respect to
that portion of the basis which is properly
attributable to such construction, installation, or
retrofitting),
``(B) reduces the discharge into the atmosphere of 1
or more of the following pollutants to not more than--
``(i) 5 percent of the potential combustion
concentration sulfur dioxide emissions for a
coal with a potential combustion concentration
sulfur emission of 1.2 lb/million btu of heat
input or greater,
``(ii) 15 percent of the potential combustion
concentration sulfur dioxide emissions for a
coal with a potential combustion concentration
sulfur emission of less than 1.2 lb/million Btu
of heat input,
``(iii) nitrogen oxide emissions of 0.l lb
per million Btu of heat input from other than
cyclone-fired boilers,
``(iv) 15 percent of the uncontrolled
nitrogen oxide emissions from cyclone-fired
boilers,
``(v) particulate emission of 0.02 lb per
million Btu of heat input, and
``(vi) the emission levels specified in the
new source performance standards of the Clean
Air Act (42 U.S.C. 7411) in force at the time
of construction, installation or retrofitting
of the qualifying system of continuous emission
control for the category of source if such
level is lower than the levels specified in
clause (i), (ii), (iii), (iv), or (v),
``(C) is depreciable under section 167,
``(D) has a useful life of not less than 4 years, and
``(E) is located in the United States.
``(2) Special rule for sale-leasebacks.--For purposes of
subparagraph (A) of paragraph (1), in the case of a unit
which--
``(A) is originally placed in service by a person,
and
``(B) is sold and leased back by such person, or is
leased to such person, within 3 months after the date
such unit was originally placed in service, for a
period of not less than 12 years,
such unit shall be treated as originally placed in service not
earlier than the date on which such property is used under the
leaseback (or lease) referred to in subparagraph (B). The
preceding sentence shall not apply to any property if the
lessee and lessor of such property make an election under this
sentence. Such an election, once made, may be revoked only with
the consent of the Secretary.
``(c) Existing Coal-Based Electricity Generation Unit.--For purposes
of subsection (a), the term `existing coal-based electricity generating
unit' means, with respect to any taxable year, a steam generator-
turbine unit which uses coal to produce 75 percent or more of its
output as electricity and was operated commercially before the
effective date of this section.
``(d) Limit on Qualifying Clean Coal Technology Unit Credit.--For
purposes of subsection (a), the credit shall be applicable to not more
than the first $100,000,000 of qualifying investment in a qualifying
system of continuous emission control at any 1 existing coal-based
electricity generating unit.
``(e) Qualified Investment.--For purposes of subsection (a), the term
`qualified investment' means, with respect to any taxable year, the
basis of a qualifying system of continuous emission control placed in
service by the taxpayer during such taxable year.
``(f) Qualified Progress Expenditures.--
``(1) Increase in qualified investment.--In the case of a
taxpayer who has made an election under paragraph (5), the
amount of the qualified investment of such taxpayer for the
taxable year (determined under subsection (e) without regard to
this subsection) shall be increased by an amount equal to the
aggregate of each qualified progress expenditure for the
taxable year with respect to progress expenditure property.
``(2) Progress expenditure property defined.--For purposes of
this subsection, the term `progress expenditure property' means
any property being constructed by or for the taxpayer and which
it is reasonable to believe will qualify as a qualifying system
of continuous emission control which is being constructed by or
for the taxpayer when it is placed in service.
``(3) Qualified progress expenditures defined.--For purposes
of this subsection--
``(A) Self-constructed property.--In the case of any
self-constructed property, the term `qualified progress
expenditures' means the amount which, for purposes of
this subpart, is properly chargeable (during such
taxable year) to capital account with respect to such
property.
``(B) Nonself-constructed property.--In the case of
nonself-constructed property, the term `qualified
progress expenditures' means the amount paid during the
taxable year to another person for the construction of
such property.
``(4) Other definitions.--For purposes of this subsection--
``(A) Self-constructed property.--The term `self-
constructed property' means property for which it is
reasonable to believe that more than half of the
construction expenditures will be made directly by the
taxpayer.
``(B) Nonself-constructed property.--The term
`nonself-constructed property' means property which is
not self-constructed property.
``(C) Construction, etc.--The term `construction'
includes reconstruction and erection, and the term
`constructed' includes reconstructed and erected.
``(D) Only construction of qualifying system of
continuous emission control to be taken into account.--
Construction shall be taken into account only if, for
purposes of this subpart, expenditures therefor are
properly chargeable to capital account with respect to
the property.
``(5) Election.--An election under this subsection may be
made at such time and in such manner as the Secretary may by
regulations prescribe. Such an election shall apply to the
taxable year for which made and to all subsequent taxable
years. Such an election, once made, may not be revoked except
with the consent of the Secretary.
``(g) Coordination With Other Credits.--This section shall not apply
to any property with respect to which the rehabilitation credit under
section 47 or the energy credit under section 48 is allowed unless the
taxpayer elects to waive the application of such credit to such
property.
``(h) Termination.--This section shall not apply with respect to any
qualified investment made more than 10 years after the effective date
of this section.''.
(c) Recapture.--Section 50(a) of the Internal Revenue Code of 1986
(relating to other special rules) is amended by adding at the end the
following:
``(6) Special rules relating to qualifying system of
continuous emission control.--For purposes of applying this
subsection in the case of any credit allowable by reason of
section 48A, the following shall apply:
``(A) General rule.--In lieu of the amount of the
increase in tax under paragraph (1), the increase in
tax shall be an amount equal to the investment tax
credit allowed under section 38 for all prior taxable
years with respect to a qualifying system of continuous
emission control (as defined by section 48A(b)(1))
multiplied by a fraction whose numerator is the number
of years remaining to fully depreciate under this title
the qualifying system of continuous emission control
disposed of, and whose denominator is the total number
of years over which such unit would otherwise have been
subject to depreciation. For purposes of the preceding
sentence, the year of disposition of the qualifying
system of continuous emission control property shall be
treated as a year of remaining depreciation.
``(B) Property ceases to qualify for progress
expenditures.--Rules similar to the rules of paragraph
(2) shall apply in the case of qualified progress
expenditures for a qualifying system of continuous
emission control under section 48A, except that the
amount of the increase in tax under subparagraph (A) of
this paragraph shall be substituted in lieu of the
amount described in such paragraph (2).
``(C) Application of paragraph.--This paragraph shall
be applied separately with respect to the credit
allowed under section 38 regarding a qualifying system
of continuous emission control.''.
(d) Transitional Rule.--Section 39(d) of the Internal Revenue Code of
1986 (relating to transitional rules) is amended by adding at the end
the following:
``(11) No carryback of section 48a credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the qualifying clean coal
technology unit credit determined under section 48A may be
carried back to a taxable year ending before the date of
enactment of section 48A.''.
(e) Technical Amendments.--
(1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986
is amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting
``, and'', and by adding at the end the following:
``(iv) the portion of the basis of any
qualifying system of continuous emission
control attributable to any qualified
investment (as defined by section 48A(e)).''.
(2) Section 50(a)(4) of such Code is amended by striking
``and (2)'' and inserting ``, (2), and (6)''.
(3) Section 50(c) of such Code is amended by adding at the
end the following:
``(6) Nonapplication.--Paragraphs (1) and (2) shall not apply
to any qualifying clean coal technology unit credit under
section 48A.''.
(4) 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 48 the following:
``Sec. 48A. Qualifying clean coal
technology unit credit.''.
(f) Effective Date.--The amendments made by this section shall apply
to periods after December 31, 2001, 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 enactment of the Revenue Reconciliation Act of
1990).
SEC. 522. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL TECHNOLOGY
UNIT.
(a) Credit for Production From a Qualifying Clean Coal Technology
Unit.--Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to business related credits) is
amended by adding at the end the following:
``SEC. 45G. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL
TECHNOLOGY UNIT.
``(a) General Rule.--For purposes of section 38, the qualifying clean
coal technology production credit of any taxpayer for any taxable year
is equal to the product of--
``(1) the applicable amount of clean coal technology
production credit, multiplied by
``(2) the kilowatt hours of electricity produced by the
taxpayer during such taxable year at a qualifying clean coal
technology unit during the 10-year period beginning on the date
the unit was returned to service after retrofit, repowering, or
replacement.
``(b) Applicable Amount.--
``(1) In general.--For purposes of this section, the
applicable amount of clean coal technology production credit is
equal to $0.0034.
``(2) Inflation adjustment factor.--For calendar years after
2001, the applicable amount of clean coal technology production
credit shall be adjusted by multiplying such amount by the
inflation adjustment factor for the calendar year in which the
amount is applied. If any amount as increased under the
preceding sentence is not a multiple of 0.01 cent, such amount
shall be rounded to the nearest multiple of 0.01 cent.
``(c) Definitions and Special Rules.--For purposes of this section--
``(1) Qualifying clean coal technology unit.--The term
`qualifying clean coal technology unit' means a unit of the
taxpayer which--
``(A) is an existing coal-based electricity
generating steam generator-turbine unit,
``(B) has a nameplate capacity rating of not more
than 300,000 kilowatts, and
``(C) has been retrofitted, repowered, or replaced
with a clean coal technology within 10 years after the
effective date of this section.
``(2) Clean coal technology.--The term `clean coal
technology' means technology which--
``(A) uses coal to produce 50 percent or more of its
thermal output as electricity, including advanced
pulverized coal or atmospheric fluidized bed
combustion, pressurized fluidized bed combustion,
integrated gasification combined cycle, or any other
technology for the production of electricity,
``(B) has a design heat rate not less than 500 Btu/
kWh below that of the existing unit before it is
retrofit, repowered, or replaced with the qualifying
clean coal technology,
``(C) has a maximum design heat rate of not more than
9,500 Btu/kWh when the design coal has a heat content
of more than 9,000 Btu per pound,
``(D) has a maximum design heat rate of not more than
10,500 Btu/kWh when the design coal has a heat content
of 9,000 Btu per pound or less, and
``(E) reduces the discharge into the atmosphere of 1
or more of the following pollutants to not more than--
``(i) 5 percent of the potential combustion
concentration sulfur dioxide emissions for a
coal with a potential combustion concentration
sulfur emission of 1.2 lb/million btu of heat
input or greater,
``(ii) 15 percent of the potential combustion
concentration sulfur dioxide emissions for a
coal with a potential combustion concentration
sulfur emission of less than 1.2 lb/million Btu
of heat input,
``(iii) nitrogen oxide emissions of 0.1 lb
per million Btu of heat input from other than
cyclone-fired boilers,
``(iv) 15 percent of the uncontrolled
nitrogen oxide emissions from cyclone-fired
boilers,
``(v) particulate emissions of 0.02 lb per
million Btu of heat input, and
``(vi) the emission levels specified in the
new source performance standards of the Clean
Air Act (42 U.S.C. 7411) in effect at the time
of construction, installation or retrofitting
of the qualifying clean coal technology unit
for the category of source if such level is
lower than the levels specified in clause (i),
(ii), (iii), (iv), or (v).
``(3) Application of certain rules.--The rules of paragraphs
(3), (4), and (5) of section 45 shall apply.
``(4) Inflation adjustment factor.--The term `inflation
adjustment factor' means, with respect to a calendar year, a
fraction the numerator of which is the GDP implicit price
deflator for the preceding calendar year and the denominator of
which is the GDP implicit price deflator for the calendar year
2001.
``(5) GDP implicit price deflator.--The term `GDP implicit
price deflator' means the most recent revision of the implicit
price deflator for the gross domestic product as computed by
the Department of Commerce before March 15 of the calendar
year.
``(d) Coordination With Other Credits.--This section shall not apply
to any property with respect to which the qualifying clean coal
technology unit credit under section 48A is allowed unless the taxpayer
elects to waive the application of such credit to such property.''.
(b) Credit Treated as Business Credit.--Section 38(b) of the Internal
Revenue Code of 1986 is amended by striking ``plus'' at the end of
paragraph (14), by striking the period at the end of paragraph (15) and
inserting ``, plus'', and by adding at the end the following:
``(16) the qualifying clean coal technology production credit
determined under section 45G(a).''.
(c) Transitional Rule.--Section 39(d) of the Internal Revenue Code of
1986 (relating to transitional rules), as amended by section 201(d), is
amended by adding at the end the following:
``(12) No carryback of section 45g credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the qualifying clean coal
technology production credit determined under section 45G may
be carried back to a taxable year ending before the date of
enactment of section 45G.''.
(d) Clerical Amendment.--The table of sections for 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:
``Sec. 45G. Credit for production from a
qualifying clean coal
technology unit.''.
(e) Effective Date.--The amendments made by this section shall apply
to production after the date of enactment of this Act.
Subtitle C--Incentives for Early Commercial Applications of Advanced
Clean Coal Technologies
SEC. 531. CREDIT FOR INVESTMENT IN QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY.
(a) Allowance of Qualifying Advanced Clean Coal Technology Facility
Credit.--Section 46 of the Internal Revenue Code of 1986 (relating to
amount of credit), as amended by section 201(a), is amended by striking
``and'' at the end of paragraph (3), by striking the period at the end
of paragraph (4) and inserting ``, and'', and by adding at the end the
following:
``(5) the qualifying advanced clean coal technology facility
credit.''.
(b) Amount of Qualifying Advanced Clean Coal Technology Facility
Credit.--Subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to rules for computing
investment credit), as amended by section 521(b), is amended by
inserting after section 48A the following:
``SEC. 48B. QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY CREDIT.
``(a) In General.--For purposes of section 46, the qualifying
advanced clean coal technology facility credit for any taxable year is
an amount equal to 10 percent of the qualified investment in a
qualifying advanced clean coal technology facility for such taxable
year.
``(b) Qualifying Advanced Clean Coal Technology Facility.--
``(1) In general.--For purposes of subsection (a), the term
`qualifying advanced clean coal technology facility' means a
facility of the taxpayer which--
``(A)(i)(I) original use of which commences with the
taxpayer, or
``(II) is a retrofitted or repowered conventional
technology facility, the retrofitting or repowering of
which is completed by the taxpayer (but only with
respect to that portion of the basis which is properly
attributable to such retrofitting or repowering), or
``(ii) is acquired through purchase (as defined by
section 179(d)(2)),
``(B) is depreciable under section 167,
``(C) has a useful life of not less than 4 years,
``(D) is located in the United States, and
``(E) uses qualifying advanced clean coal technology.
``(2) Special rule for sale-leasebacks.--For purposes of
subparagraph (A) of paragraph (1), in the case of a facility
which--
``(A) is originally placed in service by a person,
and
``(B) is sold and leased back by such person, or is
leased to such person, within 3 months after the date
such facility was originally placed in service, for a
period of not less than 12 years,
such facility shall be treated as originally placed in service
not earlier than the date on which such property is used under
the leaseback (or lease) referred to in subparagraph (B). The
preceding sentence shall not apply to any property if the
lessee and lessor of such property make an election under this
sentence. Such an election, once made, may be revoked only with
the consent of the Secretary.
``(c) Qualifying Advanced Clean Coal Technology.--For purposes of
paragraph (1)--
``(1) In general.--The term `qualifying advanced clean coal
technology' means, with respect to clean coal technology--
``(A) which has--
``(i) multiple applications, with a combined
capacity of not more than 5,000 megawatts
(4,000 megawatts before 2009), of advanced
pulverized coal or atmospheric fluidized bed
combustion technology--
``(I) installed as a new, retrofit,
or repowering application,
``(II) operated between 2000 and
2012, and
``(III) having a design net heat rate
of not more than 9,500 Btu per kilowatt
hour when the design coal has a heat
content of more than 9,000 Btu per
pound, or a design net heat rate of not
more than 9,900 Btu per kilowatt hour
when the design coal has a heat content
of 9,000 Btu per pound or less,
``(ii) multiple applications, with a combined
capacity of not more than 1,000 megawatts (500
megawatts before 2009 and 750 megawatts before
2013), of pressurized fluidized bed combustion
technology--
``(I) installed as a new, retrofit,
or repowering application,
``(II) operated between 2000 and
2016, and
``(III) having a design net heat rate
of not more than 8,400 Btu per kilowatt
hour when the design coal has a heat
content of more than 9,000 Btu per
pound, or a design net heat rate of not
more than 9,900 Btu's per kilowatt hour
when the design coal has a heat content
of 9,000 Btu per pound or less, and
``(iii) multiple applications, with a
combined capacity of not more than 2,000
megawatts (1,000 megawatts before 2009 and
1,500 megawatts before 2013), of integrated
gasification combined cycle technology, with or
without fuel or chemical co-production--
``(I) installed as a new, retrofit,
or repowering application,
``(II) operated between 2000 and
2016,
``(III) having a design net heat rate
of not more than 8,550 Btu per kilowatt
hour when the design coal has a heat
content of more than 9,000 Btu per
pound, or a design net heat rate of not
more than 9,900 Btu per kilowatt hour
when the design coal has a heat content
of 9,000 Btu per pound or less, and
``(IV) having a net thermal
efficiency on any fuel or chemical co-
production of not less than 39 percent
(higher heating value), or
``(iv) multiple applications, with a combined
capacity of not more than 2,000 megawatts
(1,000 megawatts before 2009 and 1,500
megawatts before 2013) of technology for the
production of electricity--
``(I) installed as a new, retrofit,
or repowering application,
``(II) operated between 2000 and
2016, and
``(III) having a carbon emission rate
which is not more than 85 percent of
conventional technology, and
``(B) which reduces the discharge into the atmosphere
of 1 or more of the following pollutants to not more
than--
``(i) 5 percent of the potential combustion
concentration sulfur dioxide emissions for a
coal with a potential combustion concentration
sulfur emission of 1.2 lb/million btu of heat
input or greater,
``(ii) 15 percent of the potential combustion
concentration sulfur dioxide emissions for a
coal with a potential combustion concentration
sulfur emission of less than 1.2 lb/million Btu
of heat input,
``(iii) nitrogen oxide emissions of 0.1 lb
per million Btu of heat input from other than
cyclone-fired boilers,
``(iv) 15 percent of the uncontrolled
nitrogen oxide emissions from cyclone-fired
boilers,
``(v) particulate emissions of 0.02 lb per
million Btu of heat input, and
``(vi) the emission levels specified in the
new source performance standards of the Clean
Air Act (42 U.S.C. 7411) in effect at the time
of retrofitting, repowering, or replacement of
the qualifying clean coal technology unit for
the category of source if such level is lower
than the levels specified in clause (i), (ii),
(iii), (iv), or (v).
``(2) Exceptions.--Such term shall not include any projects
receiving or scheduled to receive funding under the Clean Coal
Technology Program, or the Power Plant Improvement administered
by the Secretary of the Department of Energy or a Qualifying
Clean Coal Technology Unit as defined in section 45G(c)(1).
``(d) Clean Coal Technology.--The term `clean coal technology' means
advanced technology which uses coal to produce 75 percent or more of
its thermal output as electricity including advanced pulverized coal or
atmospheric fluidized bed combustion, pressurized fluidized bed
combustion, integrated gasification combined cycle with or without fuel
or chemical co-production, and any other technology for the production
of electricity which exceeds the performance of conventional
technology.
``(e) Conventional Technology.--The term `conventional technology'
means--
``(1) coal-fired combustion technology with a design net heat
rate of not less than 9,500 Btu per kilowatt hour (HHV) and a
carbon equivalents emission rate of not more than 0.54 pounds
of carbon per kilowatt hour when the design coal has a heat
content of more than 9,000 Btu per pound,
``(2) coal-fired combustion technology with a design net heat
rate of not less than 10,500 Btu per kilowatt hour (HHV) and a
carbon equivalents emission rate of not more than 0.60 pounds
of carbon per kilowatt hour when the design coal has a heat
content of 9,000 Btu per pound or less, or
``(3) natural gas-fired combustion technology with a design
net heat rate of not less than 7,500 Btu per kilowatt hour
(HHV) and a carbon equivalents emission rate of not more than
0.24 pounds of carbon per kilowatt hour.
``(f) Design Net Heat Rate.--The design net heat rate shall be based
on the design annual heat input to and the design annual net electrical
output from the qualifying advanced clean coal technology (determined
without regard to such technology's co-generation of steam).
``(g) Selection Criteria.--Selection criteria for qualifying advanced
clean coal technology facilities--
``(1) shall be established by the Secretary of Energy as part
of a competitive solicitation,
``(2) shall include primary criteria of minimum design net
heat rate, maximum design thermal efficiency, environmental
performance, and lowest cost to the government, and
``(3) shall include supplemental criteria as determined
appropriate by the Secretary of Energy.
``(h) Qualified Investment.--For purposes of subsection (a), the term
`qualified investment' means, with respect to any taxable year, the
basis of a qualifying advanced clean coal technology facility placed in
service by the taxpayer during such taxable year.
``(i) Qualified Progress Expenditures.--
``(1) Increase in qualified investment.--In the case of a
taxpayer who has made an election under paragraph (5), the
amount of the qualified investment of such taxpayer for the
taxable year (determined under subsection (c) without regard to
this section) shall be increased by an amount equal to the
aggregate of each qualified progress expenditure for the
taxable year with respect to progress expenditure property.
``(2) Progress expenditure property defined.--For purposes of
this subsection, the term `progress expenditure property' means
any property being constructed by or for the taxpayer and which
it is reasonable to believe will qualify as a qualifying
advanced clean coal technology facility which is being
constructed by or for the taxpayer when it is placed in
service.
``(3) Qualified progress expenditures defined.--For purposes
of this subsection--
``(A) Self-constructed property.--In the case of any
self-constructed property, the term `qualified progress
expenditures' means the amount which, for purposes of
this subpart, is properly chargeable (during such
taxable year) to capital account with respect to such
property.
``(B) Nonself-constructed property.--In the case of
nonself-constructed property, the term `qualified
progress expenditures' means the amount paid during the
taxable year to another person for the construction of
such property.
``(4) Other definitions.--For purposes of this subsection--
``(A) Self-constructed property.--The term `self-
constructed property' means property for which it is
reasonable to believe that more than half of the
construction expenditures will be made directly by the
taxpayer.
``(B) Nonself-constructed property.--The term
`nonself-constructed property' means property which is
not self-constructed property.
``(C) Construction, etc.--The term `construction'
includes reconstruction and erection, and the term
`constructed' includes reconstructed and erected.
``(D) Only construction of qualifying advanced clean
coal technology facility to be taken into account.--
Construction shall be taken into account only if, for
purposes of this subpart, expenditures therefor are
properly chargeable to capital account with respect to
the property.
``(5) Election.--An election under this subsection may be
made at such time and in such manner as the Secretary may by
regulations prescribe. Such an election shall apply to the
taxable year for which made and to all subsequent taxable
years. Such an election, once made, may not be revoked except
with the consent of the Secretary.
``(j) Coordination With Other Credits.--This section shall not apply
to any property with respect to which the rehabilitation credit under
section 47 or the energy credit under section 48 is allowed unless the
taxpayer elects to waive the application of such credit to such
property.
``(k) Termination.--This section shall not apply with respect to any
qualified investment made more than 10 years after the effective date
of this section.''.
(c) Recapture.--Section 50(a) of the Internal Revenue Code of 1986
(relating to other special rules), as amended by section 201(c), is
amended by adding at the end the following:
``(7) Special rules relating to qualifying advanced clean
coal technology facility.--For purposes of applying this
subsection in the case of any credit allowable by reason of
section 48B, the following shall apply:
``(A) General rule.--In lieu of the amount of the
increase in tax under paragraph (1), the increase in
tax shall be an amount equal to the investment tax
credit allowed under section 38 for all prior taxable
years with respect to a qualifying advanced clean coal
technology facility (as defined by section 48B(b)(1))
multiplied by a fraction whose numerator is the number
of years remaining to fully depreciate under this title
the qualifying advanced clean coal technology facility
disposed of, and whose denominator is the total number
of years over which such facility would otherwise have
been subject to depreciation. For purposes of the
preceding sentence, the year of disposition of the
qualifying advanced clean coal technology facility
property shall be treated as a year of remaining
depreciation.
``(B) Property ceases to qualify for progress
expenditures.--Rules similar to the rules of paragraph
(2) shall apply in the case of qualified progress
expenditures for a qualifying advanced clean coal
technology facility under section 48B, except that the
amount of the increase in tax under subparagraph (A) of
this paragraph shall be substituted in lieu of the
amount described in such paragraph (2).
``(C) Application of paragraph.--This paragraph shall
be applied separately with respect to the credit
allowed under section 38 regarding a qualifying
advanced clean coal technology facility.''.
(d) Transitional Rule.--Section 39(d) of the Internal Revenue Code of
1986 (relating to transitional rules), as amended by section 202(c), is
amended by adding at the end the following:
``(13) No carryback of section 48b credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the qualifying advanced clean
coal technology facility credit determined under section 48B
may be carried back to a taxable year ending before the date of
enactment of section 48B.''.
(e) Technical Amendments.--
(1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986,
as amended by section 521(e)(1), is amended by striking ``and''
at the end of clause (iii), by striking the period at the end
of clause (iv) and inserting ``, and'', and by adding at the
end the following:
``(v) the portion of the basis of any
qualifying advanced clean coal technology
facility attributable to any qualified
investment (as defined by section 48B(c)).''.
(2) Section 50(a)(4) of such Code, is amended by striking
``and (6)'' and inserting ``(6), and (7)''.
(3) Section 50(c)(6) of such Code, is amended by inserting
``or any advanced clean coal technology facility credit under
section 48B'' after ``section 48A''.
(4) 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 48A the following:
``Sec. 48B. Qualifying advanced clean
coal technology facility
credit.''.
(f) Effective Date.--The amendments made by this section shall apply
to periods after December 31, 2001, 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 enactment of the Revenue Reconciliation Act of
1990).
SEC. 532. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY.
(a) Credit for Production From Qualifying Advanced Clean Coal
Technology.--Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to business related credits),
as amended by section 522(a), is amended by adding at the end the
following:
``SEC. 45H. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY.
``(a) General Rule.--For purposes of section 38, the qualifying
advanced clean coal technology production credit of any taxpayer for
any taxable year is equal to--
``(1) the applicable amount of advanced clean coal technology
production credit, multiplied by
``(2) the sum of--
``(A) the kilowatt hours of electricity, plus
``(B) each 3,413 Btu of fuels or chemicals,
produced by the taxpayer during such taxable year at a
qualifying advanced clean coal technology facility during the
10-year period beginning on the date the facility was
originally placed in service.
``(b) Applicable Amount.--For purposes of this section, the
applicable amount of advanced clean coal technology production credit
with respect to production from a qualifying advanced clean coal
technology facility shall be determined as follows:
``(1) Where the design coal has a heat content of more than
9,000 Btu per pound:
``(A) In the case of a facility originally placed in
service before 2009, if--
------------------------------------------------------------------------
The applicable amount is:
``The facility design net -------------------------------------------
heat rate, Btu/kWh (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not more than 8,400......... $.0060 $.0038
More than 8,400 but not more $.0025 $.0010
than 8,550.
More than 8,550 but not more $.0010 $.0010.
than 8,750.
------------------------------------------------------------------------
``(B) In the case of a facility originally placed in
service after 2008 and before 2013, if--
------------------------------------------------------------------------
The applicable amount is:
``The facility design net -------------------------------------------
heat rate, Btu/kWh (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not more than 7,770......... $.0105 $.0090
More than 7,770 but not more $.0085 $.0068
than 8,125.
