[Senate Report 108-43]
[From the U.S. Government Publishing Office]
108th Congress Report
SENATE
1st Session 108-43
======================================================================
Calendar No. 87
THE ENERGY POLICY ACT OF 2003
__________
R E P O R T
of the
COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
to accompany
S. 1005
together with
MINORITY VIEWS
May 6, 2003.--Ordered to be printed
COMMITTEE ON ENERGY AND NATURAL RESOURCES
(108th Congress)
PETE V. DOMENICI, New Mexico, Chairman
DON NICKLES, Oklahoma JEFF BINGAMAN, New Mexico
LARRY E. CRAIG, Idaho DANIEL K. AKAKA, Hawaii
BEN NIGHTHORSE CAMPBELL, Colorado BYRON L. DORGAN, North Dakota
CRAIG THOMAS, Wyoming BOB GRAHAM, Florida
LAMAR ALEXANDER, Tennessee RON WYDEN, Oregon
LISA MURKOWSKI, Alaska TIM JOHNSON, South Dakota
JAMES M. TALENT, Missouri MARY L. LANDRIEU, Louisiana
CONRAD BURNS, Montana EVAN BAYH, Indiana
GORDON SMITH, Oregon DIANNE FEINSTEIN, California
JIM BUNNING, Kentucky CHARLES E. SCHUMER, New York
JON KYL, Arizona MARIA CANTWELL, Washington
Alex Flint, Staff Director
James P. Beirne, Chief Counsel
Robert M. Simon, Democratic Staff Director
Sam E. Fowler, Democratic Chief Counsel
C O N T E N T S
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Page
Purpose of the Measure........................................... 00
Summary of Major Provisions...................................... 00
Background and Need.............................................. 00
Legislative History.............................................. 00
Committee Recommendation and Tabulation of Votes................. 00
Section-by-Section Analysis...................................... 00
Cost and Budgetary Considerations................................ 00
Regulatory Impact Evaluation..................................... 00
Executive Communications......................................... 00
Minority Views................................................... 00
Changes in Existing Law.......................................... 00
Mineral Leasing Act.......................................... 00
Federal Power Act............................................ 00
Public Utility Holding Company Act of 1935................... 00
United States Housing Act of 1937............................ 00
Natural Gas Act.............................................. 00
National Housing Act......................................... 00
Outer Continental Shelf Lands Act............................ 00
Atomic Energy Act of 1954.................................... 00
Solid Waste Disposal Act..................................... 00
Geothermal Steam Act......................................... 00
Housing and Community Development Act of 1974................ 00
Energy Policy and Conservation Act........................... 00
Energy Conservation and Production Act....................... 00
Alaska Natural Gas Transportation Act of 1976................ 00
Department of Energy Organization Act........................ 00
Public Utility Regulatory Policies Act of 1978............... 00
National Energy Conservation Policy Act...................... 00
Department of Energy Science Education Enhancement Act....... 00
Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990.................................. 00
Cranston-Gonzalez National Affordable Housing Act............ 00
High-Performance Computing Act of 1991....................... 00
Energy Policy Act of 1992.................................... 00
HUD Demonstration Act of 1993................................ 00
North American Free Trade Agreement Implementation Act....... 00
USEC Privatization Act....................................... 00
Native American Housing Assistance and Self-Determination Act 00
Legislative Branch Appropriations Act, 1999.................. 00
Energy Act of 2000........................................... 00
Title 5, United States Code.................................. 00
Title 23, United States Code................................. 00
Title 49, United States Code................................. 00
Calendar No. 87
108th Congress Report
SENATE
1st Session 108-43
======================================================================
THE ENERGY POLICY ACT OF 2003
_______
May 6, 2003.--Ordered to be printed
_______
Mr. Domenici, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
Together With
MINORITY VIEWS
[To accompany S. 1005]
The Committee on Energy and Natural Resources, having
considered the same, reports favorably thereon, and original
bill (S. 1005) to enhance the energy security of the United
States, and for other purposes, and recommends that the bill do
pass.
The text of the bill follows:
SECTION 1. SHORT TITLE.
This Act may be cited as ``The Energy Policy Act of 2003''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--OIL AND GAS
Subtitle A--Production Incentives
Sec. 101. Permanent authority to operate the strategic petroleum
reserve and other energy programs.
Sec. 102. Study on inventory of petroleum and natural gas storage.
Sec. 103. Program on oil and gas royalties in kind.
Sec. 104. Marginal property production incentives.
Sec. 105. Comprehensive inventory of OCS oil and natural gas resources.
Sec. 106. Royalty relief for deep water production.
Sec. 107. Alaska offshore royalty suspension.
Sec. 108. Orphaned, abandoned, or idled wells on federal lands.
Sec. 109. Incentives for natural gas production from deep wells in the
shallow waters of the Gulf of Mexico.
Sec. 110. Alternate energy-related uses on the outer continental shelf.
Sec. 111. Coastal impact assistance.
Sec. 112. National energy resource database.
Sec. 113. Oil and gas lease acreage limitation.
Sec. 114. Assessment of dependence of State of Hawaii on oil.
Subtitle B--Access to Federal Lands
Sec. 121. Office of Federal Energy Permit Coordination.
Sec. 122. Pilot project to improve Federal permit coordination.
Sec. 123. Federal onshore leasing programs for oil and gas.
Sec. 124. Estimates of oil and gas resources underlying onshore Federal
lands.
Sec. 125. Split-estate Federal oil and gas leasing and development
practices.
Sec. 126. Coordination of Federal agencies to establish priority energy
transmission rights-of-way.
Subtitle C--Alaska Natural Gas Pipeline
Sec. 131. Short title.
Sec. 132. Definitions.
Sec. 133. Issuance of Certificate of Public Convenience and Necessity.
Sec. 134. Environmental reviews.
Sec. 135. Pipeline expansion.
Sec. 136. Federal coordinator.
Sec. 137. Judicial review.
Sec. 138. State jurisdiction over in-state delivery of natural gas.
Sec. 139. Study of alternative means of construction.
Sec. 140. Clarification of ANGTA status and authorities.
Sec. 141. Sense of Congress.
Sec. 142. Participation of small business concerns.
Sec. 143. Alaska Pipeline Construction Training Program.
Sec. 144. Loan guarantee.
Sec. 145. Sense of Congress on natural gas demand.
TITLE II--COAL
Subtitle A--Clean Coal Power Initiative
Sec. 201. Authorization of appropriations.
Sec. 202. Project criteria.
Sec. 203. Reports.
Sec. 204. Clean coal centers of excellence.
Subtitle B--Federal Coal Leases
Sec. 211. Repeal of the 160-acre limitation for coal leases.
Sec. 212. Mining plans.
Sec. 213. Payment of advance royalties under coal leases.
Sec. 214. Elimination of deadline for submission of coal lease
operation and reclamation plan.
Sec. 215. Application of amendments.
Subtitle C--Powder River Basin
Sec. 221. Resolution of Federal resource development conflicts in the
Powder River Basin.
TITLE III--INDIAN ENERGY
Sec. 301. Short title.
Sec. 302. Office of Indian Energy Policy and Programs.
Sec. 303. Indian energy.
``TITLE XXVI--INDIAN ENERGY.
``Sec. 2601. Definitions.
``Sec. 2602. Indian Tribal energy resource development.
``Sec. 2603. Indian Tribal energy resource regulation.
``Sec. 2604. Leases, business agreements, and rights-of-way
involving energy development or transmission.
``Sec. 2605. Federal power marketing administrations.
``Sec. 2606. Indian mineral development review.
``Sec. 2607. Wind and hydropower feasibility study.
Sec. 304. Four Corners transmission line project.
Sec. 305. Energy efficiency in federally assisted housing.
Sec. 306. Consultation with Indian Tribes.
TITLE IV--NUCLEAR
Subtitle A--Price-Anderson Amendments
Sec. 401. Short title.
Sec. 402. Extension of indemnification authority.
Sec. 403. Maximum assessment.
Sec. 404. Department of Energy Liability Limit.
Sec. 405. Incidents outside the United States.
Sec. 406. Reports.
Sec. 407. Inflation adjustment.
Sec. 408. Treatment of modular reactors.
Sec. 409. Applicability.
Sec. 410. Civil penalties.
Subtitle B--Deployment of Commercial Nuclear Plants
Sec. 421. Short title.
Sec. 422. Definitions.
Sec. 423. Responsibilities of the Secretary of Energy.
Sec. 424. Limitations.
Sec. 425. Regulations.
Subtitle C--Advanced Reactor Hydrogen Co-Generation Project
Sec. 431. Project establishment.
Sec. 432. Project definition.
Sec. 433. Project management.
Sec. 434. Project requirements.
Sec. 435. Authorization of appropriations.
Subtitle D--Miscellaneous Matters
Sec. 441. Uranium sales and transfers.
Sec. 442. Decommissioning Pilot Program.
TITLE V--RENEWABLE ENERGY
Subtitle A--General Provisions
Sec. 501. Assessment of renewable energy resources.
Sec. 502. Renewable energy production incentive.
Sec. 503. Renewable energy on Federal lands.
Sec. 504. Federal purchase requirement.
Sec. 505. Insular area renewable and energy efficient plans.
Subtitle B--Hydroelectric Relicensing
Sec. 511. Alternative conditions and fishways.
Subtitle C--Geothermal Energy
Sec. 521. Competitive lease sale requirements.
Sec. 522. Geothermal leasing and permitting on Federal lands.
Sec. 523. Leasing and permitting on Federal lands withdrawn for
military purposes.
Sec. 524. Reinstatement of leases terminated for failure to pay rent.
Sec. 525. Royalty reduction and relief.
Sec. 526. Royalty exemption for direct use of low temperature
geothermal energy resources.
Subtitle D--Biomass Energy
Sec. 531. Definitions.
Sec. 532. Biomass Commercial Utilization Grant Program.
Sec. 533. Improved Biomass Utilization Grant Program.
Sec. 534. Report.
TITLE VI--ENERGY EFFICIENCY
Subtitle A--Federal Programs
Sec. 601. Energy management requirements.
Sec. 602. Energy use measurement and accountability.
Sec. 603. Federal building performance standards.
Sec. 604. Energy savings performance contracts.
Sec. 605. Procurement of energy efficient products.
Sec. 606. Congressional building efficiency.
Sec. 607. Increased Federal use of recovered mineral components in
federally funded projects involving procurement of cement or concrete.
Sec. 608. Utility energy service contracts.
Sec. 609. Study of energy efficiency standards.
Subtitle B--State and Local Programs
Sec. 611. Low Income Community Energy Efficiency Pilot Program.
Sec. 612. Energy efficient public buildings.
Sec. 613. Energy efficient appliance rebate programs.
Subtitle C--Consumer Products
Sec. 621. Energy conservation standards for additional products.
Sec. 622. Energy labeling.
Sec. 623. Energy Star Program.
Sec. 624. HVAC Maintenance Consumer Education Program.
Subtitle D--Public Housing
Sec. 631. Capacity Building for energy-efficient, affordable housing.
Sec. 632. Increase of CDBG public services cap for energy conservation
and efficiency activities.
Sec. 633. FHA mortgage insurance incentives for energy efficient
housing.
Sec. 634. Public Housing Capital Fund.
Sec. 635. Grants for energy-conserving improvements for assisted
housing.
Sec. 636. North American Development Bank.
Sec. 637. Energy-efficient appliances.
Sec. 638. Energy efficiency standards.
Sec. 639. Energy strategy for HUD.
TITLE VII--TRANSPORTATION FUELS
Subtitle A--Alternative Fuel Programs
Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 702. Fuel use credits.
Sec. 703. Neighborhood electric vehicles.
Sec. 704. Credits for medium and heavy duty dedicated vehicles.
Sec. 705. Alternative fuel infrastructure.
Sec. 706. Incremental cost allocation.
Sec. 707. Review of alternative fuel programs.
Sec. 708. High occupancy vehicle exception.
Sec. 709. Alternate compliance and flexibility.
Subtitle B--Automobile Fuel Economy
Sec. 711. Automobile fuel economy standards.
Sec. 712. Dual-fueled automobiles.
Sec. 713. Federal fleet fuel economy.
Sec. 714. Railroad efficiency.
Sec. 715. Reduction of engine idling in heavy-use vehicles.
TITLE VIII--HYDROGEN
Subtitle A--Basic Research Programs
Sec. 801. Short title.
Sec. 802. Matsunaga Act amendment.
Sec. 803. Hydrogen transportation and fuel initiative.
Sec. 804. Interagency Task Force and Coordination Plan.
Sec. 805. Review by the National Academies.
Subtitle B--Demonstration Programs
Sec. 811. Definitions.
Sec. 812. Hydrogen Vehicle Demonstration Program.
Sec. 813. Stationary Fuel Cell Demonstration Program.
Sec. 814. Hydrogen demonstration programs in National Parks.
Sec. 815. International Demonstration Program.
Sec. 816. Tribal stationary hybrid power demonstration.
Sec. 817. Distributed Generation Pilot Program.
Subtitle C--Federal Programs
Sec. 821. Public education and training.
Sec. 822. Hydrogen transition strategic planning.
Sec. 823. Minimum Federal fleet requirement.
Sec. 824. Stationary fuel cell purchase requirement.
Sec. 825. Department of Energy Strategy.
TITLE IX--RESEARCH AND DEVELOPMENT
Sec. 901. Short title.
Sec. 902. Goals.
Sec. 903. Definitions.
Subtitle A--Energy Efficiency
Sec. 911. Energy efficiency.
Sec. 912. Next generation lighting initiative.
Sec. 913. National building performance initiative.
Sec. 914. Secondary Electric Vehicle Battery Use Program.
Sec. 915. Energy efficiency science initiative.
Subtitle B--Distributed Energy and Electric Energy Systems
Sec. 921. Distributed energy and electric energy systems.
Sec. 922. Hybrid distributed power systems.
Sec. 923. High Power Density Industry Program.
Sec. 924. Micro-cogeneration energy technology.
Sec. 925. Distributed Energy Technology Demonstration Program.
Sec. 926. Office of Electric Transmission and Distribution.
Sec. 927. Electric transmission and distribution programs.
Subtitle C--Renewable Energy
Sec. 931. Renewable energy.
Sec. 932. Bioenergy programs.
Sec. 933. Biodiesel Engine Testing Program.
Sec. 934. Concentrating Solar Power Research Program.
Sec. 935. Miscellaneous projects.
Subtitle D--Nuclear Energy
Sec. 941. Nuclear energy.
Sec. 942. Nuclear energy research programs.
Sec. 943. Advanced fuel cycle initiative.
Sec. 944. University nuclear science and engineering support.
Sec. 945. Security of nuclear facilities.
Sec. 946. Alternatives to industrial radioactive sources.
Subtitle E--Fossil Energy
Sec. 951. Fossil energy.
Sec. 952. Oil and gas research programs.
Sec. 953. Research and development for coal mining technologies.
Sec. 954. Coal and Related Technologies Program.
Sec. 955. Complex well technology testing facility.
Subtitle F--Science
Sec. 961. Science.
Sec. 962. United States participation in ITER.
Sec. 963. Spallation neutron source.
Sec. 964. Support for science and energy facilities and infrastructure.
Sec. 965. Catalysis Research Program.
Sec. 966. Nanoscale science and engineering research.
Sec. 967. Advanced scientific computing for energy missions.
Sec. 968. Genomes to Life Program.
Sec. 969. Fission and Fusion Energy Materials Research Program.
Sec. 970. Energy-Water Supply Technologies Program.
Subtitle G--Energy and Environment
Sec. 971. United States-Mexico energy technology cooperation.
Sec. 972. Coal technology loan.
Subtitle H--Management
Sec. 981. Availability of funds.
Sec. 982. Cost sharing.
Sec. 983. Merit review of proposals.
Sec. 984. External technical review of departmental programs.
Sec. 985. Improved coordination of technology transfer activities.
Sec. 986. Technology Infrastructure Program.
Sec. 987. Small business advocacy and assistance.
Sec. 988. Mobility of scientific and technical personnel.
Sec. 989. National Academy of Sciences report.
Sec. 990. Outreach.
Sec. 991. Competitive award of management contracts.
Sec. 992. Reprogramming.
Sec. 993. Construction with other laws.
Sec. 994. Improved coordination and management of civilian science and
technology programs.
Sec. 995. Educational programs in science and mathematics.
Sec. 996. Other transactions authority.
Sec. 997. Report on research and development program evaluation
methodologies.
TITLE X--PERSONNEL AND TRAINING
Sec. 1001. Workforce trends and traineeship grants.
Sec. 1002. Research fellowships in energy research.
Sec. 1003. Training guidelines for electric energy industry personnel.
Sec. 1004. National Center on Energy Management and Building
Technologies.
Sec. 1005. Improved access to energy-related scientific and technical
careers.
Sec. 1006. National Power Plant Operations Technology and Education
Center.
Sec. 1007. Federal mine inspectors.
TITLE XI--ELECTRICITY
Sec. 1101. Definitions.
Subtitle A--Reliability
Sec. 1111. Electric reliability standards.
Subtitle B--Regional Markets
Sec. 1121. Implementation date for proposed rulemaking for standard
market design.
Sec. 1122. Sense of the Congress on regional transmission
organizations.
Sec. 1123. Federal utility participation in regional transmission
organizations.
Sec. 1124. Regional consideration of competitive wholesale markets.
Subtitle C--Improving Transmission Access and Protecting Service
Obligations
Sec. 1131. Service obligation security and parity.
Sec. 1132. Open non-discriminatory access.
Sec. 1133. Transmission infrastructure investment.
Subtitle D--Amendments to the Public Utility Regulatory Policies Act of
1978
Sec. 1141. Net metering.
Sec. 1142. Smart metering.
Sec. 1143. Adoption of additional standards.
Sec. 1144. Technical assistance.
Sec. 1145. Cogeneration and small power production purchase and sale
requirements.
Sec. 1146. Recovery of costs.
Subtitle E--Provisions Regarding the Public Utility Holding Company Act
of 1935
Sec. 1151. Definitions.
Sec. 1152. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1153. Federal access to books and records.
Sec. 1154. State access to books and records.
Sec. 1155. Exemption authority.
Sec. 1156. Affiliate transactions.
Sec. 1157. Applicability.
Sec. 1158. Effect on other regulations.
Sec. 1159. Enforcement.
Sec. 1160. Savings provisions.
Sec. 1161. Implementation.
Sec. 1162. Transfer of resources.
Sec. 1163. Effective date.
Sec. 1164. Conforming amendment to the Federal Power Act.
Subtitle F--Market Transparency, Anti-Manipulation and Enforcement
Sec. 1171. Market transparency rules.
Sec. 1172. Market manipulation.
Sec. 1173. Enforcement.
Sec. 1174. Refund effective date.
Subtitle G--Consumer Protections
Sec. 1181. Consumer privacy.
Sec. 1182. Unfair trade practices.
Sec. 1183. Definitions.
Subtitle H--Technical Amendments
Sec. 1191. Technical Amendments.
TITLE I--OIL AND GAS
Subtitle A--Production Incentives
SEC. 101. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM
RESERVE AND OTHER ENERGY PROGRAMS.
(a) Amendment to Title I of the Energy Policy and Conservation Act.--
Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211 et
seq.) is amended--
(1) by striking section 166 (42 U.S.C. 6246) and inserting--
``authorization of appropriations
``Sec. 166. There are authorized to be appropriated to the Secretary
such sums as may be necessary to carry out this part and part D, to
remain available until expended.'';
(2) by striking section 186 (42 U.S.C. 6250(e)); and
(3) by striking part E (42 U.S.C. 6251); relating to the
expiration of title I of the Act).
(b) Amendment to Title II of the Energy Policy and Conservation
Act.--Title II of the Energy Policy and Conservation Act (42 U.S.C.
6271 et seq.) is amended--
(1) by striking section 256(h) (42 U.S.C. 6276(h)) and
inserting--
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this part, to remain available until expended.'';
(2) by inserting before section 273 (42 U.S.C. 6283) the
following:
``Part C--Summer Fill and Fuel Budgeting Programs'';
(3) by striking section 273(e) (42 U.S.C. 6283(e)); relating
to the expiration of summer fill and fuel budgeting programs);
and
(4) by striking part D (42 U.S.C. 6285); relating to the
expiration of title II of the Act).
(c) Technical Amendments.--The table of contents for the Energy
Policy and Conservation Act is amended--
(1) by amending the items relating to part D of title I to
read as follows:
``Part D--Northeast Home Heating Oil Reserve
``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';
(2) by amending the items relating to part C of title II to
read as follows:
``Part C--Summer Fill and Fuel Budgeting Programs
``Sec. 273. Summer fill and fuel budgeting programs.'';
and
(3) by striking the items relating to part D of title II.
(d) Northeast Home Heating Oil.--Section 183(b)(1) of the Energy
Policy and Conservation Act (42 U.S.C. 6250(b)(1)) is amended by
striking all after ``increases'' through to ``mid-October through
March'' and inserting ``by more than 60 percent over its 5-year rolling
average for the months of mid-October through March (considered as a
heating season average)''.
SEC. 102. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS STORAGE.
(a) Definition.--For purposes of this section ``petroleum'' means
crude oil, motor gasoline, jet fuel, distillates and propane.
(b) Study.--The Secretary of Energy shall conduct a study on
petroleum and natural gas storage capacity and operational inventory
levels, nationwide and by major geographical regions.
(c) Contents.--The study shall address--
(1) historical normal ranges for petroleum and natural gas
inventory levels;
(2) historical and projected storage capacity trends;
(3) estimated operation inventory levels below which outages,
delivery slowdown, rationing, interruptions in service or other
indicators of shortage begin to appear;
(4) explanations for inventory levels dropping below normal
ranges; and
(5) the ability of industry to meet U.S. demand for petroleum
and natural gas without shortages or price spikes, when
inventory levels are below normal ranges.
(d) Report to Congress.--Not later than one year from enactment of
this Act, the Secretary of Energy shall submit a report to Congress on
the results of the study, including findings and any recommendations
for preventing future supply shortages.
SEC. 103. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.
(a) Applicability of Section.--Notwithstanding any other provision of
law, the provisions of this section shall apply to all royalties-in-
kind accepted by the Secretary (referred to in this section as
``Secretary'') under any Federal oil or gas lease or permit under
section 36 of the Mineral Leasing Act (30 U.S.C. 192), section 27 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1353), or any other
mineral leasing law beginning on the date of the enactment of this Act
through September 30, 2013.
(b) Terms and Conditions.--All royalty accruing to the United States
under any Federal oil or gas lease or permit under the Mineral Leasing
Act (30 U.S.C. 181 et seq.) or the Outer Continental Shelf Lands Act
(43 U.S.C. 1331 et seq.) shall, on the demand of the Secretary, be paid
in oil or gas. If the Secretary makes such a demand, the following
provisions apply to such payment:
(1) Delivery by, or on behalf of, the lessee of the royalty
amount and quality due under the lease satisfies the lessee's
royalty obligation for the amount delivered, except that
transportation and processing reimbursements paid to, or
deductions claimed by, the lessee shall be subject to review
and audit.
(2) Royalty production shall be placed in marketable
condition by the lessee at no cost to the United States.
(3) The Secretary may--
(A) sell or otherwise dispose of any royalty
production taken in kind (other than oil or gas
transferred under section 27(a)(3) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)) for
not less than the market price; and
(B) transport or process (or both) any royalty
production taken in kind.
(4) The Secretary may, notwithstanding section 3302 of title
31, United States Code, retain and use a portion of the
revenues from the sale of oil and gas royalties taken in kind
that otherwise would be deposited to miscellaneous receipts,
without regard to fiscal year limitation, or may use royalty
production, to pay the cost of--
(A) transporting the royalty production;
(B) processing the royalty production;
(C) disposing of the royalty production; or
(D) any combination of transporting, processing, and
disposing of the royalty production.
(5) The Secretary may not use revenues from the sale of oil
and gas royalties taken in kind to pay for personnel, travel,
or other administrative costs of the Federal Government.
(6) Notwithstanding the provisions of paragraph 5, the
Secretary may use a portion of the revenues from the sale of
oil royalties taken in kind, without fiscal year limitation, to
pay transportation costs, salaries, and other administrative
costs directly related to filling the Strategic Petroleum
Reserve.
(c) Reimbursement of Cost.--If the lessee, pursuant to an agreement
with the United States or as provided in the lease, processes the
royalty gas or delivers the royalty oil or gas at a point not on or
adjacent to the lease area, the Secretary shall--
(1) reimburse the lessee for the reasonable costs of
transportation (not including gathering) from the lease to the
point of delivery or for processing costs; or
(2) allow the lessee to deduct such transportation or
processing costs in reporting and paying royalties in value for
other Federal oil and gas leases.
(d) Benefit to the United States Required.--The Secretary may receive
oil or gas royalties in kind only if the Secretary determines that
receiving such royalties provides benefits to the United States greater
than or equal to those likely to have been received had royalties been
taken in value.
(e) Report to Congress.--
(1) No later than September 30, 2005, the Secretary shall
provide a report to Congress that addresses--
(A) actions taken to develop businesses processes and
automated systems to fully support the royalty-in-kind
capability to be used in tandem with the royalty-in-
value approach in managing Federal oil and gas revenue;
and
(B) future royalty-in-kind businesses operation plans
and objectives.
(2) For each of the fiscal years 2004 through 2013 in which
the United States takes oil or gas royalties in kind from
production in any State or from the Outer Continental Shelf,
excluding royalties taken in kind and sold to refineries under
subsections (h), the Secretary shall provide a report to
Congress describing--
(A) the methodology or methodologies used by the
Secretary to determine compliance with subsection (d),
including performance standard for comparing amounts
received by the United States derived from such
royalties in kind to amount likely to have been
received had royalties been taken in value;
(B) an explanation of the evaluation that led the
Secretary to take royalties in kind from a lease or
group of leases, including the expected revenue effect
of taking royalties in kind;
(C) actual amounts received by the United States
derived from taking royalties in kind and cost and
savings incurred by the United States associated with
taking royalties in kind, including but not limited to
administrative savings and any new or increased
administrative costs; and
(D) an evaluation of other relevant public benefits
or detriments associated with taking royalties in kind.
(f) Deduction of Expenses.--
(1) Before making payments under section 35 of the Mineral
Leasing Act (30 U.S.C. 191) or section 8(g) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(g)) of revenues
derived from the sale of royalty production taken in kind from
a lease, the Secretary of the Interior shall deduct amounts
paid or deducted under subsections (b)(4) and (c), and shall
deposit such amounts to miscellaneous receipts.
(2) If the Secretary allows the lessee to deduct
transportation or processing costs under subsection (c), the
Secretary may not reduce any payments to recipients of revenues
derived from any other Federal oil and gas lease as a
consequence of that deduction.
(g) Consultation With States.--The Secretary shall consult--
(1) with a State before conducting a royalty in-kind program
under this section within the State, and may delegate
management of any portion of the Federal royalty in-kind
program to such State except as otherwise prohibited by Federal
law; and
(2) annually with any State from which Federal oil or gas
royalty is being taken in kind to ensure to the maximum extent
practicable that the royalty in-kind program provides revenues
to the State greater than or equal to those likely to have been
received had royalties been taken in value.
(h) Provisions for Small Refineries.--
(1) If the Secretary determines that sufficient supplies of
crude oil are not available in the open market to refineries
not having their own source of supply for crude oil, the
Secretary may grant preference to such refineries in the sale
of any royalty oil accruing or reserved to the United States
under Federal oil and gas leases issued under any mineral
leasing law, for processing or use in such refineries at
private sale at not less than the market price.
(2) In disposing of oil under this subsection, the Secretary
may prorate such oil among such refineries in the area in which
the oil is produced.
(i) Disposition to Federal Agencies.--
(1) Any royalty oil or gas taken by the Secretary in kind
from onshore oil and gas leases may be sold at not less than
market price to any department or agency of the United States.
(2) Any royalty oil or gas taken in kind from Federal oil and
gas leases on the outer Continental Shelf may be disposed of
only under section 27 of the Outer Continental Shelf Lands Act
(43 U.S.C. 1353).
(j) Preference for Federal Low-Income Energy Assistance Programs.--In
disposing of royalty oil or gas taken in kind under this section, the
Secretary may grant a preference to any person, including any State or
Federal agency, for the purpose of providing additional resources to
any Federal low-income energy assistance program.
SEC. 104. MARGINAL PROPERTY PRODUCTION INCENTIVES.
(a) Marginal Property Defined.--Until such time as the Secretary of
the Interior issues rules under subsection (e) that prescribe a
different definition, for purposes of this section, the term ``marginal
property'' means an onshore unit, communitization agreement, or lease
not within a unit or communitization agreement that produces on average
the combined equivalent of less than 15 barrels of oil per well per day
or 90 million British thermal units of gas per well per day calculated
based on the average over the three most recent production months,
including only those wells that produce more than half the days in the
three most recent production months.
(b) Conditions for Reduction of Royalty Rate.--Until such time as the
Secretary of the Interior promulgates rules under subsection (e) that
prescribe different thresholds or standards, the Secretary shall reduce
the royalty rate on--
(1) oil production from marginal properties as prescribed in
subsection (c) when the spot price of West Texas Intermediate
crude oil at Cushing, Oklahoma, is, on average, less than $15
per barrel for 90 consecutive trading days; and
(2) gas production from marginal properties as prescribed in
subsection (c) when the spot price of natural gas delivered at
Henry Hub, Louisiana, is, on average, less than $2.00 per
million British thermal units for 90 consecutive trading days.
(c) Reduced Royalty Rate.--
(1) When a marginal property meets the conditions specified
in subsection (b), the royalty rate shall be the lesser of--
(A) 5 percent; or
(B) the applicable rate under any other statutory or
regulatory royalty relief provision that applies to the
affected production.
(2) The reduced royalty rate under this subsection shall be
effective on the first day of the production month following
the date on which the applicable price standard prescribed in
subsection (b) is met.
(d) Termination of Reduced Royalty Rate.--A royalty rate prescribed
in subsection (d)(1)(A) shall terminate--
(1) on oil production from a marginal property, on the first
day of the production month following the date on which--
(A) the spot price of West Texas Intermediate crude
oil at Cushing, Oklahoma, on average, exceeds $15 per
barrel for 90 consecutive trading days, or
(B) the property no longer qualifies as a marginal
property under subsection (a); and
(2) on gas production from a marginal property, on the first
day of the production month following the date on which--
(A) the spot price of natural gas delivered at Henry
Hub, Louisiana, on average, exceeds $2.00 per million
British thermal units for 90 consecutive trading days,
or
(B) the property no longer qualifies as a marginal
property under subsection (a).
(e) Rules Prescribing Different Relief.--
(1) The Secretary of the Interior, after consultation with
the Secretary of Energy, may by rule prescribe different
parameters, standards, and requirements for, and a different
degree or extent of, royalty relief for marginal properties in
lieu of those prescribed in subsections (a) through (d).