More than 8,125 but not more $.0075 $.0055.
than 8,350.
------------------------------------------------------------------------
``(C) In the case of a facility originally placed in
service after 2012 and before 2017, if--
------------------------------------------------------------------------
The applicable amount is:
``The facility design net -------------------------------------------
heat rate, Btu/kWh (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not more than 7,380......... $.0140 $.01
More than 7,380 but not more $.0120 $.0090.
than 7,720.
------------------------------------------------------------------------
``(2) Where the design coal has a heat content of not more
than 9,000 Btu per pound:
``(A) In the case of a facility originally placed in
service before 2009, if--
------------------------------------------------------------------------
The applicable amount is:
``The facility design net -------------------------------------------
heat rate, Btu/kWh (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not more than 8,500......... $.0060 $.0038
More than 8,500 but not more $.0025 $.0010
than 8,650.
More than 8,650 but not more $.0010 $.0010.
than 8,750.
------------------------------------------------------------------------
``(B) In the case of a facility originally placed in
service after 2008 and before 2013, if--
------------------------------------------------------------------------
The applicable amount is:
``The facility design net -------------------------------------------
heat rate, Btu/kWh (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not more than 8,000......... $.0105 $.009
More than 8,000 but not more $.0085 $.0068
than 8,250.
More than 8,250 but not more $.0075 $.0055.
than 8,400.
------------------------------------------------------------------------
``(C) In the case of a facility originally placed in
service after 2012 and before 2017, if--
------------------------------------------------------------------------
The applicable amount is:
``The facility design net -------------------------------------------
heat rate, Btu/kWh (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not more than 7,800......... $.0140 $.0115
More than 7,800 but not more $.0120 $.0090.
than 7,950.
------------------------------------------------------------------------
``(3) Where the clean coal technology facility is producing
fuel or chemicals:
``(A) In the case of a facility originally placed in
service before 2009, if--
------------------------------------------------------------------------
The applicable amount is:
``The facility design net -------------------------------------------
thermal efficiency (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not less than 40.6 percent.. $.0060 $.0038
Less than 40.6 but not less $.0025 $.0010
than 40 percent.
Less than 40 but not less $.0010 $.0010.
than 39 percent.
------------------------------------------------------------------------
``(B) In the case of a facility originally placed in
service after 2008 and before 2013, if--
------------------------------------------------------------------------
The applicable amount is:
``The facility design net -------------------------------------------
thermal efficiency (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not less than 43.9 percent.. $.0105 $.009
Less than 43.9 but not less $.0085 $.0068
than 42 percent.
Less than 42 but not less $.0075 $.0055.
than 40.9 percent.
------------------------------------------------------------------------
``(C) In the case of a facility originally placed in
service after 2012 and before 2017, if--
------------------------------------------------------------------------
The applicable amount is:
``The facility design net -------------------------------------------
thermal efficiency (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not less than 44.2 percent.. $.0140 $.0115
Less than 44.2 but not less $.0120 $.0090.
than 43.6 percent.
------------------------------------------------------------------------
``(c) Inflation Adjustment Factor.--For calendar years after 2001,
each amount in paragraphs (1), (2), and (3) shall be adjusted by
multiplying such amount by the inflation adjustment factor for the
calendar year in which the amount is applied. If any amount as
increased under the preceding sentence is not a multiple of 0.01 cent,
such amount shall be rounded to the nearest multiple of 0.01 cent.
``(d) Definitions and Special Rules.--For purposes of this section--
``(1) In general.--Any term used in this section which is
also used in section 48B shall have the meaning given such term
in section 48B.
``(2) Applicable rules.--The rules of paragraphs (3), (4),
and (5) of section 45 shall apply.
``(3) Inflation adjustment factor.--The term `inflation
adjustment factor' means, with respect to a calendar year, a
fraction the numerator of which is the GDP implicit price
deflator for the preceding calendar year and the denominator of
which is the GDP implicit price deflator for the calendar year
2001.
``(4) GDP implicit price deflator.--The term `GDP implicit
price deflator' means the most recent revision of the implicit
price deflator for the gross domestic product as computed by
the Department of Commerce before March 15 of the calendar
year.''.
(b) Credit Treated as Business Credit.--Section 38(b) of the Internal
Revenue Code of 1986, as amended by section 202(b), is amended by
striking ``plus'' at the end of paragraph (15), by striking the period
at the end of paragraph (16) and inserting ``, plus'', and by adding at
the end the following:
``(17) the qualifying advanced clean coal technology
production credit determined under section 45H(a).''.
(c) Transitional Rule.--Section 39(d) of the Internal Revenue Code of
1986 (relating to transitional rules), as amended by section 301(d), is
amended by adding at the end the following:
``(14) No carryback of section 45h credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the qualifying advanced clean
coal technology production credit determined under section 45H
may be carried back to a taxable year ending before the date of
enactment of section 45H.''.
(d) Clerical Amendment.--The table of sections for subpart D of part
IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986,
as amended by section 202(d), is amended by adding at the end the
following:
``Sec. 45H. Credit for production from
qualifying advanced clean coal
technology.''.
(e) Effective Date.--The amendments made by this section shall apply
to production after the date of enactment of this Act.
SEC. 533. RISK POOL FOR QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY.
(a) Establishment.--The Secretary of the Treasury shall establish a
financial risk pool which shall be available to any United States owner
of a qualifying advanced clean coal technology which has qualified for
an advanced clean coal technology production credit (as defined in
section 45H of the Internal Revenue Code of 1986, as added by section
302) to offset for the first 3 years of the operation of such
technology the costs (not to exceed 5 percent of the total cost of
installation) for modifications resulting from the technology's failure
to achieve its design performance.
(b) Authorization of Appropriations.--There is authorized to be
appropriated such sums as are necessary to carry out the purposes of
this section.
Subtitle D--Treatment of Certain Governmental and Other Entities
SEC. 541. CREDITS FOR CERTAIN ORGANIZATIONS AND GOVERNMENTAL UNITS.
Section 6401(b) of the Internal Revenue Code of 1986 (relating to
excessive credits) is amended by adding at the end the following:
``(3) Credits for certain organizations and governmental
units.--
``(A) Allowance of credits.--Any credit which would
be allowable under section 45G, 45H, 48A, or 48B with
respect to a facility of an entity whether or not such
entity is exempt from tax, shall be treated as a credit
allowable under subpart C of part IV of subchapter A of
chapter 1 of subtitle A to such entity if such entity
is--
``(i) an organization described in section
501(c)(12)(C) and exempt from tax under section
501(a),
``(ii) an organization described in section
1381(a)(2)(C),
``(iii) a public utility (as defined in
section 136(c)(2)(B)),
``(iv) a State, the District of Columbia, or
a possession of the United States, or any
political subdivision thereof, or
``(v) the Tennessee Valley Authority.
``(B) Use of credit.--
``(i) Transfer of credit.--An entity
described in clause (i), (ii), (iii), or (iv)
of subparagraph (A) may assign, trade, sell, or
otherwise transfer any credit allowable to such
entity under subparagraph (A) to any other
person or entity.
``(ii) Use of credit as an offset.--
Notwithstanding any other provision of law, in
the case of any entity described in clause (i)
or (ii) of subparagraph (A), any credit
allowable to such entity under subparagraph (A)
may be applied by such entity, without penalty,
as a prepayment of any loan, debt or other
obligation the entity has made, incurred or
guaranteed under the Rural Electrification Act
of 1936 (7 U.S.C. 901 et seq.).
``(iii) Use by tva.--
``(I) In general.--Notwithstanding
any other provision of law, in the case
of an entity described in subparagraph
(A)(v), any credit allowable under
subparagraph (A) to such entity may be
applied as a credit against the
payments required to be made in any
fiscal year under section 15d(e) of the
Tennessee Valley Authority Act of 1933
(16 U.S.C. 83ln-4(e)) as an annual
return on the appropriations investment
and an annual repayment sum.
``(II) Treatment of credits.--The
aggregate amount of credits described
in subparagraph (A) shall be treated in
the same manner and to the same extent
as if such credits were a payment in
cash and shall be applied first against
the annual return on the appropriations
investment.
``(III) Credit carryover.--With
respect to any fiscal year, if the
aggregate amount of the credits
described in subparagraph (A) exceeds
the aggregate amount of payment
obligations described in subclause (I),
the excess amount shall remain
available for application as credits
against the amounts of such payment
obligations in succeeding fiscal years
in the same manner as described in this
clause.
``(C) Credit not income.--Neither a transfer under
clause (i) nor a use under clause (ii) of subparagraph
(B) of any credit allowable under subparagraph (A)
shall result in income for purposes of section
501(c)(12).
``(D) Transfer proceeds treated as arising from
essential government function.--Any proceeds derived by
an entity described in clause (iii) or (iv) of
subparagraph (A) from the transfer of any such credit
under subparagraph (B)(I) shall be treated as arising
from an essential government function.
``(E) Treatment of unrelated persons.--For purposes
of this title, sales among and between entities
described in clauses (i), (ii), (iii), and (iv) of
subparagraph (A) shall be treated as sales between
unrelated parties.''.
TITLE VI--FUELS
SEC. 601. TANK DRAINING DURING TRANSITION TO SUMMERTIME RFG.
Not later than 60 days after the enactment of the Act, the
Administrator of the Environmental Protection Agency shall commence a
rulemaking to determine whether modifications to the regulations set
forth in 40 C.F.R. Section 80.78 and any associated regulations
regarding the transition to high ozone season reformulated gasoline are
necessary to ensure that the transition to high ozone season
reformulated gasoline is conducted in a manner that minimizes
disruptions to the general availability and affordability of gasoline,
and maximizes flexibility with regard to the draining and inventory
management of gasoline storage tanks located at refineries, terminals,
wholesale and retail outlets, consistent with the goals of the Clean
Air Act. The Administrator shall propose and take final action in such
rulemaking to ensure that any modifications are effective and
implemented at least 60 days prior to the beginning of the high ozone
season for the year 2002.
SEC. 602. GASOLINE BLENDSTOCK REQUIREMENTS.
Not later than 60 days after the enactment of this Act, the
Administrator of the Environmental Protection Agency shall commence a
rulemaking to determine whether modifications to product transfer
documentation, accounting, compliance calculation, and other
requirements contained in the regulations of the Administrator set
forth in section 80.102 of title 40 of the Code of Federal Regulations
relating to gasoline blendstocks are necessary to facilitate the
movement of gasoline and gasoline feedstocks among different regions
throughout the country and to improve the ability of petroleum refiners
and importers to respond to regional gasoline shortages and prevent
unreasonable short-term price increases. The Administrator shall take
into consideration the extent to which such requirements have been, or
will be, rendered unnecessary or inefficient by reason of subsequent
environmental safeguards that were not in effect at the time the
regulations in section 80.102 of title 40 of the Code of Federal
Regulations were promulgated. The Administrator shall propose and take
final action in such rulemaking to ensure that any modifications are
effective and implemented at least 60 days prior to the beginning of
the high ozone season for the year 2002.
SEC. 603. BOUTIQUE FUELS.
(a) Joint Study.--The Administrator of the Environmental Protection
Agency and the Secretary of Energy shall jointly conduct a study of all
Federal, State, and local requirements regarding motor vehicle fuels,
including requirements relating to reformulated gasoline, volatility
(Reid Vapor Pressure), oxygenated fuel, diesel fuel and other
requirements that vary from State to State, region to region, or
locality to locality. The study shall analyze--
(1) the effect of the variety of such requirements on the
price of motor vehicle fuels to the consumer;
(2) the availability and affordability of motor vehicle fuels
in different States and localities;
(3) the effect of Federal, State, and local regulations,
including multiple fuel requirements, on domestic refineries
and the fuel distribution system;
(4) the effect of such requirements on local, regional, and
national air quality requirements and goals;
(5) the effect of such requirements on vehicle emissions;
(6) the feasibility of developing national or regional fuel
specifications for the contiguous United States that would--
(A) enhance flexibility in the fuel distribution
infrastructure and improve fuel fungibility;
(B) reduce price volatility and costs to consumers
and producers;
(C) meet local, regional, and national air quality
requirements and goals; and
(D) provide increased gasoline market liquidity; and
(7) the extent to which the Environmental Protection Agency's
Tier II requirements for conventional gasoline may achieve in
future years the same or similar air quality results as State
reformulated gasoline programs and State programs regarding
gasoline volatility (RVP).
(b) Report.--By December 31, 2001, the Administrator of the
Environmental Protection Agency and the Secretary of Energy shall
submit a report to the Congress containing the results of the study
conducted under subsection (a). Such report shall contain
recommendations for legislative and administrative actions that may be
taken to simplify the national distribution system for motor vehicle
fuel, make such system more cost-effective, and reduce the costs and
increase the availability of motor vehicle fuel to the end user while
meeting the requirements of the Clean Air Act. Such recommendations
shall take into account the need to provide lead time for refinery and
fuel distribution system modifications necessary to assure adequate
fuel supply for all States.
SEC. 604. FUNDING FOR MTBE CONTAMINATION.
Notwithstanding any other provision of law, there is authorized to be
appropriated to the Administrator of the Environmental Protection
Agency from the Leaking Underground Storage Trust Fund not more than
$200,000,000 to be used for taking such action, limited to assessment,
corrective action, inspection of underground storage tank systems, and
groundwater monitoring in connection with MTBE contamination, as the
Administrator deems necessary to protect human health and the
environment from releases of methyl tertiary butyl ether (MTBE) from
underground storage tanks.
TITLE VII--RENEWABLE ENERGY
SEC. 701. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.
(a) Resource Assessment.--Not later than one year after the date of
enactment of this Act, and each year thereafter, the Secretary of
Energy shall publish an assessment by the National Laboratories of all
renewable energy resources available within the United States.
(b) Contents of Report.--The report published under subsection (a)
shall contain each of the following:
(1) A detailed inventory describing the available amount and
characteristics of solar, wind, biomass, geothermal,
hydroelectric and other renewable energy sources.
(2) Such other information as the Secretary of Energy
believes would be useful in developing such renewable energy
resources, including descriptions of surrounding terrain,
population and load centers, nearby energy infrastructure,
location of energy and water resources, and available estimates
of the costs needed to develop each resource.
SEC. 702. RENEWABLE ENERGY PRODUCTION INCENTIVE.
Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is
amended as follows:
(1) In subsection (a) by striking ``and which satisfies'' and
all that follows through ``Secretary shall establish.'' and
inserting ``. The Secretary shall establish other procedures
necessary for efficient administration of the program. The
Secretary shall not establish any criteria or procedures that
have the effect of assigning to proposals a higher or lower
priority for eligibility or allocation of appropriated funds on
the basis of the energy source proposed.''.
(2) In subsection (b)--
(A) by striking ``a State or any political'' and all
that follows through ``nonprofit electrical
cooperative'' and inserting ``an electricity-generating
cooperative exempt from taxation under section
501(c)(12) or section 1381(a)(2)(C) of the Internal
Revenue Code of 1986, a public utility described in
section 115 of such Code, a State, Commonwealth,
territory, or possession of the United States or the
District of Columbia, or a political subdivision
thereof, or an Indian tribal government or subdivision
thereof,''; and
(B) By inserting ``landfill gas,'' after ``wind,
biomass,''.
(3) In subsection (c) by striking ``during the 10-fiscal year
period beginning with the first full fiscal year occurring
after the enactment of this section'' and inserting ``before
October 1, 2013''.
(4) In subsection (d) by inserting ``or in which the
Secretary finds that all necessary Federal and State
authorizations have been obtained to begin construction of the
facility'' after ``eligible for such payments''.
(5) In subsection (e)(1) by inserting ``landfill gas,'' after
``wind, biomass,''.
(6) In subsection (f) by striking ``the expiration of'' and
all that follows through ``of this section'' and inserting
``September 30, 2023''.
(7) In subsection (g)--
(A) by striking ``1993, 1994, and 1995'' and
inserting ``2003 through 2023''; and
(B) by inserting ``Funds may be appropriated pursuant
to this subsection to remain available until
expended.'' after ``purposes of this section.''.
TITLE VIII--PIPELINE INTEGRITY
Subtitle A--Pipeline Integrity
SEC. 801. PROGRAM FOR PIPELINE INTEGRITY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION.
(a) In General.--The Secretary of Transportation, in coordination
with the Secretary of Energy, and in consultation with the Federal
Energy Regulatory Commission, shall develop and implement an
accelerated cooperative program of research, development, and
demonstration to ensure the integrity of natural gas and hazardous
liquid pipelines. This program shall include materials inspection
techniques, risk assessment methodology, and information systems
surety.
(b) Purpose.--The purpose of the cooperative research program shall
be to promote research, development, and demonstration to--
(1) ensure long-term safety, reliability, and service life
for existing pipelines;
(2) expand capabilities of internal inspection devices to
identify and accurately measure defects and anomalies;
(3) develop inspection techniques for pipelines that cannot
accommodate the internal inspection devices;
(4) develop innovative techniques to measure the structural
integrity of pipelines to prevent pipeline failures;
(5) develop improved materials and coatings for use in
pipelines;
(6) improve the capability, reliability, and practicality of
external leak detection devices;
(7) identify underground environments that might lead to
shortened service life;
(8) enhance safety in pipeline siting and land use;
(9) minimize the environmental impact of pipelines;
(10) demonstrate technologies that improve pipeline safety,
reliability, and integrity;
(11) provide risk assessment tools for optimizing risk
mitigation strategies; and
(12) provide highly secure information systems for
controlling the operation of pipelines.
(c) Areas.--In carrying out this subtitle, the Secretary of
Transportation, in coordination with the Secretary of Energy, shall
consider research, development, and demonstration on natural gas, crude
oil, and petroleum product pipelines for--
(1) early crack, defect, and damage detection, including
real-time damage monitoring;
(2) automated internal pipeline inspection sensor systems;
(3) land use guidance and set back management along pipeline
rights-of-way for communities;
(4) internal corrosion control;
(5) corrosion-resistant coatings;
(6) improved cathodic protection;
(7) inspection techniques where internal inspection is not
feasible, including measurement of structural integrity;
(8) external leak detection, including portable real-time
video imaging technology, and the advancement of computerized
control center leak detection systems utilizing real-time
remote field data input;
(9) longer life, high strength, noncorrosive pipeline
materials;
(10) assessing the remaining strength of existing pipes;
(11) risk and reliability analysis models, to be used to
identify safety improvements that could be realized in the near
term resulting from analysis of data obtained from a pipeline
performance tracking initiative;
(12) identification, monitoring, and prevention of outside
force damage, including satellite surveillance; and
(13) any other areas necessary to ensuring the public safety
and protecting the environment.
(d) Research, Development, and Demonstration Program Plan.--Within
240 days after the date of enactment of this Act, the Secretary of
Transportation, in coordination with the Secretary of Energy, the
Federal Energy Regulatory Commission, and the Pipeline Integrity
Technical Advisory Committee, shall prepare and submit to the Congress
a 5-year program plan to guide activities under this subtitle. In
preparing the program plan, the Secretary shall consult with
appropriate representatives of the natural gas, crude oil, and
petroleum product pipeline industries to select and prioritize
appropriate project proposals. The Secretary may also seek the advice
of utilities, manufacturers, institutions of higher learning, Federal
agencies, the pipeline research institutions, national laboratories,
State pipeline safety officials, environmental organizations, pipeline
safety advocates, and professional and technical societies.
(e) Implementation.--The Secretary of Transportation shall have
primary responsibility for ensuring the five-year plan provided for in
subsection (d) is implemented as intended by this subtitle.
(f) Reports to Congress.--The Secretary of Transportation shall
report to the Committee on Energy and Commerce and the Committee on
Transportation and Infrastructure of the House of Representatives, and
to the Committee on Energy and Natural Resources and the Committee on
Commerce, Science, and Transportation of the Senate, annually as to the
status and results to date of the implementation of the program plan.
The report shall include the activities of the Departments of
Transportation and Energy, the national laboratories, universities, and
any other research organizations, including industry research
organizations.
SEC. 802. PIPELINE INTEGRITY TECHNICAL ADVISORY COMMITTEE.
(a) Establishment.--The Secretary of Transportation shall enter into
appropriate arrangements with the National Academy of Sciences to
establish and manage the Pipeline Integrity Technical Advisory
Committee for the purpose of advising the Secretary of Transportation
and the Secretary of Energy on the development and implementation of
the five-year research, development, and demonstration program plan
under section 801(d). The Advisory Committee shall have an ongoing role
in evaluating the progress and results of the research, development,
and demonstration carried out under this subtitle.
(b) Membership.--The National Academy of Sciences shall appoint the
members of the Pipeline Integrity Technical Advisory Committee after
consultation with the Secretary of Transportation and the Secretary of
Energy. The Advisory Committee shall also have 1 member from the
Federal Energy Regulatory Commission. Members appointed to the Advisory
Committee should have the necessary qualifications to provide technical
contributions to the purposes of the Advisory Committee.
SEC. 803. AUTHORIZATION OF APPROPRIATIONS.
(a) Authorization from User Fees.--There are authorized to be
appropriated to the Secretary of Transportation for carrying out this
subtitle $3,000,000, which is to be derived from user fees under
section 60125 of title 49, United States Code, for each of the fiscal
years 2002 through 2006.
(b) Detection, Prevention, and Mitigation.--There are authorized to
be appropriated to the Secretary of Transportation from the Oil Spill
Liability Trust Fund (26 U.S.C. 9509), $3,000,000 to carry out programs
for detection, prevention, and mitigation of oil spills authorized in
this subtitle for each of the fiscal years 2002 through 2006.
(c) General Authorization.--There are authorized to be appropriated
to the Secretary of Energy for carrying out this subtitle such sums as
may be necessary for each of the fiscal years 2002 through 2006.
Subtitle B--Other Pipeline Provisions
SEC. 811. PROHIBITION ON CERTAIN PIPELINE ROUTE.
No license, permit, lease, right-of-way, authorization or other
approval required under Federal law for the construction of any
pipeline to transport natural gas from lands within the Prudhoe Bay oil
and gas lease area may be granted for any pipeline that follows a route
that traverses--
(1) the submerged lands (as defined by the Submerged Lands
Act) beneath, or the adjacent shoreline of, the Beaufort Sea;
and
(2) enters Canada at any point north of 68 degrees North
latitude.
SEC. 812. HISTORIC PIPELINES.
Section 7 of the Natural Gas Act (15 U.S.C. 717f) is amended by
adding at the end the following new subsection:
``(i) Notwithstanding the National Historic Preservation Act, a
transportation facility shall not be eligible for inclusion on the
National Register of Historic Places until the Commission has permitted
the abandonment of the transportation facility pursuant to subsection
(b) of this section.''.
TITLE IX--MISCELLANEOUS PROVISIONS
SEC. 901. WASTE REDUCTION AND USE OF ALTERNATIVES.
(a) Grant Authority.--The Secretary of Energy is authorized to make a
single grant to a qualified institution to examine and develop the
feasibility of burning post-consumer carpet in cement kilns as an
alternative energy source. The purposes of the grant shall include
determining--
(1) how post-consumer carpet can be burned without disrupting
kiln operations;
(2) the extent to which overall kiln emissions may be
reduced; and
(3) how this process provides benefits to both cement kiln
operations and carpet suppliers.
(b) Qualified Institution.--For the purposes of subsection (a), a
qualified institution is a research-intensive institution of higher
learning with demonstrated expertise in the fields of fiber recycling
and logistical modeling of carpet waste collection and preparation.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy for carrying out this section
$275,000 for fiscal year 2002, to remain available until expended.
SEC. 902. ANNUAL REPORT ON UNITED STATES ENERGY INDEPENDENCE.
(a) Report.--The Secretary of Energy, in consultation with the heads
of other relevant Federal agencies, shall include in each report under
section 801(c) of the Department of Energy Organization Act a section
which evaluates the progress the United States has made toward
obtaining the goal of not more than 50 percent dependence on foreign
oil sources by 2010.
(b) Alternatives.--The information required under this section to be
included in the reports under section 801(c) of the Department of
Energy Organization Act shall include a specification of what
legislative or administrative actions must be implemented to meet this
goal and set forth a range of options and alternatives with a cost/
benefit analysis for each option or alternative together with an
estimate of the contribution each option or alternative could make to
reduce foreign oil imports. The Secretary shall solicit information
from the public and request information from the Energy Information
Agency and other agencies to develop the information required under
this section. The information shall indicate, in detail, options and
alternatives to--
(1) increase the use of renewable domestic energy sources,
including conventional and nonconventional sources;
(2) conserve energy resources, including improving
efficiencies and decreasing consumption; and
(3) increase domestic production and use of oil, natural gas,
nuclear, and coal, including any actions necessary to provide
access to, and transportation of, these energy resources.
SEC. 903. STUDY OF AIRCRAFT EMISSIONS.
The Administrator of the Environmental Protection Agency, in
consultation with the Secretary of Transportation shall commence a
study within 60 days after the enactment of this Act to investigate the
impact of aircraft emissions at all airports located within areas that
are considered to be in nonattainment for the national ambient air
quality standard for ozone. As part of such study, the Administrator
should investigate all significant factors which may serve to increase
air emission levels from airports and use the most recent data
available. Within 180 days of the enactment of this Act, the
Administrator shall submit a report to the Committee on Energy and
Commerce of the United States House of Representatives and to the
Committee on Energy and Natural Resources of the United States Senate
containing the results of the study and recommendations with respect to
a plan to maintain comprehensive data on aircraft emissions and methods
by which such emissions may be reduced in order to assist in the
attainment of the national ambient air quality standard for ozone.
Purpose and Summary
The purpose of H.R. 2587, the Energy Advancement and
Conservation Act, is to promote increased energy conservation
and increase the availability of energy supplies nationwide.
Recent high prices for energy underscore the importance of a
comprehensive review of our Nation's energy policies and
objectives. The Energy Advancement and Conservation Act is the
first step toward ensuring our Nation's continued welfare and
security by providing for our long-term energy needs.
Energy production and environmental protection are non-
exclusive national goals. In recent decades, technological
advances have made energy development and use more efficient
and less environmentally harmful. Building on this trend, the
Energy Advancement and Conservation Act encourages energy
production and demand reduction by promoting new technology,
more efficient processes, and improved public awareness.
The Energy Advancement and Conservation Act addresses a
wide range of issues related to energy generation,
transportation, and use. It provides for accelerated market
penetration for clean coal technologies, streamlined
reformulated fuel programs, and promotion of energy
conservation and efficiency, including increased efficiency for
light trucks. The bill also provides for improvements in the
hydropower licensing process and will remove barriers to
expanded use of nuclear energy. Finally, the bill addresses
several issues related to interstate pipelines, along with a
number of other, miscellaneous energy-related issues.
Background and Need for Legislation
According to the Energy Information Administration, over
the next 20 years, growth in U.S. energy consumption will
increasingly outpace energy production. To meet our Nation's
projected demands for energy, legislation is needed to
facilitate further development of new energy supplies and
better management of energy use. Numerous factors combine to
increase energy supplies and improve efficiency and
conservation; these include, among others, technological
achievement, consumer preference, manufacturer decisions,
construction design and techniques, and government action at
the Federal, state and local levels.
Conservation and increased energy efficiency allow us to
manage existing energy supplies better. Energy intensity, the
amount of energy it takes to produce one dollar of gross
domestic product, has steadily declined in the United States
over the past three decades. During that period, the economy
grew by 126 percent, while energy consumption increased by only
30 percent. Whereas about half of this decline in energy
intensity is attributable to the switch from a manufacturing to
a service economy, the other half is attributable to increased
efficiency. Gains in energy efficiency over the past 30 years
have largely been a result of advances in technology, along
with better management practices and better application of
these new technologies. Consumer choice is a driver of energy
efficiency, and Federal programs such as Energy Star energy
labels help consumers make informed purchasing decisions.
Federal and state governments are large users of energy and
promoteenergy efficiency by investing in research and procuring
efficient products. For example, the Energy Policy and Conservation Act
(EPCA) directs the Secretary of Energy to establish minimum efficiency
standards for a number of appliances. These programs, and others like
them, combine to provide for more efficient use of existing energy
supplies.
EPCA also directs the Secretary of Transportation to
establish corporate average fuel economy (CAFE) standards for
non-passenger automobiles, which include sport utility
vehicles, vans, pickups, and minivans. As its name implies, the
CAFE program sets fuel efficiency standards for automobiles.
CAFE is implemented through regulations promulgated by the
Secretary of Transportation through the National Highway
Traffic Safety Administration (NHTSA). The CAFE standard for
passenger automobiles is set by existing statute at 27.5 mpg.
By regulation, the Secretary of Transportation has set the CAFE
standard for non-passenger automobiles (light trucks) at 20.7
mpg. Compliance with the standards is measured by calculating
the harmonic average of the fuel economies of a given
manufacturer's production. For passenger automobiles,
domestically produced and imported vehicles are measured
separately. If our Nation is to meet its energy needs in the
coming decades, we must continue to make advances in energy
efficiency and conservation.
Nuclear energy provides 20 percent of the Nation's
electricity. The Nuclear Regulatory Commission (NRC) has not
issued a license to construct a new nuclear power plant in 20
years. As recently as a few years ago, it was thought that most
of the existing fleet of nuclear reactors would be closed over
the next 30 years. Recently, however, several companies have
expressed a renewed interest in extending licenses for existing
nuclear plants, as well as constructing a new generation of
advanced nuclear plants that are smaller, cheaper to build, and
easier to operate.
There are several areas where legislation is needed to
facilitate the continued development of nuclear power. These
include, among others, addressing issues related to the
disposal of nuclear waste, clarification of NRC licensing
rules, and providing the NRC additional authority to recover
fees from Federal licensees. Additionally, domestic uranium
fuel cycle industries (including uranium mining, uranium
conversion, and uranium enrichment industries) have come under
market pressure over the past decade, the result of which
threatens the viability of the domestic uranium industry. The
continued development of nuclear power may be determined, in
part, by the availability of domestic uranium fuel capacity.
Over the next 15 years, the Federal Energy Regulatory
Commission (FERC) must consider relicensing more than half of
our Nation's hydroelectric power projects (roughly 28,000
megawatts) if those projects are to continue in operation.
Current law gives states and the Federal resources agencies
(U.S. Fish and Wildlife Service, U.S. Forest Service, and
National Marine Fisheries Service) authority to impose
mandatory conditions on FERC-issued hydroelectric power
licenses. The number of parties to the licensing process, the
competing interests and missions, and open-ended proceedings
often contribute to the time and costs involved in obtaining a
hydroelectric license from FERC.
One area identified to improve the licensing process is to
require agencies to consider alternative conditions proposed by
a licensee. Current law does not require resources agencies to
consider alternative conditions that may cost less to implement
in terms of dollars and energy lost, while providing for
greater, or at a minimum no less, environmental protection.
Another area identified for improvement is FERC data collection
on the time and costs involved in obtaining a new license,
which will lead to more efficient relicensing procedures.
The United States currently generates just over half (51
percent) of its total electric power by burning coal, and
contains an estimated 25 percent of the world's total
recoverable reserves of coal. The EIA projects that the United
States will largely maintain this reliance on coal over the
next two decades. While coal produces the majority of our
country's electricity, few companies have plans for building
new coal-fired electric generation plants. This is due, in
part, to low natural gas prices over the past few years and
uncertainty over future environmental requirements and market
structures for electric power generation. The high capital
costs and high operating costs of currently available clean
coal technology made natural gas-fired generation the cost-
effective choice for new power plants in recent years. However,
recent high natural gas prices and increased projected demand
for natural gas have some companies reconsidering coal as an
option. Additional advancesin clean coal technologies are
needed to ensure that coal remains an affordable source of electricity.
The Clean Air Act (CAA) generally provides for the
regulation and registration of fuels and fuel additives. The
1990 Clean Air Act Amendments (1990 amendments) further
provided for the creation of reformulated gasoline (RFG) and
required the sale of this fuel in large urban areas that were
experiencing the most serious ozone pollution. The CAA
contemplates that there can be differences in fuels and fuel
additives sold in different parts of the country. State and
local governments have enacted their own requirements for fuels
and fuel additives since the 1990 amendments were enacted. This
multiplicity of different fuels has been termed the ``boutique
fuels'' situation, and has been criticized as contributing to
problems in fuel distribution and price spikes that occur when
fuel cannot be easily moved from one area to the next. Federal
legislation is needed to provide for a comprehensive review of
Federal, state, and local fuel requirements.
Renewable energy sources currently represent about 8
percent of our Nation's energy consumption. According to the
EIA, half of this amount (49 percent) is hydroelectric power,
and roughly the other half (44 percent) is biomass, mostly
wood. Solar, wind and geothermal power make up the remainder,
approximately 0.5 percent of our Nation's energy consumption.
The Energy Policy Act of 1992 created the Renewable Energy
Production Incentive (REPI) program to encourage energy
production from renewable energy projects owned by municipal
utilities or other non-profit entities that otherwise do not
qualify for tax incentives for renewable energy production.
REPI provides direct payment of 1.7 cents per kilowatt-hour to
qualifying owners for each kilowatt-hour of electricity
produced at qualifying facilities. Payments are contingent upon
Congressional funding.
When implementing REPI, the Department of Energy
established two tiers of technologies eligible for payment.
Tier I technologies are paid in full and paid first with
available funds. Tier II technologies are paid pro rata with
the remaining funds. Since its inception, the number of REPI
claims has exceeded available funding. The largest producing
projects in terms of electric power produced tend to be Tier II
technologies. The municipal utilities and others eligible for
payment under this program advocate for removal of the two-
tiered approach.
Natural gas is the fastest growing source of energy in the
United States. Much of the demand for natural gas comes from
new, more efficient turbines used to generate electricity.
Delivery of natural gas from suppliers to end-users depends on
a complex nationwide system of pipelines. Pipelines are also
used to transport oil, refined products, and hazardous liquids
throughout the country. Ensuring the integrity of our Nation's
interstate pipelines is important to guaranteeing the
availability of affordable energy supplies, and the Committee
intends to consider legislation to improve the safety of
interstate pipelines in the near future.
Hearings
The Subcommittee on Energy and Air Quality held the first
in a series of hearings on a comprehensive national energy
policy on February 28, 2001. The hearing topic was natural gas,
focusing on ways to increase the supply and availability of
natural gas to American consumers. The Committee received
testimony from: The Honorable Curt Herbert, Jr., Chairman,
Federal Energy Regulatory Commission; Ms. Elizabeth Campbell,
Energy Information Administration; Mr. Cuba Wadlington,
President and Chief Executive Officer, Williams Gas Pipeline,
on behalf of Interstate Natural Gas Association of America; Mr.
Jerry Jordon, Chairman, Jordon Energy, Incorporated, on behalf
of Independent Petroleum Association of America; Mr. Richard G.
Reiten, President and Chief Executive Officer, NW Natural, on
behalf of the American Gas Association; Mr. Andrew Littlefair,
President, Pickens Fuel Corporation, on behalf of the Natural
Gas Vehicle Coalition; Ms. Roberta A. Luxbacher, Vice
President-Americas, Exxon Mobile Gas Marketing Company, on
behalf of the Natural Gas Supply Association; Mr. Walker
Hendrix, Counsel, Kansas Citizens Utility Ratepayers Board; Mr.
Jack Hilliard, General Manager, Florence Utility, on behalf of
the American Public Gas Association; Mr. Jas Gill, Vice
President, Manufacturing, CYTEC Industries, Incorporated, and
Mr. Patricio Silva, Project Attorney, Natural Resources Defense
Council.
The Subcommittee on Energy and Air Quality held the second
in a series of hearings on a comprehensive national energy
policy on March 14, 2001. The hearing topic was the future of
coal power, focusing on advances in clean coal technology. The
Committee received testimony from: Ms. Mary Hutzler, Director,
Office of Integrated Analysis and Forecasting, Energy
Information Agency; U.S. Department of Energy,Mr. Richard
Abdoo, Chairman, President, and Chief Executive Officer, Wisconsin
Energy Corporation; Mr. J. Brett Harvey, President and Chief Executive
Officer, CONSOL Energy Incorporated; Mr. Cecil Roberts, President,
United Mine Workers of America; Dr. Roe-Hoan Yoon, Director, Virginia
Center for Coal and Minerals Processing, Virginia Polytechnic Institute
and State University; Mr. Bill Gregg, Director, Public Service
Commission of West Virginia; Mr. Edwin Pinero, Director of Program
Operations, Pennsylvania Department of Environmental Protection; and
Mr. Armond Cohen, Executive Director, Clean Air Task Force.
The Subcommittee on Energy and Air Quality held the third
in a series of hearings on a comprehensive national energy
policy on March 27, 2001. The hearing topic was nuclear energy,
focusing on increases in efficiency and safety along with
decreases in costs in current nuclear generation and the future
uses of nuclear power for American consumers. The Committee
received testimony from: The Honorable Pete V. Domenici, U.S.
Senator; Dr. William D. Travers, Executive Director for
Operations, U.S. Nuclear Regulatory Commission; Mr. William D.
Magwood, Director, Office of Nuclear Energy, Science, and
Technology, U.S. Department of Energy; Ms. Mary J. Hutzler,
Director, Office of Integrated Analysis and Forecasting, Energy
Information Administration, U.S. Department of Energy; Mr. C.
Randy Hutchinson, Senior Vice President, Business Development,
Entergy Nuclear, on behalf of the Nuclear Energy Institute; Mr.
A.C. Tollison, Jr., Executive Vice President, Institute of
Nuclear Power Operations; Mr. Ward Sproat, Vice President of
International Programs, Exelon Corporation; Mr. John R.
Longenecker, Longenecker & Associates, Inc.; and Ms. Anna
Aurilio, Legislative Director, U.S. Public Interest Research
Group.
The Subcommittee on Energy and Air Quality held the fourth
in a series of hearings on a comprehensive national energy
policy on March 30, 2001. The hearing topic was crude oil and
refined petroleum products, focusing on ways to increase the
supply of crude oil and conservation of petroleum products
through energy efficient technology. The Committee received
testimony from: Mr. John Cook, Director, Petroleum Products
Division, Energy Information Administration; Mr. Stephen D.
Layton, President and Chief Executive Officer, Equinox Oil
Company; Mr. Gregory C. King, Vice President and General
Counsel, Valero Energy Corporation; Mr. Peter D'Arco,
President, SJ Fuels; Mr. Thomas L. Robinson, Chief Executive
Officer, Robinson Oil Corporation; Mr. Richard Kassel, Senior
Attorney, Natural Resources Defense Council; and Mr. John Paul
Pitts, Oil Editor, Midland Reporter Telegram.
The Subcommittee on Energy and Air Quality held the fifth
in a series of hearings on a comprehensive national energy
policy on May 15, 2001. The hearing topic was consumer
perspectives on energy policy, focusing on the Nation's long-
term energy needs and ways to increase supply to meet new
demand. The Committee received testimony from: Mr. John Cook,
Director, Petroleum Products Division, Energy Information
Administration, U.S. Department of Energy; Mr. Lee Ottenberg,
President, Ottenberg's Bakery; Mr. James G. Parkel, President-
Elect, American Association of Retired Persons; Mr. Mark
McCutchen, President and General Manager, Tennessee Energy
Acquisition Corporation; Mr. Mahlon Anderson, Director, Public
Affairs, American Automobile Association: Mid-Atlantic; Mr.
Glen N. Buckley, Chief Economist and Director of Agribusiness,
CF Industries, Incorporated; and Mr. Johnny Duke, National
Director, Facilities Management, Kmart Corporation.
The Subcommittee on Energy and Air Quality held a hearing
on the National Energy Policy Report of the National Energy
Policy Development Group on June 13, 2001. The hearing focused
on President Bush's proposal for a comprehensive approach to
national energy policy, including reduction of demand and
conservation of the current energy supply. The Committee
received testimony from: The Honorable Spencer Abraham,
Secretary, U.S. Department of Energy.
The Subcommittee on Energy and Air Quality held the sixth
in a series of hearings on a comprehensive national energy
policy on June 22, 2001. The hearing topic was energy
efficiency and conservation, focusing on ways to improve
National efforts to accelerate efficiency and conservation. The
Committee received testimony from: The Honorable David Garman,
Assistant Secretary for Energy Efficiency and Renewable Energy,
U.S. Department of Energy; Mr. Frederick H. Hoover, Jr.,
Director, Maryland Energy Administration, on behalf of the
National Association of State Energy Officials; Mr. Steven
Nadel, Executive Director, American Council for an Energy-
Efficient Economy; Mr. Mark Wagner, Director, Johnson Controls,
Incorporated; Dr.Malcolm O'Hagan, President, National
Electrical Manufacturers Association; Ms. Josephine Cooper, President,
Alliance of Automobile Manufacturers; Mr. David Nemtzow, President,
Alliance to Save Energy; Mr. Gary Swofford, Vice President and Chief
Operating Officer--Delivery, Puget Sound Energy; Mr. Mark Rodgers,
Chief Executive Officer, SmartSynch, Incorporated; Dr. Dean Peterson,
Center Leader, Superconductivity Technology Center, Los Alamos National
Laboratories; Mr. Patricio Silva, Project Attorney, Natural Resources
Defense Council; and Mr. Jordan Clark, President, United Homeowners
Association.
The Subcommittee on Energy and Air Quality held the seventh
in a series of hearings on a comprehensive national energy
policy on June 27, 2001. The hearing topic was nuclear energy
and hydroelectric power and their role in meeting the long-term
energy needs of the United States. The Committee received
testimony from: The Honorable Richard A. Meserve, Chairman,
U.S. Nuclear Regulatory Commission; Mr. William D. Magwood,
Director, Office of Nuclear Energy, Science, and Technology,
U.S. Department of Energy; Mr. Marvin Fertel, Senior Vice
President of Business Operations, Nuclear Energy Institute; Mr.
Jack Skolds, Chief Operating Officer, Exelon Nuclear; Mr.
George Davis, Director of Government Programs and Nuclear
Systems, Westinghouse Electric Company; Mr. Laurence L. Parme,
General Atomics; Dr. E. Allen Womack, President, BWX
Technology, Inc., on behalf of Energy Contractors Price
Anderson Group; Mr. John Quattrocchi, Senior Vice President of
Underwriting, American Nuclear Insurers; Ms. Anna Aurilio,
Legislative Director, U.S. Public Interest Research Group; The
Honorable Curtis L. Hebert, Jr., Chairman, Federal Energy
Regulatory Commission, accompanied by Mr. J. Mark Robinson,
Director, Office of Energy Projects, and Ms. Kristina Nygaard,
Associate Counsel for Energy Projects, Office of General
Counsel; Mr. Barry Hill, Director, General Accounting Office,
accompanied by Mr. Charles S. Cotton, Assistant Director and
Ms. Erin Barlow, Senior Analyst; Mr. John Prescott, Vice
President of Generation, Idaho Power Company; Ms. S. Elizabeth
Birnbaum, Director of Government Affairs, American Rivers; and
Mr. Ronald Shems, Attorney, on behalf of the Vermont Agency of
Natural Resources.
Committee Consideration
On Tuesday, July 10, Wednesday, July 11, and Thursday, July
12, 2001, the Subcommittee on Energy and Air Quality met in
open markup session and approved a committee print, amended, by
a roll call vote of 29 yeas and 1 nay for Full Committee
consideration, a quorum being present. On Tuesday, July 17,
Wednesday, July 18, and Thursday, July 19, 2001, the Full
Committee met in open markup session and favorably ordered
reported the committee print, amended, as a clean bill (H.R.
2587) to be introduced, by a roll call vote of 50 yeas and 5
nays, a quorum being present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. The
following are the recorded votes taken on the motion by Mr.
Tauzin to order H.R. 2587 reported to the House, and on
amendments offered to the measure, including the names of those
members voting for and against.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held oversight hearings
and made findings that are reflected in this report.
Statement of General Performance Goals and Objectives
The goal of H.R. 2587 is to enhance energy conservation and
increase the supply of various energy sources for the American
people.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
2587, the Energy Advancement and Conservation Act of 2001,
would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
Committee Cost Estimate, Congressional Budget Office Estimate, and
Federal Mandates Statement
The Congressional Budget Office estimate required pursuant
to clause 3(c)(3) of rule XIII of the Rules of the House of
Representatives section 402 of the Congressional Budget Act of
1974, and the estimate of Federal mandates required pursuant to
section 423 of the Unfunded Mandates Reform Act were requested
from the Congressional Budget Office, but were not prepared as
of the date of filing of this report. The Congressional Budget
Office estimate and accompanying materials will be contained in
a supplemental report.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Exchange of Committee Correspondence
Committee on Energy and Commerce,
Washington, DC, July 25, 2001.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce, House of
Representatives, Rayburn House Office Building, Washington, DC.
Dear Chairman Boehner: Thank you for your letter regarding
to H.R. 2587, the Energy Advancement and Conservation Act of
2001.
I appreciate your willingness not to seek a referral of
H.S. 2587. I agree that your decision to forgo action on the
bill will not prejudice the Committee on Education and the
Workforce with respect to its jurisdictional prerogatives on
this or similar legislation. Further, I recognize your right to
request conferees on those provisions within the Committee on
Education and the Workforce's jurisdiction should they be the
subject of a House-Senate conference.
I will include your letter and this response in the
Committee's report on H.R. 2587, and I look forward to working
with you as we bring comprehensive energy legislation to the
Floor.
Sincerely,
W.J. ``Billy'' Tauzin,
Chairman.
------
Committee on Education
and the Workforce,
Washington, DC, July 24, 2001.
Hon. W.J. (Billy) Tauzin,
Chairman, Committee on Energy and Commerce,
Rayburn HOB, Washington, DC.
Dear Chairman Tauzin: Thank you for working with me
regarding H.R. 2587, the Energy Advancement and Conservation
Act, which was referred to the Committee on the Committee on
Energy and Commerce, and in addition to the Committees on Ways
and Means, Science, Transportation and Infrastructure, the
Budget, and Education and the Workforce. As you know, the
Committee on Education and Workforce holds a jurisdictional
interest in this legislation specifically provisions Section
134 dealing with the Low Income Home Energy Assistance Program
(LIHEAP); I appreciate your acknowledgment of that
jurisdictional interest. I understand the desire to have this
legislation considered expeditiously by the House; hence, I do
not intend to hold a hearing or markup on this legislation.
In agreeing to waive consideration by our Committee, I
would expect you to agree that this procedural route should not
be construed to prejudice the Committee on Education and the
Workforce's jurisdictional interest and prerogatives on this or
any similar legislation and will not be considered as precedent
for consideration of matters of jurisdictional interest to my
Committee in the future. I would also expect your support in my
request to the Speaker for the appointment of conferees from my
Committee with respect to matters within the jurisdiction of my
Committee should a conference with the Senate be convened on
this or similar legislation.
I would appreciate your including our exchange of letters
in your Committee's report to accompany H.R. 2587. Again, I
thank you for working with me in developing this legislation
and I look forward to working with you on these issues in the
future.
Sincerely,
John Boehner,
Chairman.
Section-by-Section Analysis of the Legislation
Section 1. Short title and table of contents
Section 1 designates the act as the ``Energy Advancement
and Conservation Act of 2001.''
Title I--Energy Conservation
SUBTITLE A--REAUTHORIZATION OF FEDERAL ENERGY CONSERVATION PROGRAMS
Section 101. Authorization of appropriations
Section 101 reauthorizes existing Federal energy
conservation programs administered by the Department of Energy,
including the Federal Energy Management Program (FEMP) and
various regulatory programs for energy efficient products,
appliances, and buildings created under the Energy Policy and
Conservation Act, the Energy Conservation and Production Act,
the National Energy Conservation Policy Act, and the Energy
Policy Act of 1992. The section authorizes to be appropriated
for such programs $950,000,000 for fiscal year 2002,
$1,000,000,000 for fiscal year 2003, $1,050,000,000 for fiscal
year 2004, $1,100,000,000 for fiscal year 2005, and
$1,150,000,000 for fiscal year 2006.
SUBTITLE B--FEDERAL LEADERSHIP IN ENERGY CONSERVATION
Section 121. Federal facilities and national energy security
Section 121 expands the purposes of the Federal energy
management provisions of the National Energy Conservation
Policy Act (NECPA) to include promoting the production, supply,
and marketing of energy efficiency products and services and
renewable energy sources. The section establishes new mandatory
efficiency requirements for Federal buildings: 35 percent less
energy consumption by 2010 and 45 percent by 2020, from a 1985
baseline. The section also provides that unconventional and
renewable energy resources should be used to help achieve these
required increases, and requires the Secretary of Energy to
issue technical standards and conduct studies to facilitate
implementation of the requirement. Twenty million dollars in
funding is authorized for such studies for each fiscal year
2003 through 2010.
Under NECPA, Federal buildings are exempt from the energy
consumption reduction requirements under certain circumstances.
Section 121 modifies the exemption provisions of NECPA to
providethat a Federal building may be excluded from such
requirements if the President declares the building to require
exclusion for national security reasons and the agency responsible for
the building has: submitted certain reports; otherwise achieved
compliance with the energy efficiency requirements under applicable
Federal laws and executive orders; and implemented all practical, life-
cycle cost-effective projects in the excluded building.
Section 121 also amends NECPA to establish certain
additional requirements applicable to acquisition of energy
using products. Specifically, the section requires agencies to
select available Energy Star products when acquiring new
energy-using products. When Energy Star labeled products are
not available, agencies shall select products that are in the
upper 25 percent of energy efficiency as designated by FEMP.
The Secretary of Energy is directed to develop guidelines for
exemptions where the required products are unavailable,
impractical, or do not meet agency mission requirements. The
Administrator of the General Services Administration and the
Secretary of Defense are directed to include Energy Star
designations in product catalogues and to replace inventories
with products that meet the requirements of the section or are
exempted pursuant to the section.
Agencies are further directed to incorporate Energy Star-
consistent and other FEMP designated energy efficiency levels
into specifications for new construction and renovation, and in
certain ordering, purchasing, and acquisition agreements and
procedures. The Secretary of Energy is directed to establish
guidelines for exemptions from such requirements. The
legislative branch shall be subject to the acquisition
requirements established under this section. Section 121 also
requires all Federal buildings, including legislative and
judicial branch buildings, to be metered in accordance with
guidelines established by the Secretary of Energy.
This section further amends NECPA to provide that agencies
may retain funds appropriated for energy use saved as a result
of energy savings, but such funds may be used only for energy
efficiency or unconventional and renewable energy resources
projects. NECPA is also amended to require agencies to report
certain information to the Secretary of Energy and to Congress
regarding its energy management activities. Section 121 also
amends the Energy Policy Act of 1992 (EPAct) to require that
the inspector general of each agency conduct a periodic energy
audit of the agency.
Section 121 further amends NECPA to require each agency to
undertake a comprehensive priority response review of all
practicable measures for increasing energy and water
conservation and using renewable energy sources. The agency
shall then implement such practicable measures to achieve at
least half of the potential efficiency and renewable energy
savings identified in the review.
Section 122. Enhancement and extension of authority relating to Federal
energy savings performance contracts
Section 122 expands the scope of Energy Savings Performance
Contracts (ESPCs) to include ``replacement facilities'' (i.e.,
new, more efficient buildings) and water conservation measures.
The section removes the sunset on ESPC authority, which would
otherwise expire in 2003.
Section 123. Clarification and enhancement of authority to enter
utility incentive programs for energy savings
Section 123 authorizes an agency, in the course of
exercising its authority to participate in a utility incentive
program, to enter into contracts for electricity demand
management, energy efficiency, or water conservation. The
provision also expands the scope of such authority to include
contracts for energy savings from replacement facilities and
water conservation projects. Federal agencies are encouraged to
participate in state or regional demand management programs
operated by regional transmission organizations or other
entities.
Section 124. Federal central air conditioner and heat pump efficiency
Section 124 requires that certain air conditioning and heat
pump units acquired by the Federal government meet or exceed
certain efficiency standards. This section (1) defines the
minimum standard for air conditioners with cooling capacities
of less than 65,000 Btu/hour as a Seasonal Energy Efficiency
Ratio (SEER) of 12.0, and (2) defines the minimum standard for
heat pumps with cooling capacities less than 65,000 Btu/hour as
SEER 12, with a Heating Seasonal PerformanceFactor of 7.4. An
agency shall be exempt from such requirement upon a finding of
impracticability based upon certain factors.
Section 125. Federal energy bank
Section 125 establishes a fund within the Federal
government to provide low-interest loans to Federal agencies to
pay for energy efficiency and renewable energy projects.
Funding is provided in part by annual payments into the bank by
Federal agencies in an amount equal to 5 percent of each
agency's utility bill for the preceding fiscal year. Loans are
limited to projects that meet certain criteria, including a
project payback period of 10 years or less. The section
authorizes such sums as may be necessary to implement the
section for fiscal years 2002 through 2008.
Section 126. Advanced building efficiency testbed
Section 126 directs the Secretary of Energy to establish a
development, testing, and demonstration program to enable
innovations in energy efficient building technologies. The
program shall be carried out by universities that meet certain
qualifications.
Section 127. Use of interval data in Federal buildings
Section 127 requires each executive agency to use interval
energy consumption data in reducing energy consumption in
Federal buildings.
Section 128. Review of Energy Savings Performance Contract Program
Section 128 directs the Secretary of Energy to review the
Energy Savings Performance Contract program to identify
statutory, regulatory, and administrative obstacles to Federal
agency utilization of the program. The review shall identify
areas for increasing program effectiveness, including auditing,
measurement and verification, accounting, contracting, and
energy efficiency services. The Secretary shall report findings
to the House Committee on Energy and Commerce and the Senate
Committee on Energy and Natural Resources and shall implement
administrative and regulatory changes to increase program
flexibility and effectiveness to the extent consistent with
existing statutory authority.
Section 129. Capitol Complex
Section 129 requires the Architect of the Capitol to
commission a study to evaluate the energy infrastructure of the
Capital Complex to determine how it could become more energy
efficient, using unconventional and renewable energy resources,
in a way that would enable the Complex to have reliable utility
services in the event of power fluctuations, shortages, or
outages. Section 129 authorizes for these purposes $2,000,000.
SUBTITLE C--STATE PROGRAMS
Section 131. Amendments to State energy programs
The Energy Policy and Conservation Act required the
Secretary of Energy to establish guidelines for Governors to
submit a state energy conservation feasibility report. The
report details state efforts to achieve recommended statutory
goals for energy conservation. Subsection (a) of Section 131
invites the Governors to revisit their energy conservation
report at least once every three years, and consider regional
energy conservation opportunities. Subsection (b) establishes
new recommended state conservation goals of 25 percent improved
energy efficiency over 1990 levels by 2010. Subsection (c)
extends and increases the authorization for Federal assistance
with state energy conservation programs. Funds are authorized
in the following amounts: $75,000,000 for fiscal year 2002;
$100,000,000 for fiscal years 2003 and 2004; and $125,000,000
for fiscal year 2005.