(2) The Secretary of the Interior, after consultation with
the Secretary of Energy, and within 1 year after the date of
enactment of this Act, shall, by rule,--
(A) prescribe standards and requirements for, and the
extent of royalty relief for, marginal properties for
oil and gas leases on the outer Continental Shelf; and
(B) define what constitutes a marginal property on
the outer Continental Shelf for purposes of this
section.
(3) In promulgating rules under this subsection, the
Secretary of the Interior may consider--
(A) oil and gas prices and market trends;
(B) production costs;
(C) abandonment costs;
(D) Federal and State tax provisions and their
effects on production economics;
(E) other royalty relief programs; and
(F) other relevant matters.
(f) Savings Provision.--Nothing in this section shall prevent a
lessee from receiving royalty relief or a royalty reduction pursuant to
any other law or regulation that provides more relief than the amounts
provided by this section.
SEC. 105. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.
(a) In General.--The Secretary of the Interior shall conduct an
inventory and analysis of oil and natural gas resources beneath all of
the waters of the United States Outer Continental Shelf (``OCS''). The
inventory and analysis shall--
(1) use available data on oil and gas resources in areas
offshore of Mexico and Canada that will provide information on
trends of oil and gas accumulation in areas of the OCS;
(2) use any available technology, except drilling, but
including 3-D seismic technology to obtain accurate resources
estimates;
(3) analyze how resource estimates in OCS areas have changed
over time in regards to gathering geological and geophysical
data, initial exploration, or full field development, including
areas such as the deepwater and subsalt areas in the Gulf of
Mexico;
(4) estimate the effect that understated oil and gas resource
inventories have on domestic energy investments; and
(5) identify and explain how legislative, regulatory, and
administrative programs or processes restrict or impede the
development of identified resources and the extent that they
affect domestic supply, such as moratoria, lease terms and
conditions, operational stipulations and requirements, approval
delays by the federal government and coastal states, and local
zoning restrictions for onshore processing facilities and
pipeline landings.
(b) Reports.--The Secretary of Interior shall submit a report to the
Congress on the inventory of estimates and the analysis of restrictions
or impediments, together with any recommendations, within six months of
the date of enactment of the section. The report shall be publicly
available and updated at least every five years.
SEC. 106. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.
(a) In General.--For all tracts located in water depths of greater
than 400 meters in the Western and Central Planning Area of the Gulf of
Mexico, including that portion of the Eastern Planning Area of the Gulf
of Mexico encompassing whole lease blocks lying west of 87 degrees, 30
minutes West longitude, any oil or gas lease sale under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) occurring within 5
years after the date of the enactment of this Act shall use the bidding
system authorized in section 8(a)(1)(H) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(a)(1)(H)), except that the suspension of
royalties shall be set at a volume of not less than--
(1) 5 million barrels of oil equivalent for each lease in
water depths of 400 to 800 meters;
(2) 9 million barrels of oil equivalent for each lease in
water depths of 800 to 1,600 meters; and
(3) 12 million barrels of oil equivalent for each lease in
water depths greater than 1,600 meters.
SEC. 107. ALASKA OFFSHORE ROYALTY SUSPENSION.
Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337) is amended with the following: add ``and in the Planning
Areas offshore Alaska'' after ``West longitude'' and before ``the
Secretary''.
SEC. 108. ORPHANED, ABANDONED OR IDLED WELLS ON FEDERAL LANDS.
(a) In General.--The Secretary of the Interior, in cooperation with
the Secretary of Agriculture, shall establish a program within 1 year
after the date of enactment of this Act to remediate, reclaim, and
close orphaned, abandoned, or idled oil and gas wells located on lands
administered by the land management agencies within the Department of
the Interior and Agriculture. The program shall--
(1) include a means of ranking orphaned, abandoned, or idled
well sites for priority in remediation, reclamation and
closure, based on public health and safety, potential
environmental harm, and other land use priorities;
(2) provide for identification and recovery of the costs of
remediation, reclamation and closure from persons or other
entities currently providing a bond or other financial
assurance required under State or Federal law for an oil or gas
well that is orphaned, abandoned or idled; and
(3) provide for recovery from the persons or entities
identified under paragraph (2), or their sureties or
guarantors, of the costs of remediation, reclamation, and
closure of such wells.
(b) Cooperation and Consultations.--In carrying out this program, the
Secretary of the Interior shall work cooperatively with the Secretary
of Agriculture and the States within which the Federal lands are
located and consult with the Secretary of Energy and the Interstate Oil
and Gas Compact Commission.
(c) Plan.--Within 1 year after the date of enactment of the section,
the Secretary of the Interior, in cooperation with the Secretary of
Agriculture, shall prepare a plan for carrying out the program
established under subsection (a) and transmit copies of the plan to the
Congress.
(d) Technical Assistance Program for Non-Federal Lands.--
(1) The Secretary of Energy shall establish a program to
provide technical assistance to the various oil and gas
producing States to facilitate State efforts over a 10-year
period to ensure a practical and economical remedy for
environmental problems caused by orphaned or abandoned oil and
gas exploration or production well sites on State or private
lands.
(2) The Secretary shall work with the States, through the
Interstate Oil and Gas Compact Commission, to assist the States
in quantifying and mitigating environmental risks of onshore
orphaned abandoned oil or gas wells on State and private lands.
(3) The program shall include--
(A) mechanisms to facilitate identification, if
possible, of the persons or other entities currently
providing a bond or other form of financial assurance
required under State or Federal law for an oil or gas
well that is orphaned or abandoned;
(B) criteria for ranking orphaned or abandoned well
sites based on factors such as public health and
safety, potential environmental harm, and other land
use priorities; and
(C) information and training programs on best
practices for remediation of different types of sites.
(e) Definition.--For purposes of this section, a well is idled if it
has been non-operational for 7 years and there is no anticipated
beneficial use of the well.
(f) Authorization.--To carry out this section there is authorized to
be appropriated to the Secretary of the Interior $25,000,000 for each
of the fiscal years 2004 through 2008. Of the amounts authorized,
$5,000,000 is authorized for activities under subsection (d).
SEC. 109. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE
SHALLOW WATERS OF THE GULF OF MEXICO.
(a) Royalty Incentive Regulations.--Not later than 90 days after
enactment, the Secretary of the Interior shall promulgate final
regulations providing royalty incentives for natural gas produced from
deep wells, as defined by the Secretary, on oil and gas leases issued
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.)
and issued prior to January 1, 2001, in shallow waters of the Gulf of
Mexico, wholly west of 87 degrees, 30 minutes West longitude that are
less than 200 meters deep.
(b) Royalty Incentive Regulations for Ultra Deep Gas Wells.--
(1) No later than 90 days after the date of enactment of this
Act, in addition to any other regulations that may provide
royalty incentives for natural gas produced from deep wells on
oil and gas leases issued pursuant to the Outer Continental
Shelf Lands Act (43 U.S.C. 1331 et seq.), the Secretary of the
Interior shall promulgate new regulations granting royalty
relief suspension volumes of not less than 35 billion cubic
feet with respect to the production of natural gas from `ultra
deep wells' on leases issued prior to January 1, 2001, in
shallow waters less than 200 meters deep located in the Gulf of
Mexico wholly west of 87 degrees, 30 minutes West longitude.
For purposes of this subsection, the term `ultra deep wells'
means wells drilled with a perforated interval, the top of
which is at least 20,000 feet true vertical depth below the
datum at mean sea level.
(2) The Secretary shall not grant the royalty incentives
outlined in this subsection if the average annual NYNEX natural
gas price exceeds for one full calendar year the threshold
price of $5 per million Btu, adjusted from the year 2000 for
inflation.
(3) This subsection shall have no force or effect after the
end of the 5-year period beginning on the date of the enactment
of this Act.
SEC. 110. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.
(a) Amendment to Outer Continental Shelf Lands Act.--Section 8 of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding
at the end the following new subsection:
``(p) Easements or Rights-of-Way for Energy and Related Purposes.--
``(1) The Secretary may grant an easement or right-of-way on
the outer Continental Shelf for activities not otherwise
authorized in this Act, the Deepwater Port Act of 1974 (33
U.S.C. 1501 et seq.), or the Ocean Thermal Energy Conversion
Act of 1980 (42 U.S.C. 9101 et seq.), or other applicable law
when such activities--
``(A) support exploration, development, or production
of oil or natural gas, except that such easements or
rights-of-way shall not be granted in areas where oil
and gas preleasing, leasing and related activities are
prohibited by a Congressional moratorium or a
withdrawal pursuant to section 12 of this Act;
``(B) support transportation of oil or natural gas;
``(C) produce or support production, transportation,
or transmission of energy from sources other than oil
and gas; or
``(D) use facilities currently or previously used for
activities authorized under this Act.
``(2) The Secretary shall promulgate regulations to ensure
that activities authorized under this subsection are conducted
in a manner that provides for safety, protection of the
environment, conservation of the natural resources of the outer
Continental Shelf, appropriate coordination with other Federal
agencies, and a fair return to the Federal government for any
easement or right-of-way granted under this subsection. Such
regulations shall establish procedures for--
``(A) public notice and comment on proposals to be
permitted pursuant to this subsection;
``(B) consultation and review by State and local
governments that may be impacted by activities to be
permitted pursuant to this subsection;
``(C) consideration of the coastal zone management
program being developed or administered by an affected
coastal State pursuant to section 305 or section 306 of
the Coastal Zone Management Act of 1972 (16 U.S.C.
1454, 1455); and
``(D) consultation with the Secretary of Defense and
other appropriate agencies prior to the issuance of an
easement or right-of-way under this subsection
concerning issues related to national security and
navigational obstruction.
``(3) The Secretary shall require the holder of an easement
or right-of-way granted under this subsection to furnish a
surety bond or other form of security, as prescribed by the
Secretary, and to comply with such other requirements as the
Secretary may deem necessary to protect the interests of the
United States.
``(4) This subsection shall not apply to any area within the
exterior boundaries of any unit of the National Park System,
National Wildlife Refuge System, or National Marine Sanctuary
System, or any National Monument.
``(5) Nothing in this subsection shall be construed to amend
or repeal, expressly by implication, the applicability of any
other law, including but not limited to, the Coastal Zone
Management Act (16 U.S.C. 1455 et seq.) or the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).''.
(b) Conforming Amendment.--The text of the heading for section 8 of
the Outer Continental Shelf Lands Act is amended to read as follows:
``Leases, Easements, and Rights-of-Way on the Outer Continental
Shelf.''.
SEC. 111. COASTAL IMPACT ASSISTANCE.
The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is
amended by adding at the end:
``SEC. 32 COASTAL IMPACT ASSISTANCE FAIRNESS PROGRAM.
``(a) Definitions.--When used in this section:
``(1) The term `coastal political subdivision' means a
county, parish, or any equivalent subdivision of a Producing
Coastal State in all or part of which subdivision lies within
the coastal zone (as defined in section 304(1) of the Coastal
Zone Management Act (16 U.S.C. 1453(1))) and within a distance
of 200 miles from the geographic center of any leased tract.
``(2) The term `coastal population' means the population of
all political subdivisions, as determined by the most recent
official data of the Census Bureau, contained in whole or in
part within the designated coastal boundary of a State as
defined in a State's coastal zone management program under the
Coastal Zone Management Act (16 U.S.C. 1451 et seq.).
``(3) The term `Coastal State' has the same meaning as
provided by subsection 304(4) of the Coastal Zone Management
Act (16 U.S.C. 1453(4)).
``(4) The term `coastline' has the same meaning as the term
`coast line' as defined in subsection 2(c) of the Submerged
Lands Act (43 U.S.C. 1301(c)).
``(5) The term `distance' means the minimum great circle
distance, measured in statute miles.
``(6) The term `leased tract' means a tract maintained under
section 6 or leased under section 8 for the purpose of drilling
for, developing, and producing oil and natural gas resources.
``(7) The term `Producing Coastal State' means a Coastal
State with a coastal seaward boundary within 200 miles from the
geographic center of a leased tract other than a leased tract
within any area of the Outer Continental Shelf where a
moratorium on new leasing was in effect as of January 1, 2002
unless the lease was issued prior to the establishment of the
moratorium and was in production on January 1, 2002.
``(8) The term `qualified Outer Continental Shelf revenues'
means all amounts received by the United States from each
leased tract or portion of a leased tract lying seaward of the
zone defined and governed by section 8(g) of this Act, or lying
within such zone but to which section 8(g) does not apply, the
geographic center of which lies within a distance of 200 miles
from any part of the coastline of any Producing Coastal State,
including bonus bids, rents, royalties (including payments for
royalties taken in kind and sold), net profit share payments,
and related late payment interest. Such term shall only apply
to leases issued after January 1, 2003, and revenues from
existing leases that occurs after January 1, 2003. Such term
does not include any revenues from a leased tract or portion of
a leased tract that is included within any area of the Outer
Continental Shelf where a moratorium on new leasing was in
effect as of January 1, 2002, unless the lease was issued prior
to the establishment of the moratorium and was in production on
January 1, 2002.
``(9) The term `Secretary' means the Secretary of the
Interior.
``(b) Authorization.--For fiscal years 2004 through 2009, an amount
equal to not more than 12.5 percent of qualified Outer Continental
Shelf revenues is authorized to be appropriated for the purposes of
this section.
``(c) Impact Assistance Payments to States and Political
Subdivisions.--The Secretary shall make payments from the amounts
available under this section to Producing Coastal States with an
approved Coastal Impact Assistance Plan, and to coastal political
subdivisions as follows:
``(1) Of the amounts appropriated, the allocation for each
Producing Coastal State shall be calculated based on the ratio
of qualified Outer Continental Shelf revenues generated off the
coastline of the Producing Coastal State to the qualified Outer
Continental Shelf revenues generated off the coastlines of all
Producing Coastal States for each fiscal year. Where there is
more than one Producing Coastal State within 200 miles of a
leased tract, the amount of each Producing Coastal State's
allocation for such leased tract shall be inversely
proportional to the distance between the nearest point on the
coastline of such State and the geographic center of each
leased tract or portion of the leased tract (to the nearest
whole mile) that is within 200 miles of that coastline, as
determined by the Secretary.
``(2) Thirty-five percent of each Producing Coastal State's
allocable share as determined under paragraph (1) shall be paid
directly to the coastal political subdivisions by the Secretary
based on the following formula:
``(A) Twenty-five percent shall be allocated based on
the ratio of such coastal political subdivision's
coastal population to the coastal population of all
coastal political subdivisions in the Producing Coastal
State.
``(B) Twenty-five percent shall be allocated based on
the ratio of such coastal political subdivision's
coastline miles to the coastline miles of a coastal
political subdivision in the Producing Coastal State
except that for those coastal political subdivisions in
the State of Louisiana without a coastline, the
coastline for purposes of this element of the formula
shall be the average length of the coastline of the
remaining coastal subdivisions in the State.
``(C) Fifty percent shall be allocated based on the
relative distance of such coastal political subdivision
from any leased tract used to calculate the Producing
Coastal State's allocation using ratios that are
inversely proportional to the distance between the
point in the coastal political subdivision closest to
the geographic center of each leased tract or portion,
as determined by the Secretary, except that in the
State of Alaska, the funds for this element of the
formula shall be divided equally among the two closest
coastal political subdivisions. For purposes of the
calculations under this subparagraph, a leased tract or
portion of a leased tract shall be excluded if the
leased tract or portion is located in a geographic area
where a moratorium on new leasing was in effect on
January 1, 2002, unless the lease was issued prior to
the establishment of the moratorium and was in
production on January 1, 2002.
``(3) Any amount allocated to a Producing Coastal State or
coastal political subdivision but not disbursed because of a
failure to have an approved Coastal Impact Assistance Plan
under this section shall be allocated equally by the Secretary
among all other Producing Coastal States in a manner consistent
with this subsection except that the Secretary shall hold in
escrow such amount until the final resolution of any appeal
regarding the disapproval of a plan submitted under this
section. The Secretary may waive the provisions of this
paragraph and hold a Producing Coastal State's allocable share
in escrow if the Secretary determines that such State is making
a good faith effort to develop and submit, or update, a Coastal
Impact Assistance Plan.
``(4) For purposes of this subsection, calculations of
payments for fiscal years 2004 through 2006 shall be made using
qualified Outer Continental Shelf revenues received in fiscal
year 2003, and calculations of payments for fiscal years 2007
through 2009 shall be made using qualified Outer Continental
Shelf revenues received in fiscal year 2006.
``(d) Coastal Impact Assistance Plan.--
``(1) The Governor of each Producing Coastal State shall
prepare, and submit to the Secretary, a Coastal Impact
Assistance Plan. The Governor shall solicit local input and
shall provide for public participation in the development of
the plan. The plan shall be submitted to the Secretary by July
1, 2004. Amounts received by Producing Coastal States and
coastal political subdivisions may be used only for the
purposes specified in the Producing Coastal State's Coastal
Impact Assistance Plan.
``(2) The Secretary shall approve a plan under paragraph (1)
prior to disbursement of amounts under this section. The
Secretary shall approve the plan if the Secretary determines
that the plan is consistent with the uses set forth in
subsection (f) of this section and if the plan contains--
``(A) the name of the State agency that will have the
authority to represent and act for the State in dealing
with the Secretary for purposes of this section;
``(B) a program for the implementation of the plan
which describes how the amounts provided under this
section will be used;
``(C) a contact for each political subdivision and
description of how coastal political subdivisions will
use amounts provided under this section, including a
certification by the Governor that such uses are
consistent with the requirements of this section;
``(D) certification by the Governor that ample
opportunity has been accorded for public participation
in the development and revision of the plan; and
``(E) measures for taking into account other relevant
Federal resources and programs.
``(3) The Secretary shall approve or disapprove each plan or
amendment within 90 days of its submission.
``(4) Any amendment to the plan shall be prepared in
accordance with the requirements of this subsection and shall
be submitted to the Secretary for approval or disapproval.
``(e) Authorized Uses.--Producing Coastal States and coastal
political subdivisions shall use amounts provided under this section,
including any such amounts deposited in a State or coastal political
subdivision administered trust fund dedicated to uses consistent with
this subsection, in compliance with Federal and State law and only for
one or more of the following purposes--
``(1) projects and activities for the conservation,
protection or restoration of coastal areas including wetlands;
``(2) mitigating damage to fish, wildlife or natural
resources;
``(3) planning assistance and administrative costs of
complying with the provisions of this section;
``(4) implementation of Federally approved marine, coastal,
or comprehensive conservation management plans; and
``(5) mitigating impacts of Outer Continental Shelf
activities through funding onshore infrastructure and public
service needs.
(f) Compliance With Authorized Uses.--If the Secretary determines
that any expenditure made by a Producing Coastal State or coastal
political subdivision is not consistent with the uses authorized in
subsection (e) of this section, the Secretary shall not disburse any
further amounts under this section to that Producing Coastal State or
coastal political subdivision until the amounts used for the
inconsistent expenditure have been repaid or obligated for authorized
uses.
SEC. 112. NATIONAL ENERGY RESOURCE DATABASE.
(a) Short Title.--This section may be cited as the ``National Energy
Data Preservation Program Act of 2003''.
(b) Program.--The Secretary of the Interior (in this section,
referred to as ``Secretary'') shall carry out a National Energy Data
Preservation Program in accordance with this section--
(1) to archive geologic, geophysical, and engineering data
and samples related to energy resources including oil, gas,
coal, and geothermal resources;
(2) to provide a national catalog of such archival material;
and
(3) to provide technical assistance related to the archival
material.
(c) Energy Data Archive System.--
(1) The Secretary shall establish, as a component of the
program, an energy data archive system, which shall provide for
the storage, preservation, and archiving of subsurface, and in
limited cases surface, geological, geophysical and engineering
data and samples. The Secretary, in consultation with the
Association of American State Geologists and interested members
of the public, shall develop guidelines relating to the energy
data archive system, including the types of data and samples to
be preserved.
(2) The system shall be comprised of State agencies and
agencies within the Department of the Interior that maintain
geological and geophysical data and samples regarding energy
resources and that are designated by the Secretary in
accordance with this subsection. The program shall provide for
the storage of data and samples through data repositories
operated by such agencies.
(3) The Secretary may not designate a State agency as a
component of the energy data archive system unless it is the
agency that acts as the geological survey in the State.
(4) The energy data archive system shall provide for the
archiving of relevant subsurface data and samples obtained
during energy exploration and production operations on Federal
lands--
(A) in the most appropriate repository designated
under paragraph (2), with preference being given to
archiving data in the State in which the data was
collected; and
(B) consistent with all applicable law and
requirements relating to confidentiality and
proprietary data.
(5)(A) Subject to the availability of appropriations, the
Secretary shall provide financial assistance to a State agency
that is designated under paragraph (2) for providing facilities
to archive energy material.
(B) The Secretary, in consultation with the Association of
American State Geologists and interested members of the public,
shall establish procedures for providing assistance under this
paragraph. The procedures shall be designed to ensure that such
assistance primarily supports the expansion of data and
material archives and the collection and preservation of new
data and samples.
(d) National Catalog.--
(1) As soon as practicable after the date of the enactment of
this section, the Secretary shall develop and maintain, as a
component of the program, a national catalog that identifies--
(A) energy data and samples available in the energy
data archive system established under subsection (c);
(B) the repository for particular material in such
system; and
(C) the means of accessing the material.
(2) The Secretary shall make the national catalog accessible
to the public on the site of the Survey on the World Wide Web,
consistent with all applicable requirements related to
confidentiality and proprietary data.
(3) The Secretary may carry out the requirements of this
subsection by contract or agreement with appropriate persons.
(e) Technical Assistance.--
(1) Subject to the availability of appropriations, as a
component of the Program, the Secretary shall provide financial
assistance to any State agency designated under subsection
(c)(2) to provide technical assistance to enhance unders
tanding, interpretation, and use of materials archived in the
energy data archive system established under subsection (c).
(2) The Secretary, in consultation with the Association of
American State Geologists and interested members of the public,
shall develop a process, which shall involve the participation
of representatives of relevant Federal and State agencies, for
the approval of financial assistance to State agencies under
this subsection.
(f) Costs.--
(1) The Federal share of the cost of an activity carried out
with assistance under subsections (c) or (e) shall be no more
than 50 percent of the total cost of that activity.
(2) The Secretary--
(A) may accept private contributions of property and
services for technical assistance and archive
activities conducted under this section; and
(B) may apply the value of such contributions to the
non-Federal share of the costs of such technical
assistance and archive activities.
(g) Reports.--
(1) Within one year after the date of the enactment of this
Act, the Secretary shall submit an initial report to the
Congress setting forth a plan for the implementation of the
program.
(2) Not later than 90 days after the end of the first fiscal
year beginning after the submission of the report under
paragraph (1) and after the end of each fiscal year thereafter,
the Secretary shall submit a report to the Congress describing
the status of the program and evaluating progress achieved
during the preceding fiscal year in developing and carrying out
the program.
(3) The Secretary shall consult with the Association of
American State Geologists and interested members of the public
in preparing the reports required by this subsection.
(h) Definitions.--As used in this section, the term:
(1) ``Association of American State Geologists'' means the
organization of the chief executives of the State geological
surveys.
(2) ``Secretary'' means the Secretary of the Interior acting
through the Director of the United States Geological Survey.
(3) ``Program'' means the National Energy Data Preservation
Program carried out under this section.
(4) ``Survey'' means the United States Geological Survey.
(i) Maintenance of State Effort.--It is the intent of the Congress
that the States not use this section as an opportunity to reduce State
resources applied to the activities that are the subject of the
program.
(j) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $30,000,000 for each of fiscal years 2003
through 2007 for carrying out this section.
SEC. 113. OIL AND GAS LEASE ACREAGE LIMITATION.
Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 184(d)(1)) is
amended by inserting after ``acreage held in special tar sands area''
the following: ``as well as acreage under any lease any portion of
which has been committed to a federally approved unit or cooperative
plan or communitization agreement, or for which royalty, including
compensatory royalty or royalty-in-kind, was paid in the preceding
calendar year,''.
SEC. 114. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.
(a) Assessment.--The Secretary of Energy shall assess the economic
implication of the dependence of the State of Hawaii on oil as the
principal source of energy for the State, including--
(1) the short- and long-term prospects for crude oil supply
disruption and price volatility and potential impacts on the
economy of Hawaii;
(2) the economic relationship between oil-fired generation of
electricity from residual fuel and refined petroleum products
consumed for ground, marine, and air transportation;
(3) the technical and economic feasibility of increasing the
contribution of renewable energy resources for generation of
electricity, on an island-by-island basis, including--
(A) siting and facility configuration;
(B) environmental, operational, and safety
considerations;
(C) the availability of technology;
(D) effects on the utility system including
reliability;
(E) infrastructure and transport requirements;
(F) community support; and
(G) other factors affecting the economic impact of
such an increase and any effect on the economic
relationship described in paragraph (2);
(4) the technical and economic feasibility of using liquefied
natural gas to displace residual fuel oil for electric
generation, including neighbor island opportunities, and the
effect of such displacement on the economic relationship
described in paragraph (2) including--
(A) the availability of supply;
(B) siting and facility configuration for onshore and
offshore liquefied natural gas receiving terminals;
(C) the factors described in subparagraphs (B)
through (F) of paragraph (3); and
(D) other economic factors;
(5) the technical and economic feasibility of using renewable
energy sources (including hydrogen) for ground, marine, and air
transportation energy applications to displace the use of
refined petroleum products, on an island-by-island basis, and
the economic impact of such displacement on the relationship
described in (2); and
(6) an island-by-island approach to--
(A) the development of hydrogen from renewable
resources; and
(B) the application of hydrogen to the energy needs
of Hawaii.
(b) Contracting Authority.--The Secretary of Energy may carry out the
assessment under subsection (a) directly or, in whole or in part,
through one or more contracts with qualified public or private
entities.
(c) Report.--Not later than 300 days after the date of enactment of
this Act, the Secretary of Energy shall prepare, in consultation with
agencies of the State of Hawaii and other stakeholders, as appropriate,
and submit to Congress, as report detailing the findings, conclusions,
and recommendations resulting from the assessment.
(d) Appropriation.--They are authorized to be appropriated such sums
as are necessary to carry out this section.
Subtitle B--Access to Federal Lands
SEC. 121. OFFICE OF FEDERAL ENERGY PERMIT COORDINATION.
(a) Establishment.--The President shall establish the Office of
Federal Energy Permit Coordination (in this section, referred to as
``Office'') within the Executive Office of the President in the same
manner and mission as the White House Energy Projects Task Force
established by Executive Order 13212.
(b) Staffing.--The Office shall be staffed by functional experts from
relevant federal agencies and departments on a nonreimbursable basis to
carry out the mission of this office.
(c) Reporting.--The Office shall provide an annual report to
Congress, detailing the activities put in place to coordinate and
expedite Federal decisions on energy projects. The report shall list
accomplishments in improving the federal decision making process and
shall include any additional recommendations or systemic changes needed
to establish a more effective and efficient federal permitting process.
SEC. 122. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.
(a) Creation of Pilot Project.--The Secretary of the Interior (in
this section, referred to as ``Secretary'') shall establish a Federal
Permit Streamlining Pilot Project. The Secretary shall enter into a
Memorandum of Understanding with the Secretary of Agriculture,
Administrator of the Environmental Protection Agency, and the Chief of
the Corps of Engineers within 90 days after enactment of this Act. The
Secretary may also request that the Governors of Wyoming, Montana,
Colorado, and New Mexico be signatories to the Memorandum of
Understanding.
(b) Designation of Qualified Staff.--Once the Pilot Project has been
established by the Secretary, all Federal signatory parties shall
assign an employee on a nonreimbursable basis to each of the field
offices identified in section (c), who has expertise in the regulatory
issues pertaining to their office, including, as applicable, particular
expertise in Endangered Species Act section 7 consultations and the
preparation of Biological Opinions, Clean Water Act 404 permits, Clean
Air Act regulatory matters, planning under the National Forest
Management Act, and the preparation of analyses under the National
Environmental Policy Act. Assigned staff shall report to the Bureau of
Land Management (BLM) Field Managers in the offices to which they are
assigned, and shall be responsible for all issues related to the
jurisdiction of their home office or agency, and participate as part of
the team of employees working on proposed energy projects, planning,
and environmental analyses.
(c) Field Offices.--The following BLM field offices shall serve as
the Federal Permit Streamlining Pilot Project offices:
(1) Rawlins, Wyoming;
(2) Buffalo, Wyoming;
(3) Miles City, Montana;
(4) Farmington, New Mexico;
(5) Carlsbad, New Mexico; and
(6) Glenwood Springs, Colorado.
(d) Reports.--The Secretary shall submit a report to the Congress 3
years following the date of enactment of this section, outlining the
results of the pilot project to date and including a recommendation to
the President as to whether the pilot project should be implemented
nationwide.
(e) Additional Personnel.--The Secretary shall assign to each of the
BLM field offices listed in subsection (c) such additional personnel as
is necessary to ensure the effective implementation of--
(1) the Pilot Project; and
(2) other programs administered by such offices, including
inspection and enforcement related to energy development on
Federal lands, pursuant to the multiple use mandate of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701
et seq.).
(f) Savings Provision.--Nothing in this section shall affect the
operation of any Federal or State law or any delegation of authority
made by a Secretary or head of an agency whose employees are
participating in the program provided for by this section.
(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to implement this section.
SEC. 123. FEDERAL ONSHORE LEASING PROGRAMS FOR OIL AND GAS.
(a) Timely Action on Leases and Permits.--To ensure timely action on
oil and gas leases and applications for permits to drill on lands
otherwise available for leasing, the Secretary of the Interior shall--
(1) ensure expeditious compliance with the requirements of
section 102(2)(C) of the National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C));
(2) improve consultation and coordination with the States;
and
(3) improve the collection, storage, and retrieval of
information related to such leasing activities.
(b) Improved Enforcement.--The Secretary shall improve inspection and
enforcement of oil and gas activities, including enforcement of terms
and conditions in permits to drill.
(c) Authorization of Appropriations.--For each of the fiscal years
2004 through 2007, in addition to amounts otherwise authorized to be
appropriated for the purpose of carrying out section 17 of the Mineral
Leasing Act (30 U.S.C. 226), there are authorized to be appropriated to
the Secretary of the Interior--
(1) $40,000,000 for the purpose of carrying out paragraphs
(1) through (3) of subsection (a); and
(2) $20,000,000 for the purpose of carrying out subsection
(b).
SEC. 124. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL
LANDS.
Section 604 of the Energy Act of 2000 (42 U.S.C. 6217) is amended by
striking ``(a) In General'' and all thereafter and inserting--
``(a) In General.--The Secretary of the Interior, in consultation
with the Secretaries of Agriculture and Energy, shall conduct an
inventory of all onshore Federal lands and take measures necessary to
update and revise this inventory. The inventory shall identify for all
Federal lands--
``(1) the United States Geological Survey estimates of the
oil and gas resources underlying these lands;
``(2) the extent and nature of any restrictions or
impediments to the exploration, production and transportation
of such resources, including--
``(A) existing land withdrawals and the underlying
purpose for each withdrawal;
``(B) restrictions or impediments affecting
timeliness of granting leases;
``(C) post-lease restrictions or impediments such as
conditions of approval, applications for permits to
drill, applicable environmental permits;
``(D) permits or restrictions associated with
transporting the resources; and
``(E) identification of the authority for each
restriction or impediment together with the impact on
additional processing or review time and potential
remedies; and
``(3) the estimates of oil and gas resources not available
for exploration and production by virtue of the restrictions
identified above.