Section 132. Reauthorization of energy conservation program for schools
and hospitals
The Energy Conservation Program for Schools and Hospitals
establishes guidelines for states to conduct energy audits of
schools and hospitals, and provides financial assistance to
implement energy conservation and efficiency measures based on
those audits. Section 132 extends the authorization for this
program through 2010.
Section 133. Amendments to Weatherization Assistance Program
The Weatherization Assistance Program provides grants to
improvethe energy efficiency of low-income homes. Section 133
reauthorizes the program at increased funding levels as follows:
$250,000,000 for fiscal year 2002; $325,000,000 for fiscal year 2003;
$400,000,000 for fiscal year 2004; and $500,000,000 for fiscal year
2005.
Section 134. LIHEAP
The Low Income Home Energy Assistance Program (LIHEAP)
assists low-income consumers in paying high energy bills.
Section 134 reauthorizes the program (established under the Low
Income Home Energy Assistance Act of 1981) at a funding level
of $3,400,000,000 for each of fiscal years 2001 through 2005,
representing a 70 percent increase over total LIHEAP funding
appropriated for fiscal year 2000.
Section 135. High performance public buildings
Section 135 establishes within the Department of Energy a
High Performance Public Buildings Program to make grants to the
states to assist local governments in constructing and
renovating buildings to maximize energy efficiency and use of
renewable energy. Such sums as may be necessary to implement
the program are authorized for fiscal years 2002 through 2010.
subtitle d--energy efficiency for consumer products
Section 141. Energy Star program
The Energy Star Program is a regulatory program previously
established by administrative actions of the Department of
Energy and the Environmental Protection Agency to identify and
promote energy efficient products and buildings. Subsection (a)
of Section 141 establishes a statutory foundation for continued
operation of the Energy Star Program and instructs the two
agencies to further their partnership in promoting and
designating Energy Star products. Subsection (b) directs the
Secretary of Energy to determine whether the Energy Star label
should be extended to cover certain additional products and
buildings. The section provides that responsibilities under the
Energy Star Program, including responsibilities for particular
product categories, shall be allocated consistent with
agreements between the agencies, such as are currently in place
but potentially including amendments to such agreements as may
be necessary or appropriate to carry out the purposes of the
program.
Section 142. Labeling of energy efficient appliances
The Energy Policy and Conservation Act requires the Federal
Trade Commission (FTC) to develop labels with information on
energy consumption and operating costs for certain consumer
products. Subsection (a) of Section 142 directs the Secretary
of Energy to recommend to the FTC additional products for
labeling, where such labeling is likely to assist consumers in
making purchasing decisions and is technologically and
economically feasible. Subsection (b) directs the Commission to
initiate a rulemaking to label non-covered products if it
determines that labeling of such products is likely to assist
consumers in making purchasing decisions and is technologically
and economically feasible. Subsection (b) also directs the FTC
to initiate a rulemaking to consider the effectiveness of the
existing labeling program and to consider changes to the label
that would improve such effectiveness.
Section 143. Appliance standards
The Energy Policy and Conservation Act (EPCA) directs the
Secretary of Energy to establish efficiency standards for
certain products. Subsection (a) of Section 143 amends EPCA to
direct the Secretary to establish an efficiency standard for
standby mode electric energy consumption by certain household
appliances, with certain exceptions, to take effect 2 years
from enactment. The standard shall be 1 watt except where the
product meets certain criteria related to technical
infeasibility, compatibility with existing energy conservation
standards, and lack of cost savings compared to increase in
product price. In the case of analog televisions, a standard
established by the Secretary of Energy shall apply in lieu of
the 1 watt standard. In the case of digital televisions,
digital set top boxes, and digital video recorders, no standard
is specified and the rulemaking shall commence on January 1,
2007 and take effect 18 months thereafter.
Subsection (b) amends EPCA to direct the Secretary to
conduct a rulemaking to determine whether to establish energy
conservation standards for non-covered products. If such
products meet certain criteria, the Secretary shall prescribe a
standard if such standard isreasonably probable to be
technologically feasible and economically justified.
Subsection (c) directs the Secretary of Energy to establish
an education program to inform the public of the energy savings
that result from regular maintenance of heating, air
conditioning and ventilation systems. The Secretary is directed
to consider supporting public education programs sponsored by
trade and professional or energy efficiency organizations. Five
million dollars are authorized to carry out such public
education programs.
Subsection (d) amends EPCA to direct the Secretary to
establish an energy conservation standard for furnace fans,
central air and heat pump circulation fans, ceilings fans, and
cold drink vending machines.
subtitle e--energy efficient vehicles
Section 151. High occupancy vehicle exception
Section 151 authorizes States to permit certain hybrid and
alternative fueled vehicles to operate in high occupancy
vehicle (HOV) lanes, regardless of the number of passengers.
The decision as to whether to permit these vehicles to operate
in HOV lanes is within the discretion of the appropriate state
authority. This section does not change any current authority
which states may have to impose restrictions on HOV lane access
based upon state laws, such as air emissions laws.
Section 152. Railroad efficiency
Section 152 directs the Secretary of Energy to establish a
public- private research partnership and a research and test
center to advance locomotive technologies that increase fuel
economy and reduce emissions. Funding for these activities are
authorized as follows: $25,000,000 for fiscal year 2002;
$30,000,000 for fiscal year 2003; and $35,000,000 for fiscal
year 2004.
Section 153. Biodiesel fuel use credits
Section 153 removes a current restriction in the Energy
Policy Act that prevents credits earned for vehicle fleets
using biodiesel from being considered a credit under Section
508 of that Act. Section 153 does not change the existing
limitation under Section 312(b)(2) of the Energy Policy Act
that prevents a fleet or covered person from using biodiesel
credits to satisfy more than 50 percent of the alternative
fueled vehicle requirements of the Act.
Section 154. Mobile to stationary source trading
Section 154 directs the Administrator of the Environmental
Protection Agency to commence a review of the Agency's policies
regarding the use of mobile to stationary source trading of
emission credits under the Clean Air Act to determine whether
such trading can provide additional flexibility in achieving
and maintaining air quality, and increase the use of
alternative fuel and advanced technology vehicles.
subtitle f--other provisions
Section 161. Review of regulations to eliminate barriers to emerging
energy technology
Section 161 directs each Federal agency to review its
regulations and standards to identify barriers to market entry
for emerging energy-efficient technologies. Each agency must
then report to Congress and the President on such barriers
identified and actions the agency intends to take to remove
such barriers. Each agency shall also subsequently conduct a
similar review and report at least every 5 years.
Section 162. Advanced idle elimination systems
Section 162 directs the Environmental Protection Agency to
review mobile source emissions models to ensure they accurately
reflect the emissions resulting from extended idling of heavy-
duty trucks and other vehicles and to make appropriate changes
to update such models. Section 162 also directs the Agency to
commence a review of the appropriate emissions reduction credit
for use of advanced idle elimination systems and to revise
associated regulations and guidance as appropriate.
Section 163. Study of benefits and feasibility of oil bypass filtration
technology
Section 163 directs the Secretary of Energy and the
Administrator of the Environmental Protection Agency to conduct
a joint study of oil bypass filtration (OBF) technology in
motor vehicle engines. Section 163 requires that the study
analyze and quantify the potential benefits of OBF technology
in terms of reduced demand for oil, and the potential
environmental benefits of OBF technology in terms of reduced
waste and air pollution. Section 163 also requires that the
Secretary and the Administrator examine the feasibility of
using OBF in the Federal motor vehicle fleet.
Section 164. Gas flare study
Section 164 directs the Secretary of Energy to conduct a
study of the economic feasibility of installing small
cogeneration facilities utilizing excess gas flares at
petrochemical facilities to provide reduced electricity costs
to customers living within a certain distance of such
facilities. The Secretary shall take comments and prepare and
transmit a report on the results of the study to Congress.
Section 165. Telecommuting study
Section 165 directs the Secretary of Energy, in
consultation with the Federal Communications Commission and the
National Telecommunications and Information Administration (of
the Department of Commerce) to conduct a study of certain
energy conservation implications of the widespread adoption of
telecommuting in the United States, including identification of
regulatory barriers to telecommuting. The Secretary is directed
to submit a report on the study to the President and the
Congress.
Title II--Automobile Fuel Economy
Section 201. Average fuel economy standards for non-passenger
automobiles
Section 201 adds a new paragraph to 49 U.S.C. 32902 that
requires the Secretary of Transportation to set corporate
average fuel economy (CAFE) standards for light trucks
manufactured in model years 2004 through 2010 that are
calculated to ensure that the aggregate amount of gasoline
projected to be used by such vehicles in those model years is
at least 5 billion gallons less than the aggregate amount of
gasoline that would be used by such vehicles in those model
years under the CAFE standard in place for light trucks in
model year 2002. As used in this Title, ``non-passenger
automobiles'' are ``light trucks'' which include sport utility
vehicles, minivans, vans, and pickup trucks with a gross
vehicle weight rating of less than 8500 pounds. The mandate in
this section for the Secretary to increase the fuel economy
standard for light trucks in order to save an aggregate of at
least 5 billion gallons of gasoline in model years 2004 through
2010 is a fuel-savings ``floor,'' not a ``ceiling.'' Nothing in
this section prevents the Secretary from requiring fuel savings
in excess of 5 billion gallons. Further, this section makes no
change to the existing requirement in 49 U.S.C. 32902(a) that,
at least 18 months before the beginning of each model year, the
Secretary shall prescribe by regulation ``the maximum feasible
average fuel economy level that the Secretary decides the
manufacturers can achieve in that model year'' for light
trucks. To the extent this section conflicts with this
requirement, the five billion gallon mandate in this bill shall
prevail. If a rulemaking directing a fuel economy increase in
more than one model year is necessary to ensure that the
required fuel savings are achieved, the Secretary should
undertake such a rulemaking.
Section 202. Consideration of prescribing different average fuel
economy standards for non-passenger automobiles
Section 202 requires that the Secretary consider the
potential benefits of establishing a weight-based CAFE system
for light trucks manufactured in model year 2004, based on
inertia weight, curb weight, gross vehicle weight rating, or
other appropriate measure, and of prescribing different fuel
economy standards for such vehicles that are subject to the
weight-based system. The Secretary must specifically consider
the National Academy of Sciences study to be completed pursuant
to the Department of Transportation Appropriations Act (P.L.
106-346), and shall evaluate the merits of a weight-based
system in terms of vehicle safety, energy conservation,
competitiveness of the automobile industry, and employment in
the automobile industry. If a weight-based system is
established by the Secretary for light trucks, then an
automobile manufacturer may trade credits between and among
theclasses of light trucks it manufactures.
Section 203. Dual fueled automobiles
Section 203 extends the sunset date for CAFE credits
currently available for dual fueled vehicles. Section 203
extends the maximum 1.2 CAFE credit to model year 2008 and if
the Secretary, pursuant to existing law and regulation, extends
the CAFE credit program for an additional four years, the 0.9
CAFE credit for dual fueled vehicles is extended to 2012.
Section 204. Fuel economy of the Federal fleet of automobiles
Section 204 replaces the current Federal fleet provisions
contained in 49 U.S.C. 32917. Section 204 requires that, by
September 30, 2003, the head of each Federal executive agency
manage the procurement of vehicles for each agency so that the
average fuel economy of new vehicles in each executive agency's
Federal fleet be at least 1 mile per gallon higher than the
baseline average fuel economy of each executive agency's fleet
of vehicles that were leased or bought in fiscal year 1999. By
September 30, 2005, the average fuel economy for each executive
agency's Federal fleet of vehicles must be at least 3 miles per
gallon higher than the baseline average fuel economy of the
Federal fleet of vehicles each executive agency leased or
bought in fiscal year 1999. This section does not apply to
vehicles used for combat-related missions, law enforcement
work, or emergency rescue work.
Section 205. Hybrid vehicles and alternative vehicles
Section 205 supplements the current requirements in section
303 of the Energy Policy Act of 1992, which requires 75 percent
of the new vehicles acquired for a Federal fleet be alternative
fueled vehicles. Section 205 mandates that of the total number
of vehicles acquired by a Federal fleet in fiscal years 2004
and 2005, at least 5 percent of the vehicles, in addition to
the 75 percent of new vehicle purchases required by existing
law to be alternative fueled vehicles, be hybrid electric
vehicles or alternative fueled vehicles. In fiscal year 2006
and thereafter, the percentage of hybrid electric or
alternative fueled vehicles increases to 10 percent over and
above requirements of existing law.
Section 206. Federal fleet petroleum-based nonalternative fuels
Section 206 adds a new section at the end of Title III of
the Energy Policy Act of 1992. Section 206 requires that
Federal fleets of light duty motor vehicles, in the aggregate,
reduce the purchase of petroleum-based nonalternative fuels
beginning October 1, 2003, and that by September 30, 2009,
light duty motor vehicles in Federal fleets use only
alternative fuels. Within 120 days after the date of enactment
of this bill, the Secretary, in consultation with the
Administrator of the General Services Administration and the
Director of the Office of Management and Budget, along with the
heads of other executive agencies referenced in section 303,
shall promulgate standards providing for the full and prompt
implementation of this requirement. Thereafter, the Secretary
shall monitor progress made towards achieving the requirements
of this section and shall report annually to Congress
concerning compliance. Such sums as are necessary are
authorized to achieve the purposes of sections 304(b) and 313
of the Energy Policy Act of 1992.
Section 207. Study of feasibility and effects of reducing use of fuel
for automobiles
Section 207 requires the Secretary of Transportation,
within 30 days of the date of enactment of this bill, to enter
into an arrangement with the National Academy of Sciences to
study the feasibility and effects of reducing, by a significant
percentage, fuel consumption by automobiles by model year 2010.
This study must include an examination of, and recommendation
of alternatives to, the current CAFE program, an examination of
how automobile makers can contribute toward achieving the
significant fuel savings, an examination of the potential of
fuel cell technology in motor vehicles, and how fuel cell
technology may contribute towards achieving the fuel
consumption reduction discussed in this section. In addition,
the study must include an examination of the effects of fuel
consumption reductions on gasoline supplies, the automobile
industry, including sales of automobiles manufactured in the
United States, vehicle safety, and air quality. The report must
be completed and submitted to the Secretary and to the Congress
not later than one year after enactment of this bill.
Title III--Nuclear Energy
SUBTITLE A--GENERAL PROVISIONS
Section 301. Budget status of Nuclear Waste Fund
Section 301(a) moves the Nuclear Waste Fund off-budget. The
subsection provides that notwithstanding any other provision of
law, the receipts and disbursements of the Nuclear Waste Fund
shall not be counted as new budget authority, outlays,
receipts, or deficit or surplus for purposes of (1) the budget
of the United States Government as submitted by the President;
(2) the Congressional budget; or (3) the Balanced Budget and
Emergency Deficit Control Act of 1985. This action will protect
consumers by preventing the diversion of their fees to other
Federal programs. Section 301(b) prohibits, upon enactment, the
Director of the Office of Management and Budget from making any
estimate of the pay-as-you-go effects of subsection 301(a) of
this section. The requirement to estimate changes in direct
spending outlays and receipts stems from section 252(d) of the
Balanced Budget and Emergency Deficit Control Act of 1985.
The Nuclear Waste Policy Act of 1982 established the
Nuclear Waste Fund with a one mill fee on electricity generated
and sold by nuclear power plants. The 1982 Act provided that
these fees were to be used solely for the purpose of the
nuclear waste program, and included express limitations on use
of the Fund. Section 302(d) of the 1982 Act provides that ``DOE
may make expenditures from the Waste Fund * * * only for
purposes of radioactive waste disposal activities * * *.''
Subsection (d) provides a nonexclusive list of some of these
purposes. Although this list is nonexclusive, it is clear that
any expenditures from the Nuclear Waste Fund may be made only
by the Secretary of Energy, and ``only for purposes of
radioactive waste disposal activities.'' Expenditures of fees
paid by consumers into the Nuclear Waste Fund for other Federal
programs would violate the strict limitations in the Nuclear
Waste Policy Act of 1982, and invite further litigation.
Moving the Nuclear Waste Fund off-budget restores the
nuclear waste program to the status Congress intended when it
enacted the 1982 Act. Section 302(c) of the Act established the
Nuclear Waste Fund as a separate fund in the Treasury of the
United States, with dedicated funding sources, the one mill
fee, the one-time fees on generation and sales preceding April
7, 1983, and contributions from other Federal agencies that
dispose of spent fuel and waste in a repository. One reason
Congress set up the Nuclear Waste Fund as a separate fund with
dedicated funding sources was to insulate the program from
competition with other Federal programs for funding.
Unfortunately, budget laws enacted since the Nuclear Waste
Policy Act of 1982 have changed the status of the Nuclear Waste
Fund, forcing the program to compete with other Federal
programs for funding, despite the fact that the program had
dedicated revenue sources.
Since enactment of the Nuclear Waste Policy Act of 1982,
the Nuclear Waste Fund has accumulated a large balance,
approximately $9.5 billion at the end of September 2000. This
is not unexpected. It was anticipated revenues would exceed
expenditures in the early years of the program, and the balance
would be used when costs rose sharply during repository
construction. Unfortunately, because of budget rules it will
prove difficult to access the balance in the Nuclear Waste Fund
at a time when revenue requirements are rising.
Significantly, moving the Nuclear Waste Fund off-budget
does not result in uncontrolled or unrestricted spending. The
Secretary may only make expenditures from the Nuclear Waste
Fund subject to appropriations. Thus, there is no uncontrolled
or unrestrained spending, and appropriators retain control of
program expenditures.
Section 302. License period
Section 302 provides that the initial period of a combined
construction and operating license for a production or
utilization facility, as authorized by the Energy Policy Act of
1992 (P.L. 102-486, 106 Stat. 2776), may not exceed 40 years
from the date on which the Commission finds that the acceptance
criteria for such license required under Section 185(b) of the
Atomic Energy Act of 1954 (42 U.S.C. 2235) have been met. The
intent of this section is to align the beginning of the
licensing period with the beginning of the facility's
operation.
Section 303. Cost recovery from Government agencies
Section 303 authorizes the Commission to assess and collect
fees from other Federal agencies in return for services
rendered by the NRC, rather than recovering these costs through
the annual fees assessed to allNRC licensees. Existing
authority in section 161w of the Atomic Energy Act (42 U.S.C. 2235)
provides for cost recovery only in limited situations. This section
authorizes full cost recovery for the entire range of services that the
NRC provides to other Federal agencies. The replacement of section 483a
with section 9701 is a correction to the proper United State Code
reference.
Section 304. Depleted uranium hexafluoride
Section 304 extends spending limitations created in P.L.
104-205 to ``wall off'' funds for the purposes of implementing
the final plan to convert depleted uranium hexafluoride at the
Portsmouth and Paducah Gaseous Diffusion plants from 2002 to
2005.
The Committee notes that the schedule for implementing the
final plan required in P.L. 104-205 has slipped significantly
and that a contract is not scheduled for award until late in
calendar year 2001. The Committee urges DOE to consider whether
compliance with the National Environmental Policy Act can best
be effectuated through an environmental assessment instead of a
site specific environmental impact statement, to the extent
allowed by current regulations.
Section 305. Nuclear Regulatory Commission meetings
Section 305 is intended to make available to the public,
upon request, a transcript of discussions involving a quorum of
NRC Commissioners who gather to discuss official Commission
business. This provision requires that NRC make a recording of
such meetings, and provide notice to the public within 15 days
after such meetings. NRC is required to promptly make a
transcript available to the public, upon request, to the extent
that public disclosure of the transcript is not subject to an
exemption or prohibition under applicable law. A similar
provision considered and reported by the Committee in H.R. 2531
in the 106th Congress would have codified the Commission's 1977
rule implementing the Sunshine Act that required the Commission
open to the public any meeting of a quorum of the Commissioners
involving official Commission business. This provision does not
alter the Commission's new rule, implemented in 1999, which
allows for certain discussions involving a quorum of
Commissioners to be conducted outside of the Sunshine Act's
definition of ``meeting.'' Although this section does not
impose a specific time limit for response by the Commission,
the NRC should develop a process for the prompt response to any
public request for a transcript.
SUBTITLE B--DOMESTIC URANIUM FUEL CYCLE
Section 311. Portsmouth cold standby
Section 311 makes available $169 million from the United
States Enrichment Corporation Fund (USEC Fund) established
under section 1308 of the Atomic Energy Act of 1954, without
further appropriations, and at the discretion of the Secretary,
to maintain the Portsmouth Gaseous Diffusion plant (Portsmouth
plant) in cold standby, consistent with the hot restart plan
developed pursuant to Section 314(b), for fiscal years 2002
through 2005.
Section 312. Paducah funding
Section 312 makes available $169,000,000 from the USEC
Fund, without further appropriations, and at the discretion of
the Secretary, for activities at the Paducah Gaseous Diffusion
plant (Paducah plant), that do not duplicate the transfer and
storage operations at the Portsmouth plant, for fiscal years
2002 through 2005.
Section 313. Research and development
Section 313 makes available $254,000,000 from the USEC
fund, without further appropriation, and at the discretion of
the Secretary, to develop and implement a plan for an advanced
gas centrifuge technology for uranium enrichment at either the
Paducah or Portsmouth plants.
Section 314. Short-term reliability of domestic uranium
enrichment capacity
Section 314(a) requires the Secretary to develop draft
criteria to determine whether the hot restart of the Portsmouth
plant may be necessary, in order to mitigate against impacts
associated with disruptions in commercial nuclear fuel supply
or contract liabilities of the U.S. Government in the event of
non-performance by USEC, Inc. Section 314(b) requires the
Secretary to develop a separate plan toeffectuate the hot
restart of Portsmouth in the event the Secretary were to determine to
hot restart the Portsmouth plant.
Section 315. Cooperative research and development and special
demonstration projects for the uranium by the United States
until 2009
Section 315 authorizes $10,000,000 per year for three years
beginning in 2002, for cooperative, cost-shared, agreements
between DOE and domestic uranium producers to develop in situ
leaching mining technologies, and low cost environmental
restoration technologies. The funding is also provided for
competitively selected demonstration projects with domestic
uranium producers for enhanced production, restoration of well
fields, and decommissioning and decontamination activities.
Section 316. Maintenance of a viable domestic uranium conversion
industry
Section 316 authorizes $800,000 for the Secretary to
contract with Converdyn, Inc., the sole domestic uranium
conversion service provider, for performing research and
development to improve the environmental and economic
performance of uranium conversion operations.
Section 317. Prohibition of commercial sales of uranium by the United
States until 2009
Section 317 prohibits DOE from selling or transferring any
of its uranium inventories, in any form owned by DOE, through
March 23, 2009, except for emergency supply in the event of a
disruption in domestic supply and for certain exceptions
related to current uranium sales or transfer commitments made
by the Department. Sales after March 23, 2009 are restricted to
3,000,000 pounds per calendar year.
Section 318. Paducah decontamination and decommissioning plan
Section 318 requires the Secretary to prepare a plan to
establish the scope, cost, schedule, sequence of activities,
and contracting strategy for decontamination and
decommissioning of surplus facilities and the remediation of
material storage areas at the Paducah plant. The purpose of the
plan is to identify and prioritize health and safety risks in
these areas, and incorporate these factors in a sequence and
schedule for the plan. The plan also must identify funding
requirements.
Title IV--Hydroelectric Licensing
Section 401. Alternative conditions and fishways
Section 401 amends Part I of the Federal Power Act (FPA) to
require that federal resource agencies consider alternatives to
the mandatory conditions and fishway prescriptions they would
otherwise impose on hydroelectric power projects during a
licensing proceeding.
Section 4(e) of the FPA provides, among other things, that
licenses issued by the Federal Energy Regulatory Commission
(FERC) for projects that fall within a reservation are subject
to and shall contain such conditions as are deemed necessary by
the Secretary of the Department with jurisdiction over the
reservation for its protection and utilization. Subsection
(a)(1) establishes the right of any party to a licensing
proceeding to propose an alternative to a Secretary's proposed
condition. Subsection (a)(2) requires the Secretary to adopt an
alternative if the Secretary determines, based upon substantial
evidence provided by the party proposing the alternative, that
the alternative would provide no less protection for the
reservation than the condition deemed necessary by the
Secretary and the alternative would either cost less to
implement or result in improved operation of the project works
for electricity production. Subsection (a)(3) directs each of
the relevant Secretaries to establish, within one year from
enactment, a process within his department for resolving
disputes arising out of actions taken pursuant to this
subsection.
Section 18 of the FPA directs FERC to require a licensee,
at its own expense, to construct, maintain, and operate such
fishways as may be prescribed by the relevant Secretary.
Subsection (b)(1) establishes the right of any party to a
licensing proceeding to propose an alternative to a
prescription to construct, maintain, or operate a fishway.
Subsection (b)(2) requires that the appropriate Secretary
accept (and FERC subsequently require) an alternative to his
prescription if the Secretary determines, based upon
substantial evidence provided by the party proposing the
alternative, the alternative would be no less effective thanthe
Secretary's initial fishway prescription and the alternative would
either cost less to implement or result in improved operation of the
project works for electricity production. Subsection (b)(3) directs
each of the relevant Secretaries to establish, within one year from
enactment, a process within his department for resolving disputes
arising out of actions taken pursuant to this Subsection.
Section 402. FERC data on hydroelectric licensing
This section requires the FERC to revise its data
collection procedures regarding the hydroelectric licensing
process to provide more complete and accurate information on
the time and costs involved in the process. In testimony
received by the Committee, the General Accounting Office (GAO)
criticized FERC's data collection and management with regard to
relicensing hydroelectric projects. This section responds to
the GAO testimony and the Committee directs FERC to reform its
procedures consistent with the GAO's testimony. Further, the
Committee intends that the burden for implementing this section
should fall upon FERC and should not unduly increase the burden
on licensees to collect and transmit information to FERC.
Finally, the Committee notes that this provision neither
constricts nor expands FERC's authorities and responsibilities
under current law with regard to disclosure of proprietary or
confidential information.
Title V--Clean Coal
Section 501. Short title
Section 501 provides for the short title of the title as
the ``National Electricity and Environmental Improvement Act.''
Section 502. Findings
Section 502 sets forth certain findings concerning clean
coal technologies.
Subtitle A--Accelerated Clean Coal Power Production Program
Subtitle A provides authorization for the Department of
Energy to develop accelerated programs for the production,
supply and generation of electrical power by advanced clean
coal methods and equipment. It also requires DOE to assess the
use of coal for chemical feedstocks and transportation fuel.
Under the subtitle, DOE is required to periodically report to
Congress on methods and equipment that are able to meet cost
and performance standards and to carry out a program for
generation of coal-based power that would advance efficiency
and environmental performance. DOE is further authorized to
fund projects meeting certain efficiency and environmental
performance criteria up to a Federal share of 50 percent of the
cost of the project.
Subtitle B--Credit for Emission Reductions and Efficiency Improvements
in Existing Coal-Based Electricity Generation Facilities
Subtitle B provides tax credits for emission reductions and
efficiency improvements in existing coal-based generating
facilities. The subtitle provides a qualifying clean coal
technology unit credit in an amount equal to 10 percent of the
qualified investment, up to a limit of $100 million for
emission control equipment at any one electric generating
plant. It also establishes a production tax credit for the
first 10 years of electricity output from existing coal-based
generating units that are repowered with qualifying systems.
Subtitle C--Incentives for Early Commercial Applications of Advanced
Clean Coal Technologies
Subtitle C allows tax credits for electric generation from
advanced clean coal technology programs. Credit for investment
under Section 531 is allowed in an amount equal to 10 percent
of the qualified investment. Credit for production under
Section 532 is conditioned on the facility design heat rate and
the year the facility is originally placed in service and is
available during the first 10 years of operation. In subsequent
years, the credit is conditioned on improvements in efficiency.
The subtitle also establishes a risk pool to help defray the
cost (up to 5 percent of the cost of installation) for any
modifications necessary to achieve design performance levels
during the first 3 years of operation.
Subtitle D--Treatment of Certain Governmental and Other Entities
Subtitle D creates refundable or offset tax credits for
electric cooperatives and publicly owned utilities. It also
establishes an offset against payments required as an annual
return on appropriations by the Tennessee Valley Authority.
Title VI--Fuels
Section 601. Tank draining during transition to summertime RFG
Section 601 requires the Environmental Protection Agency
(EPA) to commence a rulemaking regarding the transition to
high-ozone season reformulated gasoline. EPA must evaluate
whether the transition to summertime RFG is conducted in a
manner that minimizes disruptions to the availability and
affordability of gasoline and maximizes flexibility for
gasoline storage tanks consistent with the goals of the Clean
Air Act. If regulatory changes are necessary, EPA must take
final action and ensure that new regulations are effective and
implemented at least 60 days before the beginning of the high
ozone season for next year. EPA may repeal, modify, or take no
action with respect to such rules consistent with Clean Air Act
authority.
Section 602. Gasoline blendstock requirements
Section 602 requires EPA to commence a rulemaking to
determine whether modifications to the Agency's current
gasoline blendstock regulations are necessary to facilitate the
movement of gasoline and gasoline feedstocks among different
regions throughout the country and to improve the ability of
petroleum refiners and importers to respond to regional
gasoline shortages and price increases. EPA is required to
consider whether subsequent environmental requirements that
were not in effect at the time these regulations were
promulgated may have rendered these regulations unnecessary or
inefficient. If regulatory changes are necessary, EPA must take
final action and ensure that new regulations are effective and
implemented at least 60 days before the beginning of the high
ozone season for next year. EPA may repeal, modify, or take no
action with respect to such consistent with Clean Air Act
authority.
Section 603. Boutique fuels
Section 603 requires EPA and the Department of Energy to
conduct a joint study of all Federal, state and local fuel
requirements. This review includes not only the RFG program,
but the wintertime oxygenated program, diesel fuel and local
regulations on gasoline volatility. The review will look at the
price and availability of fuels to the consumer, the effect of
multiple fuel requirements on the fuel distribution system, the
effect of multiple fuel requirements on air quality and vehicle
emissions and the feasibility of developing national or
regional fuel specifications. Under section 603, EPA and DOE
are also directed to examine whether new Tier II standards will
achieve some of the same air quality results as the state RFG
and state volatility programs. For all section 603
requirements, EPA and DOE are required to report back to
Congress in 90 days with recommendations regarding regulatory
and legislative actions that can be taken to simplify the
national fuel supply system and reduce costs to the consumer
while meeting the requirements of the Clean Air Act. These
recommendations must take into account the necessary lead time
for refinery and fuel distribution system modifications.
Section 604. Funding for MTBE contamination
Section 604 authorizes $200,000,000 from the Leaking
Underground Storage Trust Fund for assessment, corrective
action, inspection and monitoring activities with respect to
releases of methyl tertiary butyl ether (MTBE) from underground
storage tanks.
Title VII--Renewable Energy
Section 701. Assessment of renewable energy resources
Section 701 directs the Secretary of Energy to publish an
annual assessment by the National Laboratories of all renewable
energy resources available within the United States. The report
shall include a detailed inventory of resources and other
information useful in developing renewable energy resources.
Section 702. Renewable energy production incentive
Section 702 makes several changes to the Renewable Energy
Production Incentive (REPI) program established by Section 1212
of theEnergy Policy Act of 1992. REPI provides for payments of
1.7 cents per kilowatt-hour to qualifying generators for electricity
produced from renewable energy sources. Generators are eligible for
payment during the first 10 years of operation. Under current REPI
regulations, Tier I technologies (wind, solar, geothermal and closed-
loop biomass) are paid in full and paid first. Tier II technologies
(typically waste-to-energy technologies) are paid proportionately out
of the remaining funds. Section 702 eliminates the two-tiered payment
system, treating all qualifying technologies the same, and expands the
statutory definition of ``Qualified Renewable Energy Facilities'' to
include landfill gas technologies. Further, it expands the class of
eligible payment recipients to include Indian tribal governments.
Finally, it expands the payments to the next generation of renewable
energy projects, since the initial 10 year's class of eligible projects
was due to expire in 2003.
Title VIII--Pipeline Integrity
subtitle a--pipeline integrity
Section 801. Program for pipeline integrity research, development, and
demonstration
Section 801 directs the Secretary of Transportation, in
coordination with the Secretary of Energy and in consultation
with the Federal Energy Regulatory Commission, to develop and
implement an accelerated cooperative research and development
program to ensure the integrity of natural gas and hazardous
liquid pipelines.
Section 802. Pipeline Integrity Technical Advisory Committee
Section 802 establishes in law a Pipeline Integrity
Technical Management Council, defines its purposes, and
provides for appointments to the Council. Subsection (a)
requires the Secretary of Transportation to arrange with the
National Academy of Sciences for the establishment and
management of the Pipeline Integrity Technical Advisory
Committee and to prepare, along with the Committee, in
coordination with the Secretary of Energy, and submit to
Congress a five-year research and development program plan.
Subsection (b) directs the National Academy of Sciences to
appoint members to the Pipeline Integrity Technical Advisory
Committee after consultation with the Secretaries of
Transportation and Energy. It further provides that the
Committee's membership shall include at least one member of the
Federal Energy Regulatory Commission.
Section 803. Authorization of appropriations
Section 803 authorizes the appropriation of funds in fiscal
years 2002 through 2006 to carry out the purposes of the
subtitle. Subsection (a) authorizes the appropriation of
$3,000,000 annually to the Secretary of Transportation to be
derived from the collection of pipeline safety user fees.
Subsection (b) authorizes the appropriation of an additional
$3,000,000 per year to the Secretary of Transportation from the
Oil Spill Liability Trust Fund for activities related to
detection, prevention and mitigation of oil spills. Subsection
(c) authorizes the Secretary of Energy to expend such sums as
may be necessary and specifies that the funding be derived from
general revenues.
subtitle b--other pipeline provisions
Section 811. Prohibition on certain pipeline route
Section 811 will expedite construction of a natural gas
pipeline from Prudhoe Bay, Alaska, to markets in the United
States by prohibiting the Federal Energy Regulatory Commission
(FERC) and other federal agencies from considering further a
northern alternative to the route designated by the President
pursuant to the Alaska Natural Gas Transportation Act of 1976
(ANGTA). By removing from consideration this northern route,
the Committee expects stakeholders to focus their efforts on
completing expeditiously the project authorized under ANGTA and
related legislation.
Section 812. Historic pipelines
Section 812 amends the Natural Gas Act to provide that a
natural gas pipelines facility regulated by the Federal Energy
Regulatory Commission (FERC) is not eligible for inclusion on
the National Register of Historic Places until the Commission
has certified the abandonment of the facility pursuant to
Section 7 of the Act. The language adopted by the Committee
nullifies the eligibility oftransportation facilities regulated
by FERC as of the date of enactment, regardless of whether the facility
previously qualified as eligible for inclusion on the Register.
Title IX--Miscellaneous Provisions
Section 901. Waste reduction and use of alternatives
Section 901 authorizes the Secretary of Energy to make a
single grant of $275,000 to examine and develop the feasibility
of burning post-consumer carpet in cement kilns as an
alternative energy source. Section 901 establishes that the
purposes of the grant shall include determining: (1) how post
consumer carpet can be burned without disrupting kiln
operations; (2) the extent to which overall kiln emissions may
be reduced; and (3) how this process provides benefits to both
cement operations and carpet suppliers. Section 901 also
requires that the grant is to be made to a research-intensive
institution of higher learning with demonstrated expertise in
the fields of fiber recycling and logistical modeling of carpet
waste collection and preparation.
Section 902. Annual report on United States energy independence
Section 902 of the bill directs the Secretary of Energy, in
consultation with the heads of other relevant Federal agencies,
to include in each biannual report, required under section 801
of the Department of Energy Organization Act, an evaluation of
the progress of the United States has made towards a goal of
not more than 50 percent dependence on foreign oil sources by
2010. The evaluation must identify legislative and
administrative actions needed to implement the goal, as well as
certain information on options for meeting the goal, including
greater use of renewable energy, increased conservation, and
increased domestic production and use of oil, natural gas,
nuclear, and coal.
Section 903. Study of aircraft emissions
Section 903 directs the Administrator of the Environmental
Protection Agency, in consultation with the Secretary of
Transportation, to commence a study to investigate the impact
of aircraft emissions at all airports located within areas that
are in nonattainment for the national ambient air quality
standard for ozone. Such areas include large metropolitan
areas, including New York City. Section 903 requires that,
within 180 days after enactment of the section, the
Administrator shall submit a report to the Committee on Energy
and Commerce and the Senate Committee on Energy and Natural
Resources containing the results of the study and
recommendations with respect to a plan to maintain
comprehensive data on aircraft emissions and methods by which
such emissions may be reduced in order to assist in the
attainment of the national air quality standard for ozone.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ATOMIC ENERGY ACT OF 1954
* * * * * * *
TITLE I--ATOMIC ENERGY
* * * * * * *
CHAPTER 10. ATOMIC ENERGY LICENSES
* * * * * * *
Sec. 103. Commercial Licenses.--
a. * * *
* * * * * * *
[c. Each such] c. License Period.--
(1) In general.--Each such license shall be issued
for a specified period, as determined by the
Commission, depending on the type of activity to be
licensed, but not exceeding forty years, and may be
renewed upon the expiration of such period.
(2) Combined licenses.--In the case of a combined
construction and operating license issued under section
185 b., the initial duration of the license may not
exceed 40 years from the date on which the Commission
finds, before operation of the facility, that the
acceptance criteria required by section 185 b. are met.
* * * * * * *
CHAPTER 14. GENERAL AUTHORITY
Sec. 161. General Provisions.--In the performance of its
functions the Commission is authorized to--
a. * * *
* * * * * * *
w. prescribe and collect from any other Government
agency, which applies [for or is issued a license for a
utilization facility designed to produce electrical or
heat energy pursuant to section 103 or 104 b., or which
operates any facility regulated or certified under
section 1701 or 1702] to the Commission for, or is
issued by the Commission, a license or certificate, any
fee, charge, or price which it may require, in
accordance with the provisions of section [483a] 9701
of title 31 of the United States Code or any other
law[, of applicants for, or holders of, such licenses
or certificates].
* * * * * * *
----------
ACT OF JULY 21, 1998
(Public Law 105-204)
AN ACT To require the Secretary of Energy to submit to Congress a plan
to ensure that all amounts accrued on the books of the United States
Enrichment Corporation for the disposition of depleted uranium
hexafluoride will be used to treat and recycle depleted uranium
hexafluoride.
SECTION 1. UNITED STATES ENRICHMENT CORPORATION.
(a) * * *
(b) Limitation.--Notwithstanding the privatization of the
United States Enrichment Corporation and notwithstanding any
other provision of law (including the repeal of chapters 22
through 26 of the Atomic Energy Act of 1954 (42 U.S.C. 2297 et
seq.) made by section 3116(a)(1) of the United States
Enrichment Corporation Privatization Act (104 Stat. 1321-349),
no amounts described in subsection (a) shall be withdrawn from
the United States Enrichment Corporation Fund established by
section 1308 of the Atomic Energy Act of 1954 (42 U.S.C. 2297b-
7) or the Working Capital Account established under section
1316 of the Atomic Energy Act of 1954 (42 U.S.C. 2297b-15)
until the date that is 1 year after the date on which the
President submits to Congress the budget request for fiscal
year [2002] 2005.
* * * * * * *
----------
SECTION 3112 OF THE USEC PRIVATIZATION ACT
SEC. 3112. URANIUM TRANSFERS AND SALES.
(a) * * *
* * * * * * *
(g) Prohibition on Sales.--Notwithstanding any other
provision of law, the United States Government shall not sell
or transfer any uranium (including natural uranium
concentrates, natural uranium hexafluoride, enriched uranium,
depleted uranium, or uranium in any other form) through March
23, 2009 (except sales or transfers for use by the Tennessee
Valley Authority in relation to the Department of Energy's HEU
or Tritium programs, or the Department or Energy research
reactor sales program, or any depleted uranium hexaflouride to
be transferred to a designated Department of Energy contractor
in conjunction with the planned construction of the Depleted
Uranium Hexaflouride conversion plants in Portsmouth, Ohio, and
Paducah, Kentucky, or for emergency purposes in the event of a
disruption in supply to end users in the United States). The
aggregate of sales or transfers of uranium by the United States
Government after March 23, 2009, shall not exceed 3,000,000
pounds U3O8 per calendar year.
* * * * * * *
----------
FEDERAL POWER ACT
* * * * * * *
Sec. 4. The Commission is hereby authorized and empowered--
(a) * * *
* * * * * * *
(h)(1) Whenever any person applies for a license for any
project works within any reservation of the United States, and
the Secretary of the department under whose supervision such
reservation falls deems a condition to such license to be
necessary under the first proviso of subsection (e), the
license applicant or any other party to the licensing
proceeding may propose an alternative condition.
(2) Notwithstanding the first proviso of subsection (e), the
Secretary of the department under whose supervision the
reservation falls shall accept the proposed alternative
condition referred to in paragraph (1), and the Commission
shall include in the license such alternative condition, if the
Secretary of the appropriate department determines, based on
substantial evidence provided by the party proposing such
alternative condition, that the alternative condition--
(A) provides no less protection for the reservation
than provided by the condition deemed necessary by the
Secretary; and
(B) will either--
(i) cost less to implement, or
(ii) result in improved operation of the
project works for electricity production
as compared to the condition deemed necessary by the
Secretary.
(3) Within one year after the enactment of this subsection,
each Secretary concerned shall, by rule, establish a process to
expeditiously resolve conflicts arising under this subsection.
* * * * * * *
Sec. 18. (a) The Commission shall require the construction,
maintenance, and operation by a licensee at its own expense of
such lights and signals as may be directed by the Secretary of
the Department in which the Coast Guard is operating, and such
fishways as may be prescribed by the Secretary of Commerce. The
operation of any navigation facilities which may be constructed
as a part of or in connection with any dam or diversion
structure built under the provisions of this Act, whether at
the expense of a licensee hereunder or of the United States,
shall at all times be controlled by such reasonable rules and
regulations in the interest of navigation, including the
control of the level of the pool caused by such dam or
diversion structure as may be made from time to time by the
Secretary of the Army, and for willful failure to comply with
any such rule or regulation such licensee shall be deemed
guilty of a misdemeanor, and upon conviction thereof shall be
punished as provided in section 316 hereof.
(b)(1) Whenever the Commission shall require a licensee to
construct, maintain, or operate a fishway prescribed by the
Secretary of the Interior or the Secretary of Commerce under
this section, the licensee or any other party to the proceeding
may propose an alternative to such prescription to construct,
maintain, or operate a fishway.
(2) Notwithstanding subsection (a), the Secretary of the
Interior or the Secretary of Commerce, as appropriate, shall
accept and prescribe, and the Commission shall require, the
proposed alternative referred to in paragraph (1), if the
Secretary of the appropriate department determines, based on
substantial evidence provided by the party proposing such
alternative, that the alternative--
(A) will be no less effective than the fishway
initially prescribed by the Secretary, and
(B) will either--
(i) cost less to implement, or
(ii) result in improved operation of the
project works for electricity production
as compared to the fishway initially prescribed by the
Secretary.
(3) Within one year after the enactment of this subsection,
the Secretary of the Interior and the Secretary of Commerce
shall each, by rule, establish a process to expeditiously
resolve conflicts arising under this subsection.
* * * * * * *
----------
INTERNAL REVENUE CODE OF 1986
Subtitle A--Income Taxes
* * * * * * *
CHAPTER 1--NORMAL TAXES AND SURTAXES
* * * * * * *
Subchapter A--Determination of Tax Liability
* * * * * * *
PART IV--CREDITS AGAINST TAX
* * * * * * *
Subpart D--Business Related Credits
Sec. 38. General business credit.
* * * * * * *
Sec. 45G. Credit for production from a qualifying clean coal
technology unit.
Sec. 45H. Credit for production from qualifying advanced clean
coal technology.
* * * * * * *
SEC. 38. GENERAL BUSINESS CREDIT.
(a) * * *
(b) Current Year Business Credit.--For purposes of this
subpart, the amount of the current year business credit is the
sum of the following credits determined for the taxable year:
(1) * * *
* * * * * * *
(14) in the case of an eligible employer (as defined
in section 45E(c)), the small employer pension plan
startup cost credit determined under section 45E(a),
[plus]
(15) the employer-provided child care credit
determined under section 45F[.],
(16) the qualifying clean coal technology production
credit determined under section 45G(a), plus
(17) the qualifying advanced clean coal technology
production credit determined under section 45H(a).
* * * * * * *
SEC. 39. CARRYBACK AND CARRYFORWARD OF UNUSED CREDITS.
(a) * * *
* * * * * * *
(d) Transitional Rules.--
(1) * * *
* * * * * * *
(11) No carryback of section 48a credit before
effective date.--No portion of the unused business
credit for any taxable year which is attributable to
the qualifying clean coal technology unit credit
determined under section 48A may be carried back to a
taxable year ending before the date of enactment of
section 48A.
(12) No carryback of section 45g credit before
effective date.--No portion of the unused business
credit for any taxable year which is attributable to
the qualifying clean coal technology production credit
determined under section 45G may be carried back to a
taxable year ending before the date of enactment of
section 45G.
(13) No carryback of section 48b credit before
effective date.--No portion of the unused business
credit for any taxable year which is attributable to
the qualifying advanced clean coal technology facility
credit determined under section 48B may be carried back
to a taxable year ending before the date of enactment
of section 48B.
(14) No carryback of section 45h credit before
effective date.--No portion of the unused business
credit for any taxable year which is attributable to
the qualifying advanced clean coal technology
production credit determined under section 45H may be
carried back to a taxable year ending before the date
of enactment of section 45H.
* * * * * * *
SEC. 45G. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL TECHNOLOGY
UNIT.
(a) General Rule.--For purposes of section 38, the qualifying
clean coal technology production credit of any taxpayer for any
taxable year is equal to the product of--
(1) the applicable amount of clean coal technology
production credit, multiplied by
(2) the kilowatt hours of electricity produced by the
taxpayer during such taxable year at a qualifying clean
coal technology unit during the 10-year period
beginning on the date the unit was returned to service
after retrofit, repowering, or replacement.
(b) Applicable Amount.--
(1) In general.--For purposes of this section, the
applicable amount of clean coal technology production
credit is equal to $0.0034.
(2) Inflation adjustment factor.--For calendar years
after 2001, the applicable amount of clean coal
technology production credit shall be adjusted by
multiplying such amount by the inflation adjustment
factor for the calendar year in which the amount is
applied. If any amount as increased under the preceding
sentence is not a multiple of 0.01 cent, such amount
shall be rounded to the nearest multiple of 0.01 cent.
(c) Definitions and Special Rules.--For purposes of this
section--
(1) Qualifying clean coal technology unit.--The term
``qualifying clean coal technology unit'' means a unit
of the taxpayer which--
(A) is an existing coal-based electricity
generating steam generator-turbine unit,
(B) has a nameplate capacity rating of not
more than 300,000 kilowatts, and
(C) has been retrofitted, repowered, or
replaced with a clean coal technology within 10
years after the effective date of this section.
(2) Clean coal technology.--The term ``clean coal
technology'' means technology which--
(A) uses coal to produce 50 percent or more
of its thermal output as electricity, including
advanced pulverized coal or atmospheric
fluidized bed combustion, pressurized fluidized
bed combustion, integrated gasification
combined cycle, or any other technology for the
production of electricity,
(B) has a design heat rate not less than 500
Btu/kWh below that of the existing unit before
it is retrofit, repowered, or replaced with the
qualifying clean coal technology,
(C) has a maximum design heat rate of not
more than 9,500 Btu/kWh when the design coal
has a heat content of more than 9,000 Btu per
pound,
(D) has a maximum design heat rate of not
more than 10,500 Btu/kWh when the design coal
has a heat content of 9,000 Btu per pound or
less, and
(E) reduces the discharge into the atmosphere
of 1 or more of the following pollutants to not
more than--
(i) 5 percent of the potential
combustion concentration sulfur dioxide
emissions for a coal with a potential
combustion concentration sulfur
emission of 1.2 lb/million btu of heat
input or greater,
(ii) 15 percent of the potential
combustion concentration sulfur dioxide
emissions for a coal with a potential
combustion concentration sulfur
emission of less than 1.2 lb/million
Btu of heat input,
(iii) nitrogen oxide emissions of 0.1
lb per million Btu of heat input from
other than cyclone-fired boilers,
(iv) 15 percent of the uncontrolled
nitrogen oxide emissions from cyclone-
fired boilers,
(v) particulate emissions of 0.02 lb
per million Btu of heat input, and
(vi) the emission levels specified in
the new source performance standards of
the Clean Air Act (42 U.S.C. 7411) in
effect at the time of construction,
installation or retrofitting of the
qualifying clean coal technology unit
for the category of source if such
level is lower than the levels
specified in clause (i), (ii), (iii),
(iv), or (v).
(3) Application of certain rules.--The rules of
paragraphs (3), (4), and (5) of section 45 shall apply.
(4) Inflation adjustment factor.--The term
``inflation adjustment factor'' means, with respect to
a calendar year, a fraction the numerator of which is
the GDP implicit price deflator for the preceding
calendar year and the denominator of which is the GDP
implicit price deflator for the calendar year 2001.
(5) GDP implicit price deflator.--The term ``GDP
implicit price deflator'' means the most recent
revision of the implicit price deflator for the gross
domestic product as computed by the Department of
Commerce before March 15 of the calendar year.
(d) Coordination With Other Credits.--This section shall not
apply to any property with respect to which the qualifying
clean coal technology unit credit under section 48A is allowed
unless the taxpayer elects to waive the application of such
credit to such property.
SEC. 45H. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY.
(a) General Rule.--For purposes of section 38, the qualifying
advanced clean coal technology production credit of any
taxpayer for any taxable year is equal to--
(1) the applicable amount of advanced clean coal
technology production credit, multiplied by
(2) the sum of--
(A) the kilowatt hours of electricity, plus
(B) each 3,413 Btu of fuels or chemicals,
produced by the taxpayer during such taxable year at a
qualifying advanced clean coal technology facility
during the 10-year period beginning on the date the
facility was originally placed in service.
(b) Applicable Amount.--For purposes of this section, the
applicable amount of advanced clean coal technology production
credit with respect to production from a qualifying advanced
clean coal technology facility shall be determined as follows:
(1) Where the design coal has a heat content of more
than 9,000 Btu per pound:
(A) In the case of a facility originally
placed in service before 2009, if--
------------------------------------------------------------------------
The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal For 1st 5 years of For 2d 5 years of
to: such service such service
------------------------------------------------------------------------
Not more than 8,400......... $.0060 $.0038
More than 8,400 but not more $.0025 $.0010
than 8,550.
More than 8,550 but not more $.0010 $.0010.
than 8,750.
------------------------------------------------------------------------
(B) In the case of a facility originally
placed in service after 2008 and before 2013,
if--
------------------------------------------------------------------------
The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal For 1st 5 years of For 2d 5 years of
to: such service such service
------------------------------------------------------------------------
Not more than 7,770......... $.0105 $.0090
More than 7,770 but not more $.0085 $.0068
than 8,125.
More than 8,125 but not more $.0075 $.0055.
than 8,350.
------------------------------------------------------------------------
(C) In the case of a facility originally
placed in service after 2012 and before 2017,
if--
------------------------------------------------------------------------
The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal For 1st 5 years of For 2d 5 years of
to: such service such service
------------------------------------------------------------------------
Not more than 7,380......... $.0140 $.01
More than 7,380 but not more $.0120 $.0090.
than 7,720.
------------------------------------------------------------------------
(2) Where the design coal has a heat content of not
more than 9,000 Btu per pound:
(A) In the case of a facility originally
placed in service before 2009, if--
------------------------------------------------------------------------
The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal For 1st 5 years of For 2d 5 years of
to: such service such service
------------------------------------------------------------------------
Not more than 8,500......... $.0060 $.0038
More than 8,500 but not more $.0025 $.0010
than 8,650.
More than 8,650 but not more $.0010 $.0010.
than 8,750.
------------------------------------------------------------------------
(B) In the case of a facility originally
placed in service after 2008 and before 2013,
if--
------------------------------------------------------------------------
The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal For 1st 5 years of For 2d 5 years of
to: such service such service
------------------------------------------------------------------------
Not more than 8,000......... $.0105 $.009
More than 8,000 but not more $.0085 $.0068
than 8,250.
More than 8,250 but not more $.0075 $.0055.
than 8,400.
------------------------------------------------------------------------
(C) In the case of a facility originally
placed in service after 2012 and before 2017,
if--
------------------------------------------------------------------------
The applicable amount is:
The facility design net heat -------------------------------------------
rate, Btu/kWh (HHV) is equal For 1st 5 years of For 2d 5 years of
to: such service such service
------------------------------------------------------------------------
Not more than 7,800......... $.0140 $.0115
More than 7,800 but not more $.0120 $.0090.
than 7,950.
------------------------------------------------------------------------
(3) Where the clean coal technology facility is
producing fuel or chemicals:
(A) In the case of a facility originally
placed in service before 2009, if--
------------------------------------------------------------------------
The applicable amount is:
The facility design net -------------------------------------------
thermal efficiency (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not less than 40.6 percent.. $.0060 $.0038
Less than 40.6 but not less $.0025 $.0010
than 40 percent.
Less than 40 but not less $.0010 $.0010.
than 39 percent.
------------------------------------------------------------------------
(B) In the case of a facility originally
placed in service after 2008 and before 2013,
if--
------------------------------------------------------------------------
The applicable amount is:
The facility design net -------------------------------------------
thermal efficiency (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not less than 43.9 percent.. $.0105 $.009
Less than 43.9 but not less $.0085 $.0068
than 42 percent.
Less than 42 but not less $.0075 $.0055.
than 40.9 percent.
------------------------------------------------------------------------
(C) In the case of a facility originally
placed in service after 2012 and before 2017,
if--
------------------------------------------------------------------------
The applicable amount is:
The facility design net -------------------------------------------
thermal efficiency (HHV) is For 1st 5 years of For 2d 5 years of
equal to: such service such service
------------------------------------------------------------------------
Not less than 44.2 percent.. $.0140 $.0115
Less than 44.2 but not less $.0120 $.0090.
than 43.6 percent.