``(b) Reports.--The Secretary shall provide a progress report to the
Congress by October 1, 2006 and shall complete the inventory by October
1, 2010.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to implement this
section.''.
SEC. 125. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING AND DEVELOPMENT
PRACTICES.
(a) Review.--In consultation with affected private surface owners,
oil and gas industry and other interested parties, the Secretary of the
Interior shall undertake a review of the current policies and practices
with respect to management of Federal subsurface oil and gas
development activities and their effects on the privately owned
surface. This review shall include--
(1) a comparison of the rights and responsibilities under
existing mineral and land law for the owner of a Federal
mineral lease, the private surface owners and the Department;
(2) a comparison of the surface owner consent provisions in
section 714 of the Surface Mining Control and Reclamation Act
(30 U.S.C. 1304) concerning surface mining of Federal coal
deposits and the surface owner consent provisions for oil and
gas development, including coalbed methane production; and
(3) recommendations for administrative or legislative action
necessary to facilitate reasonable access for Federal oil and
gas activities while addressing surface owner concerns and
minimizing impacts to private surface.
(b) Report.--The Secretary of the Interior shall report the results
of such review to the Congress no later than 180 days after enactment
of this section.
SEC. 126. COORDINATION OF FEDERAL AGENCIES TO ESTABLISH PRIORITY ENERGY
TRANSMISSION RIGHTS-OF-WAY.
(a) Definitions.--For purposes of this section:
(1) The term ``utility corridor'' means any linear strip of
land across Federal lands of approved width, but limited by
technological, environmental, and topographical factors for use
by a utility facility.
(2) The term ``Federal authorization'' means any
authorization required under Federal law in order to site a
utility facility, including but not limited to such permits,
special use authorizations, certifications, opinions, or other
approvals as may be required, issued by a Federal agency.
(3) The term ``Federal lands'' means all lands owned by the
United States, except--
(A) lands in the National Park System;
(B) lands held in trust for an Indian or Indian
tribe; and
(C) lands on the Outer Continental Shelf.
(4) The term ``Secretary'' means the Secretary of Energy.
(5) The term ``utility facility'' means any privately,
publicly, or cooperatively owned line, facility, or system (A)
for the transportation of oil and natural gas, synthetic liquid
or gaseous fuels, any refined product produced therefrom, or
for transportation of products in support of production, or for
storage and terminal facilities in connection therewith; or (B)
for the generation, transmission and distribution of electric
energy.
(b) Utility Corridors.--
(1) No later than 24 months after the date of enactment of
this section, the Secretary of the Interior, with respect to
public lands, and the Secretary of Agriculture, with respect to
National Forest System lands, in consultation with the
Secretary, shall--
(A) designate utility corridors pursuant to section
503 of the Federal Land Policy and Management Act (43
U.S.C. 1763) in the eleven contiguous Western States,
as identified in section 103(o) of such Act (43 U.S.C.
1702(o)); and
(B) incorporate the utility corridors designated
under paragraph (A) into the relevant departmental and
agency land use and resource management plans or their
equivalent.
(2) The Secretary shall coordinate with the affected Federal
agencies to jointly identify potential utility corridors on
Federal lands in the other States and jointly develop a
schedule for the designation, environmental review and
incorporation of such utility corridors into relevant
departmental and agency land use and resource management plans
or their equivalent.
(c) Federal Permit Coordination.--The Secretary, in consultation with
the Secretary of the Interior, the Secretary of Agriculture, and the
Secretary of Defense, shall develop a memorandum of understanding
(``MOU'') for the purpose of coordinating all applicable Federal
authorizations and environmental reviews related to a proposed or
existing utility facility. To the maximum extent practicable under
applicable law, the Secretary shall coordinate the process developed in
the MOU with any Indian tribes, multi-State entities, and State
agencies that are responsible for conducting any separate permitting
and environmental reviews of the affected utility facility to ensure
timely review and permit decisions. The MOU shall provide for--
(1) the coordination among affected Federal agencies to
ensure that the necessary Federal authorizations are conducted
concurrently with applicable State siting processes and are
considered within a specific time frame to be identified in the
MOU;
(2) an agreement among the affected Federal agencies to
prepare a single environmental review document to be used as
the basis for all Federal authorization decisions; and
(3) a process to expedite applications to construct or modify
utility facilities within utility corridors.
Subtitle C--Alaska Natural Gas Pipeline
SEC. 131. SHORT TITLE.
This subtitle may be cited as the ``Alaska Natural Gas Pipeline
Act''.
SEC. 132. DEFINITIONS.
In this subtitle, the following definitions apply:
(1) The term ``Alaska natural gas'' means natural gas derived
from the area of the State of Alaska lying north of 64 degrees
North latitude.
(2) The term ``Alaska natural gas transportation project''
means any natural gas pipeline system that carries Alaska
natural gas to the border between Alaska and Canada (including
related facilities subject to the jurisdiction of the
Commission) that is authorized under either--
(A) the Alaska Natural Gas Transportation Act of 1976
(15 U.S.C. 719 et seq.); or
(B) section 133.
(3) The term ``Alaska natural gas transportation system''
means the Alaska natural gas transportation project authorized
under the Alaska Natural Gas Transportation Act of 1976 and
designated and described in section 2 of the President's
decision.
(4) The term ``Commission'' means the Federal Energy
Regulatory Commission.
(5) The term ``President's decision'' means the decision and
report to Congress on the Alaska natural gas transportation
system issued by the President on September 22, 1977, pursuant
to section 7 of the Alaska Natural Gas Transportation Act of
1976 (15 U.S.C. 719(e) and approved by Public Law 95-158 (91
Stat. 1268).
SEC. 133. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.
(a) Authority of the Commission.--Notwithstanding the provisions of
the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719 et
seq.), the Commission may, pursuant to section 7(c) of the Natural Gas
Act (15 U.S.C. 717f(c)), consider and act on an application for the
issuance of a certificate of public convenience and necessity
authorizing the construction and operation of an Alaska natural gas
transportation project other than the Alaska natural gas transportation
system.
(b) Issuance of Certificate.--
(1) The Commission shall issue a certificate of public
convenience and necessity authorizing the construction and
operation of an Alaska natural gas transportation project under
this section if the applicant has satisfied the requirements of
section 7(e) of the Natural Gas Act (15 U.S.C. 717f(e)).
(2) In considering an application under this section, the
Commission shall presume that--
(A) a public need exists to construct and operate the
proposed Alaska natural gas transportation project; and
(B) sufficient downstream capacity will exist to
transport the Alaska natural gas moving through such
project to markets in the contiguous United States.
(c) Expedited Approval Process.--The Commission shall issue a final
order granting or denying any application for a certificate of public
convenience and necessity under section 7(c) of the Natural Gas Act (15
U.S.C. 717f(c)) and this section not more than 60 days after the
issuance of the final environmental impact statement for that project
pursuant to section 134.
(d) 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.
(e) Open Season.--Except where an expansion is ordered pursuant to
section 135, initial or expansion capacity on any Alaska natural gas
transportation project shall be allocated in accordance with procedures
to be established by the Commission in regulations governing the
conduct of open seasons for such project. Such procedures shall include
the criteria for and timing of any open seasons; promote competition in
the exploration, development, and production of Alaska natural gas;
and, for any open season for capacity beyond the initial capacity,
provide the opportunity for the transportation of natural gas other
than from the Prudhoe Bay and Point Thompson units. The Commission
shall issue such regulations not later than 120 days after the date of
enactment of this Act.
(f) Projects in the Contiguous United States.--Applications for
additional or expanded pipeline facilities that may be required to
transport Alaska natural gas from Canada to markets in the contiguous
United States may be made pursuant to the Natural Gas Act. To the
extent such pipeline facilities include the expansion of any facility
constructed pursuant to the Alaska Natural Gas Transportation Act of
1976, the provisions of that Act shall continue to apply.
(g) Study of In-State Needs.--The holder of the certificate of public
convenience and necessity issued, modified, or amended by the
Commission for an Alaska natural gas transportation project shall
demonstrate that it has conducted a study of Alaska in-State needs,
including tie-in points along the Alaska natural gas transportation
project for in-State access.
(h) Alaska Royalty Gas.--The Commission, upon the request of the
State of Alaska and after a hearing, may provide for reasonable access
to the Alaska natural gas transportation project for the State of
Alaska or its designee for the transportation of the State's royalty
gas for local consumption needs within the State; except that the rates
of existing shippers of subscribed capacity on such project shall not
be increased as a result of such access.
(i) Regulations.--The Commission may issue regulations to carry out
the provisions of this section.
SEC. 134. ENVIRONMENTAL REVIEWS.
(a) Compliance With NEPA.--The issuance of a certificate of public
convenience and necessity authorizing the construction and operation of
any Alaska natural gas transportation project under section 133 shall
be treated as a major Federal action significantly affecting the
quality of the human environment within the meaning of section
102(2)(c) of the National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(c)).
(b) Designation of Lead Agency.--The Commission shall be the lead
agency for purposes of complying with the National Environmental Policy
Act of 1969, and shall be responsible for preparing the statement
required by section 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with
respect to an Alaska natural gas transportation project under section
133. The Commission shall prepare a single environmental statement
under this section, which shall consolidate the environmental reviews
of all Federal agencies considering any aspect of the project.
(c) Other Agencies.--All Federal agencies considering aspects of the
construction and operation of an Alaska natural gas transportation
project under section 133 shall cooperate with the Commission, and
shall comply with deadlines established by the Commission in the
preparation of the statement under this section. The statement prepared
under this section shall be used by all such agencies to satisfy their
responsibilities under section 102(2)(c) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(c)) with respect to such project.
(d) Expedited Process.--The Commission shall issue a draft statement
under this section not later than 12 months after the Commission
determines the application to be complete and shall issue the final
statement not later than 6 months after the Commission issues the draft
statement, unless the Commission for good cause finds that additional
time is needed.
SEC. 135. PIPELINE EXPANSION.
(a) Authority.--With respect to any Alaska natural gas transportation
project, upon the request of one or more persons and after giving
notice and an opportunity for a hearing, the Commission may order the
expansion of such project if it determines that such expansion is
required by the present and future public convenience and necessity.
(b) Requirements.--Before ordering an expansion, the Commission
shall--
(1) approve or establish rates for the expansion service that
are designed to ensure the recovery, on an incremental or
rolled-in basis, of the cost associated with the expansion
(including a reasonable rate of return on investment);
(2) ensure that the rates as established do not require
existing shippers on the Alaska natural gas transportation
project to subsidize expansion shippers;
(3) find that the proposed shipper will comply with, and the
proposed expansion and the expansion of service will be
undertaken and implemented based on, terms and conditions
consistent with the then-effective tariff of the Alaska natural
gas transportation project;
(4) find that the proposed facilities will not adversely
affect the financial or economic viability of the Alaska
natural gas transportation project;
(5) find that the proposed facilities will not adversely
affect the overall operations of the Alaska natural gas
transportation project;
(6) find that the proposed facilities will not diminish the
contract rights of existing shippers to previously subscribed
certificated capacity;
(7) ensure that all necessary environmental reviews have been
completed; and
(8) find that adequate downstream facilities exist or are
expected to exist to deliver incremental Alaska natural gas to
market.
(c) Requirement for a Firm Transportation Agreement.--Any order of
the Commission issued pursuant to this section shall be null and void
unless the person or persons requesting the order executes a firm
transportation agreement with the Alaska natural gas transportation
project within a reasonable period of time as specified in such order.
(d) Limitation.--Nothing in this section shall be construed to expand
or otherwise affect any authorities of the Commission with respect to
any natural gas pipeline located outside the State of Alaska.
(e) Regulations.--The Commission may issue regulations to carry out
the provisions of this section.
SEC. 136. FEDERAL COORDINATOR.
(a) Establishment.--There is established, as an independent office in
the executive branch, the Office of the Federal Coordinator for Alaska
Natural Gas Transportation Projects.
(b) Federal Coordinator.--The Office shall be headed by a Federal
Coordinator for Alaska Natural Gas Transportation Projects, who shall--
(1) be appointed by the President, by and with the advice and
consent of the Senate;
(2) for a term equal to the period required to design, permit
and construct the project plus one year; and
(3) be compensated at the rate prescribed for level III of
the Executive Schedule (5 U.S.C. 5314).
(c) Duties.--The Federal Coordinator shall be responsible for--
(1) coordinating the expeditious discharge of all activities
by Federal agencies with respect to an Alaska natural gas
transportation project; and
(2) ensuring the compliance of Federal agencies with the
provisions of this subtitle.
(d) Reviews and Actions of Other Federal Agencies.--
(1) All reviews conducted and actions taken by any Federal
officer or agency relating to an Alaska natural gas
transportation project authorized under this section shall be
expedited, in a manner consistent with completion of the
necessary reviews and approvals by the deadlines set forth in
this subtitle.
(2) No Federal officer or agency shall have the authority to
include terms and conditions that are permitted, but not
required, by law on any certificate, right-of-way, permit,
lease, or other authorization issued to an Alaska natural gas
transportation project if the Federal Coordinator determines
that the terms and conditions would prevent or impair in any
significant respect the expeditious construction and operation,
or an expansion, of the project.
(3) Unless required by law, no Federal officer or agency
shall add to, amend, or abrogate any certificate, right-of-way,
permit, lease, or other authorization issued to an Alaska
natural gas transportation project if the Federal Coordinator
determines that such action would prevent or impair in any
significant respect the expeditious construction and operation
of, or an expansion of, the project.
(4) The Federal Coordinator's authority shall not include the
ability to override--
(A) the implementation or enforcement of regulations
issued by the Commission pursuant to Section 133(e); or
(B) an order by the Commission to expand the project
pursuant to section 135.
(5) Nothing in this section shall give the Federal
Coordinator the authority to impose additional terms,
conditions or requirements beyond those imposed by the
Commission or any agency with respect to construction and
operation, or an expansion of, the project.
(e) State Coordination.--The Federal Coordinator shall enter into a
Joint Surveillance and Monitoring Agreement, approved by the President
and the Governor of Alaska, with the State of Alaska similar to that in
effect during construction of the Trans-Alaska Oil Pipeline to monitor
the construction of the Alaska natural gas transportation project. The
Federal Government shall have primary surveillance and monitoring
responsibility where the Alaska natural gas transportation project
crosses Federal lands and private lands, and the State government shall
have primary surveillance and monitoring responsibility where the
Alaska natural gas transportation project crosses State lands.
(f) Transfer of Federal Inspector Functions and Authority.--Upon
appointment of the Federal Coordinator by the President, all of the
functions and authority of the Office of Federal Inspector of
Construction for the Alaska Natural Gas Transportation System vested in
the Secretary of Energy pursuant to section 3012(b) of Public Law 102-
486 (15 U.S.C. 719e(b)), including all functions and authority
described and enumerated in the Reorganization Plan No. 1 of 1979 (44
Fed. Reg. 33,663), Executive Order No. 12142 of June 21, 1979 (44 Fed.
Reg. 36,927), and section 5 of the President's decision, shall be
transferred to the Federal Coordinator.
SEC. 137. JUDICIAL REVIEW.
(a) Exclusive Jurisdiction.--Except for review by the Supreme Court
of the United States on writ of certiorari, the United States Court of
Appeals for the District of Columbia Circuit shall have original and
exclusive jurisdiction to determine--
(1) the validity of any final order or action (including a
failure to act) of any Federal agency or officer under this
subtitle;
(2) the constitutionality of any provision of this subtitle,
or any decision made or action taken under this subtitle; or
(3) the adequacy of any environmental impact statement
prepared under the National Environmental Policy Act of 1969
with respect to any action under this subtitle.
(b) Deadline for Filing Claim.--Claims arising under this subtitle
may be brought not later than 60 days after the date of the decision or
action giving rise to the claim.
(c) Expedited Consideration.--The United States Court of Appeals for
the District of Columbia Circuit shall set any action brought under
subsection (a) for expedited consideration, taking into account the
national interest of enhancing national energy security by providing
access to the significant gas reserves in Alaska needed to meet the
anticipated demand for natural gas.
(d) Amendment to ANGTA.--Section 10(c) of the Alaska Natural Gas
Transportation Act of 1976 (15 U.S.C. 719h) is amended by inserting
after paragraph (1) the following:
``(2) The United States Court of Appeals for the District of
Columbia Circuit shall set any action brought under this
section for expedited consideration, taking into account the
national interest described in section 2.''.
SEC. 138. STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL GAS.
(a) Local Distribution.--Any facility receiving natural gas from the
Alaska natural gas transportation project for delivery to consumers
within the State of Alaska shall be deemed to be a local distribution
facility within the meaning of section 1(b) of the Natural Gas Act (15
U.S.C. 717(b)), and therefore not subject to the jurisdiction of the
Commission.
(b) Additional Pipelines.--Nothing in this subtitle, except as
provided in section 133(d), shall preclude or affect a future gas
pipeline that may be constructed to deliver natural gas to Fairbanks,
Anchorage, Matanuska-Susitna Valley, or the Kenai peninsula or Valdez
or any other site in the State of Alaska for consumption within or
distribution outside the State of Alaska.
(c) Rate Coordination.--Pursuant to the Natural Gas Act, the
Commission shall establish rates for the transportation of natural gas
on the Alaska natural gas transportation project. In exercising such
authority, the Commission, pursuant to section 17(b) of the Natural Gas
Act (15 U.S.C. 717p(b)), shall confer with the State of Alaska
regarding rates (including rate settlements) applicable to natural gas
transported on and delivered from the Alaska natural gas transportation
project for use within the State of Alaska.
SEC. 139. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.
(a) Requirement of Study.--If no application for the issuance of a
certificate or amended certificate of public convenience and necessity
authorizing the construction and operation of an Alaska natural gas
transportation project has been filed with the Commission not later
than 18 months after the date of enactment of this Act, the Secretary
of Energy shall conduct a study of alternative approaches to the
construction and operation of the project.
(b) Scope of Study.--The study shall consider the feasibility of
establishing a Government corporation to construct an Alaska natural
gas transportation project, and alternative means of providing Federal
financing and ownership (including alternative combinations of
Government and private corporate ownership) of the project.
(c) Consultation.--In conducting the study, the Secretary of Energy
shall consult with the Secretary of the Treasury and the Secretary of
the Army (acting through the Commanding General of the Corps of
Engineers).
(d) Report.--If the Secretary of Energy is required to conduct a
study under subsection (a), the Secretary shall submit a report
containing the results of the study, the Secretary's recommendations,
and any proposals for legislation to implement the Secretary's
recommendations to Congress.
SEC. 140. CLARIFICATION OF ANGTA STATUS AND AUTHORITIES.
(a) Savings Clause.--Nothing in this subtitle affects any decision,
certificate, permit, right-of-way, lease, or other authorization issued
under section 9 of the Alaska Natural Gas Transportation Act of 1976
(15 U.S.C. 719(g)) or any Presidential findings or waivers issued in
accordance with that Act.
(b) Clarification of Authority To Amend Terms and Conditions To Meet
Current Project Requirements.--Any Federal officer or agency
responsible for granting or issuing any certificate, permit, right-of-
way, lease, or other authorization under section 9 of the Alaska
Natural Gas Transportation Act of 1976 (15 U.S.C. 719(g)) may add to,
amend, or abrogate any term or condition included in such certificate,
permit, right-of-way, lease, or other authorization to meet current
project requirements (including the physical design, facilities, and
tariff specifications), so long as such action does not compel a change
in the basic nature and general route of the Alaska natural gas
transportation system as designated and described in section 2 of the
President's decision, or would otherwise prevent or impair in any
significant respect the expeditious construction and initial operation
of such transportation system.
(c) Updated Environmental Reviews.--The Secretary of Energy shall
require the sponsor of the Alaska natural gas transportation system to
submit such updated environmental data, reports, permits, and impact
analyses as the Secretary determines are necessary to develop detailed
terms, conditions, and compliance plans required by section 5 of the
President's decision.
SEC. 141. SENSE OF CONGRESS.
It is the sense of Congress that an Alaska natural gas transportation
project will provide significant economic benefits to the United States
and Canada. In order to maximize those benefits, Congress urges the
sponsors of the pipeline project to make every effort to use steel that
is manufactured or produced in North America and to negotiate a project
labor agreement to expedite construction of the pipeline.
SEC. 142. PARTICIPATION OF SMALL BUSINESS CONCERNS.
(a) Sense of Congress.--It is the sense of Congress that an Alaska
natural gas transportation project will provide significant economic
benefits to the United States and Canada. In order to maximize those
benefits, Congress urges the sponsors of the pipeline project to
maximize the participation of small business concerns in contracts and
subcontracts awarded in carrying out the project.
(b) Study.--
(1) The Comptroller General shall conduct a study on the
extent to which small business concerns participate in the
construction of oil and gas pipelines in the United States.
(2) Not later that 1 year after the date of enactment of this
Act, the Comptroller General shall transmit to Congress a
report containing the results of the study.
(3) The Comptroller General shall update the study at least
once every 5 years and transmit to Congress a report containing
the results of the update.
(4) After the date of completion of the construction of an
Alaska natural gas transportation project, this subsection
shall no longer apply.
(c) Small Business Concern Defined.--In this section, the term
``small business concern'' has the meaning given such term in section
3(a) of the Small Business Act (15 U.S.C. 632(a)).
SEC. 143. ALASKA PIPELINE CONSTRUCTION TRAINING PROGRAM.
(a) Establishment of Program.--The Secretary of Labor (in this
section referred to as the ``Secretary'') may make grants to the Alaska
Department of Labor and Workforce Development to--
(1) develop a plan to train, through the workforce investment
system established in the State of Alaska under the Workforce
Investment Act of 1998 (112 Stat. 936 et seq.), adult and
dislocated workers, including Alaska Natives, in urban and
rural Alaska in the skills required to construct and operate an
Alaska gas pipeline system; and
(2) implement the plan developed pursuant to paragraph (1).
(b) Requirements for Planning Grants.--The Secretary may make a grant
under subsection (a)(1) only if--
(1) the Governor of Alaska certifies in writing to the
Secretary that there is a reasonable expectation that
construction of an Alaska gas pipeline will commence within 3
years after the date of such certification; and
(2) the Secretary of the Interior concurs in writing to the
Secretary with the certification made under paragraph (1).
(c) Requirements for Implementation Grants.--The Secretary may make a
grant under subsection (a)(2) only if--
(1) the Secretary has approved a plan developed pursuant to
subsection (a)(1);
(2) the Governor of Alaska requests the grant funds and
certifies in writing to the Secretary that there is a
reasonable expectation that the construction of an Alaska gas
pipeline system will commence within 2 years after the date of
such certification; and
(3) the Secretary of the Interior concurs in writing to the
Secretary with the certification made under paragraph (2) after
considering--
(A) the status of necessary State and Federal
permits;
(B) the availability of financing for the pipeline
project; and
(C) other relevant factors and circumstances.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary such sums as may be necessary, but not to
exceed $20,000,000, to carry out this section.
SEC. 144. LOAN GUARANTEES.
(a) Authority.--
(1) The Secretary may enter agreements with 1 or more holders
of a certificate of public convenience and necessity issued
under section 133(b) of this Act or section 9 of the Alaska
Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) to
issue Federal guarantee instruments with respect to loans and
other debt obligations for a qualified infrastructure project.
(2) Subject to the requirements of this section, the
Secretary may also enter into agreements with 1 or more owners
of the Canadian portion of a qualified infrastructure project
to issue Federal guarantee instruments with respect to loans
and other debt obligations for a qualified infrastructure
project as though such owner were a holder described in
paragraph (1).
(3) The authority of the Secretary to issue Federal guarantee
instruments under this section for a qualified infrastructure
project shall expire on the date that is 2 years after the date
on which the final certificate of public convenience and
necessity (including any Canadian certificates of public
convenience and necessity) is issued for the project. A final
certificate shall be considered to have been issued when all
certificates of public convenience and necessity have been
issued that are required for the initial transportation of
commercially economic quantities of natural gas from Alaska to
the continental United States.
(b) Conditions.--
(1) The Secretary may issue a Federal guarantee instrument
for a qualified infrastructure project only after a certificate
of public convenience and necessity under section 133(b) of
this Act or an amended certificate under section 9 of the
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719g)
has been issued for the project.
(2) The Secretary may issue a Federal guarantee instrument
under this section for a qualified infrastructure project only
if the loan or other debt obligation guaranteed by the
instrument has been issued by an eligible lender.
(3) The Secretary shall not require as a condition of issuing
a Federal guarantee instrument under this section any
contractual commitment or other form of credit support of the
sponsors (other than equity contribution commitments and
completion guarantees), or any throughput or other guarantee
from prospective shippers greater than such guarantees as shall
be required by the project owners.
(c) Limitations on Amounts.--
(1) The amount of loans and other debt obligations guaranteed
under this section for a qualified infrastructure project shall
not exceed 80 percent of the total capital costs of the
project, including interest during construction.
(2) The principal amount of loans and other debt obligations
guaranteed under this section shall not exceed, in the
aggregate, $18,000,000,000, which amount shall be indexed for
United States dollar inflation from the date of enactment of
this Act, as measured by the Consumer Price Index.
(d) Loan Terms and Fees.--
(1) The Secretary may issue Federal guarantee instruments
under this section that take into account repayment profiles
and grace periods justified by project cash flows and project-
specific considerations. The term of any loan guaranteed under
this section shall not exceed 30 years.
(2) An eligible lender may assess and collect from the
borrower such other fees and costs associated with the
application and origination of the loan or other debt
obligation as are reasonable and customary for a project
finance transaction in the oil and gas sector.
(e) Regulations.--The Secretary may issue regulations to carry out
this section.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to cover the cost of loan
guarantees, as defined by section 502(5) of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a(5)). Such sums shall remain available until
expended.
(g) Definitions.--In this section, the following definitions apply:
(1) The term ``Consumer Price Index'' means the Consumer
Price Index for all-urban consumers, United States city
average, as published by the Bureau of Labor Statistics, or if
such index shall cease to be published, any successor index or
reasonable substitute thereof.
(2) The term ``eligible lender'' means any non-Federal
qualified institutional buyer (as defined by section
230.144A(a) of title 17, Code of Federal Regulations (or any
successor regulation), known as Rule 144A(a) of the Securities
and Exchange Commission and issued under the Securities Act of
1933), including--
(A) a qualified retirement plan (as defined in
section 4974(c) of the Internal Revenue Code of 1986
(26 U.S.C. 4974(c)) that is a qualified institutional
buyer; and
(B) a governmental plan (as defined in section 414(d)
of the Internal Revenue Code of 1986 (26 U.S.C. 414(d))
that is a qualified institutional buyer.
(3) The term ``Federal guarantee instrument'' means any
guarantee or other pledge by the Secretary to pledge the full
faith and credit of the United States to pay all of the
principal and interest on any loan or other debt obligation
entered into by a holder of a certificate of public convenience
and necessity.
(4) The term ``qualified infrastructure project'' means an
Alaskan natural gas transportation project consisting of the
design, engineering, finance, construction, and completion of
pipelines and related transportation and production systems
(including gas treatment plants), and appurtenances thereto,
that are used to transport natural gas from the Alaska North
Slope to the continental United States.
(5) The term ``Secretary'' means the Secretary of Energy.
SEC. 145. SENSE OF CONGRESS ON NATURAL GAS DEMAND.
It is the sense of Congress that:
(1) North American demand for natural gas will increase
dramatically over the course of the next several decades.
(2) Both the Alaska Natural Gas Pipeline and the McKenzie
Delta Natural Gas project in Canada will be necessary to help
meet the increased demand for natural gas in North America.
(3) Federal and State officials should work together with
officials in Canada to ensure both projects can move forward in
a mutually beneficial fashion.
(4) Federal and State officials should acknowledge that the
smaller scope, fewer permitting requirements and lower cost of
the McKenzie Delta project means it will most likely be
completed before the Alaska Natural Gas Pipeline.
(5) Lower 48 and Canadian natural gas production alone will
not be able to meet all domestic demand in the coming decades.
(6) As a result, natural gas delivered from Alaska's North
Slope will not displace or reduce the commercial viability of
Canadian natural gas produced from the McKenzie Delta nor
production from the Lower 48.
TITLE II--COAL
Subtitle A--Clean Coal Power Initiative
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
(a) Clean Coal Power Initiative.-- There is authorized to be
appropriated to the Secretary of Energy (in this subtitle, referred to
as ``Secretary'') to carry out the activities authorized by this
subtitle $200,000,000 for each of the fiscal years 2003 through 2011,
to remain available until expended.
SEC. 202. PROJECT CRITERIA.
(a) In General.--The Secretary shall not provide funding under this
subtitle for any project that does not advance efficiency,
environmental performance, and cost competitiveness well beyond the
level of technologies that are in operation or have been demonstrated
as of the date of the enactment of this Act.
(b) Technical Criteria for Gasification.--In allocating the funds
made available under section 201, the Secretary shall ensure that at
least 80 percent of the funds are used for coal-based gasification
technologies or coal-based projects that include gasification combined
cycle, gasification fuel cells, gasification co-production, or hybrid
gasification/combustion. The Secretary shall set technical milestones
specifying emissions levels that coal gasification projects must be
designed to and reasonably expected to achieve. The milestones shall
get more restrictive through the life of the program. The milestones
shall be designed to achieve by 2020 coal gasification projects able
to--
(1) remove 99 percent of sulfur dioxide;
(2) emit no more than .05 lbs of NOx per million
BTU;
(3) achieve substantial reductions in mercury emissions; and
(4) achieve a thermal efficiency of--
(A) 60 percent for coal of more than 9,000 Btu;
(B) 59 percent for coal of 7,000 to 9,000 Btu; and
(C) 57 percent for coal of less than 7,000 Btu.
(c) Technical Criteria for Other Projects.--For projects not
described in subsection (b), the Secretary shall set technical
milestones specifying emissions levels that the projects must
be designed to and reasonably expected to achieve. The
milestones shall get more restrictive through the life of the
program. The milestones shall be designed to achieve by 2010
projects able to--
(1) remove 97 percent of sulfur dioxide;
(2) emit no more than .08 lbs of NOx per million
BTU;
(3) achieve substantial reductions in mercury emissions; and
(4) achieve a thermal efficiency of--
(A) 45 percent for coal of more than 9,000 Btu;
(B) 44 percent for coal of 7,000 to 9,000 Btu; and
(C) 42 percent for coal of less than 7,000 Btu.