------------------------------------------------------------------------
(c) Inflation Adjustment Factor.--For calendar years after
2001, each amount in paragraphs (1), (2), and (3) shall be
adjusted by multiplying such amount by the inflation adjustment
factor for the calendar year in which the amount is applied. If
any amount as increased under the preceding sentence is not a
multiple of 0.01 cent, such amount shall be rounded to the
nearest multiple of 0.01 cent.
(d) Definitions and Special Rules.--For purposes of this
section--
(1) In general.--Any term used in this section which
is also used in section 48B shall have the meaning
given such term in section 48B.
(2) Applicable rules.--The rules of paragraphs (3),
(4), and (5) of section 45 shall apply.
(3) Inflation adjustment factor.--The term
``inflation adjustment factor'' means, with respect to
a calendar year, a fraction the numerator of which is
the GDP implicit price deflator for the preceding
calendar year and the denominator of which is the GDP
implicit price deflator for the calendar year 2001.
(4) GDP implicit price deflator.--The term ``GDP
implicit price deflator'' means the most recent
revision of the implicit price deflator for the gross
domestic product as computed by the Department of
Commerce before March 15 of the calendar year.
* * * * * * *
Subpart E--Rules for Computing Work Investment Credit
Sec. 46. Amount of credit.
* * * * * * *
Sec. 48A. Qualifying clean coal technology unit credit.
Sec. 48B. Qualifying advanced clean coal technology facility
credit.
* * * * * * *
SEC. 46. AMOUNT OF CREDIT.
For purposes of section 38, the amount of the investment
credit determined under this section for any taxable year shall
be the sum of--
(1) the rehabilitation credit,
(2) the energy credit, [and]
(3)the reforestation credit[.],
(4) the qualifying clean coal technology unit credit,
and
(5) the qualifying advanced clean coal technology
facility credit.
* * * * * * *
SEC. 48A. QUALIFYING CLEAN COAL TECHNOLOGY UNIT CREDIT.
(a) In General.--For purposes of section 46, the qualifying
clean coal technology unit credit for any taxable year is an
amount equal to 10 percent of the qualified investment in a
qualifying system of continuous emission control for such
taxable year.
(b) Qualifying System of Continuous Emission Control.--
(1) In general.--For purposes of subsection (a), the
term ``qualifying system of continuous emission
control'' means a system of the taxpayer which--
(A) serves, is added to, or retrofits an
existing coal-based electricity generation
unit, the construction, installation, or
retrofitting of which is completed by the
taxpayer (but only with respect to that portion
of the basis which is properly attributable to
such construction, installation, or
retrofitting),
(B) reduces the discharge into the atmosphere
of 1 or more of the following pollutants to not
more than--
(i) 5 percent of the potential
combustion concentration sulfur dioxide
emissions for a coal with a potential
combustion concentration sulfur
emission of 1.2 lb/million btu of heat
input or greater,
(ii) 15 percent of the potential
combustion concentration sulfur dioxide
emissions for a coal with a potential
combustion concentration sulfur
emission of less than 1.2 lb/million
Btu of heat input,
(iii) nitrogen oxide emissions of 0.l
lb per million Btu of heat input from
other than cyclone-fired boilers,
(iv) 15 percent of the uncontrolled
nitrogen oxide emissions from cyclone-
fired boilers,
(v) particulate emission of 0.02 lb
per million Btu of heat input, and
(vi) the emission levels specified in
the new source performance standards of
the Clean Air Act (42 U.S.C. 7411) in
force at the time of construction,
installation or retrofitting of the
qualifying system of continuous
emission control for the category of
source if such level is lower than the
levels specified in clause (i), (ii),
(iii), (iv), or (v),
(C) is depreciable under section 167,
(D) has a useful life of not less than 4
years, and
(E) is located in the United States.
(2) Special rule for sale-leasebacks.--For purposes
of subparagraph (A) of paragraph (1), in the case of a
unit which--
(A) is originally placed in service by a
person, and
(B) is sold and leased back by such person,
or is leased to such person, within 3 months
after the date such unit was originally placed
in service, for a period of not less than 12
years,
such unit shall be treated as originally placed in
service not earlier than the date on which such
property is used under the leaseback (or lease)
referred to in subparagraph (B). The preceding sentence
shall not apply to any property if the lessee and
lessor of such property make an election under this
sentence. Such an election, once made, may be revoked
only with the consent of the Secretary.
(c) Existing Coal-Based Electricity Generation Unit.--For
purposes of subsection (a), the term ``existing coal-based
electricity generating unit'' means, with respect to any
taxable year, a steam generator-turbine unit which uses coal to
produce 75 percent or more of its output as electricity and was
operated commercially before the effective date of this
section.
(d) Limit on Qualifying Clean Coal Technology Unit Credit.--
For purposes of subsection (a), the credit shall be applicable
to not more than the first $100,000,000 of qualifying
investment in a qualifying system of continuous emission
control at any 1 existing coal-based electricity generating
unit.
(e) Qualified Investment.--For purposes of subsection (a),
the term ``qualified investment'' means, with respect to any
taxable year, the basis of a qualifying system of continuous
emission control placed in service by the taxpayer during such
taxable year.
(f) Qualified Progress Expenditures.--
(1) Increase in qualified investment.--In the case of
a taxpayer who has made an election under paragraph
(5), the amount of the qualified investment of such
taxpayer for the taxable year (determined under
subsection (e) without regard to this subsection) shall
be increased by an amount equal to the aggregate of
each qualified progress expenditure for the taxable
year with respect to progress expenditure property.
(2) Progress expenditure property defined.--For
purposes of this subsection, the term ``progress
expenditure property'' means any property being
constructed by or for the taxpayer and which it is
reasonable to believe will qualify as a qualifying
system of continuous emission control which is being
constructed by or for the taxpayer when it is placed in
service.
(3) Qualified progress expenditures defined.--For
purposes of this subsection--
(A) Self-constructed property.--In the case
of any self-constructed property, the term
``qualified progress expenditures'' means the
amount which, for purposes of this subpart, is
properly chargeable (during such taxable year)
to capital account with respect to such
property.
(B) Nonself-constructed property.--In the
case of nonself-constructed property, the term
``qualified progress expenditures'' means the
amount paid during the taxable year to another
person for the construction of such property.
(4) Other definitions.--For purposes of this
subsection--
(A) Self-constructed property.--The term
``self-constructed property'' means property
for which it is reasonable to believe that more
than half of the construction expenditures will
be made directly by the taxpayer.
(B) Nonself-constructed property.--The term
``nonself-constructed property'' means property
which is not self-constructed property.
(C) Construction, etc.--The term
``construction'' includes reconstruction and
erection, and the term ``constructed'' includes
reconstructed and erected.
(D) Only construction of qualifying system of
continuous emission control to be taken into
account.--Construction shall be taken into
account only if, for purposes of this subpart,
expenditures therefor are properly chargeable
to capital account with respect to the
property.
(5) Election.--An election under this subsection may
be made at such time and in such manner as the
Secretary may by regulations prescribe. Such an
election shall apply to the taxable year for which made
and to all subsequent taxable years. Such an election,
once made, may not be revoked except with the consent
of the Secretary.
(g) Coordination With Other Credits.--This section shall not
apply to any property with respect to which the rehabilitation
credit under section 47 or the energy credit under section 48
is allowed unless the taxpayer elects to waive the application
of such credit to such property.
(h) Termination.--This section shall not apply with respect
to any qualified investment made more than 10 years after the
effective date of this section.
SEC. 48B. QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY CREDIT.
(a) In General.--For purposes of section 46, the qualifying
advanced clean coal technology facility credit for any taxable
year is an amount equal to 10 percent of the qualified
investment in a qualifying advanced clean coal technology
facility for such taxable year.
(b) Qualifying Advanced Clean Coal Technology Facility.--
(1) In general.--For purposes of subsection (a), the
term ``qualifying advanced clean coal technology
facility'' means a facility of the taxpayer which--
(A)(i)(I) original use of which commences
with the taxpayer, or
(II) is a retrofitted or repowered
conventional technology facility, the
retrofitting or repowering of which is
completed by the taxpayer (but only with
respect to that portion of the basis which is
properly attributable to such retrofitting or
repowering), or
(ii) is acquired through purchase (as defined
by section 179(d)(2)),
(B) is depreciable under section 167,
(C) has a useful life of not less than 4
years,
(D) is located in the United States, and
(E) uses qualifying advanced clean coal
technology.
(2) Special rule for sale-leasebacks.--For purposes
of subparagraph (A) of paragraph (1), in the case of a
facility which--
(A) is originally placed in service by a
person, and
(B) is sold and leased back by such person,
or is leased to such person, within 3 months
after the date such facility was originally
placed in service, for a period of not less
than 12 years,
such facility shall be treated as originally placed in
service not earlier than the date on which such
property is used under the leaseback (or lease)
referred to in subparagraph (B). The preceding sentence
shall not apply to any property if the lessee and
lessor of such property make an election under this
sentence. Such an election, once made, may be revoked
only with the consent of the Secretary.
(c) Qualifying Advanced Clean Coal Technology.--For purposes
of paragraph (1)--
(1) In general.--The term ``qualifying advanced clean
coal technology'' means, with respect to clean coal
technology--
(A) which has--
(i) multiple applications, with a
combined capacity of not more than
5,000 megawatts (4,000 megawatts before
2009), of advanced pulverized coal or
atmospheric fluidized bed combustion
technology--
(I) installed as a new,
retrofit, or repowering
application,
(II) operated between 2000
and 2012, and
(III) having a design net
heat rate of not more than
9,500 Btu per kilowatt hour
when the design coal has a heat
content of more than 9,000 Btu
per pound, or a design net heat
rate of not more than 9,900 Btu
per kilowatt hour when the
design coal has a heat content
of 9,000 Btu per pound or less,
(ii) multiple applications, with a
combined capacity of not more than
1,000 megawatts (500 megawatts before
2009 and 750 megawatts before 2013), of
pressurized fluidized bed combustion
technology--
(I) installed as a new,
retrofit, or repowering
application,
(II) operated between 2000
and 2016, and
(III) having a design net
heat rate of not more than
8,400 Btu per kilowatt hour
when the design coal has a heat
content of more than 9,000 Btu
per pound, or a design net heat
rate of not more than 9,900
Btu's per kilowatt hour when
the design coal has a heat
content of 9,000 Btu per pound
or less, and
(iii) multiple applications, with a
combined capacity of not more than
2,000 megawatts (1,000 megawatts before
2009 and 1,500 megawatts before 2013),
of integrated gasification combined
cycle technology, with or without fuel
or chemical co-production--
(I) installed as a new,
retrofit, or repowering
application,
(II) operated between 2000
and 2016,
(III) having a design net
heat rate of not more than
8,550 Btu per kilowatt hour
when the design coal has a heat
content of more than 9,000 Btu
per pound, or a design net heat
rate of not more than 9,900 Btu
per kilowatt hour when the
design coal has a heat content
of 9,000 Btu per pound or less,
and
(IV) having a net thermal
efficiency on any fuel or
chemical co-production of not
less than 39 percent (higher
heating value), or
(iv) multiple applications, with a
combined capacity of not more than
2,000 megawatts (1,000 megawatts before
2009 and 1,500 megawatts before 2013)
of technology for the production of
electricity--
(I) installed as a new,
retrofit, or repowering
application,
(II) operated between 2000
and 2016, and
(III) having a carbon
emission rate which is not more
than 85 percent of conventional
technology, and
(B) which reduces the discharge into the
atmosphere of 1 or more of the following
pollutants to not more than--
(i) 5 percent of the potential
combustion concentration sulfur dioxide
emissions for a coal with a potential
combustion concentration sulfur
emission of 1.2 lb/million btu of heat
input or greater,
(ii) 15 percent of the potential
combustion concentration sulfur dioxide
emissions for a coal with a potential
combustion concentration sulfur
emission of less than 1.2 lb/million
Btu of heat input,
(iii) nitrogen oxide emissions of 0.1
lb per million Btu of heat input from
other than cyclone-fired boilers,
(iv) 15 percent of the uncontrolled
nitrogen oxide emissions from cyclone-
fired boilers,
(v) particulate emissions of 0.02 lb
per million Btu of heat input, and
(vi) the emission levels specified in
the new source performance standards of
the Clean Air Act (42 U.S.C. 7411) in
effect at the time of retrofitting,
repowering, or replacement of the
qualifying clean coal technology unit
for the category of source if such
level is lower than the levels
specified in clause (i), (ii), (iii),
(iv), or (v).
(2) Exceptions.--Such term shall not include any
projects receiving or scheduled to receive funding
under the Clean Coal Technology Program, or the Power
Plant Improvement administered by the Secretary of the
Department of Energy or a Qualifying Clean Coal
Technology Unit as defined in section 45G(c)(1).
(d) Clean Coal Technology.--The term ``clean coal
technology'' means advanced technology which uses coal to
produce 75 percent or more of its thermal output as electricity
including advanced pulverized coal or atmospheric fluidized bed
combustion, pressurized fluidized bed combustion, integrated
gasification combined cycle with or without fuel or chemical
co-production, and any other technology for the production of
electricity which exceeds the performance of conventional
technology.
(e) Conventional Technology.--The term ``conventional
technology'' means--
(1) coal-fired combustion technology with a design
net heat rate of not less than 9,500 Btu per kilowatt
hour (HHV) and a carbon equivalents emission rate of
not more than 0.54 pounds of carbon per kilowatt hour
when the design coal has a heat content of more than
9,000 Btu per pound,
(2) coal-fired combustion technology with a design
net heat rate of not less than 10,500 Btu per kilowatt
hour (HHV) and a carbon equivalents emission rate of
not more than 0.60 pounds of carbon per kilowatt hour
when the design coal has a heat content of 9,000 Btu
per pound or less, or
(3) natural gas-fired combustion technology with a
design net heat rate of not less than 7,500 Btu per
kilowatt hour (HHV) and a carbon equivalents emission
rate of not more than 0.24 pounds of carbon per
kilowatt hour.
(f) Design Net Heat Rate.--The design net heat rate shall be
based on the design annual heat input to and the design annual
net electrical output from the qualifying advanced clean coal
technology (determined without regard to such technology's co-
generation of steam).
(g) Selection Criteria.--Selection criteria for qualifying
advanced clean coal technology facilities--
(1) shall be established by the Secretary of Energy
as part of a competitive solicitation,
(2) shall include primary criteria of minimum design
net heat rate, maximum design thermal efficiency,
environmental performance, and lowest cost to the
government, and
(3) shall include supplemental criteria as determined
appropriate by the Secretary of Energy.
(h) Qualified Investment.--For purposes of subsection (a),
the term ``qualified investment'' means, with respect to any
taxable year, the basis of a qualifying advanced clean coal
technology facility placed in service by the taxpayer during
such taxable year.
(i) Qualified Progress Expenditures.--
(1) Increase in qualified investment.--In the case of
a taxpayer who has made an election under paragraph
(5), the amount of the qualified investment of such
taxpayer for the taxable year (determined under
subsection (c) without regard to this section) shall be
increased by an amount equal to the aggregate of each
qualified progress expenditure for the taxable year
with respect to progress expenditure property.
(2) Progress expenditure property defined.--For
purposes of this subsection, the term ``progress
expenditure property'' means any property being
constructed by or for the taxpayer and which it is
reasonable to believe will qualify as a qualifying
advanced clean coal technology facility which is being
constructed by or for the taxpayer when it is placed in
service.
(3) Qualified progress expenditures defined.--For
purposes of this subsection--
(A) Self-constructed property.--In the case
of any self-constructed property, the term
``qualified progress expenditures'' means the
amount which, for purposes of this subpart, is
properly chargeable (during such taxable year)
to capital account with respect to such
property.
(B) Nonself-constructed property.--In the
case of nonself-constructed property, the term
``qualified progress expenditures'' means the
amount paid during the taxable year to another
person for the construction of such property.
(4) Other definitions.--For purposes of this
subsection--
(A) Self-constructed property.--The term
``self-constructed property'' means property
for which it is reasonable to believe that more
than half of the construction expenditures will
be made directly by the taxpayer.
(B) Nonself-constructed property.--The term
``nonself-constructed property'' means property
which is not self-constructed property.
(C) Construction, etc..--The term
``construction'' includes reconstruction and
erection, and the term ``constructed'' includes
reconstructed and erected.
(D) Only construction of qualifying advanced
clean coal technology facility to be taken into
account.--Construction shall be taken into
account only if, for purposes of this subpart,
expenditures therefor are properly chargeable
to capital account with respect to the
property.
(5) Election.--An election under this subsection may
be made at such time and in such manner as the
Secretary may by regulations prescribe. Such an
election shall apply to the taxable year for which made
and to all subsequent taxable years. Such an election,
once made, may not be revoked except with the consent
of the Secretary.
(j) Coordination With Other Credits.--This section shall not
apply to any property with respect to which the rehabilitation
credit under section 47 or the energy credit under section 48
is allowed unless the taxpayer elects to waive the application
of such credit to such property.
(k) Termination.--This section shall not apply with respect
to any qualified investment made more than 10 years after the
effective date of this section.
* * * * * * *
SEC. 49. AT-RISK RULES.
(a) General Rule.--
(1) Certain nonrecourse financing excluded from
credit base.--
(A) * * *
* * * * * * *
(C) Credit base defined.--For purposes of
this paragraph, the term ``credit base''
means--
(i) the portion of the basis of any
qualified rehabilitated building
attributable to qualified
rehabilitation expenditures,
(ii) the basis of any energy
property, [and]
(iii) the amortizable basis of any
qualified timber property[.],
(iv) the portion of the basis of any
qualifying system of continuous
emission control attributable to any
qualified investment (as defined by
section 48A(e)), and
(v) the portion of the basis of any
qualifying advanced clean coal
technology facility attributable to any
qualified investment (as defined by
section 48B(c)).
* * * * * * *
SEC. 50. OTHER SPECIAL RULES.
(a) Recapture in case of dispositions, etc. --
(1) * * *
* * * * * * *
(4) Subsection not to apply in certain cases.--
Paragraphs (1) [and (2)], (2), (6), and (7) shall not
apply to--
(A) * * *
* * * * * * *
(6) Special rules relating to qualifying system of
continuous emission control.--For purposes of applying
this subsection in the case of any credit allowable by
reason of section 48A, the following shall apply:
(A) General rule.--In lieu of the amount of
the increase in tax under paragraph (1), the
increase in tax shall be an amount equal to the
investment tax credit allowed under section 38
for all prior taxable years with respect to a
qualifying system of continuous emission
control (as defined by section 48A(b)(1))
multiplied by a fraction whose numerator is the
number of years remaining to fully depreciate
under this title the qualifying system of
continuous emission control disposed of, and
whose denominator is the total number of years
over which such unit would otherwise have been
subject to depreciation. For purposes of the
preceding sentence, the year of disposition of
the qualifying system of continuous emission
control property shall be treated as a year of
remaining depreciation.
(B) Property ceases to qualify for progress
expenditures.--Rules similar to the rules of
paragraph (2) shall apply in the case of
qualified progress expenditures for a
qualifying system of continuous emission
control under section 48A, except that the
amount of the increase in tax under
subparagraph (A) of this paragraph shall be
substituted in lieu of the amount described in
such paragraph (2).
(C) Application of paragraph.--This paragraph
shall be applied separately with respect to the
credit allowed under section 38 regarding a
qualifying system of continuous emission
control.
(7) Special rules relating to qualifying advanced
clean coal technology facility.--For purposes of
applying this subsection in the case of any credit
allowable by reason of section 48B, the following shall
apply:
(A) General rule.--In lieu of the amount of
the increase in tax under paragraph (1), the
increase in tax shall be an amount equal to the
investment tax credit allowed under section 38
for all prior taxable years with respect to a
qualifying advanced clean coal technology
facility (as defined by section 48B(b)(1))
multiplied by a fraction whose numerator is the
number of years remaining to fully depreciate
under this title the qualifying advanced clean
coal technology facility disposed of, and whose
denominator is the total number of years over
which such facility would otherwise have been
subject to depreciation. For purposes of the
preceding sentence, the year of disposition of
the qualifying advanced clean coal technology
facility property shall be treated as a year of
remaining depreciation.
(B) Property ceases to qualify for progress
expenditures.--Rules similar to the rules of
paragraph (2) shall apply in the case of
qualified progress expenditures for a
qualifying advanced clean coal technology
facility under section 48B, except that the
amount of the increase in tax under
subparagraph (A) of this paragraph shall be
substituted in lieu of the amount described in
such paragraph (2).
(C) Application of paragraph.--This paragraph
shall be applied separately with respect to the
credit allowed under section 38 regarding a
qualifying advanced clean coal technology
facility.
(c) Basis Adjustment to Investment Credit Property.--
(1) * * *
* * * * * * *
(6) Nonapplication.--Paragraphs (1) and (2) shall not
apply to any qualifying clean coal technology unit
credit under section 48A or any advanced clean coal
technology facility credit under section 48B.
* * * * * * *
Subtitle F--Procedure and Administration
* * * * * * *
CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS
* * * * * * *
Subchapter A--Procedure in General
* * * * * * *
SEC. 6401. AMOUNTS TREATED AS OVERPAYMENTS.
(a) * * *
(b) Excessive Credits.--
(1) * * *
* * * * * * *
(3) Credits for certain organizations and
governmental units.--
(A) Allowance of credits.--Any credit which
would be allowable under section 45G, 45H, 48A,
or 48B with respect to a facility of an entity
whether or not such entity is exempt from tax,
shall be treated as a credit allowable under
subpart C of part IV of subchapter A of chapter
1 of subtitle A to such entity if such entity
is--
(i) an organization described in
section 501(c)(12)(C) and exempt from
tax under section 501(a),
(ii) an organization described in
section 1381(a)(2)(C),
(iii) a public utility (as defined in
section 136(c)(2)(B)),
(iv) a State, the District of
Columbia, or a possession of the United
States, or any political subdivision
thereof, or
(v) the Tennessee Valley Authority.
(B) Use of credit.--
(i) Transfer of credit.--An entity
described in clause (i), (ii), (iii),
or (iv) of subparagraph (A) may assign,
trade, sell, or otherwise transfer any
credit allowable to such entity under
subparagraph (A) to any other person or
entity.
(ii) Use of credit as an offset.--
Notwithstanding any other provision of
law, in the case of any entity
described in clause (i) or (ii) of
subparagraph (A), any credit allowable
to such entity under subparagraph (A)
may be applied by such entity, without
penalty, as a prepayment of any loan,
debt or other obligation the entity has
made, incurred or guaranteed under the
Rural Electrification Act of 1936 (7
U.S.C. 901 et seq.).
(iii) Use by tva.--
(I) In general.--
Notwithstanding any other
provision of law, in the case
of an entity described in
subparagraph (A)(v), any credit
allowable under subparagraph
(A) to such entity may be
applied as a credit against the
payments required to be made in
any fiscal year under section
15d(e) of the Tennessee Valley
Authority Act of 1933 (16
U.S.C. 83ln-4(e)) as an annual
return on the appropriations
investment and an annual
repayment sum.
(II) Treatment of credits.--
The aggregate amount of credits
described in subparagraph (A)
shall be treated in the same
manner and to the same extent
as if such credits were a
payment in cash and shall be
applied first against the
annual return on the
appropriations investment.
(III) Credit carryover.--With
respect to any fiscal year, if
the aggregate amount of the
credits described in
subparagraph (A) exceeds the
aggregate amount of payment
obligations described in
subclause (I), the excess
amount shall remain available
for application as credits
against the amounts of such
payment obligations in
succeeding fiscal years in the
same manner as described in
this clause.
(C) Credit not income.--Neither a transfer
under clause (i) nor a use under clause (ii) of
subparagraph (B) of any credit allowable under
subparagraph (A) shall result in income for
purposes of section 501(c)(12).
(D) Transfer proceeds treated as arising from
essential government function.--Any proceeds
derived by an entity described in clause (iii)
or (iv) of subparagraph (A) from the transfer
of any such credit under subparagraph (B)(I)
shall be treated as arising from an essential
government function.
(E) Treatment of unrelated persons.--For
purposes of this title, sales among and between
entities described in clauses (i), (ii), (iii),
and (iv) of subparagraph (A) shall be treated
as sales between unrelated parties.
* * * * * * *
----------
SECTION 660 OF THE DEPARTMENT OF ENERGY ORGANIZATION ACT
authorization of appropriations
Sec. 660. (a) Appropriations to carry out the provisions of
this Act shall be subject to annual authorization.
(b) There are hereby authorized to be appropriated to the
Department of Energy for fiscal year 2002, $950,000,000; for
fiscal year 2003, $1,000,000,000; for fiscal year 2004,
$1,050,000,000; for fiscal year 2005, $1,100,000,000; and for
fiscal year 2006, $1,150,000,000, to carry out energy
efficiency activities under the following laws, such sums to
remain available until expended:
(1) Energy Policy and Conservation Act, including
section 256(d)(42 U.S.C. 6276(d)) (promote export of
energy efficient products), sections 321 through 346
(42 U.S.C. 6291-6317) (appliances program).
(2) Energy Conservation and Production Act, including
sections 301 through 308 (42 U.S.C. 6831-6837) (energy
conservation standards for new buildings).
(3) National Energy Conservation Policy Act,
including sections 541-551 (42 U.S.C. 8251-8259)
(Federal Energy Management Program).
(4) Energy Policy Act of 1992, including sections 103
(42 U.S.C. 13458) (energy efficient lighting and
building centers), 121 (42 U.S.C. 6292 note) (energy
efficiency labeling for windows and window systems),
125 (42 U.S.C. 6292 note) (energy efficiency
information for commercial office equipment), 126 (42
U.S.C. 6292 note) (energy efficiency information for
luminaires), 131 (42 U.S.C. 6348) (energy efficiency in
industrial facilities), and 132 (42 U.S.C. 6349)
(process-oriented industrial energy efficiency).
* * * * * * *
----------
NATIONAL ENERGY CONSERVATION POLICY ACT
* * * * * * *
TITLE V--FEDERAL ENERGY INITIATIVE
* * * * * * *
PART 3--FEDERAL ENERGY MANAGEMENT
* * * * * * *
SEC. 542. PURPOSE.
It is the purpose of this part to promote the conservation
and the efficient use of energy and water, and the use of
renewable energy sources, by the Federal Government , and
generally to promote the production, supply, and marketing of
energy efficiency products and services and the production,
supply, and marketing of unconventional and renewable energy
resources.
SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.
(a) Energy Performance Requirement for Federal Buildings.--
[(1) Subject to paragraph (2)] Subject to subsection (c), each
agency shall apply energy conservation measures to, and shall
improve the design for the construction of, its Federal
buildings so that the energy consumption per gross square foot
of its Federal buildings in use [during the fiscal year 1995 is
at least 10 percent less than the energy consumption per gross
square foot of its Federal buildings in use during the fiscal
year 1985 and so that the energy consumption per gross square
foot of its Federal buildings in use during the fiscal year
2000 is at least 20 percent less than the energy consumption
per gross square foot of its Federal buildings in use during
fiscal year 1985.] during--
(1) fiscal year 1995 is at least 10 percent;
(2) fiscal year 2000 is at least 20 percent;
(3) fiscal year 2005 is at least 30 percent;
(4) fiscal year 2010 is at least 35 percent;
(5) fiscal year 2015 is at least 40 percent; and
(6) fiscal year 2020 is at least 45 percent,
less than the energy consumption per gross square foot of its
Federal buildings in use during fiscal year 1985. To achieve
the reductions required by this paragraph, an agency shall make
maximum practicable use of energy efficiency products and
services and unconventional and renewable energy resources,
using guidelines issued by the Secretary under subsection (d)
of this section.