(d) Existing Units.--In the case of projects at existing units, in
lieu of the thermal efficiency requirements set forth in paragraphs
(b)(4) and (c)(4), the projects shall be designed to achieve an overall
thermal design efficiency improvement compared to the efficiency of the
unit as operated, of not less than--
(1) 7 percent for coal of more than 9,000 Btu;
(2) 6 percent for coal of 7,000 to 9,000 Btu; or
(3) 4 percent for coal of less than 7,000 Btu.
(e) Permitted Uses.--In allocating funds made available in this
section, the Secretary may allocate funds to projects that include, as
part of the project, the separation and capture of carbon dioxide.
(f) Consultation.--Before setting the technical milestones under
subsections (b) and (c), the Secretary shall consult with the
Administrator of the Environmental Protection Agency and interested
entities, including coal producers, industries using coal,
organizations to promote coal or advanced coal technologies,
environmental organizations, and organizations representing workers.
(g) Financial Criteria.--The Secretary shall not provide a funding
award under this title unless the recipient has documented to the
satisfaction of the Secretary that--
(1) the award recipient is financially viable without the
receipt of additional Federal funding;
(2) the recipient will provide sufficient information to the
Secretary for the Secretary to ensure that the award funds are
spent efficiently and effectively; and
(3) a market exists for the technology being demonstrated or
applied, as evidenced by statements of interest in writing from
potential purchasers of the technology.
(h) Financial Assistance.--The Secretary shall provide financial
assistance to projects that meet the requirements of this section and
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; and
(3) 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 the enactment
of this Act.
(i) Federal Share.--The Federal share of the cost of a coal or
related technology project funded by the Secretary shall not exceed 50
percent.
(j) Applicability.--No technology, or level of emission reduction,
shall be treated as adequately demonstrated for purposes of section 111
of the Clean Air Act, achievable for purposes of section 169 of that
Act, or achievable in practice for purposes of section 171 of that Act
solely by reason of the use of such technology, or the achievement of
such emission reduction, by one or more facilities receiving assistance
under this title.
SEC. 203. REPORTS.
(a) Ten-Year Plan.--By September 30, 2004, the Secretary shall
transmit to Congress a report, with respect to section 202(a), a 10-
year plan containing--
(1) a detailed assessment of whether the aggregate funding
levels provided under section 201 are appropriate funding
levels for that program;
(2) a detailed description of how proposals will be solicited
and evaluated, including a list of all activities expected to
be undertaken;
(3) a detailed list of technical miles stones for each coal
and related technology that will be pursued; and
(4) a detailed description of how the program will avoid
problems enumerated in General Accounting Office reports on the
Clean Coal Technology Program, including problems that have
resulted in unspent funds and projects that failed either
financially or scientifically.
(b) Technical Milestones.--Not later than 1 year after the date of
the enactment of this Act, and once every 2 years thereafter through
2011, the Secretary, in consultation with other appropriate Federal
agencies, shall transmit to the Congress, a report describing--
(1) the technical milestones set forth in section 212 and how
those milestones ensure progress toward meeting the
requirements of subsections (b) and (c) of section 212; and
(2) the status of projects funded under this title.
SEC. 204. CLEAN COAL CENTERS OF EXCELLENCE.
As part of the program authorized in section 211, the Secretary shall
award competitive, merit-based grants to universities for the
establishment of Centers of Excellence for Energy Systems of the
Future. The Secretary shall provide grants to universities that can
show the greatest potential for advancing new clean coal technologies.
Subtitle B--Federal Coal Leases
SEC. 211. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.
Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is amended by
striking all the text in the first sentence after ``upon'' and
inserting the following: ``a finding by the Secretary that it (1) would
be in the interest of the United States, (2) would not displace a
competitive interest in the lands, and (3) would not include lands or
deposits that can be developed as part of another potential or existing
operation, secure modifications of the original coal lease by including
additional coal lands or coal deposits contiguous or cornering to those
embraced in such lease, but in no event shall the total area added by
such modifications to an existing coal lease exceed 320 acres, or add
acreage larger than that in the original lease.''.
SEC. 212. MINING PLANS.
Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 202a(2)) is
amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) The Secretary may establish a period of more
than forty years if the Secretary determines that the
longer period will ensure the maximum economic recovery
of a coal deposit, or the longer period is in the
interest of the orderly, efficient, or economic
development of a coal resource.''.
SEC. 213. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.
Section 7(b) of the Mineral Leasing Act of 1920 (30 U.S.C. 207(b)) is
amended by striking all after ``Secretary).'' through to ``a lease.''
and inserting: ``The aggregate number of years during the period of any
lease for which advance royalties may be accepted in lieu of the
condition of continued operation shall not exceed twenty. The amount of
any production royalty paid for any year shall be reduced (but not
below 0) by the amount of any advance royalties paid under such lease
to the extent that such advance royalties have not been used to reduce
production royalties for a prior year.''.
SEC. 214. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE
OPERATION AND RECLAMATION PLAN.
Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) is amended
by striking ``and not later than three years after a lease is
issued,''.
SEC. 215. APPLICATION OF AMENDMENTS.
The amendments made by this Act apply with respect to any coal lease
issued on or after the date of enactment of this Act, and, with respect
to any coal lease issued before the date of enactment of this Act, upon
the date of readjustment of the lease as provided for by section 7(a)
of the Mineral Leasing Act, or upon request by the lessee, prior to
such date.
Subtitle C--Powder River Basin Shared Mineral Estates
SEC. 221. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT CONFLICTS IN THE
POWDER RIVER BASIN.
The Secretary of the Interior shall--
(1) undertake a review of existing authorities to resolve
conflicts between the development of Federal coal and the
development of Federal and non-Federal coalbed methane in the
Powder River Basin in Wyoming and Montana; and
(2) not later than 6 months after the enactment of this Act,
report to the Congress on alternatives to resolve these
conflicts and identification of a preferred alternative with
specific legislative language, if any, required to implement
the preferred alternative.
TITLE III--INDIAN ENERGY
SEC. 301. SHORT TITLE.
This title may be cited as the ``Indian Tribal Energy Development and
Self-Determination Act of 2003''.
SEC. 302. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.
(a) In General.--Title II of the Department of Energy Organization
Act (42 U.S.C. 7131 et seq.) is amended by adding at the end the
following:
``office of indian energy policy and programs
``Sec. 217.(a) Establishment.--There is established within the
Department an Office of Indian Energy Policy and Programs (referred to
in this section as the `Office'). The Office shall be headed by a
Director, who shall be appointed by the Secretary and compensated at a
rate equal to that of level IV of the Executive Schedule under section
5315 of title 5, United States Code.
``(b) Duties of Director.--The Director shall in accordance with
Federal policies promoting Indian self-determination and the purposes
of this Act, provide, direct, foster, coordinate, and implement energy
planning, education, management, conservation, and delivery programs of
the Department that--
``(1) promote Indian tribal energy development, efficiency,
and use;
``(2) reduce or stabilize energy costs;
``(3) enhance and strengthen Indian tribal energy and
economic infrastructure relating to natural resource
development and electrification; and
``(4) electrify Indian tribal land and the homes of tribal
members.
``comprehensive indian energy activities
``Sec. 218. (a) Indian Energy Education Planning and Management
Assistance.--
``(1) The Director shall establish programs within the Office
of Indian Energy Policy and Programs to assist Indian tribes in
meeting energy education, research and development, planning,
and management needs.
``(2) In carrying out this section, the Director may provide
grants, on a competitive basis, to an Indian tribe or tribal
consortium for use in carrying out--
``(A) energy, energy efficiency, and energy
conservation programs;
``(B) studies and other activities supporting tribal
acquisition of energy supplies, services, and
facilities;
``(C) planning, construction, development, operation,
maintenance, and improvement of tribal electrical
generation, transmission, and distribution facilities
located on Indian land; and
``(D) development, construction, and interconnection
of electric power transmission facilities located on
Indian land with other electric transmission
facilities.
``(3)(A) The Director may develop, in consultation with
Indian tribes, a formula for providing grants under this
section.
``(B) In providing a grant under this subsection, the
Director shall give priority to an application received from an
Indian tribe with inadequate electric service (as determined by
the Director).
``(4) The Secretary may promulgate such regulations as the
Secretary determines are necessary to carry out this
subsection.
``(5) There is authorized to be appropriated to carry out
this section $20,000,000 for each of fiscal years 2004 through
2011.
``(b) Loan Guarantee Program.--
``(1) Subject to paragraph (3), the Secretary may provide
loan guarantees (as defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a)) for not more than 90
percent of the unpaid principal and interest due on any loan
made to any Indian tribe for energy development.
``(2) A loan guaranteed under this subsection shall be made
by--
``(A) a financial institution subject to examination
by the Secretary; or
``(B) an Indian tribe, from funds of the Indian
tribe.
``(3) The aggregate outstanding amount guaranteed by the
Secretary at any time under this subsection shall not exceed
$2,000,000,000.
``(4) The Secretary may promulgate such regulations as the
Secretary determines are necessary to carry out this
subsection.
``(5) There are authorized to be appropriated such sums as
are necessary to carry out this subsection, to remain available
until expended.
``(6) Not later than 1 year from the date of enactment of
this section, the Secretary shall report to the Congress on the
financing requirements of Indian tribes for energy development
on Indian land.
``(c) Indian Energy Preference.--
``(1) In purchasing electricity or any other energy product
or byproduct, a Federal agency or department may give
preference to an energy and resource production enterprise,
partnership, consortium, corporation, or other type of business
organization the majority of the interest in which is owned and
controlled by 1 or more Indian tribes.
``(2) In carrying out this subsection, a Federal agency or
department shall not--
``(A) pay more than the prevailing market price for
an energy product or byproduct; and
``(B) obtain less than prevailing market terms and
conditions.''.
(b) Conforming Amendments.--
(1) The table of contents of the Department of Energy
Organization Act (42 U.S.C. prec. 7101) is amended--
(A) in the item relating to section 209, by striking
``Section'' and inserting ``Sec.''; and
(B) by striking the items relating to sections 213
through 216 and inserting the following:
``Sec. 213. Establishment of policy for National Nuclear Security
Administration.
``Sec. 214. Establishment of security, counterintelligence, and
intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.
``Sec. 218. Comprehensive Indian Energy Activities.''.
(2) Section 5315 of title 5, United States Code, is amended
by inserting ``Director, Office of Indian Energy Policy and
Programs, Department of Energy.'' after ``Inspector General,
Department of Energy.''.
SEC. 303. INDIAN ENERGY.
Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et seq.)
is amended to read as follows:
``TITLE XXVI--INDIAN ENERGY
``SEC. 2601. DEFINITIONS.
``For purposes of this title:
``(1) The term `Director' means the Director of the Office of
Indian Energy Policy and Programs.
``(2) The term `Indian land' means--
``(A) any land located within the boundaries of an
Indian reservation, pueblo, or rancheria;
``(B) any land not located within the boundaries of
an Indian reservation, pueblo, or rancheria, the title
to which is held--
``(i) in trust by the United States for the
benefit of an Indian tribe;
``(ii) by an Indian tribe, subject to
restriction by the United States against
alienation; or
``(iii) by a dependent Indian community; and
``(C) land conveyed to a Native Corporation under the
Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.).
``(3) The term `Indian reservation' includes--
``(A) an Indian reservation in existence in any State
or States as of the date of enactment of this
paragraph;
``(B) a public domain Indian allotment;
``(C) a former reservation in the State of Oklahoma;
``(D) a parcel of land owned by a Native Corporation
under the Alaska Native Claims Settlement Act (43
U.S.C. 1601 et seq.); and
``(E) a dependent Indian community located within the
borders of the United States, regardless of whether the
community is located--
``(i) on original or acquired territory of
the community; or
``(ii) within or outside the boundaries of
any particular State.
``(4) The term `Indian tribe' has the meaning given the term
in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b).
``(5) The term `Native Corporation' has the meaning given the
term in section 3 of the Alaska Native Claims Settlement Act
(43 U.S.C. 1602).
``(6) The term `organization' means a partnership, joint
venture, limited liability company, or other unincorporated
association or entity that is established to develop Indian
energy resources.
``(7) The term `Program' means the Indian energy resource
development program established under section 2602(a).
``(8) The term `Secretary' means the Secretary of the
Interior.
``(9) The term `tribal consortium' means an organization that
consists of 2 or more entities, at least 1 of which is an
Indian tribe.
``(10) The term `tribal land' means any land or interests in
land owned by any Indian tribe, band, nation, pueblo,
community, rancheria, colony or other group, title to which is
held in trust by the United States or which is subject to a
restriction against alienation imposed by the United States.
``(11) The term `vertical integration of energy resources'
means any project or activity that promotes the location and
operation of a facility (including any pipeline, gathering
system, transportation system or facility, or electric
transmission facility), on or near Indian land to process,
refine, generate electricity from, or otherwise develop energy
resources on, Indian land.
``SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.
``(a) In General.--To assist Indian tribes in the development of
energy resources and further the goal of Indian self-determination, the
Secretary shall establish and implement an Indian energy resource
development program to assist Indian tribes and tribal consortia in
achieving the purposes of this title.
``(b) Grants and Loans.--In carrying out the program, the Secretary
shall--
``(1) provide development grants to Indian tribes and tribal
consortia for use in developing or obtaining the managerial and
technical capacity needed to develop energy resources on Indian
land;
``(2) provide grants to Indian tribes and tribal consortia
for use in carrying out projects to promote the vertical
integration of energy resources, and to process, use, or
develop those energy resources, on Indian land; and
``(3) provide low-interest loans to Indian tribes and tribal
consortia for use in the promotion of energy resource
development and vertical integration or energy resources on
Indian land.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary for
each of fiscal years 2004 through 2014.
``SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.
``(a) Grants.--The Secretary may provide to Indian tribes and tribal
consortia, on an annual basis, grants for use in developing,
administering, implementing, and enforcing tribal laws (including
regulations) governing the development and management of energy
resources on Indian land.
``(b) Use of Funds.--Funds from a grant provided under this section
may be used by an Indian tribe or tribal consortium for--
``(1) the development of a tribal energy resource inventory
or tribal energy resource on Indian land;
``(2) the development of a feasibility study or other report
necessary to the development of energy resources on Indian
land;
``(3) the development and enforcement of tribal laws and the
development of technical infrastructure to protect the
environment under applicable law; or
``(4) the training of employees that--
``(A) are engaged in the development of energy
resources on Indian land; or
``(B) are responsible for protecting the environment.
``(c) Other Assistance.--To the maximum extent practicable, the
Secretary and the Secretary of Energy shall make available to Indian
tribes and tribal consortia scientific and technical data for use in
the development and management of energy resources on Indian land.
``SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY INVOLVING
ENERGY DEVELOPMENT OR TRANSMISSION.
``(a) Leases and Agreements.--Subject to the provisions of this
section--
``(1) an Indian tribe may, at its discretion, enter into a
lease or business agreement for the purpose of energy
development, including a lease or business agreement for--
``(A) exploration for, extraction of, processing of,
or other development of energy resources on tribal
land; and
``(B) construction or operation of an electric
generation, transmission, or distribution facility
located on tribal land; or a facility to process or
refine energy resources developed on tribal land; and
``(2) a lease or business agreement described in paragraph
(1) shall not require the approval of the Secretary under
section 2103 of the Revised Statutes (25 U.S.C. 81) or any
other provision of law, if--
``(A) the lease or business agreement is executed in
accordance with a tribal energy resource agreement
approved by the Secretary under subsection (e);
``(B) the term of the lease or business agreement
does not exceed--
``(i) 30 years; or
``(ii) in the case of a lease for the
production of oil and gas resources, 10 years
and as long thereafter as oil or gas is
produced in paying quantities; and
``(C) the Indian tribe has entered into a tribal
energy resource agreement with the Secretary, as
described in subsection (e), relating to the
development of energy resources on tribal land
(including an annual trust asset evaluation of the
activities of the Indian tribe conducted in accordance
with the agreement).
``(b) Rights-of-Way for Pipelines or Electric Transmission or
Distribution Lines.--An Indian tribe may grant a right-of-way over
tribal land for a pipeline or an electric transmission or distribution
line without specific approval by the Secretary if--
``(1) the right-of-way is executed in accordance with a
tribal energy resource agreement approved by the Secretary
under subsection (e);
``(2) the term of the right-of-way does not exceed 30 years;
``(3) the pipeline or electric transmission or distribution
line serves--
``(A) an electric generation, transmission, or
distribution facility located on tribal land; or
``(B) a facility located on tribal land that
processes or refines energy resources developed on
tribal land; and
``(4) the Indian tribe has entered into a tribal energy
resource agreement with the Secretary, as described in
subsection (e), relating to the development of energy resources
on tribal land (including an annual trust asset evaluation of
the activities of the Indian tribe conducted in accordance with
the agreement.
``(c) Renewals.--A lease or business agreement entered into or a
right-of-way granted by an Indian tribe under this section may be
renewed at the discretion of the Indian tribe in accordance with this
section.
``(d) Validity.--No lease, business agreement, or right-of-way under
this section shall be valid unless the lease, business agreement, or
right-of-way is authorized in accordance with tribal energy resource
agreements approved by the Secretary under subsection (e).
``(e) Tribal Energy Resource Agreements.--
``(1) On promulgation of regulations under paragraph (9), an
Indian tribe may submit to the Secretary for approval a tribal
energy resource agreement governing leases, business
agreements, and rights-of-way under this section.
``(2)(A) Not later than 180 days after the date on which the
Secretary receives a tribal energy resource agreement submitted
by an Indian tribe under paragraph (1) (or such later date as
may be agreed to by the Secretary and the Indian tribe), the
Secretary shall approve or disapprove the tribal energy
resource agreement.
``(B) The Secretary shall approve a tribal energy resource
agreement submitted under paragraph (1) if--
``(i) the Secretary determines that the Indian tribe
has demonstrated that the Indian tribe has sufficient
capacity to regulate the development of energy
resources of the Indian tribe; and
``(ii) the tribal energy resource agreement includes
provisions that, with respect to a lease, business
agreement, or right-of-way under this section--
``(I) ensure the acquisition of necessary
information from the applicant for the lease,
business agreement, or right-of-way;
``(II) address the term of the lease or
business agreement or the term of conveyance of
the right-of-way;
``(III) address amendments and renewals;
``(IV) address consideration for the lease,
business agreement, or right-of-way;
``(V) address technical or other relevant
requirements;
``(VI) establish requirements for
environmental review in accordance with
subparagraph (C);
``(VII) ensure compliance with all applicable
environmental laws;
``(VIII) identify final approval authority;
``(IX) provide for public notification of
final approvals;
``(X) establish a process for consultation
with any affected States concerning potential
off-reservation impacts associated with the
lease, business agreement, or right-of-way; and
``(XI) describe the remedies for breach of
the lease, agreement, or right-of-way.
``(C) Tribal energy resource agreements submitted under
paragraph (1) shall establish, and include provisions to ensure
compliance with, an environmental review process that, with
respect to a lease, business agreement, or right-of-way under
this section, provides for--
``(i) the identification and evaluation of all
significant environmental impacts (as compared with a
no-action alternative), including effects on cultural
resources;
``(ii) the identification of proposed mitigation;
``(iii) a process for ensuring that the public is
informed of and has an opportunity to comment on any
proposed lease, business agreement, or right-of-way
before tribal approval of the lease, business
agreement, or right-of-way (or any amendment to or
renewal of the lease, business agreement, or right-of-
way); and
``(iv) sufficient administrative support and
technical capability to carry out the environmental
review process.
``(D) A tribal energy resource agreement negotiated between
the Secretary and an Indian tribe in accordance with this
subsection shall include--
``(i) provisions requiring the Secretary to conduct
an annual trust asset evaluation to monitor the
performance of the activities of the Indian tribe
associated with the development of energy resources on
tribal land by the Indian tribe; and
``(ii) in the case of a finding by the Secretary of
imminent jeopardy to a physical trust asset, provisions
authorizing the Secretary to reassume responsibility
for activities associated with the development of
energy resources on tribal land.
``(3) The Secretary shall provide notice and opportunity for
public comment on tribal energy resource agreements submitted
under paragraph (1).
``(4) If the Secretary disapproves a tribal energy resource
agreement submitted by an Indian tribe under paragraph (1), the
Secretary shall--
``(A) notify the Indian tribe in writing of the basis
for the disapproval;
``(B) identify what changes or other actions are
required to address the concerns of the Secretary; and
``(C) provide the Indian tribe with an opportunity to
revise and resubmit the tribal energy resource
agreement.
``(5) If an Indian tribe executes a lease or business
agreement or grants a right-of-way in accordance with a tribal
energy resource agreement approved under this subsection, the
Indian tribe shall, in accordance with the process and
requirements set forth in the Secretary's regulations adopted
pursuant to subsection (e)(9), provide to the Secretary--
``(A) a copy of the lease, business agreement, or
right-of-way document (including all amendments to and
renewals of the document); and
``(B) in the case of a tribal energy resource
agreement or a lease, business agreement, or right-of-
way that permits payment to be made directly to the
Indian tribe, documentation of those payments
sufficient to enable the Secretary to discharge the
trust responsibility of the United States as
appropriate under applicable law.
``(6) The Secretary shall continue to have a trust obligation
to ensure that the rights of an Indian tribe are protected in
the event of a violation of the terms of any lease, business
agreement or right-of-way by any other party to the lease,
business agreement, or right-of-way.
``(7)(A) The United States shall not be liable for any loss
or injury sustained by any party (including an Indian tribe or
any member of an Indian tribe) to a lease, business agreement,
or right-of-way executed in accordance with tribal energy
resource agreements approved under this subsection.
``(B) On approval of a tribal energy resource agreement of an
Indian tribe under paragraph (1), the Indian tribe shall be
stopped from asserting a claim against the United States on the
ground that Secretary should not have approved the Tribal
energy resource agreement.
``(8)(A) In this paragraph, the term 'interested party' means
any person or entity the interests of which have sustained or
will sustain a significant adverse impact as a result of the
failure of an Indian tribe to comply with a tribal energy
resource agreement of the Indian tribe approved by the
Secretary under paragraph (2).
``(B) After exhaustion of tribal remedies, and in accordance
with the process and requirements set forth in regulations
adopted by the Secretary pursuant to subsection (e)(9), an
interested party may submit to the Secretary a petition to
review compliance of an Indian tribe with a tribal energy
resource agreement of the Indian tribe approved under this
subsection.
``(C) If the Secretary determines that an Indian tribe is not
in compliance with a tribal energy resource agreement approved
under this subsection, the Secretary shall take such action as
is necessary to compel compliance, including--
``(i) suspending a lease, business agreement, or
right-of-way under this section until an Indian tribe
is in compliance with the approved tribal energy
resource agreement; and
``(ii) rescinding approval of the tribal energy
resource agreement and reassuming the responsibility
for approval of any future leases, business agreements,
or rights-of-way associated with an energy pipeline or
distribution line described in subsections (a) and (b).
``(D) If the Secretary seeks to compel compliance of an
Indian tribe with an approved tribal energy resource agreement
under subparagraph (C)(ii), the Secretary shall--
``(i) make a written determination that describes the
manner in which the tribal energy resource agreement
has been violated;
``(ii) provide the Indian tribe with a written notice
of the violation together with the written
determination; and
``(iii) before taking any action described in
subparagraph (C)(ii) or seeking any other remedy,
provide the Indian tribe with a hearing and a
reasonable opportunity to attain compliance with the
tribal energy resource agreement.
``(E)(i) An Indian tribe described in subparagraph (D) shall
retain all rights to appeal as provided in regulations
promulgated by the Secretary.
``(ii) The decision of the Secretary with respect to an
appeal described in clause (i), after any agency appeal
provided for by regulation, shall constitute a final agency
action.
``(9) Not later than 180 days after the date of enactment of
the Indian Tribal Energy Development and Self-Determination Act
of 2003, the Secretary shall promulgate regulations that
implement the provisions of this subsection, including--
``(A) criteria to be used in determining the capacity
of an Indian tribe described in paragraph (2)(B)(i),
including the experience of the Indian tribe in
managing natural resources and financial and
administrative resources available for use by the
Indian tribe in implementing the approved tribal energy
resource agreement of the Indian tribe; and
``(B) a process and requirements in accordance with
which an Indian tribe may--
``(i) voluntarily rescind an approved tribal
energy resource agreement approved by the
Secretary under this subsection; and
``(ii) return to the Secretary the
responsibility to approve any future leases,
business agreements, and rights-of-way
described in this subsection.
``(f) No Effect on Other Law.--Nothing in this section affects the
application of--
``(1) any Federal environmental law;
``(2) the Surface Mining Control and Reclamation Act of 1977
(30 U.S.C. 1201 et seq.); or
``(3) except as otherwise provided in this title, the Indian
Mineral Development Act of 1982 (25 U.S.C. 2101 et seq.).
``SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.
``(a) Definitions.--In this section:
``(1) The term `Administrator' means the Administrator of the
Bonneville Power Administration and the Administrator of the
Western Area Power Administration.
``(2) The term `power marketing administration' means--
``(A) the Bonneville Power Administration;
``(B) the Western Area Power Administration; and
``(C) any other power administration the power
allocation of which is used by or for the benefit of an
Indian tribe located in the service area of the
administration.
``(b) Encouragement of Indian Tribal Energy Development.--Each
Administrator shall encourage Indian tribal energy development by
taking such actions as are appropriate, including administration of
programs of the Bonneville Power Administration and the Western Area
Power Administration, in accordance with this section.
``(c) Action by the Administrator.--In carrying out this section, and
in accordance with existing law--
``(1) each Administrator shall consider the unique
relationship that exists between the United States and Indian
tribes.
``(2) power allocations from the Western Area Power
Administration to Indian tribes may be used to meet firming and
reserve needs of Indian-owned energy projects on Indian land;
``(3) the Administrator of the Western Area Power
Administration may purchase power from Indian tribes to meet
the firming and reserve requirements of the Western Area Power
Administration; and
``(4) each Administrator shall not pay more than the
prevailing market price for an energy product nor obtain less
than prevailing market terms and conditions.
``(d) Assistance for Transmission System Use.--
``(1) An Administrator may provide technical assistance to
Indian tribes seeking to use the high-voltage transmission
system for delivery of electric power.
``(2) The costs of technical assistance provided under
paragraph (1) shall be funded by the Secretary of Energy using
nonreimbursable funds appropriated for that purpose, or by the
applicable Indian tribes.
``(e) Power Allocation Study.--Not later than 2 years after the date
of enactment of the Indian Tribal Energy Development and Self-
Determination Act of 2003, the Secretary of Energy shall submit to the
Congress a report that--
``(1) describes the use by Indian tribes of Federal power
allocations of the Western Area Power Administration (or power
sold by the Southwestern Power Administration) and the
Bonneville Power Administration to or for the benefit of Indian
tribes in service areas of those administrations; and
``(2) identifies--
``(A) the quantity of power allocated to Indian
tribes by the Western Area Power Administration;
``(B) the quantity of power sold to Indian tribes by
other power marketing administrations; and
``(C) barriers that impede tribal access to and use
of Federal power, including an assessment of
opportunities to remove those barriers and improve the
ability of power marketing administrations to
facilitate the use of Federal power by Indian tribes.
``(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $750,000, which shall remain
available until expended and shall not be reimbursable.
``SEC. 2606. INDIAN MINERAL DEVELOPMENT REVIEW.
``(a) In General.--The Secretary shall conduct a review of all
activities being conducted under the Indian Mineral Development Act of
1982 (25 U.S.C. 2101 et seq.) as of that date.
``(b) Report.--Not later than 1 year after the date of enactment of
the Indian Tribal Energy Development and Self-Determination Act of
2003, the Secretary shall submit to the Congress a report that
includes--
``(1) the results of the review;
``(2) recommendations to ensure that Indian tribes have the
opportunity to develop Indian energy resources; and
``(3) an analysis of the barriers to the development of
energy resources on Indian land (including legal, fiscal,
market, and other barriers), along with recommendations for the
removal of those barriers.
``SEC. 2607. WIND AND HYDROPOWER FEASIBILITY STUDY.
``(a) Study.--The Secretary, in coordination with the Secretary of
the Army and the Secretary of the Interior, shall conduct a study of
the cost and feasibility of developing a demonstration project that
would use wind energy generated by Indian tribes and hydropower
generated by the Army Corps of Engineers on the Missouri River to
supply firming power to the Western Area Power Administration.
``(b) Scope of Study.--The study shall--
``(1) determine the feasibility of the blending of wind
energy and hydropower generated from the Missouri River dams
operated by the Army Corps of Engineers;
``(2) review historical purchase requirements and projected
purchase requirements for firming and the patterns of
availability and use of firming energy;
``(3) assess the wind energy resource potential on tribal
land and projected cost savings through a blend of wind and
hydropower over a 30-year period;
``(4) determine seasonal capacity needs and associated
transmission upgrades for integration of tribal wind
generation; and
``(5) include an independent tribal engineer as a study team
member.
``(c) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary and Secretary of the Army shall submit to
Congress a report that describes the results of the study, including--
``(1) an analysis of the potential energy cost or benefits to
the customers of the Western Area Power Administration through
the blend of wind and hydropower;
``(2) an evaluation of whether a combined wind and hydropower
system can reduce reservoir fluctuation, enhance efficient and
reliable energy production, and provide Missouri River
management flexibility;
``(3) recommendations for a demonstration project that could
be carried out by the Western Area Power Administration in
partnership with an Indian tribal government or tribal
consortium to demonstrate the feasibility and potential of
using wind energy produced on Indian land to supply firming
energy to the Western Area Power Administration or any other
Federal power marketing agency; and
``(4) an identification of--
``(A) the economic and environmental costs or
benefits to be realized through such a Federal-tribal
partnership; and
``(B) the manner in which such a partnership could
contribute to the energy security of the United States.
``(d) Funding.--
``(1) There is authorized to be appropriated to carry out
this section $500,000, to remain available until expended.
``(2) Costs incurred by the Secretary in carrying out this
section shall be nonreimbursable.''.
SEC. 304. FOUR CORNERS TRANSMISSION LINE PROJECT.
The Dine Power Authority, an enterprise of the Navajo Nation, shall
be eligible to receive grants and other assistance as authorized by
section 302 of this title and section 2602 of the Energy Policy Act of
1992, as amended by this title, for activities associated with the
development of a transmission line from the Four Corners Area to
southern Nevada, including related power generation opportunities.
SEC. 305. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.
(a) In General.--The Secretary of Housing and Urban Development shall
promote energy conservation in housing that is located on Indian land
and assisted with Federal resources through--
(1) the use of energy-efficient technologies and innovations
(including the procurement of energy-efficient refrigerators
and other appliances);
(2) the promotion of shared savings contracts; and
(3) the use and implementation of such other similar
technologies and innovations as the Secretary of Housing and
Urban Development considers to be appropriate.
(b) Amendment.--Section 202(2) of the Native American Housing and
Self-Determination Act of 1996 (25 U.S.C. 4132(2)) is amended by
inserting ``improvement to achieve greater energy efficiency,'' after
``planning,''.
SEC. 306. CONSULTATION WITH INDIAN TRIBES.