[(2) An agency may exclude from the requirements of paragraph
(1) any building, and the associated energy consumption and
gross square footage, in which energy intensive activities are
carried out. Each agency shall identify and list in each report
made under section 548(a) the buildings designated by it for
such exclusion.]
(b) Energy Management Requirement for Federal Agencies.--[(1)
Not] (1) Except as provided in paragraph (5), not later than
January 1, 2005, each agency shall, to the maximum extent
practicable, install in Federal buildings owned by the United
States all energy and water conservation measures with payback
periods of less than 10 years, as determined by using the
methods and procedures developed pursuant to section 544.
* * * * * * *
(5)(A)(i) Agencies shall select only Energy Star products
when available when acquiring energy-using products. For
product groups where Energy Star labels are not yet available,
agencies shall select products that are in the upper 25 percent
of energy efficiency as designated by FEMP. The Secretary of
Energy shall develop guidelines within 180 days after the
enactment of this paragraph for exemptions to this section when
equivalent products do not exist, are impractical, or do not
meet the agency mission requirements.
(ii) The Administrator of the General Services Administration
and the Secretary of Defense (acting through the Defense
Logistics Agency), with assistance from the Administrator of
the Environmental Protection Agency and the Secretary of
Energy, shall create clear catalogue listings that designate
Energy Star products in both print and electronic formats.
After any existing federal inventories are exhausted,
Administrator of the General Services Administration and the
Secretary of Defense (acting through the Defense Logistics
Agency) shall only replace inventories with energy-using
products that are Energy Star, products that are rated in the
top 25 percent of energy efficiency, or products that are
exempted as designated by FEMP and defined in clause (i).
(iii) Agencies shall incorporate energy-efficient criteria
consistent with Energy Star and other FEMP designated energy
efficiency levels into all guide specifications and project
specifications developed for new construction and renovation,
as well as into product specification language developed for
Basic Ordering Agreements, Blanket Purchasing Agreements,
Government Wide Acquisition Contracts, and all other purchasing
procedures.
(iv) The legislative branch shall be subject to this
subparagraph to the same extent and in the same manner as are
the Federal agencies referred to in section 521(1).
(B) Not later than 6 months after the date of the enactment
of this paragraph, the Secretary of Energy shall establish
guidelines defining the circumstances under which an agency
shall not be required to comply with subparagraph (A). Such
circumstances may include the absence of Energy Star products,
systems, or designs that serve the purpose of the agency,
issues relating to the compatibility of a product, system, or
design with existing buildings or equipment, and excessive cost
compared to other available and appropriate products, systems,
or designs.
(C) Subparagraph (A) shall apply to agency acquisitions
occurring on or after October 1, 2002.
[(c) Exclusions.--(1) An agency may exclude, from the energy
consumption requirements for the year 2000 established under
subsection (a) and the requirements of subsection (b)(1), any
Federal building or collection of Federal buildings, and the
associated energy consumption and gross square footage, if the
head of such agency finds that compliance with such
requirements would be impractical. A finding of
impracticability shall be based on the energy intensiveness of
activities carried out in such Federal buildings or collection
of Federal buildings, the type and amount of energy consumed,
the technical feasibility of making the desired changes, and,
in the cases of the Departments of Defense and Energy, the
unique character of certain facilities operated by such
Departments.
[(2) Each agency shall identify and list, in each report made
under section 548(a), the Federal buildings designated by it
for such exclusion. The Secretary shall review such findings
for consistency with the impracticability standards set forth
in paragraph (1), and may within 90 days after receipt of the
findings, reverse a finding of impracticability. In the case of
any such reversal, the agency shall comply with the energy
consumption requirements for the building concerned.]
(c) Exclusions.--(1) A Federal building may be excluded from
the requirements of subsections (a) and (b) only if--
(A) the President declares the building to require
exclusion for national security reasons; and
(B) the agency responsible for the building has--
(i) completed and submitted all federally
required energy management reports; and
(ii) achieved compliance with the energy
efficiency requirements of this Act, the Energy
Policy Act of Executive Orders, and other
Federal law;
(iii) implemented all practical, life cycle
cost-effective projects in the excluded
building.
(2) The President shall only declare buildings described in
paragraph (1)(A) to be excluded, not ancillary or nearby
facilities that are not in themselves national security
facilities.
(d) Implementation Steps.--The Secretary shall consult with
the Secretary of Defense and the Administrator of General
Services in developing guidelines for the implementation of
this part. Such guidelines shall include appropriate model
technical standards for energy efficiency and unconventional
and renewable energy resources products and services. Such
standards shall reflect, to the extent practicable, evaluation
of both currently marketed and potentially marketable products
and services that could be used by agencies to improve energy
efficiency and increase unconventional and renewable energy
resources. To meet the requirements of this section, each
agency shall--
(1) * * *
* * * * * * *
(e) Studies.--To assist in developing the guidelines issued
by the Secretary under subsection (d) and in furtherance of the
purposes of this section, the Secretary shall conduct studies
to identify and encourage the production and marketing of
energy efficiency products and services and unconventional and
renewable energy resources. To conduct such studies, there are
authorized to be appropriated to the Secretary $20,000,000 for
each of the fiscal years 2003 through 2010.
(f) Metering.--(1) By October 1, 2004, all Federal buildings
including buildings owned by the legislative branch and the
Federal court system and other energy-using structures shall be
metered or submetered in accordance with guidelines established
by the Secretary under paragraph (2).
(2) Not later than 6 months after the date of the enactment
of this subsection, the Secretary, in consultation with
representatives from the metering industry, energy services
industry, national laboratories, colleges of higher education,
and federal facilities energy managers, shall establish
guidelines for agencies to carry out paragraph (1). Such
guidelines shall take into consideration each of the following:
(A) Cost.
(B) Resources, including personnel, required to
maintain, interpret, and report on data so that the
meters are continually reviewed.
(C) Energy management potential.
(D) Energy savings.
(E) Utility contract aggregation.
(F) Savings from operations and maintenance.
(3) Any building excluded under subsection (c) shall be
individually metered or submetered as the Secretary determines
necessary.
(g) Priority Response Reviews.--Each agency shall--
(1) not later than 9 months after the date of the
enactment of this subsection, undertake a comprehensive
review of all practicable measures for--
(A) increasing energy and water conservation,
and
(B) using renewable energy sources; and
(2) not later than 180 days after completing the
review, implement measures to achieve not less than 50
percent of the potential efficiency and renewable
savings identified in the review.
(h) Use of Interval Data in Federal Buildings.--Not later
than January 1, 2003, each agency shall utilize, to the maximum
extent practicable, for the purposes of efficient use of energy
and reduction in the cost of electricity consumed in its
Federal buildings, interval consumption data that measure on a
real time or daily basis consumption of electricity in its
Federal buildings. To meet the requirements of this subsection
each agency shall prepare and submit at the earliest
opportunity pursuant to section 548(a) to the Secretary, a plan
describing how the agency intends to meet such requirements,
including how it will designate personnel primarily responsible
for achieving such requirements, and otherwise implement this
subsection.
* * * * * * *
SEC. 546. INCENTIVES FOR AGENCIES.
(a) * * *
* * * * * * *
(c) Utility Incentive Programs.--(1) * * *
* * * * * * *
(3) Each agency is encouraged to enter into negotiations with
electric, water, and gas utilities to design cost-effective
demand management and conservation incentive programs to
address the unique needs of facilities utilized by such agency.
Such a utility incentive program may include a contract or
contract term designed to provide for cost-effective
electricity demand management, energy efficiency, or water
conservation.
* * * * * * *
(6) A utility incentive program may include a contract or
contract term for a reduction in the energy, from a base cost
established through a methodology set forth in such a contract,
that would otherwise be utilized in one or more federally owned
buildings or other federally owned facilities by reason of the
construction or operation of one or more replacement buildings
or facilities, as well as benefits ancillary to the purpose of
such contract or contract term, including savings resulting
from reduced costs of operation and maintenance at new or
additional buildings or facilities when compared with the costs
of operation and maintenance at existing buildings or
facilities.
(7) Federal agencies are encouraged to participate in State
or regional demand side reduction programs, including those
operated by wholesale market institutions such as independent
system operators, regional transmission organizations and other
entities. The availability of such programs, and the savings
resulting from such participation, should be included in the
evaluation of energy options for Federal facilities.
* * * * * * *
(e) Retention of Energy Savings.--An agency may retain any
funds appropriated to that agency for energy expenditures, at
buildings subject to the requirements of section 543(a) and
(b), that are not made because of energy savings. Such funds
may be used only for energy efficiency or unconventional and
renewable energy resources projects.
* * * * * * *
SEC. 548. REPORTS.
(a) Reports to the Secretary.--Each agency shall transmit a
report to the Secretary, in accordance with guidelines
established by and at times specified by the Secretary but at
least annually, with complete information on its activities
under this part, including information on--
(1) the agency's progress in achieving the goals
established by section 543; [and]
(2) the procedures being used by the agency pursuant
to section 546(a)(2), the number of contracts entered
into by such agency under title VIII of this Act, the
energy and cost savings that have resulted from such
contracts, the use of such cost savings under section
546(c), and any problem encountered in entering into
such contracts and otherwise implementing section
546[.];
(3) an energy emergency response plan developed by
the agency;
(4) the quantity, and a description of, products,
systems, and designs acquired by the agency that are
not acquired as provided in section 543(b)(5)(A); and
(5) the percentage of the agency's capital
expenditures that are used for energy efficiency and
unconventional and renewable energy resources capital
improvements.
(b) Reports to Congress.--The Secretary shall report, not
later than April 2 of each year, with respect to each fiscal
year beginning after the date of the enactment of this
subsection, to the Congress--
(1) on all activities carried out under this part and
on the progress made toward achievement of the
objectives of this part, including--
(A) a [copy of the] list of the exclusions
made under [sections 543(a)(2) and 543(c)(3)]
section 543(c);
* * * * * * *
(3) the extent and nature of interagency exchange of
information concerning the conservation and efficient
utilization of energy; [and]
(4) the information required under section 161(d) of
the Energy Policy Act of 1992[.]; and
(5) all information transmitted to the Secretary
under subsection (a).
* * * * * * *
[(c) Other Report.--The Secretary, in consultation with the
Administrator of General Services, shall--
[(1) conduct a study and evaluate legal,
institutional, and other constraints to connecting
buildings owned or leased by the Federal Government to
district heating and district cooling systems; and
[(2) not later than 18 months after the date of the
enactment of this subsection, transmit to the Congress
a report containing the findings and conclusions of
such study, including recommendations for the
development of streamlined processes for the
consideration of connecting buildings owned or leased
by the Federal Government to district heating and
cooling systems.]
(c) Agency Reports to Congress.--Each agency shall annually
report to the Congress, as part of the agency's annual budget
request, on all of the agency's activities implementing any
Federal energy management requirement.
* * * * * * *
SEC. 551. DEFINITIONS.
For the purposes of this part--
(1) * * *
* * * * * * *
(8) the term ``renewable energy sources'' includes,
but is not limited to, sources such as agriculture and
urban waste, geothermal energy, solar energy, and wind
energy; [and]
(9) the term ``Secretary'' means the Secretary of
Energy[.]; and
(10) the term ``unconventional and renewable energy
resources'' includes renewable energy sources,
hydrogen, fuel cells, cogeneration, combined heat and
power, heat recovery (including by use of a Stirling
heat engine), and distributed generation.
* * * * * * *
TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS
SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.
(a) In General.--(1) * * *
(2)(A) * * *
* * * * * * *
(C) Federal agencies may incur obligations pursuant to such
contracts to finance energy or water conservation measures
provided guaranteed savings exceed the debt service
requirements.
* * * * * * *
(E) A Federal agency shall engage in contracting and auditing
to implement energy savings performance contracts as necessary
and appropriate to ensure compliance with the requirements of
this Act, particularly the energy efficiency requirements of
section 543.
(3)(A) In the case of an energy savings contract or energy
savings performance contract providing for energy savings
through the construction and operation of one or more buildings
or facilities to replace one or more existing buildings or
facilities, benefits ancillary to the purpose of such contract
under paragraph (1) may include savings resulting from reduced
costs of operation and maintenance at such replacement
buildings or facilities when compared with costs of operation
and maintenance at the buildings or facilities being replaced,
established through a methodology set forth in the contract.
(B) Notwithstanding paragraph (2)(B), aggregate annual
payments by an agency under an energy savings contract or
energy savings performance contract referred to in subparagraph
(A) may take into account (through the procedures developed
pursuant to this section) savings resulting from reduced costs
of operation and maintenance as described in that subparagraph.
* * * * * * *
[(c) Sunset and Reporting Requirements.--The authority to
enter into new contracts under this section shall cease to be
effective on October 1, 2003.]
* * * * * * *
SEC. 804. DEFINITIONS.
For purposes of this title, the following definitions apply:
(1) * * *
[(2) The term ``energy savings'' means a reduction in
the cost of energy, from a base cost established
through a methodology set forth in the contract,
utilized in an existing federally owned building or
buildings or other federally owned facilities as a
result of--
[(A) the lease or purchase of operating
equipment, improvements, altered operation and
maintenance, or technical services; or
[(B) the increased efficient use of existing
energy sources by cogeneration or heat
recovery, excluding any cogeneration process
for other than a federally owned building or
buildings or other federally owned facilities.
[(3) The terms ``energy savings contract'' and
``energy savings performance contract'' mean a contract
which provides for the performance of services for the
design, acquisition, installation, testing, operation,
and, where appropriate, maintenance and repair, of an
identified energy conservation measure or series of
measures at one or more locations. Such contracts--
[(A) may provide for appropriate software
licensing agreements; and
[(B) shall, with respect to an agency
facility that is a public building as such term
is defined in section 13(1) of the Public
Buildings Act of 1959 (40 U.S.C. 612(1)), be in
compliance with the prospectus requirements and
procedures of section 7 of the Public Buildings
Act of 1959 (40 U.S.C. 606).
[(4) The term ``energy conservation measures'' has
the meaning given such term in section 551(4).]
(2)(A) The term ``energy savings'' means a reduction
in the cost of energy or water, from a base cost
established through a methodology set forth in the
contract, used in an existing federally owned building
or buildings or other federally owned facilities as a
result of--
(i) the lease or purchase of operating
equipment, improvements, altered operation and
maintenance, or technical services;
(ii) the increased efficient use of existing
energy sources by solar and ground source
geothermal resources, cogeneration or heat
recovery (including by the use of a Stirling
heat engine), excluding any cogeneration
process for other than a federally owned
building or buildings or other federally owned
facilities; or
(iii) the increased efficient use of existing
water sources.
(B) The term ``energy savings'' also means, in the
case of a replacement building or facility described in
section 801(a)(3), a reduction in the cost of energy,
from a base cost established through a methodology set
forth in the contract, that would otherwise be utilized
in one or more existing federally owned buildings or
other federally owned facilities by reason of the
construction and operation of the replacement building
or facility.
(3) The terms ``energy savings contract'' and
``energy savings performance contract'' mean a contract
which provides for--
(A) the performance of services for the
design, acquisition, installation, testing,
operation, and, where appropriate, maintenance
and repair, of an identified energy or water
conservation measure or series of measures at
one or more locations; or
(B) energy savings through the construction
and operation of one or more buildings or
facilities to replace one or more existing
buildings or facilities.
(4) The term ``energy or water conservation measure''
means--
(A) an energy conservation measure, as
defined in section 551(4) (42 U.S.C. 8259(4));
or
(B) a water conservation measure that
improves water efficiency, is life cycle cost
effective, and involves water conservation,
water recycling or reuse, improvements in
operation or maintenance efficiencies, retrofit
activities, or other related activities, not at
a Federal hydroelectric facility.
* * * * * * *
----------
ENERGY POLICY ACT OF 1992
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Policy Act of 1992''.
(b) Table of Contents.--
TITLE I--ENERGY EFFICIENCY
Subtitle A--Buildings
Sec. 101. Building energy efficiency standards.
* * * * * * *
TITLE III--ALTERNATIVE FUELS--GENERAL
* * * * * * *
Sec. 313. Conservation of petroleum-based fuels by the Federal
Government for light-duty motor vehicles.
* * * * * * *
TITLE I--ENERGY EFFICIENCY
* * * * * * *
Subtitle F--Federal Agency Energy Management
* * * * * * *
SEC. 160. INSPECTOR GENERAL REVIEW AND AGENCY ACCOUNTABILITY.
(a) * * *
* * * * * * *
(c) Inspector General Review.--Each Inspector General
established under section 2 of the Inspector General Act of
1978 (5 U.S.C. App.) [is encouraged to conduct periodic] shall
conduct periodic reviews of agency compliance with part 3 of
title V of the National Energy Conservation Policy Act, the
provisions of this subtitle, and other laws relating to energy
consumption. Such reviews shall not be inconsistent with the
performance of the required duties of the Inspector General's
office.
* * * * * * *
TITLE III--ALTERNATIVE FUELS--GENERAL
SEC. 301. DEFINITIONS.
For purposes of this title, title IV, and title V (unless
otherwise specified)--
(1) * * *
* * * * * * *
(13) the term ``motor vehicle'' has the meaning given
such term under section 216(2) of the Clean Air Act (42
U.S.C. 7550(2)); [and]
(14) the term ``replacement fuel'' means the portion
of any motor fuel that is methanol, ethanol, or other
alcohols, natural gas, liquefied petroleum gas,
hydrogen, coal derived liquid fuels, fuels (other than
alcohol) derived from biological materials, electricity
(including electricity from solar energy), ethers, or
any other fuel the Secretary determines, by rule, is
substantially not petroleum and would yield substantial
energy security benefits and substantial environmental
benefits[.]; and
(15) The term ``hybrid vehicle'' means a motor vehicle which
draws propulsion energy from onboard sources of stored energy
which are both--
(A) an internal combustion or heat engine using
combustible fuel; and
(B) a rechargeable energy storage system.
* * * * * * *
SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT.
(a) * * *
(b) Percentage Requirements.--(1) Of the total number of
vehicles acquired by a Federal fleet, at least--
(A) * * *
* * * * * * *
shall be alternative fueled vehicles. Of the total number of
vehicles acquired by a Federal fleet in fiscal years 2004 and
2005, at least 5 percent of the vehicles in addition to those
covered by the preceding sentence shall be alternative fueled
vehicles or hybrid vehicles and in fiscal year 2006 and
thereafter at least 10 percent of the vehicles in addition to
those covered by the preceding sentence shall be alternative
fueled vehicles or hybrid vehicles.
* * * * * * *
SEC. 304. REFUELING.
(a) * * *
[(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section such sums as may be necessary for fiscal years 1993
through 1998, to remain available until expended.]
(b) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary or, as appropriate, the head
of each Federal fleet subject to the provisions of this section
and section 313 of this Act, such sums as may be necessary to
achieve the purposes of section 313(a) and the provisions of
this section. Such sums shall remain available until expended.
* * * * * * *
SEC. 312. BIODIESEL FUEL USE CREDITS.
(a) * * *
* * * * * * *
(c) Credit [Not] a Section 508 Credit.--A credit under this
section shall [not] be considered a credit under section 508.
SEC. 313. CONSERVATION OF PETROLEUM-BASED FUELS BY THE FEDERAL
GOVERNMENT FOR LIGHT-DUTY MOTOR VEHICLES.
(a) Purposes.--The purposes of this section are to complement
and supplement the requirements of section 303 of this Act that
Federal fleets, as that term is defined in section 303(b)(3),
acquire in the aggregate a minimum percentage of alternative
fuel vehicles, to encourage the manufacture and sale or lease
of such vehicles nationwide, and to achieve, in the aggregate,
a reduction in the amount of the petroleum-based fuels (other
than the alternative fuels defined in this title) used by new
light-duty motor vehicles acquired by the Federal Government in
model years 2004 through 2010 and thereafter.
(b) Implementation.--In furtherance of such purposes, such
Federal fleets in the aggregate shall reduce the purchase of
petroleum-based nonalternative fuels for such fleets beginning
October 1, 2003, through September 30, 2009, from the amount
purchased for such fleets over a comparable period since
enactment of this Act, as determined by the Secretary, through
the annual purchase, in accordance with section 304, and the
use of alternative fuels for the light-duty motor vehicles of
such Federal fleets, so as to achieve levels which reflect
total reliance by such fleets on the consumptive use of
alternative fuels consistent with the provisions of section
303(b) of this Act. The Secretary shall, within 120 days after
the enactment of this section, promulgate, in consultation with
the Administrator of the General Services Administration and
the Director of the Office of Management and Budget and such
other heads of entities referenced in section 303 within the
executive branch as such Director may designate, standards for
the full and prompt implementation of this section by such
entities. The Secretary shall monitor compliance with this
section and such standards by all such fleets and shall report
annually to the Congress, based on reports by the heads of such
fleets, on the extent to which the requirements of this section
and such standards are being achieved. The report shall include
information on annual reductions achieved of petroleum-based
fuels and the problems, if any, encountered in acquiring
alternative fuels and in requiring their use.
* * * * * * *
TITLE XII--RENEWABLE ENERGY
* * * * * * *
SEC. 1212. RENEWABLE ENERGY PRODUCTION INCENTIVE.
(a) Incentive Payments.--For electric energy generated and
sold by a qualified renewable energy facility during the
incentive period, the Secretary shall make, subject to the
availability of appropriations, incentive payments to the owner
or operator of such facility. The amount of such payment made
to any such owner or operator shall be as determined under
subsection (e). Payments under this section may only be made
upon receipt by the Secretary of an incentive payment
application which establishes that the applicant is eligible to
receive such payment [and which satisfies such other
requirements as the Secretary deems necessary. Such application
shall be in such form, and shall be submitted at such time, as
the Secretary shall establish.]. The Secretary shall establish
other procedures necessary for efficient administration of the
program. The Secretary shall not establish any criteria or
procedures that have the effect of assigning to proposals a
higher or lower priority for eligibility or allocation of
appropriated funds on the basis of the energy source proposed.
(b) Qualified Renewable Energy Facility.--For purposes of
this section, a qualified renewable energy facility is a
facility which is owned by [a State or any political
subdivision of a State (or an agency, authority, or
instrumentality of a State or a political subdivision), by any
corporation or association which is wholly owned, directly or
indirectly, by one or more of the foregoing, or by a nonprofit
electrical cooperative] an electricity-generating cooperative
exempt from taxation under section 501(c)(12) or section
1381(a)(2)(C) of the Internal Revenue Code of 1986, a public
utility described in section 115 of such Code, a State,
Commonwealth, territory, or possession of the United States or
the District of Columbia, or a political subdivision thereof,
or an Indian tribal government or subdivision thereof, and
which generates electric energy for sale in, or affecting,
interstate commerce using solar, wind, biomass, landfill gas,
or geothermal energy, except that--
(1) * * *
* * * * * * *
(c) Eligibility Window.--Payments may be made under this
section only for electricity generated from a qualified
renewable energy facility first used [during the 10-fiscal year
period beginning with the first full fiscal year occurring
after the enactment of this section] before October 1, 2013.
(d) Payment Period.--A qualified renewable energy facility
may receive payments under this section for a 10-fiscal year
period. Such period shall begin with the fiscal year in which
electricity generated from the facility is first eligible for
such or in which the Secretary finds that all necessary Federal
and State authorizations have been obtained to begin
construction of the facility payments.
(e) Amount of Payment.--
(1) In general.--Incentive payments made by the
Secretary under this section to the owner or operator
of any qualified renewable energy facility shall be
based on the number of kilowatt hours of electricity
generated by the facility through the use of solar,
wind, biomass, landfill gas, or geothermal energy
during the payment period referred to in subsection
(d). For any facility, the amount of such payment shall
be 1.5 cents per kilowatt hour, adjusted as provided in
paragraph (2).
* * * * * * *
(f) Sunset.--No payment may be made under this section to any
facility after [the expiration of the 20-fiscal year period
beginning with the first full fiscal year occurring after the
enactment of this section] September 30, 2023, and no payment
may be made under this section to any facility after a payment
has been made with respect to such facility for a 10-fiscal
year period.
(g) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary for fiscal years [1993, 1994,
and 1995] 2003 through 2023 such sums as may be necessary to
carry out the purposes of this section. Funds may be
appropriated pursuant to this subsection to remain available
until expended.
* * * * * * *
----------
ENERGY POLICY AND CONSERVATION ACT
* * * * * * *
TITLE III--IMPROVING ENERGY EFFICIENCY
* * * * * * *
Part B--Energy Conservation Program for Consumer Products Other Than
Automobiles
Sec. 321. Definitions.
* * * * * * *
Sec. 324A. Energy Star program.
* * * * * * *
TITLE III--IMPROVING ENERGY EFFICIENCY
* * * * * * *
Part B--Energy Conservation Program for Consumer Products Other Than
Automobiles
definitions
Sec. 321. For purposes of this part:
(1) * * *
* * * * * * *
(32) The term ``residential furnace fan'' means an
electric fan installed as part of a furnace for
purposes of circulating air through the system air
filters, the heat exchangers or heating elements of the
furnace, and the duct work.
(33) The terms ``residential central air conditioner
fan'' and ``heat pump circulation fan'' mean an
electric fan installed as part of a central air
conditioner or heat pump for purposes of circulating
air through the system air filters, the heat exchangers
of the air conditioner or heat pump, and the duct work.
(34) The term ``suspended ceiling fan'' means a fan
intended to be mounted to a ceiling outlet box, ceiling
building structure, or to a vertical rod suspended from
the ceiling, and which as blades which rotate below the
ceiling and consists of an electric motor, fan blades
(which rotate in a direction parallel to the floor), an
optional lighting kit, and one or more electrical
controls (integral or remote) governing fan speed and
lighting operation.
(35) The term ``refrigerated bottled or canned
beverage vending machine'' means a machine that cools
bottled or canned beverages and dispenses them upon
payment.
coverage
Sec. 322. (a) In General.--The following consumer products,
excluding those consumer products designed solely for use in
recreational vehicles and other mobile equipment, are covered
products:
(1) * * *
* * * * * * *
(19) Beginning on the effective date for standards
established pursuant to subsection (w) of section 325,
each product referred to in such subsection (w).
[(19)] (20) Any other type of consumer product which
the Secretary classifies as a covered product under
subsection (b).
* * * * * * *
test procedures
Sec. 323. (a) * * *
* * * * * * *
(f) Additional Consumer Products.--The Secretary shall within
18 months after the date of enactment of this subsection
prescribe testing requirements for residential furnace fans,
residential central air conditioner fans, heat pump circulation
fans, suspended ceiling fans, and refrigerated bottled or
canned beverage vending machines. Such testing requirements
shall be based on existing test procedures used in industry to
the extent practical and reasonable. In the case of residential
furnace fans, residential central air conditioner fans, heat
pump circulation fans, and suspended ceiling fans, such test
procedures shall include efficiency at both maximum output and
at an output no more than 50 percent of the maximum output.
labeling
Sec. 324. (a) In General.--(1) * * *
(2)(A) * * *
* * * * * * *
(F) Not later than one year after the date of enactment of
this subparagraph, the Commission shall initiate a rulemaking
to prescribe labeling rules under this section applicable to
consumer products that are not covered products if it
determines that labeling of such products is likely to assist
consumers in making purchasing decisions and is technologically
and economically feasible.