In carrying out this Act and the amendments made by this Act, the
Secretary of Energy and the Secretary shall, as appropriate and to the
maximum extent practicable, involve and consult with Indian tribes in a
manner that is consistent with the Federal trust and the government-to-
government relationships between Indian tribes and the United States.
TITLE IV--NUCLEAR MATTERS
Subtitle A-Price-Anderson Act Amendments
SEC. 401. SHORT TITLE.
This subtitle may be cited as the ``Price-Anderson Amendments Act of
2003''.
SEC. 402. EXTENSION OF INDEMNIFICATION AUTHORITY.
(a) Indemnification of Nuclear Regulatory Commission Licensees.--
Section 170c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is
amended--
(1) in the subsection heading, by striking ``Licenses'' and
inserting ``Licensees'';
(2) by striking ``licenses issued between August 30, 1954,
and December 31, 2003'' and inserting ``licenses issued after
August 30, 1954''; and
(3) by striking ``With respect to any production or
utilization facility for which a construction permit is issued
between August 30, 1954, and December 31, 2003, the
requirements of this subsection shall apply to any license
issued for such facility subsequent to December 31, 2003.''
(b) Indemnification of Department of Energy Contractors.--Section
170d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A))
is amended by striking ``, until December 31, 2004,''.
(c) Indemnification of Nonprofit Educational Institutions.--Section
170k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended--
(1) by striking ``licenses issued between August 30,1954, and
August 1, 2002'' and replacing it with ``licenses issued after
August 30, 1954''; and
(2) by striking ``With respect to any production or
utilization facility for which a construction permit is issued
between August 30, 1954, and August 1, 2002, the requirements
of this subsection shall apply to any license issued for such
facility subsequent to August 1, 2002.''
SEC. 403. MAXIMUM ASSESSMENT.
Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is
amended--
(1) in the second proviso of the third sentence of subsection
b.(l)--
(A) by striking ``$63,000,000'' and inserting
``$94,000,000''; and
(B) by striking ``$10,000,000 in any 1 year'' and
inserting ``$15,000,000 in any 1 year (subject to
adjustment for inflation under subsection t.)''; and
(2) in subsection t.(1)--
(A) by inserting ``total and annual'' after ``amount
of the maximum'';
(B) by striking ``the date of the enactment of the
Price-Anderson Amendments Act of 1988'' and inserting
``July 1, 2003''; and
(C) by striking ``such date of enactment'' and
inserting ``July 1, 2003''.
SEC. 404. DEPARTMENT OF ENERGY LIABILITY LIMIT.
(a) Indemnification of Department of Energy Contractors.--Section
170d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended
by striking paragraph (2) and inserting the following:
``(2) In an agreement of indemnification entered into under
paragraph (1), the Secretary--
``(A) may require the contractor to provide and
maintain financial protection of such a type and in
such amounts as the Secretary shall determine to be
appropriate to cover public liability arising out of or
in connection with the contractual activity; and
``(B) shall indemnify the persons indemnified against
such liability above the amount of the financial
protection required, in the amount of $10,000,000,000
(subject to adjustment for inflation under subsection
t.), in the aggregate, for all persons indemnified in
connection with the contract and for each nuclear
incident, including such legal costs of the contractor
as are approved by the Secretary.''.
(b) Contract Amendments.--Section 170d. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(d)) is further amended by striking paragraph (3)
and inserting the following--
``(3) All agreements of indemnification under which the Department of
Energy (or its predecessor agencies) may be required to indemnify any
person under this section shall be deemed to be amended, on the date of
enactment of the Price-Anderson Amendments Act of 2003, to reflect the
amount of indemnity for public liability and any applicable financial
protection required of the contractor under this subsection.''.
(c) Liability Limit.--Section 170e.(1)(B) of the Atomic Energy Act of
1954 (42 U.S.C. 2210(e)(1)(B)) is amended by--
(1) striking ``the maximum amount of financial protection
required under subsection b. or''; and
(2) striking ``paragraph (3) of subsection d., whichever
amount is more'' and inserting ``paragraph (2) of subsection
d.''.
SEC. 405. INCIDENTS OUTSIDE THE UNITED STATES.
(a) Amount of Indemnification.--Section 170d.(5) of the Atomic Energy
Act of 1954 (42 U.S.C. 2210(d)(5)) is amended by striking
``$100,000,000'' and inserting ``$500,000,000''.
(b) Liability Limit.--Section 170e.(4) of the Atomic Energy Act of
1954 (42 U.S.C. 2210(e)(4)) is amended by striking ``$100,000,000'' and
inserting ``$500,000,000''.
SEC. 406. REPORTS.
Section 170p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) is
amended by striking ``August 1, 1998'' and inserting ``August 1,
2013''.
SEC. 407. INFLATION ADJUSTMENT.
Section 170t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(t)) is
amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by adding after paragraph (1) the following:
``(2) The Secretary shall adjust the amount of
indemnification provided under an agreement of indemnification
under subsection d. not less than once during each 5-year
period following July 1, 2003, in accordance with the aggregate
percentage change in the Consumer Price Index since--
``(A) that date, in the case of the first adjustment
under this paragraph; or
``(B) the previous adjustment under this
paragraph.''.
SEC. 408. TREATMENT OF MODULAR REACTORS.
Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b))
is amended by adding at the end the following:
``(5)(A) For purposes of this section only, the Commission
shall consider a combination of facilities described in
subparagraph (B) to be a single facility having a rated
capacity of 100,000 electrical kilowatts or more.
``(B) A combination of facilities referred to in subparagraph
(A) is 2 or more facilities located at a single site, each of
which has a rated capacity of 100,000 electrical kilowatts or
more but not more than 300,000 electrical kilowatts, with a
combined rated capacity of not more than 1,300,000 electrical
kilowatts.''.
SEC. 409. APPLICABILITY.
The amendments made by sections 403, 404, and 405 do not apply to a
nuclear incident that occurs before the date of the enactment of this
Act.
SEC. 410. CIVIL PENALTIES.
(a) Repeal of Automatic Remission.--Section 234Ab.(2) of the Atomic
Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by striking the
last sentence.
(b) Limitation for Not-For-Profit Institutions.--Subsection d. of
section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is
amended to read as follows:
``d.(1) Notwithstanding subsection a., in the case of any not-for-
profit contractor, subcontractor, or supplier, the total amount of
civil penalties paid under subsection a. may not exceed the total
amount of fees paid within any one-year period (as determined by the
Secretary) under the contract under which the violation occurs.
``(2) For purposes of this section, the term ``not-for-profit'' means
that no part of the net earnings of the contractor, subcontractor, or
supplier inures to the benefit of any natural person or for-profit
artificial person.''.
(c) Effective Date.--The amendments made by this section shall not
apply to any violation of the Atomic Energy Act of 1954 occurring under
a contract entered into before the date of enactment of this section.
Subtitle B--Deployment of New Nuclear Plants
SEC. 421. SHORT TITLE.
This subtitle may be cited as the ``Nuclear Energy Finance Act of
2003''.
SEC. 422. DEFINITIONS.
For purposes of this subtitle:
(1) The term ``advanced reactor design'' means a nuclear
reactor that enhances safety, efficiency, proliferation
resistance, or waste reduction compared to commercial nuclear
reactors in use in the United States on the date of enactment
of this Act.
(2) The term ``eligible project costs'' means all costs
incurred by a project developer that are reasonably related to
the development and construction of a project under this
subtitle, including costs resulting from regulatory or
licensing delays.
(3) The term ``financial assistance'' means a loan guarantee,
purchase agreement, or any combination of the foregoing.
(4) The term ``loan guarantee'' means any guarantee or other
pledge by the Secretary to pay all or part of the principal and
interest on a loan or other debt obligation issued by a project
developer and funded by a lender.
(5) The term ``project'' means any commercial nuclear power
facility for the production of electricity that uses one or
more advanced reactor designs.
(6) The term ``project developer'' means an individual,
corporation, partnership, joint venture, trust, or other entity
that is primarily liable for payment of a project's eligible
costs.
(7) The term ``purchase agreement'' means a contract to
purchase the electric energy produced by a project under this
subtitle.
(8) The term ``Secretary'' means the Secretary of Energy.
SEC. 423. RESPONSIBILITIES OF THE SECRETARY.
(a) Financial Assistance.--Subject to the requirements of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), the Secretary may,
subject to appropriations, make available to project developers for
eligible project costs such financial assistance as the Secretary
determines is necessary to supplement private-sector financing for
projects if he determines that such projects are needed to contribute
to energy security, fuel or technology diversity, or clean air
attainment goals. The Secretary shall prescribe such terms and
conditions for financial assistance as the Secretary deems necessary or
appropriate to protect the financial interests of the United States.
(b) Requirements.--Approval criteria for financial assistance shall
include--
(1) the creditworthiness of the project;
(2) the extent to which financial assistance would encourage
public-private partnerships and attract private-sector
investment;
(3) the likelihood that financial assistance would hasten
commencement of the project; and
(4) any other criteria the Secretary deems necessary or
appropriate.
(c) Confidentiality.--The Secretary shall protect the confidentiality
of any information that is certified by a project developer to be
commercially sensitive.
(d) Full Faith and Credit.--All financial assistance provided by the
Secretary under this subtitle shall be general obligations of the
United States backed by its full faith and credit.
SEC. 424. LIMITATIONS
(a) Financial Assistance.--The total financial assistance per project
provided by this subtitle shall not exceed fifty percent of eligible
project costs.
(b) Generation.--The total electrical generation capacity of all
projects provided by this subtitle shall not exceed 8,400 megawatts.
SEC. 425. REGULATIONS
Not later than 12 months from the date of enactment of this Act, the
Secretary shall issue regulations to implement this subtitle.
Subtitle C--Advanced Reactor Hydrogen Co-Generation Project
SEC. 431. PROJECT ESTABLISHMENT.
The Secretary is directed to establish an Advanced Reactor Hydrogen
Co-Generation Project.
SEC. 432. PROJECT DEFINITION.
The project shall conduct the research, development, design,
construction, and operation of a hydrogen production co-generation
testbed that, relative to the current commercial reactors, enhances
safety features, reduces waste production, enhances thermal
efficiencies, increases proliferation resistance, and has the potential
for improved economics and physical security in reactor siting. This
testbed shall be constructed so as to enable research and development
on advanced reactors of the type selected and on alternative approaches
for reactor-based production of hydrogen.
SEC. 433. PROJECT MANAGEMENT.
(a) Management.--The project shall be managed within the Department
by the Office of Nuclear Energy Science and Technology.
(b) Lead Laboratory.--The lead laboratory for the program, providing
the site for the reactor construction, shall be the Idaho National
Engineering and Environmental Laboratory (``INEEL'').
(c) Steering Committee.--The Secretary shall establish a national
steering committee with membership from the national laboratories,
universities, and industry to provide advice to the Secretary and the
Director of the Office of Nuclear Energy, Science and Technology on
technical and program management aspects of the project.
(d) Collaboration.--Project activities shall be conducted at INEEL,
other national laboratories, universities, domestic industry, and
international partners.
SEC. 434. PROJECT REQUIREMENTS.
(a) Research and Development.--The project shall include planning,
research and development, design, and construction of an advanced,
next-generation, nuclear energy system suitable for enabling further
research and development on advanced reactor technologies and
alternative approaches for reactor-based generation of hydrogen.
(1) The project shall utilize, where appropriate, extensive
reactor test capabilities resident at INEEL.
(2) The project shall be designed to explore technical,
environmental, and economic feasibility of alternative
approaches for reactor-based hydrogen production.
(3) The industrial lead for the project must be a United
States-based company.
(b) International Collaboration.--The Secretary shall seek
international cooperation, participation, and financial contribution in
this program.
(1) The project may contract for assistance from specialists
or facilities from member countries of the Generation IV
International Forum, the Russian Federation, or other
international partners where such specialists or facilities
provide access to cost-effective and relevant skills or test
capabilities.
(2) International activities shall be coordinated with the
Generation IV International Forum.
(3) The Secretary may combine this project with the
Generation IV Nuclear Energy Systems Program.
(c) Demonstration.--The overall project, which may involve
demonstration of selected project objectives in a partner nation, must
demonstrate both electricity and hydrogen production and may provide
flexibility, where technically and economically feasible in the design
and construction, to enable tests of alternative reactor core and
cooling configurations.
(d) Partnerships.--The Secretary shall establish cost-shared
partnerships with domestic industry or international participants for
the research, development, design, construction and operation of the
demonstration facility, and preference in determining the final project
structure shall be given to an overall project which retains United
States leadership while maximizing cost sharing opportunities and
minimizing federal funding responsibilities.
(e) Target Date.--The Secretary shall select technologies and develop
the project to provide initial testing of either hydrogen production or
electricity generation by 2010 or provide a report to Congress why this
date is not feasible.
(f) Waiver of Construction Timelines.--The Secretary is authorized to
conduct the Advanced Reactor Hydrogen Co-Generation Project without the
constraints of DOE Order 413.3 as deemed necessary to meet the
specified operational date.
(g) Competition.--The Secretary may fund up to two teams for up to
one year to develop detailed proposals for competitive evaluation and
selection of a single proposal and concept for further progress. The
Secretary shall define the format of the competitive evaluation of
proposals.
(h) Use of Facilities.--Research facilities in industry, national
laboratories, or universities either within the United States or with
cooperating international partners may be used to develop the enabling
technologies for the demonstration facility. Utilization of domestic
university-based testbeds shall be encouraged to provide educational
opportunities for student development.
(i) Role of Nuclear Regulatory Commission.--The Secretary shall seek
active participation of the Nuclear Regulatory Commission throughout
the project to develop risk-based criteria for any future commercial
development of a similar reactor architecture.
(j) Report.--A comprehensive project plan shall be developed no later
than April 30, 2004. The project plan shall be updated annually with
each annual budget submission.
SEC. 435. AUTHORIZATION OF APPROPRIATIONS.
(a) Research, Development and Design Programs.--The following sums
are authorized to be appropriated to the Secretary for all activities
under this subtitle except for reactor construction:
(1) For fiscal year 2004, $35,000,000;
(2) For each of fiscal years 2005-2008, $150,000,000; and
(3) For fiscal years beyond 2008, such funds as are needed
are authorized to be appropriated.
(b) Reactor Construction.--The following sum is authorized to be
appropriated to the Secretary for all project-related construction
activities, to be available until expended, $500,000,000.
Subtitle D--Miscellaneous Matters
SEC. 441. URANIUM SALES AND TRANSFERS.
Section 3112 of the USEC Privatization Act (42 U.S.C. 2297h-10) is
amended by striking subsections (d) and (e) and inserting the
following:
``(d)(1)(A) The aggregate annual deliveries of uranium in any form
(including natural uranium concentrates, natural uranium hexafluoride,
enriched uranium, and depleted uranium) sold or transferred for
commercial nuclear power end uses by the United States Government shall
not exceed 3,000,000 pounds U3O8 equivalent per
year through calendar year 2009. Such aggregate annual deliveries shall
not exceed 5,000,000 pounds U3O8 equivalent per
year in calendar years 2010 and 2011. Such aggregate annual deliveries
shall not exceed 7,000,000 pounds U3O8 equivalent
in calendar year 2012. Such aggregate annual deliveries shall not
exceed 10,000,000 pounds U3O8 equivalent per year
in calendar year 2013 and each year thereafter. Any sales or transfers
by the United States Government to commercial end users shall be
limited to long-term contracts of no less than 3 years duration.
``(B) The recovery and extraction of the uranium component from
contaminated uranium bearing materials from United States Government
sites by commercial entities shall be the preferred method of making
uranium available under this subsection. The uranium component
contained in such contaminated materials shall be counted against the
annual maximum deliveries set forth in this section, provided that
uranium is sold to end users.
``(C) Sales or transfers of uranium by the United States Government
for the following purposes are exempt from the provisions of this
paragraph--
``(i) sales or transfers provided for under existing law for
use by the Tennessee Valley Authority in relation to the
Department of Energy's high-enriched uranium or tritium
programs;
``(ii) sales or transfers to the Department of Energy
research reactor sales program;
``(iii) the transfer of up to 3,293 metric tons of uranium to
the United States Enrichment Corporation to replace uranium
that the Secretary transferred, prior to privatization of the
United States Enrichment Corporation in July 1998, to the
Corporation on or about June 30, 1993, April 20, 1998, and May
18, 1998, and that does not meet commercial specifications;
``(iv) the sale or transfer of any uranium for emergency
purposes in the event of a disruption in supply to end users in
the United States;
``(v) the sale or transfer of any uranium in fulfillment of
the United States Government's obligations to provide security
of supply with respect to implementation of the Russian HEU
Agreement; and
``(vi) the sale or transfer of any enriched uranium for use
in an advanced commercial nuclear power plant in the United
States with nonstandard fuel requirements.
``(D) The Secretary may transfer or sell enriched uranium to any
person for national security purposes, as determined by the Secretary.
``(2) Except as provided in subsections (b) and (c), and in paragraph
(1)(B), clauses (i) through (iii) of paragraph (1)(C), and paragraph
(1)(D) of this subsection, no sale or transfer of uranium in any form
shall be made by the United States Government unless--
``(A) the President determines that the material is not
necessary for national security needs;
``(B) the price paid to the Secretary, if the transaction is
a sale, will not be less than the fair market value of the
material, as determined at the time that such material is
contracted for sale;
``(C) prior to any sale or transfer, the Secretary solicits
the written views of the Department of State and the National
Security Council with regard to whether such sale or transfer
would have any adverse effect on national security interests of
the United States, including interests related to the
implementation of the Russian HEU Agreement; and
``(D) neither the Department of State nor the National
Security Council objects to such sale or transfer.
The Secretary shall endeavor to determine whether a sale or transfer
is permitted under this paragraph within 30 days. The Secretary's
determinations pursuant to this paragraph shall be made available to
interested members of the public prior to authorizing any such sale or
transfer.
``(3) Within 1 year after the date of enactment of this subsection
and annually thereafter the Secretary shall undertake an assessment for
the purpose of reviewing available excess Government uranium
inventories, and determining, consistent with the procedures and
limitations established in this subsection, the level of inventory to
be sold or transferred to end users.
``(4) Within 5 years after the date of enactment of this subsection
and biennially thereafter the Secretary shall report to the Congress on
the implementation of this subsection. The report shall include a
discussion of all sales or transfers made by the United States
Government, the impact of such sales or transfers on the domestic
uranium industry, the spot market uranium price, and the national
security interests of the United States, and any steps taken to
remediate any adverse impacts of such sales or transfers.
``(5) For purposes of this subsection, the term `United States
Government' does not include the Tennessee Valley Authority.''.
SEC. 442. DECOMMISSIONING PILOT PROGRAM.
(a) Pilot Program.--The Secretary shall establish a decommissioning
pilot program to decommission and decontaminate the sodium-cooled fast
breeder experimental test-site reactor located in northwest Arkansas in
accordance with the decommissioning activities contained in the August
31, 1998 Department of Energy report on the reactor.
(b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $16,000,000.
TITLE V--RENEWABLE ENERGY
Subtitle A--General Provisions
SEC. 501. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.
(a) Resource Assessment.--Not later than 6 months after the date of
enactment of this title, and each year thereafter, the Secretary of
Energy shall review the available assessments of renewable energy
resources within the United States, including solar, wind, biomass,
ocean (tidal and thermal), geothermal, and hydroelectric energy
resources, and undertake new assessments as necessary, taking into
account changes in market conditions, available technologies, and other
relevant factors.
(b) Contents of Reports.--Not later than 1 year after the date of
enactment of this title, and each year thereafter, the Secretary shall
publish a report based on the assessment under subsection (a). The
report shall contain--
(1) a detailed inventory describing the available amount and
characteristics of the renewable energy resources; and
(2) such other information as the Secretary 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, together with an identification of any
barriers to providing adequate transmission for remote sources
of renewable energy resources to current and emerging markets,
recommendations for removing or addressing such barriers, and
ways to provide access to the grid that do not unfairly
disadvantage renewable or other energy producers.
(c) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary of
Energy $10,000,000 for each of fiscal years 2004 through 2008.
SEC. 502. RENEWABLE ENERGY PRODUCTION INCENTIVE.
(a) Incentive Payments.--Section 1212(a) of the Energy Policy Act of
1992 (42 U.S.C. 13317(a)) is amended by striking ``and which
satisfies'' and all that follows through ``Secretary shall establish.''
and inserting ``. If there are insufficient appropriations to make full
payments for electric production from all qualified renewable energy
facilities in any given year, the Secretary shall assign 60 percent of
appropriated funds for that year to facilities that use solar, wind,
geothermal, or closed-loop (dedicated energy crops) biomass
technologies to generate electricity, and assign the remaining 40
percent to other projects. The Secretary may, after transmitting to the
Congress an explanation of the reasons therefor, alter the percentage
requirements of the preceding sentence.''.
(b) Qualified Renewable Energy Facility.--Section 1212(b) of the
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
(1) by striking ``a State or any political'' and all that
follows through ``nonprofit electrical cooperative'' and
inserting ``a not-for-profit electric cooperative, a public
utility described in section 115 of the Internal Revenue Code
of 1986, 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 of
subdivision thereof,''; and
(2) by inserting ``landfill gas,'' after ``wind, biomass,''.
(c) Eligibility Window.--Section 1212(c) of the Energy Policy Act of
1992 (42 U.S.C. 13317(c)) is amended by striking ``during the 10-fiscal
year period beginning with the first full fiscal year occurring after
the enactment of this section'' and inserting ``after October 1, 2003,
and before October 1, 2013''.
(d) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act
of 1992 (42 U.S.C. 13317(e)(1)) is amended by inserting ``landfill
gas,'' after ``wind, biomass,''.
(e) Sunset.--Section 1212(f) of the Energy Policy Act of 1992 (42
U.S.C. 13317(f)) is amended by striking ``the expiration of'' and all
that follows through ``of this section'' and inserting ``September 30,
2023''.
(f) Authorization of Appropriations.--Section 1212(g) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(g)) is amended to read as follows:
``(g) Authorization of Appropriations--
``(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated such sums as may be necessary to
carry out this section for fiscal years 2003 through 2023.
``(2) Availability of funds.--Funds made available under
paragraph (1) shall remain available until expended.''.
SEC. 503. RENEWABLE ENERGY ON FEDERAL LANDS.
(a) Report.--Within 24 months after the date of enactment of this
Act, the Secretary of the Interior, in cooperation with the Secretary
of Agriculture, shall develop and report to the Congress
recommendations on opportunities to develop renewable energy on public
lands under the jurisdiction of the Secretary of the Interior and
National Forest System lands under the jurisdiction of the Secretary of
Agriculture. The report shall include--
(1) 5-year plans developed by the Secretary of the Interior
and the Secretary of Agriculture, respectively, for encouraging
the development of renewable energy consistent with applicable
law and management plans; and
(2) an analysis of--
(A) the use of rights-of-way, leases, or other
methods to develop renewable energy on such lands;
(B) the anticipated benefits of grants, loans, tax
credits, or other provisions to promote renewable
energy development on such lands; and
(C) any issues that the Secretary of the Interior or
the Secretary of Agriculture have encountered in
managing renewable energy projects on such lands, or
believe are likely to arise in relation to the
development of renewable energy on such lands;
(3) a list, developed in consultation with the Secretary of
Energy and the Secretary of Defense, of lands under the
jurisdiction of the Department of Energy or Defense that would
be suitable for development for renewable energy, and any
recommended statutory and regulatory mechanisms for such
development; and
(4) any recommendations pertaining to the issues addressed in
the report.
(b) National Academy of Sciences Study.--
(1) Not later than 90 days after the date of the enactment of
this section, the Secretary of the Interior shall contract with
the National Academy of Sciences to--
(A) study the potential for the development of wind,
solar, and ocean (tidal and thermal) energy on the
Outer Continental Shelf;
(B) assess existing Federal authorities for the
development of such resources; and
(C) recommend statutory and regulatory mechanisms for
such development.
(2) The results of the study shall be transmitted to the
Congress within 24 months after the date of the enactment of
this section.
SEC. 504. FEDERAL PURCHASE REQUIREMENT.
(a) Requirement.--The President, acting through the Secretary of
Energy, shall seek to ensure that, to the extent economically feasible
and technically practicable, of the total amount of electric energy the
Federal Government consumes during any fiscal year, the following
amounts shall be renewable energy--
(1) not less than 3 percent in fiscal years 2005 through
2007,
(2) not less than 5 percent in fiscal years 2008 through
2010, and
(3) not less than 7.5 percent in fiscal year 2011 and each
fiscal year thereafter.
(b) Definition.--For purposes of this section--
(1) the term ``biomass'' means any solid, nonhazardous,
cellulosic material that is derived from--
(A) any of the following forest-related resources:
mill residues, precommercial thinnings, slash, and
brush, or nonmerchantable material;
(B) solid wood waste materials, including waste
pallets, crates, dunnage, manufacturing and
construction wood wastes (other than pressure-treated,
chemically-treated, or painted wood wastes), and
landscape or right-of-way tree trimmings, but not
including municipal solid waste (garbage), gas derived
from the biodegradation of solid waste, or paper that
is commonly recycled; or
(C) agriculture wastes, including orchard tree crops,
vineyard, grain, legumes, sugar, and other crop by-
products or residues, and livestock waste nutrients; or
(D) a plant that is grown exclusively as a fuel for
the production of electricity.
(2) the term ``renewable energy'' means electric energy
generated from solar, wind, biomass, geothermal, municipal
solid waste, or new hydroelectric generation capacity achieved
from increased efficiency or additions of new capacity at an
existing hydroelectric project.
(c) Calculation.--For purposes of determining compliance with the
requirement of this section, the amount of renewable energy shall be
doubled if--
(1) the renewable energy is produced and used on-site at a
Federal facility;
(2) the renewable energy is produced on Federal lands and
used at a Federal facility; or
(3) the renewable energy is produced on Indian land as
defined in title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501 et seq.) and used at a Federal facility.
(d) Report.--Not later than April 15, 2005, and every 2 years
thereafter, the Secretary of Energy shall provide a report to the
Congress on the progress of the Federal Government in meeting the goals
established by this section.
SEC. 505. INSULAR AREA RENEWABLE AND ENERGY EFFICIENCY PLANS.
The Secretary of Energy shall update the energy surveys, estimates,
and assessments for the insular areas of Puerto Rico, the Virgin
Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau undertaken pursuant to section
604 of Public Law 96-597 (48 U.S.C. 1492) and revise the comprehensive
energy plan for the insular areas to reduce reliance on energy imports
and increase use of renewable energy resources and energy efficiency
opportunities. The update and revision shall by undertaken in
consultation with the Secretary of the Interior and the chief executive
officer of each insular area and shall be completed and submitted to
Congress and to the chief executive officer of each insular area by
December 31, 2005.
Subtitle B--Hydroelectric Licensing
SEC. 511. ALTERNATIVE CONDITIONS AND FISHWAYS.
(a) Federal Reservations.--Section 4(e) of the Federal Power Act (16
U.S.C. 797(e)) is amended by inserting after ``adequate protection and
utilization of such reservation.'' at the end of the first proviso the
following: ``The license applicant shall be entitled to a determination
on the record, after opportunity for an agency trial-type hearing of
any disputed issues of material fact, with respect to such
conditions.''.
(b) Fishways.--Section 18 of the Federal Power Act (16 U.S.C. 811) is
amended by inserting after ``and such fishways as may be prescribed by
the Secretary of Commerce.'' the following: ``The license applicant
shall be entitled to a determination on the record, after opportunity
for an agency trial-type hearing of any disputed issues of material
fact, with respect to such fishways.''.
(c) Alternative Conditions and Prescriptions.--Part I of the Federal
Power Act (16 U.S.C. 791a et seq.) is amended by adding the following
new section at the end thereof:
``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.
``(a) Alternative Conditions.--
``(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 (referred to in this subsection as `the
Secretary') deems a condition to such license to be necessary
under the first proviso of section 4(e), the license applicant
may propose an alternative condition.
``(2) Notwithstanding the first proviso of section 4(e), the
Secretary 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
determines, based on substantial evidence provided by the
license applicant or otherwise available to the Secretary, that
such alternative condition--
``(A) provides for the adequate protection and
utilization of the reservation; 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 initially deemed
necessary by the Secretary.
``(3) The Secretary concerned shall submit into the public
record of the Commission proceeding with any condition under
section 4(e) or alternative condition it accepts under this
section, a written statement explaining the basis for such
condition, and reason for not accepting any alternative
condition under this section. The written statement must
demonstrate that the Secretary gave equal consideration to the
effects of the condition adopted and alternatives not accepted
on energy supply, distribution, cost, and use; flood control;
navigation; water supply; and air quality (in addition to the
preservation of other aspects of environmental quality); based
on such information as may be available to the Secretary,
including information voluntarily provided in a timely manner
by the applicant and others. The Secretary shall also submit,
together with the aforementioned written statement, all
studies, data, and other factual information available to the
Secretary and relevant to the Secretary's decision.
``(4) Nothing in this section shall prohibit other interested
parties from proposing alternative conditions.
``(5) If the Secretary does not accept an applicant's
alternative condition under this section, and the Commission
finds that the Secretary's condition would be inconsistent with
the purposes of this part, or other applicable law, the
Commission may refer the dispute to the Commission's Dispute
Resolution Service. The Dispute Resolution Service shall
consult with the Secretary and the Commission and issue a non-
binding advisory within 90 days. The Secretary may accept the
Dispute Resolution Service advisory unless the Secretary finds
that the recommendation will not adequately protect the
reservation. The Secretary shall submit the advisory and the
Secretary's final written determination into the record of the
Commission's proceeding.
``(b) Alternative Prescriptions.--
(1) Whenever the Secretary of the Interior or the Secretary
of Commerce prescribes a fishway under section 18, the license
applicant or licensee may propose an alternative to such
prescription to construct, maintain, or operate a fishway. The
alternative may include a fishway or an alternative to a
fishway.
``(2) Notwithstanding section 18, 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 licensee or otherwise
available to the Secretary, that such alternative--
``(A) will be no less protective of the fish
resources 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 deemed
necessary by the Secretary.
``(3) The Secretary concerned shall submit into the public
record of the Commission proceeding with any prescription under
section 18 or alternative prescription it accepts under this
section, a written statement explaining the basis for such
prescription, and reason for not accepting any alternative
prescription under this section. The written statement must
demonstrate that the Secretary gave equal consideration to the
effects of the condition adopted and alternatives not accepted
on energy supply, distribution, cost, and use; flood control;
navigation; water supply; and air quality (in addition to the
preservation of other aspects of environmental quality); based
on such information as may be available to the Secretary,
including information voluntarily provided in a timely manner
by the applicant and others. The Secretary shall also submit,
together with the aforementioned written statement, all
studies, data, and other factual information available to the
Secretary and relevant to the Secretary's decision.
``(4) Nothing in this section shall prohibit other interested
parties from proposing alternative prescriptions.
``(5) If the Secretary concerned does not accept an
applicant's alternative prescription under this section, and
the Commission finds that the Secretary's prescription would be
inconsistent with the purposes of this part, or other
applicable law, the Commission may refer the dispute to the
Commission's Dispute Resolution Service. The Dispute Resolution
Service shall consult with the Secretary and the Commission and
issue a non-binding advisory within 90 days. The Secretary may
accept the Dispute Resolution Service advisory unless the
Secretary finds that the recommendation will not adequately
protect the fish resources. The Secretary shall submit the
advisory and the Secretary's final written determination into
the record of the Commission's proceeding.''.
Subtitle C--Geothermal Energy
SEC. 521. COMPETITIVE LEASE SALE REQUIREMENTS.
(a) In General.--Section 4 of the Geothermal Steam Act of 1970 (30
U.S.C. 1003) is amended by striking the text and inserting the
following:
``(a) Nominations.--The Secretary shall accept nominations at any
time from companies and individuals of lands to be leased under this
Act.
``(b) Competitive Lease Sale Required.--The Secretary shall hold a
competitive lease sale at least once every 2 years for lands in a State
in which there are nominations pending under subsection (a) where such
lands are otherwise available for leasing.
``(c) Noncompetitive Leasing.--The Secretary shall make available for
a period of 2 years for noncompetitive leasing any tract for which a
competitive lease sale is held, but for which the Secretary does not
receive any bids in the competitive lease sale.''.
(b) Pending Lease Applications.--It shall be a priority for the
Secretary of the Interior and, with respect to National Forest lands,
the Secretary of Agriculture, to ensure timely completion of
administrative actions necessary to conduct competitive lease sales for
lands with pending applications for geothermal leasing as of the date
of enactment of this section where such lands are otherwise available
for leasing.
SEC. 522. GEOTHERMAL LEASING AND PERMITTING ON FEDERAL LANDS.
(a) In General.--Not later than 180 days after the date of the
enactment of this section, the Secretary of the Interior and the
Secretary of Agriculture shall enter into and submit to the Congress a
memorandum of understanding in accordance with this section regarding
leasing and permitting for geothermal development of public lands and
National Forest System lands under their respective jurisdictions.
(b) Lease and Permit Applications.--The memorandum of understanding
shall--
(1) identify known geothermal resources areas on lands
included in the National Forest System and, when necessary,
require review of management plans to consider leasing under
the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) as a
land use; and
(2) establish an administrative procedure for processing
geothermal lease applications, including lines of authority,
steps in application processing, and time limits for
application processing.
(c) Data Retrieval System.--The memorandum of understanding shall
establish a joint data retrieval system that is capable of tracking
lease and permit applications and providing to the applicant
information as to their status within the Departments of the Interior
and Agriculture, including an estimate of the time required for
administrative action.
SEC. 523. LEASING AND PERMITTING ON FEDERAL LANDS WITHDRAWN FOR
MILITARY PURPOSES.
Not later than 1 year after the date of the enactment of this Act,
the Secretary of the Interior and the Secretary of Defense, in
consultation with interested states, counties, representatives of the
geothermal industry, and interested members of the public, shall submit
to the Congress a joint report concerning leasing and permitting
activities for geothermal energy on Federal lands withdrawn for
military purposes. Such report shall--
(1) describe any differences, including differences in
royalty structure and revenue sharing with states and counties,
between--
(A) the implementation of the Geothermal Steam Act of
1970 (30 U.S.C. 1001 et seq.) and other applicable
Federal law by the Secretary of the Interior; and
(B) the administration of geothermal leasing under
section 2689 of title 10, United States Code, by the
Secretary of Defense;
(2) identify procedures for interagency coordination to
ensure efficient processing and administration of leases or
contracts for geothermal energy on federal lands withdrawn for
military purposes, consistent with the defense purposes of such
withdrawals; and
(3) provide recommendations for legislative or administrative
actions that could facilitate program administration, including
a common royalty structure.
SEC. 524. REINSTATEMENT OF LEASES TERMINATED FOR FAILURE TO PAY RENT.
Section 5(c) of the Geothermal Steam Act of 1970 (30 U.S.C. 1004(c)),
is amended in the last sentence by inserting ``or was inadvertent,''
after ``reasonable diligence,''.
SEC. 525. ROYALTY REDUCTION AND RELIEF.
(a) Rulemaking.--Within one year after the date of enactment of this
Act, the Secretary shall promulgate a final regulation providing a
methodology for determining the amount or value of the steam for
purposes of calculating the royalty due to be paid on such production
pursuant to section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004). The final regulation shall provide for a simplified methodology
for calculating the royalty. In undertaking the rulemaking, the
Secretary shall consider the use of a percent of revenue method and
shall ensure that the final rule will result in the same level of
royalty revenues as the regulation in effect on the date of enactment
of this provision.
(b) Low Temperature Direct Use.--Notwithstanding the provisions of
section 5(a) of the Geothermal Steam Act of 1979 (30 U.S.C. 1004(a)),
with respect to the direct use of low temperature geothermal resources
for purposes other than the generation of electricity, the Secretary
shall establish a schedule of fees and collect fees pursuant to such
schedule in lieu of royalties based upon the total amount of geothermal
resources used. The schedule of fees shall ensure that there is a fair
return to the public for the use of the low temperature geothermal
resource. With the consent of the lessee, the Secretary may modify the
terms of a lease in existence on the date of enactment of this Act in
order to reflect the provisions of this subsection.
Subtitle D--Biomass Energy
SEC. 531. DEFINITIONS.
For the purposes of this subtitle:
(1) The term ``eligible operation'' means a facility that is
located within the boundaries of an eligible community and uses
biomass from federal or Indian lands as a raw material to
produce electric energy, sensible heat, transportation fuels,
or substitutes for petroleum-based products.
(2) The term ``biomass'' means pre-commercial thinnings of
trees and woody plants, or non-merchantable material, from
preventative treatments to reduce hazardous fuels, or reduce or
contain disease or insect infestations.
(3) The term ``green ton'' means 2,000 pounds of biomass that
has not been mechanically or artificially dried.
(4) The term ``Secretary'' means--
(A) with respect to lands within the National Forest
System, the Secretary of Agriculture; or
(B) with respect to Federal lands under the
jurisdiction of the Secretary of the Interior and
Indian lands, the Secretary of the Interior.
(5) The term ``eligible community'' means any Indian
Reservation, or any county, town, township, municipality, or
other similar unit of local government that has a population of
not more than 50,000 individuals and is determined by the
Secretary to be located in an area near federal of Indian lands
which is at significant risk of catastrophic wildfire, disease,
or insect infestation or which suffers from disease or insect
infestation.
(6) The term ``Indian tribe'' has the meaning given the term
in section 4(e) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b(e)).
(7) The term ``person'' includes--
(A) an individual;
(B) a community;
(C) an Indian tribe;
(D) a small business or a corporation that is
incorporated in the United States; or
(E) a nonprofit organization.
SEC. 532. BIOMASS COMMERCIAL UTILIZATION GRANT PROGRAM.
(a) In General.--The Secretary may make grants to any person that
owns or operates an eligible operation to offset the costs incurred to
purchase biomass for use by such eligible operation with priority given
to operations using biomass from the highest risk areas.
(b) Limitation.--No grant provided under this subsection shall be
paid at a rate that exceeds $20 per green ton of biomass delivered.
(c) Records.--Each grant recipient shall keep such records as the
Secretary may require to fully and correctly disclose the use of the
grant funds and all transactions involved in the purchase of biomass.
Upon notice by the Secretary, the grant recipient shall provide the
Secretary reasonable access to examine the inventory and records of any
eligible operation receiving grant funds.
(d) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated $12,500,000 each to
the Secretary of the Interior and the Secretary of Agriculture for each
fiscal year from 2004 through 2008, to remain available until expended.
SEC. 533. IMPROVED BIOMASS UTILIZATION GRANT PROGRAM.
(a) In General.--The Secretary may make grants to persons in eligible
communities to offset the costs of developing or researching proposals
to improve the use of biomass or add value to biomass utilization.
(b) Selection.--Grant recipients shall be selected based on the
potential for the proposal to--
(1) develop affordable thermal or electric energy resources
for the benefit of an eligible community;
(2) provide opportunities for the creation or expansion of
small businesses within an eligible community;
(3) create new job opportunities within an eligible
community, and
(4) reduce the hazardous fuels from the highest risk areas.
(c) Limitation.--No grant awarded under this subsection shall exceed
$500,000.
(d) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated $12,500,000 each to
the Secretary of the Interior and the Secretary of Agriculture for each
fiscal year from 2004 through 2008, to remain available until expended.
SEC. 534. REPORT.
Not later than 3 years after the date of enactment of this subtitle,
the Secretary of the Interior and the Secretary of Agriculture shall
jointly submit to the Congress a report that describes the interim
results of the programs authorized under this subtitle.
TITLE VI--ENERGY EFFICIENCY
Subtitle A--Federal Programs
SEC. 601. ENERGY MANAGEMENT REQUIREMENTS.
(a) Energy Reduction Goals.--Section 543(a)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by striking
``its Federal buildings so that'' and all that follows through the end
and inserting ``the Federal buildings of the agency (including each
industrial or laboratory facility) so that the energy consumption per
gross square foot of the Federal buildings of the agency in fiscal
years 2004 through 2013 is reduced, as compared with the energy
consumption per gross square foot of the Federal buildings of the
agency in fiscal year 2000, by the percentage specified in the
following table:
``Fiscal Year Percentage reduction
2004................................................... 2
2005................................................... 4
2006................................................... 6
2007................................................... 8
2008................................................... 10
2009................................................... 12
2010................................................... 14
2011................................................... 16
2012................................................... 18
2013................................................... 20.''.
(b) Effective Date.--The energy reduction goals and baseline
established in paragraph (1) of section 543(a) of the National Energy
Conservation Policy Act, as amended by subsection (a) of this section,
supersede all previous goals and baselines under such paragraph, and
related reporting requirements.
(c) Review of Energy Performance Requirements.--Section 543(a) of the
National Energy Conservation Policy Act (42 U.S.C. 8253(a)) is further
amended by adding at the end the following:
``(3) Not later than December 31, 2011, the Secretary shall
review the results of the implementation of the energy
performance requirement established under paragraph (1) and
submit to Congress recommendations concerning energy
performance requirements for fiscal years 2014 through 2022.''.
(d) Exclusions.--Section 543(c)(1) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking
``An agency may exclude'' and all that follows through the end and
inserting--
``(A) An agency may exclude, from the energy performance
requirement for a fiscal year established under subsection (a)
and the energy management requirement established under
subsection (b), any Federal building or collection of Federal
buildings, if the head of the agency finds that--
``(i) compliance with those requirements would be
impracticable;
``(ii) the agency has completed and submitted all
federally required energy management reports;
``(iii) the agency has achieved compliance with the
energy efficiency requirements of this Act, the Energy
Policy Act of 1992, Executive Orders, and other Federal
law; and
``(iv) the agency has implemented all practicable,
life-cycle cost-effective projects with respect to the
Federal building or collection of Federal buildings to
be excluded.
``(B) A finding of impracticability under subparagraph (A)(i)
shall be based on--
``(i) the energy intensiveness of activities carried
out in the Federal building or collection of Federal
buildings; or
``(ii) the fact that the Federal building or
collection of Federal buildings is used in the
performance of a national security function.''.
(e) Review by Secretary.--Section 543(c)(2) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
(1) by striking ``impracticability standards'' and inserting
``standards for exclusion''; and
(2) by striking ``a finding of impracticability'' and
inserting ``the exclusion''.
(f) Criteria.--Section 543(c) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end
the following:
``(3) Not later than 180 days after the date of enactment of
this paragraph, the Secretary shall issue guidelines that
establish criteria for exclusions under paragraph (1).''.
(g) Retention of Energy Savings.--Section 546 of the National Energy
Conservation Policy 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. Except as otherwise provided by law,
such funds may be used only for energy efficiency or unconventional and
renewable energy resources projects.''.
(h) Reports.--Section 548(b) of the National Energy Conservation
Policy Act (42 U.S.C. 8258(b)) is amended--
(1) in the subsection heading, by inserting ``The President
and'' before ``Congress''; and
(2) by inserting ``President and'' before ``Congress''.
(i) Conforming Amendment.--Section 550(d) of the National Energy
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second
sentence by striking ``the 20 percent reduction goal established under
section 543(a) of the National Energy Conservation Policy Act (42
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals
established under section 543(a).''.
SEC. 602. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.
Section 543 of the National Energy Conservation Policy Act (42 U.S.C.
8253) is further amended by adding at the end the following:
``(e) Metering of Energy Use.--
``(1) Deadline.--By October 1, 2010, in accordance with
guidelines established by the Secretary under paragraph (2),
all Federal buildings shall, for the purposes of efficient use
of energy and reduction in the cost of electricity used in such
buildings, be metered or submetered. Each agency shall use, to
the maximum extent practicable, advanced meters or advanced
metering devices that provide data at least daily and that
measure at least hourly consumption of electricity in the
Federal buildings of the agency. Such data shall be
incorporated into existing Federal energy tracking systems and
made available to Federal facility energy managers.
``(2) Guidelines.--
``(A) In general.--Not later than 180 days after the
date of enactment of this subsection, the Secretary, in
consultation with the Department of Defense, the
General Services Administration, representatives from
the metering industry, utility industry, energy
services industry, energy efficiency industry, national
laboratories, universities, and Federal facility energy
managers, shall establish guidelines for agencies to
carry out paragraph (1).
``(B) Requirements for guidelines.-- The guidelines
shall--
``(i) take into consideration--
``(I) the cost of metering and
submetering and the reduced cost of
operation and maintenance expected to
result from metering and submetering;
``(II) the extent to which metering
and submetering are expected to result
in increased potential for energy
management, increased potential for
energy savings and energy efficiency
improvement, and cost and energy
savings due to utility contract
aggregation; and
``(III) the measurement and
verification protocols of the
Department of Energy;
``(ii) include recommendations concerning the
amount of funds and the number of trained
personnel necessary to gather and use the
metering information to track and reduce energy
use;
``(iii) establish priorities for types and
locations of buildings to be metered and
submetered based on cost effectiveness and a
schedule of one or more dates, not later than 1
year after the date of issuance of the
guidelines, on which the requirements specified
in paragraph (1) shall take effect; and
``(iv) establish exclusions from the
requirements specified in paragraph (1) based
on the de minimis quantity of energy use of a
Federal building, industrial process, or
structure.
``(3) Plan.--No later than 6 months after the date guidelines
are established under paragraph (2), in a report submitted by
the agency under section 548(a), each agency shall submit to
the Secretary a plan describing how the agency will implement
the requirements of paragraph (1), including--
``(A) how the agency will designate personnel
primarily responsible for achieving the requirements;
and
``(B) demonstration by the agency, complete with
documentation, of any finding that advanced meters or
advanced metering devices, as defined in paragraph (1),
are not practicable.''.
SEC. 603. FEDERAL BUILDING PERFORMANCE STANDARDS.
Section 305(a) of the Energy Conservation and Production Act (42
U.S.C. 6834(a)) is amended--
(1) in paragraph (2)(A), by striking ``CABO Model Energy
Code, 1992'' and inserting ``the 2000 International Energy
Conservation Code''; and
(2) by adding at the end the following:
``(3) Revised federal building energy efficiency performance
standards.--
``(A) In general.--Not later than 1 year after the
date of enactment of this paragraph, the Secretary of
Energy shall establish, by rule, revised Federal
building energy efficiency performance standards that
require that, if cost-effective, for new Federal
buildings--
``(i) such buildings be designed so as to
achieve energy consumption levels at least 30
percent below those of the most recent version
of the International Energy Conservation Code,
as appropriate; and
``(ii) sustainable design principles are
applied to the siting, design, and construction
of all new and replacement buildings.
``(B) Additional revisions.--Not later than 1 year
after the date of approval of amendments to ASHRAE
Standard 90.1 or the 2000 International Energy
Conservation Code, the Secretary of Energy shall
determine, based on the cost-effectiveness of the
requirements under the amendments, whether the revised
standards established under this paragraph should be
updated to reflect the amendments.
``(C) Statement on compliance of new buildings.--In
the budget request of the Federal agency for each
fiscal year and each report submitted by the Federal
agency under section 548(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8258(a)), the head
of each Federal agency shall include--
``(i) a list of all new Federal buildings
owned, operated, or controlled by the Federal
agency; and
``(ii) a statement concerning whether the
Federal buildings meet or exceed the revised
standards established under this paragraph.''.
SEC. 604. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Permanent Extension.--Section 801(c) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.
(b) 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
life-cycle 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) 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) The term `energy savings' means--
``(A) 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 co-generation or
heat recovery, excluding any co-generation
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; or
``(B) 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.''.
(d) 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, and, where
appropriate, operation, 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.
Such contracts 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).''.
(e) 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,
more efficient treatment of wastewater or stormwater,
improvements in operation or maintenance efficiencies,
retrofit activities, or other related activities, not
at a Federal hydroelectric facility.''.
(f) Pilot Program for Non-Building Applications.--
(1) The Secretary of Defense, and the heads of other
interested Federal agencies, are authorized to enter into up to
10 energy savings performance contracts under Title VIII of the
National Energy Conservation Policy Act (42 U.S.C. 8287 et
seq.) for the purpose of achieving energy or water savings,
secondary savings, and benefits incidental to those purposes,
in non-building applications, provided that the aggregate
payments to be made by the Federal government under such
contracts shall not exceed $100,000,000.
(2) The Secretary of Energy, in consultation with the
Secretary of Defense and the heads of other interested Federal
agencies, shall select projects that demonstrate the
applicability and benefits of energy savings performance
contracting to a range of non-building applications.
(3) For the purposes of this subsection:
(A) The term ``non-building application'' means--
(i) any class of vehicles, devices, or
equipment that is transportable under its own
power by land, sea, or air that consumes energy
from any fuel source for the purpose of such
transportability, or to maintain a controlled
environment within such vehicle, device, or
equipment; or
(ii) any Federally owned equipment used to
generate electricity or transport water.
(B) The term ``secondary savings'', means additional
energy or cost savings that are a direct consequence of
the energy or water savings that result from the
financing and implementation of the energy savings
performance contract, including, but not limited to,
energy or cost savings that result from a reduction in
the need for fuel delivery and logistical support, or
the increased efficiency in the production of
electricity.
(4) Not later than 3 years after the date of enactment of
this section, the Secretary of Energy shall report to the
Congress on the progress and results of the projects funded
pursuant to this section. Such report shall include a
description of projects undertaken; the energy, water and cost
savings, secondary savings and other benefits that resulted
from such projects; and recommendations on whether the pilot
program should be extended, expanded, or authorized permanently
as a part of the program authorized under Title VIII of the
National Energy Conservation Policy Act (42 U.S.C. 8287 et
seq.).
(5) Section 546(c)(3) of the National Energy Conservation
Policy Act (42 U.S.C. 8256) is amended by striking the word
``facilities'', and inserting the words ``facilities, equipment
and vehicles'', in lieu thereof.
(g) Review.--Within 180 days after the date of the enactment of this
section, 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, including the
identification of additional qualified contractors, 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. 605. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Part 3 of title V of the National Energy Conservation Policy Act
is amended by adding at the end the following:
``SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
``(a) Definitions.--In this section:
``(1) The term `Energy Star product' means a product that is
rated for energy efficiency under an Energy Star program.
``(2) The term `Energy Star program' means the program
established by section 324A of the Energy Policy and
Conservation Act.
``(3) The term `executive agency' has the meaning given the
term in section 4 of the Office of Federal Procurement Policy
Act (41 U.S.C. 403).
``(4) The term `FEMP designated product' means a product that
is designated under the Federal Energy Management Program of
the Department of Energy as being among the highest 25 percent
of equivalent products for energy efficiency.
``(b) Procurement of Energy Efficient Products.--
``(1) Requirement.--To meet the requirements of an executive
agency for an energy consuming product, the head of the
executive agency shall, except as provided in paragraph (2),
procure an Energy Star product or a FEMP designated product.
``(2) Exceptions.--The head of an executive agency is not
required to procure an Energy Star product or FEMP designated
product under paragraph (1) if the head of the executive agency
finds in writing that--
``(A) an Energy Star product or FEMP designated
product is not cost-effective over the life of the
product taking energy cost savings into account; or
``(B) no Energy Star product or FEMP designated
product is reasonably available that meets the
functional requirements of the executive agency.
``(3) Procurement planning.--The head of an executive agency
shall incorporate into the specifications for all procurements
involving energy consuming products and systems, including
guide specifications, project specifications, and construction,
renovation, and services contracts that include provision of
energy consuming products and systems, and into the factors for
the evaluation of offers received for the procurement, criteria
for energy efficiency that are consistent with the criteria
used for rating Energy Star products and for rating FEMP
designated products.
``(c) Listing of Energy Efficient Products in Federal Catalogs.--
Energy Star products and FEMP designated products shall be clearly
identified and prominently displayed in any inventory or listing of
products by the General Services Administration or the Defense
Logistics Agency. The General Services Administration or the Defense
Logistics Agency shall supply only Energy Star products or FEMP
designated products for all product categories covered by the Energy
Star program or the Federal Energy Management Program, except in cases
where the agency ordering a product specifies in writing that no Energy
Star product or FEMP designated product is available to meet the
buyer's functional requirements, or that no Energy Star product or FEMP
designated product is cost-effective for the intended application over
the life of the product, taking energy cost savings into account.
``(d) Designation of Electric Motors.--In the case of electric motors
of 1 to 500 horsepower, agencies shall select only premium efficient
motors that meet a standard designated by the Secretary. The Secretary
shall designate such a standard within 120 days after the date of the
enactment of this section, after considering the recommendations of
associated electric motor manufacturers and energy efficiency groups.
``(e) Regulations.--Not later than 180 days after the date of the
enactment of this section, the Secretary shall issue guidelines to
carry out this section.''.
(b) Conforming Amendment.--The table of contents in section 1(b) of
the National Energy Conservation Policy Act (42 U.S.C. 8201 note) is
amended by inserting after the item relating to the end of the items
relating to part 3 of title V the following:
``Sec. 552. Federal procurement of energy efficient products.''.
SEC. 606. CONGRESSIONAL BUILDING EFFICIENCY.
(a) In General.--Part 3 of title V of the National Energy
Conservation Policy Act is further amended by adding at the end:
``SEC. 553. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL
BUILDING.
``(a) In General.--The Architect of the Capitol--
``(1) shall develop, update, and implement a cost-effective
energy conservation and management plan (referred to in this
section as the `plan') for all facilities administered by the
Congress (referred to in this section as `congressional
buildings') to meet the energy performance requirements for
Federal buildings established under section 543(a)(1); and
``(2) shall submit the plan to Congress, not later than 180
days after the date of enactment of this section.
``(b) Plan Requirements.--The plan shall include--
``(1) a description of the life-cycle cost analysis used to
determine the cost-effectiveness of proposed energy efficiency
projects;
``(2) a schedule of energy surveys to ensure complete surveys
of all congressional buildings every 5 years to determine the
cost and payback period of energy and water conservation
measures;
``(3) a strategy for installation of life-cycle cost-
effective energy and water conservation measures;
``(4) the results of a study of the costs and benefits of
installation of submetering in congressional buildings; and
``(5) information packages and `how-to' guides for each
Member and employing authority of Congress that detail simple,
cost-effective methods to save energy and taxpayer dollars in
the workplace.
``(c) Annual Report.--The Architect shall submit to Congress annually
a report on congressional energy management and conservation programs
required under this section that describes in detail--
``(1) energy expenditures and savings estimates for each
facility;
``(2) energy management and conservation projects; and
``(3) future priorities to ensure compliance with this
section.''.
(b) Table of Contents Amendment.--The table of contents in section
1(b) of the National Energy Conservation Policy Act is amended by
adding at the end of the items relating to part 3 of title V the
following new item:
``Sec. 553. Energy and water savings measures in congressional
buildings.''.
(c) Repeal.--Section 310 of the Legislative Branch Appropriations
Act, 1999 (40 U.S.C. 166i), is repealed.
(d) 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.
(e) Authorization.--There are authorized to be appropriated to the
Architect of the Capitol to carry out subsection (d), not more than
$2,000,000 for fiscal year 2004.
SEC. 607. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY
FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR
CONCRETE.
(a) Amendment.--Subtitle F of the Solid Waste Disposal Act (42 U.S.C.
6961 et seq.) is amended by adding at the end the following new
section:
``SEC. 6005. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY
FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR
CONCRETE.
``(a) Definitions.--In this section:
``(1) Agency head.--The term `agency head' means--
``(A) the Secretary of Transportation; and
``(B) the head of each other Federal agency that on a
regular basis procures, or provides Federal funds to
pay or assist in paying the cost of procuring, material
for cement or concrete projects.
``(2) Cement or concrete project.--The term `cement or
concrete project' means a project for the construction or
maintenance of a highway or other transportation facility or a
Federal, State, or local government building or other public
facility that--
``(A) involves the procurement of cement or concrete;
and
``(B) is carried out in whole or in part using
Federal funds.
``(3) Recovered mineral component.--The term `recovered
mineral component' means--
``(A) ground granulated blast furnace slag;
``(B) coal combustion fly ash; and
``(C) any other waste material or byproduct recovered
or diverted from solid waste that the Administrator, in
consultation with an agency head, determines should be
treated as recovered mineral component under this
section for use in cement or concrete projects paid
for, in whole or in part, by the agency head.
``(b) Implementation of Requirements.--
``(1) In general.--Not later than 1 year after the date of
enactment of this section, the Administrator and each agency
head shall take such actions as are necessary to implement
fully all procurement requirements and incentives in effect as
of the date of enactment of this section (including guidelines
under section 6002) that provide for the use of cement and
concrete incorporating recovered mineral component in cement or
concrete projects.
``(2) Priority.--In carrying out paragraph (1) an agency head
shall give priority to achieving greater use of recovered
mineral component in cement or concrete projects for which
recovered mineral components historically have not been used or
have been used only minimally.
``(3) Conformance.--The Administrator and each agency head
shall carry out this subsection in accordance with section
6002.
``(c) Full Implementation Study.--
``(1) In general.--The Administrator, in cooperation with the
Secretary of Transportation and the Secretary of Energy, shall
conduct a study to determine the extent to which current
procurement requirements, when fully implemented in accordance
with subsection (b), may realize energy savings and
environmental benefits attainable with substitution of
recovered mineral component in cement used in cement or
concrete projects.
``(2) Matters to be addressed.--The study shall--
``(A) quantify the extent to which recovered mineral
components are being substituted for Portland cement,
particularly as a result of current procurement
requirements, and the energy savings and environmental
benefits associated with that substitution;
``(B) identify all barriers in procurement
requirements to fuller realization of energy savings
and environmental benefits, including barriers
resulting from exceptions from current law; and
``(C)(i) identify potential mechanisms to achieve
greater substitution of recovered mineral component in
types of cement or concrete projects for which
recovered mineral components historically have not been
used or have been used only minimally;
``(ii) evaluate the feasibility of establishing
guidelines or standards for optimized substitution
rates of recovered mineral component in those cement or
concrete projects; and
``(iii) identify any potential environmental or
economic effects that may result from greater
substitution of recovered mineral component in those
cement or concrete projects.
``(3) Report.--Not later than 30 months after the date of
enactment of this section, the Administrator shall submit to
the Committee on Appropriations and Committee on Environment
and Public Works of the Senate and the Committee on
Appropriations, Committee on Energy and Commerce, and Committee
on Transportation and Infrastructure of the House of
Representatives a report on the study.
``(d) Additional Procurement Requirements.--Unless the study
conducted under subsection (c) identifies any effects or other problems
described in subsection (c)(2)(C)(iii) that warrant further review or
delay, the Administrator and each agency head shall, within 1 year of
the release of the report in accordance with subsection (c)(3), take
additional actions authorized under this section to establish
procurement requirements and incentives that provide for the use of
cement and concrete with increased substitution of recovered mineral
component in the construction and maintenance of cement or concrete
projects, so as to--
``(1) realize more fully the energy savings and environmental
benefits associated with increased substitution; and
``(2) eliminate barriers identified under subsection (c).
``(e) Effect of Section.--Nothing in this section affects the
requirements of section 6002 (including the guidelines and
specifications for implementing those requirements).''.
(b) Table of Contents Amendment.--The table of contents of the Solid
Waste Disposal Act is amended by adding after the item relating to
section 6004 the following new item:
``Sec. 6005. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or concrete.''.
SEC. 608. UTILITY ENERGY SERVICE CONTRACTS.
Section 546(c)(1) of the National Energy Conservation Policy Act (42
U.S.C. 8256(c)) is amended to read as follows:
``(1) Agencies are authorized and encouraged to participate
in programs, including utility energy services contracts,
conducted by gas, water and electric utilities and generally
available to customers of such utilities, for the purposes of
increased energy efficiency, water conservation or the
management of electricity demand.''.
SEC. 609. STUDY OF ENERGY EFFICIENCY STANDARDS.
The Secretary of Energy shall contract with the National Academy of
Sciences for a study, to be completed within one year of enactment of
this section, to examine whether the goals of energy efficiency
standards are best served by measurement of energy consumed, and
efficiency improvements, at the actual site of energy consumption, or
through the full fuel cycle, beginning at the source of energy
production. The Secretary shall submit the report of the Academy to the
Congress.
Subtitle B--State and Local Programs
SEC. 611. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.
(a) Grants.--The Secretary of Energy is authorized to make grants to
units of local government, private, non-profit community development
organizations, and Indian tribe economic development entities to
improve energy efficiency, identify and develop alternative, renewable
and distributed energy supplies, and increase energy conservation in
low income rural and urban communities.
(b) Purpose of Grants.--The Secretary may make grants on a
competitive basis for--
(1) investments that develop alternative, renewable and
distributed energy supplies;
(2) energy efficiency projects and energy conservation
programs;
(3) studies and other activities that improve energy
efficiency in low income rural and urban communities;
(4) planning and development assistance for increasing the
energy efficiency of buildings and facilities; and
(5) technical and financial assistance to local government
and private entities on developing new renewable and
distributed sources of power or combined heat and power
generation.
(c) Definition.--For purposes of this section, the term ``Indian
tribe'' means any Indian tribe, band, nation, or other organized group
or community, including any Alaskan Native village or regional or
village corporation as defined in or established pursuant to the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is
recognized as eligible for the special programs and services provided
by the United States to Indians because of their status as Indians.
(d) Authorization of Appropriations.--For the purposes of this
section there are authorized to be appropriated to the Secretary of
Energy $20,000,000 for fiscal year 2004 and each fiscal year thereafter
through fiscal year 2006.
SEC. 612. ENERGY EFFICIENT PUBLIC BUILDINGS.
(a) Grants.--The Secretary of Energy may make grants to the State
agency responsible for developing State energy conservation plans under
section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322),
or, if no such agency exists, a State agency designated by the Governor
of the State, to assist units of local government in the State in
improving the energy efficiency of public buildings and facilities--
(1) through construction of new energy efficient public
buildings that use at least 30 percent less energy than a
comparable 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 efficiency levels; or
(2) through renovation of existing public buildings to
achieve reductions in energy use of at least 30 percent as
compared to the baseline energy use in such buildings prior to
renovation, assuming a 3-year, weather-normalized average for
calculating such baseline.