(G) Not later than three months after the date of enactment
of this subparagraph, the Commission shall initiate a
rulemaking to consider the effectiveness of the current
consumer products labeling program in assisting consumers in
making purchasing decisions and improving energy efficiency and
to consider changes to the label that would improve the
effectiveness of the label. Such rulemaking shall be completed
within 15 months of the date of enactment of this subparagraph.
* * * * * * *
(5) The Secretary shall within 6 months after the date on
which energy conservation standards are prescribed by the
Secretary for covered products referred to in section 325(w),
prescribe, by rule, labeling requirements for such products.
These requirements shall take effect on the same date as the
standards prescribed pursuant to section 325(w).
* * * * * * *
(e) Study of Certain Products.--(1) The Secretary, in
consultation with the Commission, shall study consumer products
for which labeling rules under this section have not been
proposed, in order to determine [(1)] (A) the aggregate energy
consumption of such products, and [(2)] (B) whether the
imposition of labeling requirements under this section would be
feasible and useful to consumers in making purchasing
decisions. The Secretary shall include the results of such
study in the annual report under section 338.
(2) The Secretary shall make recommendations to the
Commission within 180 days of the date of enactment of this
paragraph regarding labeling of consumer products that are not
covered products in accordance with this section, where such
labeling is likely to assist consumers in making purchasing
decisions and is technologically and economically feasible.
* * * * * * *
SEC. 324A. ENERGY STAR PROGRAM.
(a) In General.--There is established at the Department of
Energy and the Environmental Protection Agency a program to
identify and promote energy-efficient products and buildings in
order to reduce energy consumption, improve energy security,
and reduce pollution through labeling of products and buildings
that meet the highest energy efficiency standards.
Responsibilities under the program shall be divided between the
Department of Energy and the Environmental Protection Agency
consistent with the terms of agreements between the two
agencies. The Administrator and the Secretary shall--
(1) promote Energy Star compliant technologies as the
preferred technologies in the marketplace for achieving
energy efficiency and to reduce pollution;
(2) work to enhance public awareness of the Energy
Star label; and
(3) preserve the integrity of the Energy Star label.
For the purposes of carrying out this section, there is
authorized to be appropriated for fiscal years 2002 through
2006 such sums as may be necessary, to remain available until
expended.
(b) Study of Certain Products and Buildings.--Within 180 days
after the date of enactment of this section, the Secretary and
the Administrator, consistent with the terms of agreements
between the two agencies, shall determine whether the Energy
Star label should be extended to additional products and
buildings, including the following:
(1) Air cleaners.
(2) Ceiling fans.
(3) Light commercial heating and cooling products.
(4) Reach-in refrigerators and freezers.
(5) Telephony.
(6) Vending machines.
(7) Residential water heaters.
(8) Refrigerated beverage merchandisers.
(9) Commercial ice makers.
(10) School buildings.
(11) Retail buildings.
(12) Health care facilities.
(13) Homes.
(14) Hotels and other commercial lodging facilities.
(15) Restaurants and other food service facilities.
(16) Solar water heaters.
(17) Building-integrated photovoltaic systems.
(18) Reflective pigment coatings.
(19) Windows.
(20) Boilers.
(21) Devices to extend the life of motor vehicle oil.
(c) Cool Roofing.--In determining whether the Energy Star
label should be extended to roofing products, the Secretary and
the Administrator shall work with the roofing products industry
to determine the appropriate solar reflective index of roofing
products.
* * * * * * *
energy conservation standards
Sec. 325. (a) * * *
* * * * * * *
(m) Further Rulemaking.--(1) After issuance of the last final
rules required under subsections (b) through (i) of this
section, the Secretary may publish final rules to determine
whether standards for a covered product should be amended. An
amendment prescribed under this subsection shall apply to
products manufactured after a date which is 5 years after--
(A) * * *
* * * * * * *
(2) Not later than one year after the date of enactment of
the Energy Advancement and Conservation Act of 2001, the
Secretary shall conduct a rulemaking to determine whether
consumer products not classified as a covered product under
section 322(a)(1) through (18) meet the criteria of section
322(b)(1). If the Secretary finds that a consumer product not
classified as a covered product meets the criteria of section
322(b)(1), he shall prescribe, in accordance with subsections
(o) and (p), an energy conservation standard for such consumer
product, if such standard is reasonably probable to be
technologically feasible and economically justified within the
meaning of subsection (o)(2)(A).
(n) Petition for an Amended Standard.--(1) With respect to
each covered product described in paragraphs (1) through [(11),
and in paragraphs (13) and] (14) of section 322(a), any person
may petition the Secretary to conduct a rulemaking to determine
for a covered product if the standards contained either in the
last final rule required under subsections (b) through (i) of
this section or in a final rule published under this section
should be amended.
* * * * * * *
(u) Standby Mode Electric Energy Consumption by Household
Appliances.--(1) In this subsection:
(A) The term ``household appliance'' means any device
that uses household electric current and operates in a
standby mode except digital televisions, digital set
top boxes, and digital video recorders.
(B) The term ``standby mode'' means a mode in which a
household appliance consumes the least amount of
electric energy that the household appliance is capable
of consuming without being completely switched off.
(2)(A) Except as provided in subparagraph (B), a household
appliance that is manufactured in, or imported for sale in, the
United States on or after the date that is 2 years after the
date of enactment of this subsection shall not consume in
standby mode more than 1 watt.
(B)(i) A household appliance model that, as of the date of
enactment of this subsection, is recognized under the Energy
Star program administered by the Administrator of the
Environmental Protection Agency and the Secretary shall have
until January 1, 2005, to meet the standard under subparagraph
(A).
(ii) In the case of analog televisions, the Secretary shall
prescribe, on or after the date that is 2 years after the date
of enactment of this subsection, in accordance with subsections
(o) and (p) of section 325, an energy conservation standard
that is technologically feasible and economically justified
under section 325(o)(2)(A) (in lieu of the 1 watt standard
under subparagraph (A)).
(3)(A) A manufacturer or importer of a household appliance
may submit to the Secretary an application for an exemption of
the household appliance from the standard under paragraph (2).
(B) The Secretary shall grant an exemption for a household
appliance for which an application is made under subparagraph
(A) if the applicant provides evidence showing that, and the
Secretary determines that--
(i) it is not technically feasible to modify the
household appliance to enable the household appliance
to meet the standard;
(ii) the standard is incompatible with an energy
efficiency standard applicable to the household
appliance under another subsection; or
(iii) the cost of electricity that a typical consumer
would save in operating the household appliance meeting
the standard would not equal the increase in the price
of the household appliance that would be attributable
to the modifications that would be necessary to enable
the household appliance to meet the standard by the
earlier of--
(I) the date that is 7 years after the date
of purchase of the household appliance; or
(II) the end of the useful life of the
household appliance.
(C) If the Secretary determines that it is not technically
feasible to modify a household appliance to meet the standard
under paragraph (2), the Secretary shall establish a different
standard for the household appliance in accordance with the
criteria under subsection (l).
(4)(A) Not later than 1 year after the date of enactment of
this subsection, the Secretary shall establish a test procedure
for determining the amount of consumption of power by a
household appliance operating in standby mode.
(B) In establishing the test procedure, the Secretary shall
consider--
(i) international test procedures under development;
(ii) test procedures used in connection with the
Energy Star program; and
(iii) test procedures used for measuring power
consumption in standby mode in other countries.
(5) Further reduction of standby power consumption.--The
Secretary shall provide technical assistance to manufacturers
in achieving further reductions in standby mode electric energy
consumption by household appliances.
(v) Standby Mode Electric Energy Consumption by Digital
Televisions, Digital Set Top Boxes, and Digital Video
Recorders.--The Secretary shall initiate on January 1, 2007 a
rulemaking to prescribe, in accordance with subsections (o) and
(p), an energy conservation standard of standby mode electric
energy consumption by digital television sets, digital set top
boxes, and digital video recorders. The Secretary shall issue a
final rule prescribing such standards not later than 18 months
thereafter. In determining whether a standard under this
section is technologically feasible and economically justified
under section 325(o)(2)(A), the Secretary shall consider the
potential effects on market penetration by digital products
covered under this section, and shall consider any
recommendations by the FCC regarding such effects.
(w) Residential Furnace Fans, Central Air and Heat Pump
Circulation Fans, Suspended Ceiling Fans, and Vending
Machines.--(1) The Secretary shall, within 18 months after the
date of enactment of this subsection, assess the current and
projected future market for residential furnace fans,
residential central air conditioner and heat pump circulation
fans, suspended ceiling fans, and refrigerated bottled or
canned beverage vending machines. This assessment shall include
an examination of the types of products sold, the number of
products in use, annual sales of these products, energy used by
these products sold, the number of products in use, annual
sales of these products, energy used by these products,
estimates of the potential energy savings from specific
technical improvements to these products, and an examination of
the cost-effectiveness of these improvements. Prior to the end
of this time period, the Secretary shall hold an initial
scoping workshop to discuss and receive input to plans for
developing minimum efficiency standards for these products.
(2) The Secretary shall within 24 months after the date on
which testing requirements are prescribed by the Secretary
pursuant to section 323(f), prescribe, by rule, energy
conservation standards for residential furnace fans,
residential central air conditioner and heat pump circulation
fans, suspended ceiling fans, and refrigerated bottled or
canned beverage vending machines. In establishing these
standards, the Secretary shall use the criteria and procedures
contained in subsections (l) and (m). Any standard prescribed
under this section shall apply to products manufactured 36
months after the date such rule is published.
Consumer Education
Sec. 337. (a) * * *
* * * * * * *
(c) HVAC Maintenance.--For the purpose of ensuring that
installed air conditioning and heating systems operate at their
maximum rated efficiency levels, the Secretary shall, within
180 days of the date of enactment of this subsection, develop
and implement a public education campaign to educate homeowners
and small business owners concerning the energy savings
resulting from regularly scheduled maintenance of air
conditioning, heating, and ventilating systems. In developing
and implementing this campaign, the Secretary shall consider
support by the Department of public education programs
sponsored by trade and professional or energy efficiency
organizations. The public service information shall provide
sufficient information to allow consumers to make informed
choices from among professional, licensed (where State or local
licensing is required) contractors. There are authorized to be
appropriated to carry out this subsection $5,000,000 for fiscal
years 2002 and 2003 in addition to amounts otherwise
appropriated in this part.
* * * * * * *
Part D--State Energy Conservation Plans
* * * * * * *
STATE ENERGY CONSERVATION PLANS
Sec. 362. (a) * * *
* * * * * * *
(g) The Secretary shall, at least once every three years,
invite the Governor of each State to review and, if necessary,
revise the energy conservation plan of such State submitted
under subsection (b) or (e). Such reviews should consider the
energy conservation plans of other States within the region,
and identify opportunities and actions carried out in pursuit
of common energy conservation goals.
* * * * * * *
STATE ENERGY EFFICIENCY GOALS
Sec. 364. Each State energy conservation plan with respect to
which assistance is made available under this part on or after
October 1, 1991, shall contain a goal, consisting of an
improvement of 10 percent or more in the efficiency of use of
energy in the State concerned in the calendar year 2000 as
compared to the calendar year 1990, and may contain interim
goals. Each State energy conservation plan with respect to
which assistance is made available under this part on or after
the date of the enactment of Energy Advancement and
Conservation Act of 2001, shall contain a goal, consisting of
an improvement of 25 percent or more in the efficiency of use
of energy in the State concerned in the calendar year 2010 as
compared to the calendar year 1990, and may contain interim
goals.
* * * * * * *
GENERAL PROVISIONS
Sec. 365. (a) * * *
* * * * * * *
(f) For the purpose of carrying out this part, there are
authorized to be appropriated [for fiscal years 1999 through
2003 such sums as may be necessary] $75,000,000 for fiscal year
2002, $100,000,000 for fiscal years 2003 and 2004, $125,000,000
for fiscal year 2005.
* * * * * * *
Part G--Energy Conservation Program for Schools and Hospitals
* * * * * * *
AUTHORIZATION OF APPROPRIATIONS
Sec. 397. For the purpose of carrying out this part, there
are authorized to be appropriated for fiscal years 1999 through
[2003] 2010 such sums as may be necessary.
* * * * * * *
----------
SECTION 422 OF THE ENERGY CONSERVATION AND PRODUCTION ACT
AUTHORIZATION OF APPROPRIATIONS
Sec. 422. For the purpose of carrying out the weatherization
program under this part, there are authorized to be
appropriated [for fiscal years 1999 through 2003 such sums as
may be necessary] $250,000,000 for fiscal year 2002,
$325,000,000 for fiscal year 2003, $400,000,000 for fiscal year
2004, and $500,000,000 for fiscal year 2005.
----------
SECTION 2602 OF THE LOW-INCOME ENERGY ASSISTANCE ACT OF 1981
HOME ENERGY GRANTS AUTHORIZED
Sec. 2602. (a)
(b) [There are authorized to be appropriated to carry out the
provisions of this title (other than section 2607A),
$2,000,000,000 for each of fiscal years 1995 through 1999, such
sums as may be necessary for each of fiscal years 2000 and
2001, and $2,000,000,000 for each of fiscal years 2002 through
2004.] There are authorized to be appropriated to carry out the
provisions of this title (other than section 2607A),
$3,400,000,000 for each of fiscal years 2001 through 2005. The
authorizations of appropriations contained in this subsection
are subject to the program year provisions of subsection (c).
* * * * * * *
----------
TITLE 49, UNITED STATES CODE
* * * * * * *
SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS
* * * * * * *
PART C--INFORMATION, STANDARDS, AND REQUIREMENTS
* * * * * * *
CHAPTER 329--AUTOMOBILE FUEL ECONOMY
* * * * * * *
Sec. 32902. Average fuel economy standards
(a) Non-Passenger Automobiles.--(1) At least 18 months before
the beginning of each model year, the Secretary of
Transportation shall prescribe by regulation average fuel
economy standards for automobiles (except passenger
automobiles) manufactured by a manufacturer in that model year.
Each standard shall be the maximum feasible average fuel
economy level that the Secretary decides the manufacturers can
achieve in that model year. The Secretary may prescribe
separate standards for different classes of automobiles.
(2) The Secretary shall prescribe under paragraph (1) average
fuel economy standards for automobiles (except passenger
automobiles) manufactured in model years 2004 through 2010 that
are calculated to ensure that the aggregate amount of gasoline
projected to be used in those model years by automobiles to
which the standards apply is at least 5 billion gallons less
than the aggregate amount of gasoline that would be used in
those model years by such automobiles if they achieved only the
fuel economy required under the average fuel economy standard
that applies under this subsection to automobiles (except
passenger automobiles) manufactured in model year 2002.
* * * * * * *
Sec. 32905. Manufacturing incentives for alternative fuel automobiles
(a) * * *
(b) Dual Fueled Automobiles.--Except as provided in
subsection (d) of this section or section 32904(a)(2) of this
title, for any model of dual fueled automobile manufactured by
a manufacturer in [model years 1993-2004] model years 1993-
2008, the Administrator of the Environmental Protection Agency
shall measure the fuel economy for that model by dividing 1.0
by the sum of--
(1) * * *
* * * * * * *
(d) Gaseous Fuel Dual Fueled Automobiles.--For any model of
gaseous fuel dual fueled automobile manufactured by a
manufacturer in [model years 1993-2004] model years 1993-2008,
the Administrator shall measure the fuel economy for that model
by dividing 1.0 by the sum of--
(1) * * *
* * * * * * *
(f) Extending Application of Subsections (b) and (d).--[Not
later than December 31, 2001, the Secretary] Not later than
December 31, 2005, the Secretary of Transportation shall--
(1) extend by regulation the application of
subsections (b) and (d) of this section for not more
than 4 consecutive model years immediately after [model
year 2004] model year 2008 and explain the basis on
which the extension is granted; or
* * * * * * *
(g) Study and Report.--[Not later than September 30, 2000]
Not later than September 30, 2004, the Secretary of
Transportation, in consultation with the Secretary of Energy
and the Administrator, shall complete a study of the success of
the policy of subsections (b) and (d) of this title, and submit
to the Committees on Commerce, Science, and Transportation and
Governmental Affairs of the Senate and the Committee on
Commerce of the House of Representatives a report on the
results of the study, including preliminary conclusions on
whether the application of subsections (b) and (d) should be
extended for up to 4 more model years. The study and
conclusions shall consider--
(1) * * *
* * * * * * *
Sec. 32906. Maximum fuel economy increase for alternative fuel
automobiles
(a) Maximum Increases.--(1)(A) For each of [the model years
1993-2004] model years 1993-2008 for each category of
automobile (except an electric automobile), the maximum
increase in average fuel economy for a manufacturer
attributable to dual fueled automobiles is 1.2 miles a gallon.
(B) If the application of section 32905(b) and (d) of this
title is extended under section 32905(f) of this title, for
each category of automobile (except an electric automobile) the
maximum increase in average fuel economy for a manufacturer for
each of [the model years 2005-2008] model years 2009-2012
attributable to dual fueled automobiles is .9 mile a gallon.
* * * * * * *
[Sec. 32917. Standards for executive agency automobiles
[(a) Definition.--In this section, ``executive agency'' has
the same meaning given that term in section 105 of title 5.
[(b) Fleet Average Fuel Economy.--(1) The President shall
prescribe regulations that require passenger automobiles leased
for at least 60 consecutive days or bought by executive
agencies in a fiscal year to achieve a fleet average fuel
economy (determined under paragraph (2) of this subsection) for
that year of at least the greater of--
[(A) 18 miles a gallon; or
[(B) the applicable average fuel economy standard
under section 32902(b) or (c) of this title for the
model year that includes January 1 of that fiscal year.
[(2) Fleet average fuel economy is--
[(A) the total number of passenger automobiles leased
for at least 60 consecutive days or bought by executive
agencies in a fiscal year (except automobiles designed
for combat-related missions, law enforcement work, or
emergency rescue work); divided by
[(B) the sum of the fractions obtained by dividing
the number of automobiles of each model leased or
bought by the fuel economy of that model.]
Sec. 32917. Standards for executive agency automobiles
(a) Baseline Average Fuel Economy.--The head of each
executive agency shall determine, for all automobiles in the
agency's fleet of automobiles that were leased or bought as a
new vehicle in fiscal year 1999, the average fuel economy for
such automobiles. For the purposes of this section, the average
fuel economy so determined shall be the baseline average fuel
economy for the agency's fleet of automobiles.
(b) Increase of Average Fuel Economy.--The head of an
executive agency shall manage the procurement of automobiles
for that agency in such a manner that--
(1) not later than September 30, 2003, the average
fuel economy of the new automobiles in the agency's
fleet of automobiles is not less than 1 mile per gallon
higher than the baseline average fuel economy
determined under subsection (a) for that fleet; and
(2) not later than September 30, 2005, the average
fuel economy of the new automobiles in the agency's
fleet of automobiles is not less than 3 miles per
gallon higher than the baseline average fuel economy
determined under subsection (a) for that fleet.
(c) Calculation of Average Fuel Economy.--Average fuel
economy shall be calculated for the purposes of this section in
accordance with guidance which the Secretary of Transportation
shall prescribe for the implementation of this section.
(d) Definitions.--In this section:
(1) The term ``automobile'' does not include any
vehicle designed for combat-related missions, law
enforcement work, or emergency rescue work.
(2) The term ``executive agency'' has the meaning
given that term in section 105 of title 5.
(3) The term ``new automobile'', with respect to the
fleet of automobiles of an executive agency, means an
automobile that is leased for at least 60 consecutive
days or bought, by or for the agency, after September
30, 1999.
* * * * * * *
----------
SECTION 7 OF THE NATURAL GAS ACT
EXTENSION OF FACILITIES; ABANDONMENT OF SERVICE
Sec. 7. (a) * * *
* * * * * * *
(i) Notwithstanding the National Historic Preservation Act, a
transportation facility shall not be eligible for inclusion on
the National Register of Historic Places until the Commission
has permitted the abandonment of the transportation facility
pursuant to subsection (b) of this section.
ADDITIONAL VIEWS
I want to begin my remarks by thanking Chairman Tauzin,
Ranking Member Dingell, Subcommittee Chairman Barton, and
Ranking Member Boucher--and their staffs--for putting so much
time and effort into producing this balanced, bipartisan bill.
This bill does not do everything that I would like to see done
in helping our nation to meet the energy demands of the 21st
Century, but it is a good first step.
As my colleagues are aware, for a number of years now I
have focused much of my attention on the need to improve the
FERC hydroelectric licensing process. As such, I would like to
say a few words about the hydro licensing provisions in this
bill.
Our nation is at an important crossroads regarding its
hydro policy. We hear so much about the need for clean,
reliable, cost-efficient energy sources, and yet our nation's
hydropower resource--our largest renewable, emissions-free
resource--remains threatened by a dysfunctional licensing
process. Indeed, the record compiled in oversight and
legislative hearings on this issue over the previous two
Congresses demonstrates that legislative reform of the FERC
hydroelectric relicensing process is needed--now more than
ever--if our nation is to preserve consumer access to clean,
reliable and cost-efficient hydropower.
The relicensing process suffers from dispersed decision-
making authority and an inability to balance competing values.
The bottom line is that costs, delays, and conflicting mandates
inherent in the process threaten generation capacity and
operational flexibility throughout the nation. As we lose
megawatts and operational flexibility, we must rely on less
efficient generation sources that both cost more and produce
greenhouse gas and other emissions.
Let me be clear. Sections 201 and 202 of the bill will not
solve all of the problems inherent in the licensing process.
But if enacted into law, they could be an effective and useful
tool to encourage innovative approaches to regulations without
sacrificing important environmental outcomes. In that regard,
this bill is an important first step.
But there is much more that needs to be done. I remain
committed to pursuing more comprehensive hydro licensing
improvements, such as those contained in my legislation, H.R.
1832. I am pleased that the majority and minority leadership of
this Committee have made a commitment to revisit this issue
later this Congress, and I look forward to working with them to
that end.
Before I conclude, I want to express my thanks to
Congressmen Wynn and Shadegg for their efforts in support of
hydro licensing reform. In addition, I want to thank Chairman
Tauzin and Chairman Barton for their leadership in keeping this
issue, and my legislation, at the forefront of the Committee
agenda this Congress and in each of the previous Congresses.
And finally, I want to thank Ranking Member Dingell for his
good-faith effort over the past year to seek solutions. I have
long believed that the hydro licensing debate is a search for
balance--a balance between the vital energy values of
hydropower and the need to fully protect the environment. It is
this search for balance that has served this Committee well
over the last few weeks, and that, I hope, will serve us well
going forward as we continue to tackle the important energy
issues before us.
Mr. Chairman, thank you.
Edolphus Towns.
ADDITIONAL VIEWS OF HON. TOM BARRETT
I supported the Energy Advancement and Conservation Act.
The bill as reported by the Energy and Commerce Committee
includes modest but progressive enhancements to conservation
and federal energy management programs.
I am, however, concerned that the Energy and Air Quality
Subcommittee and the full Energy and Commerce Committee have
failed to adopt the proposal I offered to promote energy
efficiency by requiring the federal government to buy energy-
efficient central air conditioners. This common-sense
provision, adopted as part of the bill's original bipartisan
Consensus Staff Draft, would direct the federal government to
lead by example and would demonstrate to our constituents that
we in Congress really mean what we say about the importance of
energy conservation.
The energy efficiency standards I proposed were developed
as the result of a rulemaking process in the State of
California. By comparison to standards relying exclusively on
Seasonal Energy Efficiency Ratio (SEER) measurements, which
promote efficiency based on seasonal averages, these standards
offer additional benefits by incorporating Energy Efficiency
Ratio (EER) values that promote efficiency even during peak
demand times. This helps to ensure the power grid's reliability
during peak load times, when demand management is needed most.
In part because of its conservation and reliability benefits,
my amendment is endorsed by environmental advocates including
the Natural Resources Defense Council and the American Council
for an Energy Efficient Economy.
California selected these standards based not only on their
environmental responsibility, but also on their practicality.
California's analysis indicates that, of approximately 80 air
conditioner manufacturers examined by the state, about one
quarter offer models meeting the proposed energy efficiency
standard. This standard enjoys the support of Goodman
Manufacturing, which makes air conditioners under several brand
names, and is confident that American firms can compete in the
market for energy-efficient air conditioners.
The proposed standards would save tax dollars in the long
run, by reducing federal agencies' electricity bills. With
energy efficiency rebates available from electric power utility
firms, they may even allow the government to buy more energy-
efficient air conditioners that are also cheaper upfront. I had
hoped that my colleagues on both sides of the aisle would have
agreed that it makes more sense to direct our constituents' tax
dollars toward the provision of government services than toward
the local power company's bottom line.
Perhaps most importantly, my amendment would send a clear
and unmistakable message that we in Congress really mean it
when we say that we support energy efficiency and conservation.
By adopting this amendment, the committee could have expressed
its commitment in the most tangible way possible in a free
market economy: by voting with our dollars. This approach tells
the market that America is serious about energy efficiency in a
way no statement of principle or incentive program could.
By comparison, the air conditioner energy efficiency
provision adopted by the Energy and Air Quality Subcommittee is
at best disappointing and at worse counterproductive. The
provision adopted with the backing of the Subcommittee's
leadership would have no meaningful effect in promoting energy
efficiency. It applies a lower energy efficiency standard than
the Consensus Staff Draft language, and it applies that
standard only to very small central air conditioners. The only
air conditioners covered by the Subcommittee-approved language
are those with cooling capacities of less than 65,000 BTUs per
hour. The Chief Architect's Office at the General Services
Administration confirmed that such air conditioners are not
commonly used in commercial buildings like federal buildings.
Consequently, these standards would have almost no practical
effect.
Worse yet, by deleting the Consensus Staff Draft language
in favor of the provision supported by the Subcommittee
leadership, we are sending a message to environmental advocates
and manufacturers that we are not serious about energy
efficiency and conservation. The language adopted at
subcommittee would apply to federal government buildings an
efficiency standard that is the same as the standard proposed
by the Bush Administration for consumer appliances. That
proposed standard is already the subject of well-founded
litigation, and it may very likely be struck down by the
courts. This alarming possibility would mean that we in
Congress have actually gone out of our way to set an energy
efficiency standard for federal procurement that trails behind
the standard applicable to mass-market consumer products.
Again, I had hoped that my colleagues on both sides of the
aisle would have agreed that the federal government should be
setting an example for others to emulate, rather than defining
our goals based on the lowest common denominator.
``The federal government should set a good example of
conservation by reducing its own energy use'' I could not agree
more with this sentiment, expressed by President George Bush
and quoted in the May 4, 2001, Washington Post. The language
adopted at subcommittee does not live up to this commitment.
The language I drafted for inclusion in the Consensus Staff
Draft would offer an opportunity for the federal government to
demonstrate true leadership.
I was encouraged that, during full committee consideration
of the bill, Chairman Tauzin and Ranking Member Dingell offered
to work together to address these concerns before the bill
reaches the House floor. I am hopeful that the House will be
able to consider a bill that would allow Congress to
demonstrate that we will walk the walk, as well as talk the
talk, on energy efficiency and conservation.