(b) Administration.--State energy offices receiving grants under this
section shall--
(1) maintain such records and evidence of compliance as the
Secretary may require; and
(2) develop and distribute information and materials and
conduct programs to provide technical services and assistance
to encourage planning, financing, and design of energy
efficient public buildings by units of local government.
(c) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary of
Energy such sums as may be necessary for each of fiscal years 2003
through 2012. Not more than 30 percent of appropriated funds shall be
used for administration.
SEC. 613. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.
(a) Definitions.--In this section:
(1) The term ``eligible State'' means a State that meets the
requirements of subsection (b).
(2) The term ``Energy Star program'' means the program
established by section 324A of the Energy Policy and
Conservation Act.
(3) The term ``residential Energy Star product'' means a
product for a residence that is rated for energy efficiency
under the Energy Star program.
(4) The term ``State energy office'' means the State agency
responsible for developing State energy conservation plans
under section 362 of the Energy Policy and Conservation Act (42
U.S.C. 6322).
(5) The term ``State program'' means a State energy efficient
appliance rebate program described in subsection (b)(1).
(b) Eligible States.--A State shall be eligible to receive an
allocation under subsection (c) if the State--
(1) establishes (or has established) a State energy efficient
appliance rebate program to provide rebates to residential
consumers for the purchase of residential Energy Star products
to replace used appliances of the same type;
(2) submits an application for the allocation at such time,
in such form, and containing such information as the Secretary
may require; and
(3) provides assurances satisfactory to the Secretary that
the State will use the allocation to supplement, but not
supplant, funds made available to carry out the State program.
(c) Amount of Allocations.--
(1) Subject to paragraph (2), for each fiscal year, the
Secretary shall allocate to the State energy office of each
eligible State to carry out subsection (d) an amount equal to
the product obtained by multiplying the amount made available
under subsection (f) for the fiscal year by the ratio that the
population of the State in the most recent calendar year for
which data are available bears to the total population of all
eligible States in that calendar year.
(2) For each fiscal year, the amounts allocated under this
subsection shall be adjusted proportionately so that no
eligible State is allocated a sum that is less than an amount
determined by the Secretary.
(d) Use of Allocated Funds.--The allocation to a State energy office
under subsection (c) may be used to pay up to 50 percent of the cost of
establishing and carrying out a State program.
(e) Issuance of Rebates.--Rebates may be provided to residential
consumers that meet the requirements of the State program. The amount
of a rebate shall be determined by the State energy office, taking into
consideration--
(1) the amount of the allocation to the State energy office
under subsection (c);
(2) the amount of any Federal or State tax incentive
available for the purchase of the residential Energy Star
product; and
(3) the difference between the cost of the residential Energy
Star product and the cost of an appliance that is not a
residential Energy Star product, but is of the same type as,
and is the nearest capacity, performance, and other relevant
characteristics (as determined by the State energy office) to
the residential Energy Star product.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $50,000,000 for each of the
fiscal years 2004 through 2008.
Subtitle C--Consumer Products
SEC. 621. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.
(a) Definitions.--Section 321 of the Energy Policy and Conservation
Act (42 U.S.C. 6291) is amended--
(1) in subparagraph (30)(S), by striking the period and
adding at the end the following:
``but does not include any lamps specifically designed
to be used for special purpose applications, and also
does not include any lamp not described in subparagraph
(D) that is excluded by the Secretary, by rule.''; and
(2) by adding at the end the following:
``(32) The term `battery charger' means a device that charges
batteries for consumer products.
``(33) The term `commercial refrigerator, freezer and
refrigerator-freezer' means a refrigerator, freezer or
refrigerator-freezer that--
``(A) is not a consumer product regulated under this
Act; and
``(B) incorporates most components involved in the
vapor-compression cycle and the refrigerated
compartment in a single package.
``(34) The term `external power supply' means an external
power supply circuit that is used to convert household electric
current into either DC current or lower-voltage AC current to
operate a consumer product.
``(35) The term `illuminated exit sign' means a sign that--
``(A) is designed to be permanently fixed in place to
identify an exit; and
``(B) consists of an electrically powered integral
light source that illuminates the legend `EXIT' and any
directional indicators and provides contrast between
the legend, any directional indicators, and the
background.
``(36)(A) Except as provided in subparagraph (B), the term
`low-voltage dry-type transformer' means a transformer that--
``(i) has an input voltage of 600 volts or less;
``(ii) is air-cooled;
``(iii) does not use oil as a coolant; and
``(iv) is rated for operation at a frequency of 60
Hertz.
``(B) The term `low-voltage dry-type transformer' does not
include--
``(i) transformers with multiple voltage taps, with
the highest voltage tap equaling at least 20 percent
more than the lowest voltage tap;
``(ii) transformers, such as those commonly known as
drive transformers, rectifier transformers, auto-
transformers, Uninterruptible Power System
transformers, impedance transformers, harmonic
transformers, regulating transformers, sealed and
nonventilating transformers, machine tool transformers,
welding transformers, grounding transformers, or
testing transformers, that are designed to be used in a
special purpose application and are unlikely to be used
in general purpose applications; or
``(iii) any transformer not listed in clause (ii)
that is excluded by the Secretary by rule because the
transformer is designed for a special application and
the application of standards to the transformer would
not result in significant energy savings.
``(37)(A) Except as provided in subsection (B), the term
`distribution transformer' means a transformer that --
``(i) has an input voltage of 34.5 kilovolts or less;
``(ii) has an output voltage of 600 volts or less;
and
``(iii) is rated for operation at a frequency of 60
Hertz.
``(B) The term `distribution transformer' does not include --
``(i) transformers with multiple voltage taps, with
the highest voltage tap equaling at least 15 percent
more than the lowest voltage tap;
``(ii) transformers, such as those commonly known as
drive transformers, rectifier transformers,
autotransformers, Uninterruptible Power System
transformers, impedance transformers, harmonic
transformers, regulating transformers, sealed and
nonventilating transformers, machine tool transformers,
welding transformers, grounding transformers, or
testing transformers, that are designed to be used in a
special purpose application, and are unlikely to be
used in general purpose applications; or
``(iii) any transformer not listed in clause (ii)
that is excluded by the Secretary by rule because the
transformer is designed for a special application, is
unlikely to be used in general purpose applications,
and the application of standards to the transformer
would not result in significant energy savings.
``(38) The term `standby mode' means the lowest amount of
electric power used by a household appliance when not
performing its active functions, as defined on an individual
product basis by the Secretary.
``(39) The term `torchiere' means a portable electric lamp
with a reflector bowl that directs light upward so as to give
indirect illumination.
``(40) The term `transformer' means a device consisting of
two or more coils of insulated wire that transfers alternating
current by electromagnetic induction from one coil to another
to change the original voltage or current value.
``(41) The term `unit heater' means a self-contained fan-type
heater designed to be installed within the heated space, except
that such term does not include a warm air furnace.
``(42) The term `traffic signal module' means a standard 8-
inch (200mm) or 12-inch (300mm) traffic signal indication,
consisting of a light source, a lens, and all other parts
necessary for operation, that communicates movement messages to
drivers through red, amber, and green colors.''.
(b) Test Procedures.--Section 323 of the Energy Policy and
Conservation Act (42 U.S.C. 6293) is amended--
(1) in subsection (b), by adding at the end the following:
``(9) Test procedures for illuminated exit signs shall be
based on the test method used under Version 2.0 of the Energy
Star program of the Environmental Protection Agency for
illuminated exit signs.
``(10) Test procedures for low voltage dry-type distribution
transformers shall be based on the `Standard Test Method for
Measuring the Energy Consumption of Distribution Transformers'
prescribed by the National Electrical Manufacturers Association
(NEMA TP 2-1998). The Secretary may review and revise this test
procedure.
``(11) Test procedures for traffic signal modules shall be
based on the test method used under the Energy Star program of
the Environmental Protection Agency for traffic signal modules,
as in effect on the date of enactment of this paragraph.
``(12) Test procedures for medium base compact fluorescent
lamps shall be based on the test methods used under the August
9, 2001 version of the Energy Star program of the Environmental
Protection Agency and Department of Energy for compact
fluorescent lamps. Covered products shall meet all test
requirements for regulated parameters in section 325(bb).
However, covered products may be marketed prior to completion
of lamp life and lumen maintenance at 40% of rated life testing
provided manufacturers document engineering predictions and
analysis that support expected attainment of lumen maintenance
at 40% rated life and lamp life time.''; and (2) by adding at
the end the following:
``(f) Additional Consumer and Commercial Products.--The Secretary
shall within 24 months after the date of enactment of this subsection
prescribe testing requirements for suspended ceiling fans, refrigerated
bottled or canned beverage vending machines, and commercial
refrigerators, freezers and refrigerator-freezers. Such testing
requirements shall be based on existing test procedures used in
industry to the extent practical and reasonable. In the case of
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.''.
(c) New Standards.--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.--
``(1) Initial rulemaking.--
``(A) The Secretary shall, within 18 months after the
date of enactment of this subsection, prescribe by
notice and comment, definitions of standby mode and
test procedures for the standby mode power use of
battery chargers and external power supplies. In
establishing these test procedures, the Secretary shall
consider, among other factors, existing test procedures
used for measuring energy consumption in standby mode
and assess the current and projected future market for
battery chargers and external power supplies. This
assessment shall include estimates of the significance
of potential energy savings from technical improvements
to these products and suggested product classes for
standards. Prior to the end of this time period, the
Secretary shall hold a scoping workshop to discuss and
receive comments on plans for developing energy
conservation standards for standby mode energy use for
these products.
``(B) The Secretary shall, within 3 years after the
date of enactment of this subsection, issue a final
rule that determines whether energy conservation
standards shall be promulgated for battery chargers and
external power supplies or classes thereof. For each
product class, any such standards shall be set at the
lowest level of standby energy use that--
``(i) meets the criteria of subsections (o),
(p), (q), (r), (s) and (t); and
``(ii) will result in significant overall
annual energy savings, considering both standby
mode and other operating modes.
``(2) Designation of additional covered products.--
``(A) Not later than 180 days after the date of
enactment of this subsection, the Secretary shall
publish for public comment and public hearing a notice
to determine whether any non-covered products should be
designated as covered products for the purpose of
instituting a rulemaking under this section to
determine whether an energy conservation standard
restricting standby mode energy consumption, should be
promulgated; except that any restriction on standby
mode energy consumption shall be limited to major
sources of such consumption.
``(B) In making the determinations pursuant to
subparagraph (A) of whether to designate new covered
products and institute rulemakings, the Secretary
shall, among other relevant factors and in addition to
the criteria in section 322(b), consider--
``(i) standby mode power consumption compared
to overall product energy consumption; and
``(ii) the priority and energy savings
potential of standards which may be promulgated
under this subsection compared to other
required rulemakings under this section and the
available resources of the Department to
conduct such rulemakings.
``(C) Not later than 1 year after the date of
enactment of this subsection, the Secretary shall issue
a determination of any new covered products for which
he intends to institute rulemakings on standby mode
pursuant to this section and he shall state the dates
by which he intends to initiate those rulemakings.
``(3) Review of standby energy use in covered products.--In
determining pursuant to section 323 whether test procedures and
energy conservation standards pursuant to this section should
be revised, the Secretary shall consider for covered products
which are major sources of standby mode energy consumption
whether to incorporate standby mode into such test procedures
and energy conservation standards, taking into account, among
other relevant factors, the criteria for non-covered products
in subparagraph (B) of paragraph (2) of this subsection.
``(4) Rulemaking.--
``(A) Any rulemaking instituted under this subsection
or for covered products under this section which
restricts standby mode power consumption shall be
subject to the criteria and procedures for issuing
energy conservation standards set forth in this section
and the criteria set forth in subparagraph (B) of
paragraph (2) of this subsection.
``(B) No standard can be proposed for new covered
products or covered products in a standby mode unless
the Secretary has promulgated applicable test
procedures for each product pursuant to section 323.
``(C) The provisions of section 327 shall apply to
new covered products which are subject to the
rulemakings for standby mode after a final rule has
been issued.
``(5) Effective date.--Any standard promulgated under this
subsection shall be applicable to products manufactured or
imported 3 years after the date of promulgation.
``(6) Voluntary programs.--The Secretary and the
Administrator shall collaborate and develop programs, including
programs pursuant to section 324A (relating to Energy Star
Programs) and other voluntary industry agreements or codes of
conduct, which are designed to reduce standby mode energy use.
``(v) Suspended Ceiling Fans, Vending Machines, and Commercial
Refrigerators, Freezers and Refrigerator-Freezers.--The Secretary shall
within 36 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 suspended ceiling fans,
refrigerated bottled or canned beverage vending machines, and
commercial refrigerators, freezers and refrigerator-freezers. In
establishing standards under this subsection, the Secretary shall use
the criteria and procedures contained in subsections (l) and (m). Any
standard prescribed under this subsection shall apply to products
manufactured 3 years after the date of publication of a final rule
establishing such standard.
``(w) Illuminated Exit Signs.--Illuminated exit signs manufactured on
or after January 1, 2005 shall meet the Version 2.0 Energy Star Program
performance requirements for illuminated exit signs prescribed by the
Environmental Protection Agency.
``(x) Torchieres.--Torchieres manufactured on or after January 1,
2005--
``(1) shall consume not more than 190 watts of power; and
``(2) shall not be capable of operating with lamps that total
more than 190 watts.
``(y) Distribution Transformers.--The efficiency of low voltage dry-
type transformers manufactured on or after January 1, 2005 shall be the
Class I Efficiency Levels for distribution transformers specified in
Table 4-2 of the `Guide for Determining Energy Efficiency for
Distribution Transformers' published by the National Electrical
Manufacturers Association (NEMA TP-1-2002).
``(z) Traffic Signal Modules.--Traffic signal modules manufactured on
or after January 1, 2006 shall meet the performance requirements used
under the Energy Star program of the Environmental Protection Agency
for traffic signals, as in effect on the date of enactment of this
paragraph, and shall be installed with compatible, electrically-
connected signal control interface devices and conflict monitoring
systems.
``(aa) Unit Heaters.--Unit heaters manufactured on or after the date
that is three years after the date of enactment of the Energy Policy
Act of 2003 shall be equipped with an intermittent ignition device and
shall have either power venting or an automatic flue damper.
``(bb) Medium Base Compact Fluorescent Lamps.--Bare lamp and covered
lamp (no reflector) medium base compact fluorescent lamps manufactured
on or after January 1, 2005 shall meet the following requirements
prescribed by the August 9, 2001 version of the Energy Star Program
Requirements for CFLs, Energy Star Eligibility Criteria, Energy-
Efficiency Specification issued by the Environmental Protection Agency
and Department of Energy: minimum initial efficacy; lumen maintenance
at 1000 hours; lumen maintenance at 40% of rated life; rapid cycle
stress test; and lamp life. The Secretary may, by rule, establish
requirements for color quality (CRI); power factor; operating
frequency; and maximum allowable start time based on the requirements
prescribed by the August 9, 2001 version of the Energy Star Program
Requirements for CFLs. The Secretary may, by rule, revise these
requirements or establish other requirements considering energy
savings, cost effectiveness, and consumer satisfaction.
``(cc) Effective Date.--The provisions of section 327 shall apply--
``(1) to products for which standards are to be set pursuant
to subsection (v) of this section on the date on which a final
rule is issued by the Department of Energy, except that any
state or local standards prescribed or enacted for any such
product prior to the date on which such final rule is issued
shall not be preempted until the standard set pursuant to
subsection (v) for that product takes effect; and
``(2) to products for which standards are set in subsections
(w) through (bb) of this section on the date of enactment of
the Energy Policy Act of 2003, except that any state or local
standards prescribed or enacted prior to the date of enactment
of the Energy Policy Act of 2003 shall not be preempted until
the standards set in subsections (w) through (bb) take
effect.''.
SEC. 622. ENERGY LABELING.
(a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Paragraph (2) of section 324(a) of the Energy Policy and Conservation
Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the
following:
``(F) Not later than 3 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 labeling rules that would improve the effectiveness
of consumer product labels. Such rulemaking shall be
completed within 2 years after the date of enactment of
this subparagraph.''.
(b) Rulemaking on Labeling for Additional Products.--Section 324(a)
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is
further amended by adding at the end the following:
``(5) The Secretary or the Commission, as appropriate, may
for covered products referred to in subsections (u) through
(aa) of section 325, prescribe, by rule, pursuant to this
section, labeling requirements for such products after a test
procedure has been set pursuant to section 323. In the case of
products to which TP-1 standards under section 325(y) apply,
labeling requirements shall be based on the `Standard for the
Labeling of Distribution Transformer Efficiency' prescribed by
the National Electrical Manufacturers Association (NEMA TP-3)
as in effect upon the date of enactment of this Act.''.
SEC. 623. ENERGY STAR PROGRAM.
(a) Amendment.--The Energy Policy and Conservation Act (42 U.S.C.
6201 et. seq.) is amended by inserting the following after section 324:
``SEC. 324A. ENERGY STAR PROGRAM.
``There is established at the Department of Energy and the
Environmental Protection Agency a voluntary program to identify and
promote energy-efficient products and buildings in order to reduce
energy consumption, improve energy security, and reduce pollution
through voluntary labeling of or other forms of communication about
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, including special outreach to small businesses;
``(3) preserve the integrity of the Energy Star label;
``(4) solicit the comments of interested parties in
establishing a new Energy Star product category,
specifications, or criteria, or in revising a product category,
and upon adoption of a new or revised product category,
specifications, or criteria, publish a notice of any changes in
product categories, specifications or criteria along with an
explanation of such changes, and, where appropriate, responses
to comments submitted by interested parties; and
``(5) unless waived or reduced by mutual agreement between
the Administrator, the Secretary, and the affected parties,
provide not less than 12 months lead time prior to
implementation of changes in product categories,
specifications, or criteria as may be adopted pursuant to this
section.''.
(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. 624. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.
Section 337 of the Energy Policy and Conservation Act (42 U.S.C.
6307) is amended by adding at the end the following:
``(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, carry out a program to educate homeowners
and small business owners concerning the energy savings resulting from
properly conducted maintenance of air conditioning, heating, and
ventilating systems. The Secretary shall carry out the program in a
cost-shared manner in cooperation with the Administrator of the
Environmental Protection Agency and such other entities as the
Secretary considers appropriate, including industry trade associations,
industry members, and energy efficiency organizations.
``(d) Small Business Education and Assistance.--The Administrator of
the Small Business Administration, in consultation with the Secretary
of Energy and the Administrator of the Environmental Protection Agency,
shall develop and coordinate a Government-wide program, building on the
existing Energy Star for Small Business Program, to assist small
business to become more energy efficient, understand the cost savings
obtainable through efficiencies, and identify financing options for
energy efficiency upgrades. The Secretary and the Administrator shall
make the program information available directly to small businesses and
through other Federal agencies, including the Federal Emergency
Management Program, and the Department of Agriculture.''.
Subtitle D--Public Housing
SEC. 631. CAPACITY BUILDING FOR ENERGY-EFFICIENT, AFFORDABLE HOUSING.
Section 4(b) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816
note) is amended--
(1) in paragraph (1), by inserting before the semicolon at
the end the following: ``, including capabilities regarding the
provision of energy efficient, affordable housing and
residential energy conservation measures''; and
(2) in paragraph (2), by inserting before the semicolon the
following: ``, including such activities relating to the
provision of energy efficient, affordable housing and
residential energy conservation measures that benefit low-
income families''.
SEC. 632. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY CONSERVATION
AND EFFICIENCY ACTIVITIES.
Section 105(a)(8) of the Housing and Community Development Act of
1974 (42 U.S.C. 5305(a)(8)) is amended--
(1) by inserting ``or efficiency'' after ``energy
conservation'';
(2) by striking ``, and except that'' and inserting ``;
except that''; and
(3) by inserting before the semicolon at the end the
following: ``; and except that each percentage limitation under
this paragraph on the amount of assistance provided under this
title that may be used for the provision of public services is
hereby increased by 10 percent, but such percentage increase
may be used only for the provision of public services
concerning energy conservation or efficiency''.
SEC. 633. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY EFFICIENT
HOUSING.
(a) Single Family Housing Mortgage Insurance.--Section 203(b)(2) of
the National Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the
first undesignated and indented paragraph beginning after subparagraph
(B)(iii) (relating to solar energy systems)--
(1) by inserting ``or paragraph (10)'' before the first
comma; and
(2) by striking ``20 percent'' and inserting ``30 percent''.
(b) Multifamily Housing Mortgage Insurance.--Section 207(c) of the
National Housing Act (12 U.S.C. 1713(c)) is amended, in the second
undesignated paragraph beginning after paragraph (3) (relating to solar
energy systems and residential energy conservation measures), by
striking ``20 percent'' and inserting ``30 percent''.
(c) Cooperative Housing Mortgage Insurance.--Section 213(p) of the
National Housing Act (12 U.S.C. 1715e(p)) is amended by striking ``20
per centum'' and inserting ``30 percent''.
(d) Rehabilitation and Neighborhood Conservation Housing Mortgage
Insurance.--Section 220(d)(3)(B)(iii) of the National Housing Act (12
U.S.C. 1715k(d)(3)(B)(iii)) is amended by striking ``20 per centum''
and inserting ``30 percent''.
(e) Low-Income Multifamily Housing Mortgage Insurance.--Section
221(k) of the National Housing Act (12 U.S.C. 1715l(k)) is amended by
striking ``20 per centum'' and inserting ``30 percent''.
(f) Elderly Housing Mortgage Insurance--The proviso at the end of
section 231(c)(2) of the National Housing Act (12 U.S.C. 1715v(c)(2))
is amended by striking ``20 per centum'' and inserting ``30 percent''.
(g) Condominium Housing Mortgage Insurance.--Section 234(j) of the
National Housing Act (12 U.S.C. 1715y(j)) is amended by striking ``20
per centum'' and inserting ``30 percent''.
SEC. 634. PUBLIC HOUSING CAPITAL FUND.
Section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g)
is amended--
(1) in subsection (d)(1)--
(A) in subparagraph (I), by striking ``and'' at the
end;
(B) in subparagraph (J), by striking the period at
the end and inserting a semicolon; and
(C) by adding at the end the following new
subparagraphs:
``(K) improvement of energy and water-use efficiency
by installing fixtures and fittings that conform to the
American Society of Mechanical Engineers/American
National Standards Institute standards A112.19.2-1998
and A112.18.1-2000, or any revision thereto, applicable
at the time of installation, and by increasing energy
efficiency and water conservation by such other means
as the Secretary determines are appropriate; and
``(L) integrated utility management and capital
planning to maximize energy conservation and efficiency
measures.''; and
(2) in subsection (e)(2)(C)--
(A) by striking ``The'' and inserting the following:
``(i) In general.--The''; and
(B) by adding at the end the following:
``(ii) Third party contracts.--Contracts
described in clause (i) may include contracts
for equipment conversions to less costly
utility sources, projects with resident-paid
utilities, and adjustments to frozen base year
consumption, including systems repaired to meet
applicable building and safety codes and
adjustments for occupancy rates increased by
rehabilitation.
``(iii) Term of contract.--The total term of
a contract described in clause (i) shall not
exceed 20 years to allow longer payback periods
for retrofits, including windows, heating
system replacements, wall insulation, site-
based generations, advanced energy savings
technologies, including renewable energy
generation, and other such retrofits.''.
SEC. 635. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED
HOUSING.
Section 251(b)(1) of the National Energy Conservation Policy Act (42
U.S.C. 8231(1)) is amended--
(1) by striking ``financed with loans'' and inserting
``assisted'';
(2) by inserting after ``1959,'' the following: ``which are
eligible multifamily housing projects (as such term is defined
in section 512 of the Multi-family Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note)) and are
subject to mortgage restructuring and rental assistance
sufficiency plans under such Act,''; and
(3) by inserting after the period at the end of the first
sentence the following new sentence: ``Such improvements may
also include the installation of energy and water conserving
fixtures and fittings that conform to the American Society of
Mechanical Engineers/American National Standards Institute
standards A112.19.2-1998 and A112.18.1-2000, or any revision
thereto, applicable at the time of installation.''.
SEC. 636. NORTH AMERICAN DEVELOPMENT BANK.
Part 2 of subtitle D of title V of the North American Free Trade
Agreement Implementation Act (22 U.S.C. 290m-290m-3) is amended by
adding at the end the following:
``SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.
``Consistent with the focus of the Bank's Charter on environmental
infrastructure projects, the Board members representing the United
States should use their voice and vote to encourage the Bank to finance
projects related to clean and efficient energy, including energy
conservation, that prevent, control, or reduce environmental pollutants
or contaminants.''.
SEC. 637. ENERGY-EFFICIENT APPLIANCES.
In purchasing appliances, a public housing agency shall purchase
energy-efficient appliances that are Energy Star products or FEMP-
designated products, as such terms are defined in section 553 of the
National Energy Policy and Conservation Act (as amended by this Act),
unless the purchase of energy-efficient appliances is not cost-
effective to the agency.
SEC. 638. ENERGY EFFICIENCY STANDARDS.
Section 109 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12709) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``1 year after the date of
the enactment of the Energy Policy Act of
1992'' and inserting ``September 30, 2003'';
(ii) in subparagraph (A), by striking ``and''
at the end;
(iii) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(C) rehabilitation and new construction of public
and assisted housing funded by HOPE VI revitalization
grants under section 24 of the United States Housing
Act of 1937 (42 U.S.C. 1437v), where such standards are
determined to be cost effective by the Secretary of
Housing and Urban Development.''; and
(B) in paragraph (2), by striking ``Council of
American'' and all that follows through ``90.1-1989')''
and inserting ``2000 International Energy Conservation
Code'';
(2) in subsection (b)--
(A) by striking ``1 year after the date of the
enactment of the Energy Policy Act of 1992'' and
inserting ``September 30, 2003''; and
(B) by striking ``CABO'' and all that follows through
``1989'' and inserting ``the 2000 International Energy
Conservation Code''; and
(3) in subsection (c)--
(A) in the heading, by striking ``MODEL ENERGY CODE''
and inserting ``INTERNATIONAL ENERGY CONSERVATION
CODE''; and
(B) by striking ``CABO'' and all that follows through
``1989'' and inserting ``the 2000 International Energy
Conservation Code''.
SEC. 639. ENERGY STRATEGY FOR HUD.
The Secretary of Housing and Urban Development shall develop and
implement an integrated strategy to reduce utility expenses through
cost-effective energy conservation and efficiency measures and energy
efficient design and construction of public and assisted housing. The
energy strategy shall include the development of energy reduction goals
and incentives for public housing agencies. The Secretary shall submit
a report to Congress, not later than one year after the date of the
enactment of this Act, on the energy strategy and the actions taken by
the Department of Housing and Urban Development to monitor the energy
usage of public housing agencies and shall submit an update every two
years thereafter on progress in implementing the strategy.
TITLE VII--TRANSPORTATION FUELS
Subtitle A--Alternative Fuel Programs
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED VEHICLES.
Section 400AA(a)(3)(E) of the Energy Policy and Conservation Act (42
U.S.C. 6374(a)(3)(E)) is amended to read as follows:
``(E)(i) Dual-fueled vehicles acquired pursuant to this section shall
be operated on alternative fuels unless the Secretary determines that
an agency qualifies for a waiver of such requirement for vehicles
operated by the agency in a particular geographic area where--
``(I) the alternative fuel otherwise required to be used in
the vehicle is not reasonably available to retail purchasers of
the fuel, as certified to the Secretary by the head of the
agency; or
``(II) the cost of the alternative fuel otherwise required to
be used in the vehicle is unreasonably more expensive compared
to gasoline, as certified to the Secretary by the head of the
agency.
``(ii) The Secretary shall monitor compliance with this subparagraph
by all such fleets and shall report annually to the Congress on the
extent to which the requirements of this subparagraph are being
achieved. The report shall include information on annual reductions
achieved from the use of petroleum-based fuels and the problems, if
any, encountered in acquiring alternative fuels.''.
SEC. 702. FUEL USE CREDITS.
(a) In General.--Section 312 of the Energy Policy Act of 1992 (42
U.S.C. 13220) is amended to read as follows:
``SEC. 312. FUEL USE CREDITS.
``(a) Allocation.--
``(1) The Secretary shall allocate one credit under this
section to a fleet or covered person for each qualifying volume
of alternative fuel or biodiesel purchased for use in an on-
road motor vehicle operated by the fleet that weighs more than
8,500 pounds gross vehicle weight rating.
``(2) No credits shall be allocated under this section for
purchase of an alternative fuel or biodiesel that is required
by Federal or State law.
``(3) A fleet or covered person seeking a credit under this
section shall provide written documentation to the Secretary
supporting the allocation of a credit to such fleet or covered
person under this section.
``(b) Use.--At the request of a fleet or covered person allocated a
credit under subsection (a), the Secretary shall, for the year in which
the purchase of a qualifying volume is made, treat that purchase as the
acquisition of one alternative fueled vehicle the fleet or covered
person is required to acquire under this title, title IV, or title V.
``(c) Treatment.--A credit provided to a fleet or covered person
under this section shall be considered a credit under section 508.
``(d) Issuance of Rule.--Not later than 6 months after the date of
enactment of this section, the Secretary shall issue a rule
establishing procedures for the implementation of this section.
``(e) Definitions.--For the purposes of this section--
``(1) the term `biodiesel' means a diesel fuel substitute
produced from non-petroleum renewable resources that meets the
registration requirements for fuels and fuel additives
established by the Environmental Protection Agency under
section 211 of the Clean Air Act; and
``(2) the term `qualifying volume' means--
``(A) in the case of biodiesel, when used as a
component of fuel containing at least 20 percent
biodiesel by volume, 450 gallons, or if the Secretary
determines by rule that the average annual alternative
fuel use in light duty vehicles by fleets and covered
persons exceeds 450 gallons or gallon equivalents, the
amount of such average annual alternative fuel use; or
``(B) in the case of an alternative fuel, the amount
of such fuel determined by the Secretary to have an
equivalent energy content to the amount of biodiesel
defined as a qualifying volume pursuant to subparagraph
(A).''.
(b) Table of Contents Amendment.--The table of contents of the Energy
Policy Act of 1992 is amended by adding at the end of the items
relating to title III the following new item:
``Sec. 312. Fuel use credits.''
SEC. 703. NEIGHBORHOOD ELECTRIC VEHICLES.
Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is
amended--
(1) in paragraph (3), by striking ``or a dual fueled
vehicle'' and inserting ``, a dual fueled vehicle, or a
neighborhood electric vehicle'';
(2) by striking ``and'' at the end of paragraph (13);
(3) by striking the period at the end of paragraph (14) and
inserting ``; and''; and
(4) by adding at the end the following:
``(15) the term `neighborhood electric vehicle' means a motor
vehicle--
``(A) which meets the definition of a low-speed
vehicle, as such term is defined in part 571 of title
49, Code of Federal Regulations;
``(B) which meets the definition of a zero-emission
vehicle, as such term is defined in section 86.1702-99
of title 40, Code of Federal Regulations;
``(C) which meets the requirements of Federal Motor
Vehicle Safety Standard No. 500; and
``(D) which has a top speed of not greater than 25
miles per hour.''.
SEC. 704. CREDITS FOR MEDIUM AND HEAVY DUTY DEDICATED VEHICLES.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is
amended by adding at the end the following:
``(e) Credit for Purchase of Medium and Heavy Duty Dedicated
Vehicles.--
``(1) Definitions.--In this subsection:
``(A) The term `medium duty dedicated vehicle' means
a dedicated vehicle that has a gross vehicle weight
rating of more than 8,500 pounds but not more than
14,000 pounds.
``(B) The term `heavy duty dedicated vehicle' means a
dedicated vehicle that has a gross vehicle weight
rating of more than 14,000 pounds.
``(2) Credits for medium duty vehicles.--The Secretary shall
issue 2 full credits to a fleet or covered person under this
title, if the fleet or covered person acquires a medium duty
dedicated vehicle.
``(3) Credits for heavy duty vehicles.--The Secretary shall
issue 3 full credits to a fleet or covered person under this
title, if the fleet or covered person acquires a heavy duty
dedicated vehicle.
``(4) Use of credits.--At the request of a fleet or covered
person allocated a credit under this subsection, the Secretary
shall, for the year in which the acquisition of the dedicated
vehicle is made, treat that credit as the acquisition of 1
alternative fueled vehicle that the fleet or covered person is
required to acquire under this title.''.
SEC. 705. ALTERNATIVE FUEL INFRASTRUCTURE.
Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is
further amended by adding at the end the following:
``(f) Credit for Investment in Alternative Fuel Infrastructure.--
``(1) Definitions.--In this subsection, the term `qualifying
infrastructure' means--
``(A) equipment required to refuel or recharge
alternative fueled vehicles;
``(B) facilities or equipment required to maintain,
repair, or operate alternative fueled vehicles; and
``(C) such other activities the Secretary considers
to constitute an appropriate expenditure in support of
the operation, maintenance, or further widespread
adoption of or utilization of alternative fueled
vehicles.
``(2) Issuance of credits.--The Secretary shall issue a
credit to a fleet or covered person under this title for
investment in qualifying infrastructure if the qualifying
infrastructure is open to the general public during regular
business hours.
``(3) Amount.--For the purposes of credits under this
subsection--
``(A) 1 credit shall be equal to a minimum investment
of $25,000 in cash or equivalent expenditure, as
determined by the Secretary; and
``(B) except in the case of a Federal or State fleet,
no part of the investment may be provided by Federal or
State funds.
``(4) Use of credits--At the request of a fleet or covered
person allocated a credit under this subsection, the Secretary
shall, for the year in which the investment is made, treat that
credit as the acquisition of 1 alternative fueled vehicle that
the fleet or covered person is required to acquire under this
title.''.
SEC. 706. INCREMENTAL COST ALLOCATION.
Section 303(c) of the Energy Policy Act of 1992 (42 U.S.C. 13212(c)
is amended by striking ``may'' and inserting ``shall''.
SEC. 707. REVIEW OF ALTERNATIVE FUEL PROGRAMS.
(a) In General.--Not later than 1 year after the date of enactment of
this section, the Secretary shall complete a study to determine the
effect that titles III, IV and V of the Energy Policy Act of 1992 (42
U.S.C. 13211 et seq.) have had on the development of alternative fueled
vehicle technology, its availability in the market, and the cost of
light duty motor vehicles that are alternative fueled vehicles.
(b) Topics.--As part of such study, the Secretary shall specifically
identify--
(1) the number of alternative fueled vehicles acquired by
fleets or covered persons required to acquire alternative
fueled vehicles;
(2) the amount, by type, of alternative fuel actually used in
alternative fueled vehicles acquired by fleets or covered
persons;
(3) the amount of petroleum displaced by the use of
alternative fuels in alternative fueled vehicles acquired by
fleets or covered persons;
(4) the cost of compliance with vehicle acquisition
requirements by fleets or covered persons; and
(5) the existence of obstacles preventing compliance with
vehicle acquisition requirements and increased use of
alternative fuel in alternative fueled vehicles acquired by
fleets or covered persons.
(c) Report.--Upon completion of the study, the Secretary shall submit
to the Congress a report that describes the results of the study
conducted under this section and includes any recommendations of the
Secretary for legislative or administrative changes concerning the
alternative fueled vehicle requirements under titles III, IV, and V of
the Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.). Such study
shall be updated on a regular basis as deemed necessary by the
Secretary.
SEC. 708. HIGH OCCUPANCY VEHICLE EXCEPTION.
Notwithstanding section 102(a)(1) of title 23, United States Code, a
State may permit a vehicle with fewer than 2 occupants to operate in
high occupancy vehicle lanes if such vehicle is a dedicated vehicle (as
defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C.
13211)).
SEC. 709. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.
(a) Alternative Compliance.--Title V of the Energy Policy Act of 1992
is amended by adding at the end the following:
``SEC. 515. ALTERNATIVE COMPLIANCE.
``(a) Application for Waiver.--Any covered person subject to the
requirements of section 501 and any State subject to the requirement of
section 507(o) may petition the Secretary for a waiver of the
applicable requirements of section 501 or 507(o).
``(b) Grant of Waiver.--The Secretary may grant a waiver of the
requirements of section 501 or 507(o) upon a showing that the fleet
owned, operated, leased, or otherwise controlled by the State or
covered person--
``(1) will achieve a reduction in its annual consumption of
petroleum fuels equal to the reduction in consumption of
petroleum that would result from compliance with section 501 or
507(o); and
``(2) is in compliance with all applicable vehicle emission
standards established by the Administrator under the Clean Air
Act.
``(c) Revocation of Waiver.--The Secretary shall revoke any waiver
granted under this section if the State or covered person fails to
comply with the requirements of subsection (b).''.
(b) Credit for Hybrid Vehicles, Dedicated Alternative Fuel Vehicles,
and Infrastructure.--Section 507 of the Energy Policy Act of 1992 (42
U.S.C. 13258) (as amended by section 705) is amended by adding at the
end the following:
``(r) Credits for New Qualified Hybrid Motor Vehicles.--
``(1) Definitions.--In this subsection:
``(A) 2000 model year city fuel efficiency.--The term
`2000 model year city fuel efficiency', with respect to
a motor vehicle, means fuel efficiency determined in
accordance with the following tables:
(i) In the case of a passenger automobile:
``If vehicle inertia weight class The 2000 model year city fuel
is: efficiency is:
1,500 or 1,750 lbs 43.7 mpg
2,000 lbs 38.3 mpg
2,250 lbs 34.1 mpg
2,500 lbs 30.7 mpg
2,750 lbs 27.9 mpg
3,000 lbs 25.6 mpg
3,500 lbs 22.0 mpg
4,000 lbs 19.3 mpg
4,500 lbs 17.2 mpg
5,000 lbs 15.5 mpg
5,500 lbs 14.1 mpg
6,000 lbs 12.9 mpg
6,500 lbs 11.9 mpg
7,000 to 8,500 lbs 11.1 mpg.
``(ii) In the case of a light truck:
``If vehicle inertia weight class The 2000 model year city fuel
is: efficiency is:
1,500 or 1,750 lbs 37.6 mpg
2,000 lbs 33.7 mpg
2,250 lbs 30.6 mpg
2,500 lbs 28.0 mpg
2,750 lbs 25.9 mpg
3,000 lbs 24.1 mpg
3,500 lbs 21.3 mpg
4,000 lbs 19.0 mpg
4,500 lbs 17.3 mpg
5,000 lbs 15.8 mpg
5,500 lbs 14.6 mpg
6,000 lbs 13.6 mpg
6,500 lbs 12.8 mpg
7,000 to 8,500 lbs 12.0 mpg.
``(B) Administrator.--The term `Administrator' means
the Administrator of the Environmental Protection
Agency.
``(C) Energy storage device.--The term `energy
storage device' means an onboard rechargeable energy
storage system or similar storage device.
``(D) Fuel efficiency.--The term `fuel efficiency'
means the percentage increased fuel efficiency
specified in table 1 in paragraph (2)(C) over the
average 2000 model year city fuel efficiency of
vehicles in the same weight class.
``(E) Maximum available power.--The term `maximum
available power', with respect to a new qualified
hybrid motor vehicle that is a passenger vehicle or
light truck, means the quotient obtained by dividing--
``(i) the maximum power available from the
electrical storage device of the new qualified
hybrid motor vehicle, during a standard 10-
second pulse power or equivalent test; by
``(ii) the sum of--
``(I) the maximum power described in
clause (i); and
``(II) the net power of the internal
combustion or heat engine, as
determined in accordance with standards
established by the Society of
Automobile Engineers.
``(F) Motor vehicle.--The term `motor vehicle' has
the meaning given the term in section 216 of the Clean
Air Act (42 U.S.C. 7550).
``(G) New qualified hybrid motor vehicle.--The term
`new qualified hybrid motor vehicle' means a motor
vehicle that--
``(i) draws propulsion energy from both--
``(I) an internal combustion engine
(or heat engine that uses combustible
fuel); and
``(II) an energy storage device;
``(ii) in the case of a passenger automobile
or light truck--
``(I) in the case of a 2001 or later
model vehicle, receives a certificate
of conformity under the Clean Air Act
(42 U.S.C. 7401 et seq.) and produces
emissions at a level that is at or
below the standard established by a
qualifying California standard
described in section 243(e)(2) of the
Clean Air Act (42 U.S.C. 7583(e)(2))
for that make and model year; and
``(II) in the case of a 2004 or later
model vehicle, is certified by the
Administrator as producing emissions at
a level that is at or below the level
established for Bin 5 vehicles in the
Tier 2 regulations promulgated by the
Administrator under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i))
for that make and model year vehicle;
and
``(iii) employs a vehicle braking system that
recovers waste energy to charge an energy
storage device.
``(H) Vehicle inertia weight class.--The term
`vehicle inertia weight class' has the meaning given
the term in regulations promulgated by the
Administrator for purposes of the administration of
title II of the Clean Air Act (42 U.S.C. 7521 et seq.).
``(2) Allocation.--
``(A) In general.--The Secretary shall allocate a
partial credit to a fleet or covered person under this
title if the fleet or person acquires a new qualified
hybrid motor vehicle that is eligible to receive a
credit under each of the tables in subparagraph (C).
``(B) Amount.--The amount of a partial credit
allocated under subparagraph (A) for a vehicle
described in that subparagraph shall be equal to the
sum of--
``(i) the partial credits determined under
table 1 in subparagraph (C); and
``(ii) the partial credits determined under
table 2 in subparagraph (C).
``(C) Tables.--The tables referred to in
subparagraphs (A) and (B) are as follows:
``Table 1
``Partial credit for increased fuel
efficiency: Amount of credit:
At least 125% but less than 150% of 2000 model year 0.14
city fuel efficiency.
At least 150% but less than 175% of 2000 model year 0.21
city fuel efficiency.
At least 175% but less than 200% of 2000 model year 0.28
city fuel efficiency.
At least 200% but less than 225% of 2000 model year 0.35
city fuel efficiency.
At least 225% but less than 250% of 2000 model year 0.50.
city fuel efficiency.
``Table 2
``Partial credit for `Maximum
Available Power': Amount of credit:
At least 5% but less than 10%.......................... 0.125
At least 10% but less than 20%......................... 0.250
At least 20% but less than 30%......................... 0.375
At least 30% or more................................... 0.500.
``(D) Use of credits.--At the request of a fleet or
covered person allocated a credit under this
subsection, the Secretary shall, for the year in which
the acquisition of the qualified hybrid motor vehicle
is made, treat that credit as the acquisition of 1
alternative fueled vehicle that the fleet or covered
person is required to acquire under this title.
``(3) Regulations.--The Secretary shall promulgate
regulations under which any Federal fleet that acquires a new
qualified hybrid motor vehicle will receive partial credits
determined under the tables contained in paragraph (2)(C) for
purposes of meeting the requirements of section 303.
``(s) Credit for Substantial Contribution Towards Use of Dedicated
Vehicles in Noncovered Fleets.--
``(1) Definitions.--In this subsection:
``(A) Dedicated vehicle.--The term `dedicated
vehicle' includes--
``(i) a light, medium, or heavy duty vehicle;
and
``(ii) a neighborhood electric vehicle.
``(B) Medium or heavy duty vehicle.--The term `medium
or heavy duty vehicle' includes a vehicle that--
``(i) operates solely on alternative fuel;
and
``(ii)(I) in the case of a medium duty
vehicle, has a gross vehicle weight rating of
more than 8,500 pounds but not more than 14,000
pounds; or
``(II) in the case of a heavy duty vehicle,
has a gross vehicle weight rating of more than
14,000 pounds.
``(C) Substantial contribution.--The term
`substantial contribution' (equal to 1 full credit)
means not less than $15,000 in cash or in kind
services, as determined by the Secretary.
``(2) Issuance of credits.--The Secretary shall issue a
credit to a fleet or covered person under this title if the
fleet or person makes a substantial contribution toward the
acquisition and use of dedicated vehicles by a person that
owns, operates, leases, or otherwise controls a fleet that is
not covered by this title.
``(3) Multiple credits for medium and heavy duty dedicated
vehicles.--The Secretary shall issue 2 full credits to a fleet
or covered person under this title if the fleet or person
acquires a medium or heavy duty dedicated vehicle.
``(4) Use of credits.--At the request of a fleet or covered
person allocated a credit under this subsection, the Secretary
shall, for the year in which the acquisition of the dedicated
vehicle is made, treat that credit as the acquisition of 1
alternative fueled vehicle that the fleet or covered person is
required to acquire under this title.
``(5) Limitation.--Per vehicle credits acquired under this
subsection shall not exceed the per vehicle credits allowed
under this section to a fleet for qualifying vehicles in each
of the weight categories (light, medium, or heavy duty).
``(t) Credit for Substantial Investment in Alternative Fuel
Infrastructure.--
``(1) Definitions.--In this section, the term `qualifying
infrastructure' means--
``(A) equipment required to refuel or recharge
alternative fueled vehicles;
``(B) facilities or equipment required to maintain,
repair, or operate alternative fueled vehicles;
``(C) training programs, educational materials, or
other activities necessary to provide information
regarding the operation, maintenance, or benefits
associated with alternative fueled vehicles; and
``(D) such other activities the Secretary considers
to constitute an appropriate expenditure in support of
the operation, maintenance, or further widespread
adoption of or utilization of alternative fueled
vehicles.
``(2) Issuance of credits.--The Secretary shall issue a
credit to a fleet or covered person under this title for
investment in qualifying infrastructure if the qualifying
infrastructure is open to the general public during regular
business hours.
``(3) Amount.--For the purposes of credits under this
subsection--
``(A) 1 credit shall be equal to a minimum investment
of $25,000 in cash or in kind services, as determined
by the Secretary; and
``(B) except in the case of a Federal or State fleet,
no part of the investment may be provided by Federal or
State funds.
``(4) Use of credits.--At the request of a fleet or covered
person allocated a credit under this subsection, the Secretary
shall, for the year in which the investment is made, treat that
credit as the acquisition of 1 alternative fueled vehicle that
the fleet or covered person is required to acquire under this
title.''.
(c) Lease Condensate Fuels.--Section 301 of the Energy Policy Act of
1992 (42 U.S.C. 13211) is amended--
(1) in paragraph (2), by inserting ``mixtures containing 50
percent or more by volume of lease condensate or fuels
extracted from lease condensate;'' after ``liquified petroleum
gas;'';
(2) in paragraph (15), by inserting ``mixtures containing 50
percent or more by volume of lease condensate or fuels
extracted from lease condensate;'' after ``liquified petroleum
gas;''; and
(3) by adding at the end the following:
``(16) the term `lease condensate' means a mixture, primarily
of pentanes and heavier hydrocarbons, which is recovered as a
liquid from natural gas in lease separation facilities.''.
Subtitle B--Automobile Fuel Economy
SEC. 711. AUTOMOBILE FUEL ECONOMY STANDARDS.
(a) Title 49 Amendment.--Section 32902(f) of title 49, United States
Code, is amended to read as follows:
``(f) Considerations.--When deciding maximum feasible average fuel
economy under this section, the Secretary of Transportation shall
consider the following matters:
``(1) technological feasibility;
``(2) economic practicability;
``(3) the effect of other motor vehicle standards of the
Government on fuel economy;
``(4) the need of the United States to conserve energy;
``(5) the effects of fuel economy standards on motor vehicle
and passenger safety; and
``(6) the effects of compliance with average fuel economy
standards on levels of employment in the United States.''.
(b) Clarification of Authority.--Section 32902(b) of title 49, United
States Code, is amended by inserting before the period at the end the
following: ``or such other number as the Secretary prescribes under
subsection (c)''.
(c) Environmental Assessment.--When issuing final regulations setting
forth increased average fuel economy standards under section 32902(a)
or section 32902(c) of title 49, United States Code, the Secretary of
Transportation shall also issue an environmental assessment of the
effects of the increased standards on the environment under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(d) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary of
Transportation $5,000,000 for each of fiscal years 2004 through 2008.
SEC. 712. DUAL-FUELED AUTOMOBILES.
(a) Manufacturing Incentives.--Section 32905 of title 49, United
States Code, is amended--
(1) in subsections (b) and (d), by striking ``1993-2004'' and
inserting ``1993-2008'';
(2) in subsection (f), by striking ``2001'' and inserting
``2005'';
(3) in subsection (f)(1), by striking ``2004'' and inserting
``2008''; and
(4) in subsection (g), by striking ``September 30, 2000'' and
inserting ``September 30, 2004''.
(b) Maximum Fuel Economy Increase.--Subsection (a)(1) of section
32906 of title 49, United States Code, is amended--
(1) in subparagraph (A), by striking ``the model years 1993-
2004'' and inserting ``model years 1993-2008''; and
(2) in subparagraph (B), by striking ``the model years 2005-
2008'' and inserting ``model years 2009-2012''.
SEC. 713. FEDERAL FLEET FUEL ECONOMY.
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 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. 714. RAILROAD EFFICIENCY.
(a) Establishment.--The Secretary of Energy, in cooperation with the
Secretary of Transportation and the Administrator of the Environmental
Protection Agency, shall establish a cost-shared, public-private
research partnership to develop and demonstrate railroad locomotive
technologies that increase fuel economy, reduce emissions, and lower
costs of operation. Such partnership shall involve the Federal
Government, railroad carriers, locomotive manufacturers and equipment
suppliers, and the Association of American Railroads.
(b) Authorization of Appropriations.-- For the purposes of this
section, there are authorized to be appropriated to the Secretary of
Energy $25,000,000 for fiscal year 2004, $35,000,000 for fiscal year
2005, and $50,000,000 for fiscal year 2006.
SEC. 715. REDUCTION OF ENGINE IDLING IN HEAVY-DUTY VEHICLES.
(a) Identification.--Not later than 180 days after the date of
enactment of this section, the Secretary of Energy, in consultation
with the Secretary of Transportation and the Administrator of the
Environmental Protection Agency, shall commence a study to analyze the
potential fuel savings and emissions reductions resulting from use of
idling reduction technologies as they are applied to heavy-duty
vehicles. Upon completion of the study, the Secretary of Energy shall,
by rule, certify those idling reduction technologies with the greatest
economic or technical feasibility and the greatest potential for fuel
savings and emissions reductions, and publish a list of such certified
technologies in the Federal Register.
(b) Vehicle Weight Exemption.--Section 127(a) of Title 23, United
States Code, is amended by adding at the end the following:
``In order to promote reduction of fuel use and emissions due to
engine idling, the maximum gross vehicle weight limit and the axle
weight limit for any motor vehicle equipped with an idling reduction
technology certified by the U.S. Department of Energy will be increased
by an amount necessary to compensate for the additional weight of the
idling reduction system, provided that the weight increase shall be no
greater than 400 pounds.''
(c) Definitions.--For the purposes of this section:
(1) The term ``idling reduction technology'' means a device
or system of devices utilized to reduce long-duration idling of
a vehicle.
(2) The term ``heavy-duty vehicle'' means a vehicle that has
a gross vehicle weight rating greater than 8,500 pounds and is
powered by a diesel engine.
(3) The term ``long-duration idling'' means the operation of
a main drive engine, for a period greater than 30 consecutive
minutes, where the main drive engine is not engaged in gear.
Such term does not apply to routine stoppages associated with
traffic movement or congestion.
TITLE VIII--HYDROGEN
Subtitle A--Basic Research Programs
SEC. 801. SHORT TITLE.
This subtitle may be cited as the ``George E. Brown, Jr. and Robert
S. Walker Hydrogen Future Act of 2003''.
SEC. 802. MATSUNAGA ACT AMENDMENT.
The Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is amended by
striking sections 102 through 109 and inserting the following:
``SEC. 102. DEFINITIONS.
``In this Act--
``(1) the term `advisory committee' means the Hydrogen and
Fuel Cell Technical Advisory Committee established under
section 107.
``(2) the term `Department' means the Department of Energy.
``(3) the term `fuel cell' means a device that directly
converts the chemical energy of a fuel into electricity by an
electrochemical process.
``(4) the term `infrastructure' means the equipment, systems,
or facilities used to produce, distribute, deliver, or store
hydrogen.
``(5) the term `Secretary' means the Secretary of Energy.
``SEC. 103. HYDROGEN RESEARCH AND DEVELOPMENT.
``(a) In General.--The Secretary shall conduct a research and
development program on technologies related to the production,
distribution, storage, and use of hydrogen energy, fuel cells, and
related infrastructure.
``(b) Goal.--The goal of such program shall be to enable the safe,
economic, and environmentally sound use of hydrogen energy, fuel cells,
and related infrastructure for transportation, commercial, industrial,
residential, and electric power generation applications.
``(c) Focus.--In carrying out activities under this section, the
Secretary shall focus on critical technical issues including, but not
limited to--
``(1) the production of hydrogen from diverse energy sources,
with emphasis on cost-effective production from renewable
energy sources;
``(2) the delivery of hydrogen, including safe delivery in
fueling stations and use of existing hydrogen pipelines;
``(3) the storage of hydrogen, including storage of hydrogen
in surface transportation;
``(4) fuel cell technologies for transportation, stationary
and portable applications, with emphasis on cost-reduction of
fuel cell stacks; and
``(5) the use of hydrogen energy and fuel cells, including
use in--
``(A) isolated villages, islands, and areas in which
other energy sources are not available or are very
expensive; and
``(B) foreign markets, particularly where an energy
infrastructure is not well developed.
``(d) Codes and Standards.--The Secretary shall facilitate the
development of domestic and international codes and standards and seek
to resolve other critical regulatory and technical barriers preventing
the introduction of hydrogen energy and fuel cells into the
marketplace.
``(e) Solicitation.--The Secretary shall carry out the research and
development activities authorized under this section through
solicitation of proposals, and evaluation using competitive merit
review.
``(f) Cost Sharing.--The Secretary shall require a commitment from
non-Federal sources of at least 20 percent of the cost of proposed
research and development projects. The Secretary may reduce or
eliminate the cost sharing requirement--
``(1) if the Secretary determines that the research and
development is of a basic or fundamental nature, or
``(2) for technical analyses, outreach activities, and
educational programs that the Secretary does not expect to
result in a marketable product.
``SEC. 104. DEMONSTRATION PROGRAMS.
``(a) Requirement.--In conjunction with activities conducted under
section 103, the Secretary shall conduct demonstrations of hydrogen
energy and fuel cell technologies in order to evaluate the commercial
potential of such technologies.
``(b) Solicitation.--The Secretary shall carry out the demonstrations
authorized under this section through solicitation of proposals, and
evaluation using competitive merit review.
``(c) Cost Sharing.--The Secretary shall require a commitment from
non-Federal sources of at least 50 percent of the costs directly
relating to a demonstration project under this section. The Secretary
may reduce such non-Federal requirement if the Secretary determines
that the reduction is appropriate considering the technological risks
involved in the project.
``SEC. 105. TECHNOLOGY TRANSFER.
``The Secretary shall conduct programs to--
``(1) transfer critical hydrogen energy and fuel cell
technologies to the private sector in order to promote wider
understanding of such technologies and wider use of research
progress under this Act;
``(2) to accelerate wider application of hydrogen energy and
fuel cell technologies in foreign countries in order to
increase the global market for the technologies and foster
global development without harmful environmental effects;
``(3) foster the exchange of generic, nonproprietary
information and technology developed pursuant to this Act,
among industry, academia, and the Federal agencies; and
``(4) inventory and assess the technical and commercial
viability of technologies related to production, distribution,
storage, and use of hydrogen energy and fuel cells.
``SEC. 106. COORDINATION AND CONSULTATION.
``The Secretary shall have overall management responsibility for
carrying out programs under this Act. In carrying out such programs,
the Secretary--
``(1) shall establish a central point for the coordination of
all hydrogen energy and fuel cell research, development, and
demonstration activities of the Department;
``(2) in carrying out the Secretary's authorities pursuant to
this Act, shall consult with other Federal agencies as
appropriate, and may obtain the assistance of any Federal
agency, on a reimbursable basis or otherwise and with the
consent of such agency;
``(3) shall attempt to ensure that activities under this Act
do not unnecessarily duplicate any available research and
development results or displace or compete with privately
funded hydrogen and fuel cell energy activities.
``SEC. 107. ADVISORY COMMITTEE.
``(a) Establishment.--There is hereby established the Hydrogen and
Fuel Cell Technical Advisory Committee, to advise the Secretary on the
programs under this Act.
``(b) Membership.--The advisory committee shall be comprised of not
fewer than 12 nor more than 25 members appointed by the Secretary based
on their technical and other qualifications from domestic industry,
automakers, universities, professional societies, Federal laboratories,
financial institutions, and environmental and other organizations as
the Secretary deems appropriate. The advisory committee shall have a
chairperson, who shall be elected by the members from among their
number.
``(c) Terms.--Members of the advisory committee shall be appointed
for terms of 3 years, with each term to begin not later than 3 months
after the date of enactment of the Energy Policy Act of 2003, except
that one-third of the members first appointed shall serve for 1 year,
and one-third of the members first appointed shall serve for 2 years,
as designated by the Secretary at the time of appointment.
``(d) Review.--The advisory committee shall review and make any
necessary recommendations to the Secretary on--
``(1) implementation and conduct of programs under this Act;
``(2) economic, technological, and environmental consequences
of the deployment of technologies related to production,
distribution, storage, and use of hydrogen energy, and fuel
cells;
``(3) means for resolving barriers to implementing hydrogen
and fuel cell technologies; and
``(4) the coordination plan and any updates thereto prepared
by the Secretary pursuant to section 108.
``(e) Response.--The Secretary shall consider any recommendations
made by the advisory committee, and shall provide a response to the
advisory committee within 30 days after receipt of such
recommendations. Such response shall either describe the implementation
of the advisory committee's recommendations or provide an explanation
of the reasons that any such recommendations will not be implemented.
``(f) Support.--The Secretary shall provide such staff, funds and
other support as may be necessary to enable the advisory committee to
carry out its functions. In carrying out activities pursuant to this
section, the advisory committee may also obtain the assistance of any
Federal agency, on a reimbursable basis or otherwise and with the
consent of such agency.
``SEC. 108. COORDINATION PLAN.
``(a) Plan.--The Secretary, in consultation with other Federal
agencies, shall prepare and maintain on an ongoing basis a
comprehensive plan for activities under this Act.
``(b) Development.--In developing such plan, the Secretary shall--
``(1) consider the guidance of the National Hydrogen Energy
Roadmap published by the Department in November 2002 and any
updates thereto;
``(2) consult with the advisory committee;
``(3) consult with interested parties from domestic industry,
automakers, universities, professional societies, Federal
laboratories, financial institutions, and environmental and
other organizations as the Secretary deems appropriate.
``(c) Contents.--At a minimum, the plan shall provide--
``(1) an assessment of the effectiveness of the programs
authorized under this Act, including a summary of
recommendations of the advisory committee for improvements in
such programs;
``(2) a description of proposed research, development, and
demonstration activities planned by the Department for the next
five years;
``(3) a description of the role Federal laboratories,
institutions of higher education, small businesses, and other
private sector firms are expected to play in such programs;
``(4) cost and performance milestones that will be used to
evaluate the programs for the next five years; and
``(5) any significant technical, regulatory, and other
hurdles that stand in the way of achieving such cost and
performance milestones, and how the programs will address those
hurdles; and
``(6) to the extent practicable, an analysis of Federal,
State, local, and private sector hydrogen research,
development, and demonstration activities to identify areas for
increased intergovernmental and private-public sector
collaboration.
``(d) Report.--Not later than January 1, 2005, and biennially
thereafter, the Secretary shall transmit to Congress the comprehensive
plan developed for the programs authorized under this Act, or any
updates thereto.
``SEC. 109. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out the purposes
of this Act--
``(1) such sums as may be necessary for fiscal years 1992
through 2003;
``(2) $105,000,000 for fiscal year 2004;
``(3) $150,000,000 for fiscal year 2005;
``(4) $175,000,000 for fiscal year 2006;
``(5) $200,000,000 for fiscal year 2007; and
``(6) $225,000,000 for fiscal year 2008.''.
SEC. 803. HYDROGEN TRANSPORTATION AND FUEL INITIATIVE.
(a) Vehicle Technologies.--The Secretary shall carry out a research,
development, demonstration, and commercial application program on
advanced hydrogen-powered vehicle technologies. Such program shall
address--
(1) engine and emission control systems;
(2) energy storage, electric propulsion, and hybrid systems;
(3) automotive materials;
(4) hydrogen-carrier fuels; and
(5) other advanced vehicle technologies.
(b) Hydrogen Fuel Initiative.--In coordination with the program
authorized in subsection (a), the Secretary of Energy, in partnership
with the private sector, shall conduct a research, development,
demonstration and commercial application program designed to enable the
rapid and coordinated introduction of hydrogen-fueled vehicles and
associated infrastructure into commerce. Such program shall address--
(1) production of hydrogen from diverse energy resources,
including--
(A) renewable energy resources;
(B) fossil fuels, in conjunction with carbon capture
and sequestration;
(C) hydrogen-carrier fuels; and
(D) nuclear energy;
(2) delivery of hydrogen or hydrogen-carrier fuels,
including--
(A) transmission by pipeline and other distribution
methods; and
(B) safe, convenient, and economic refueling of
vehicles, either at central refueling stations or
through distributed on-site generation;
(3) storage of hydrogen or hydrogen-carrier fuels, including
development of materials for safe and economic storage in
gaseous, liquid or solid forms at refueling facilities or
onboard vehicles;
(4) development of advanced vehicle technologies, such as
efficient fuel cells and direct hydrogen combustion engines,
and related component technologies such as advanced materials
and control systems; and
(5) development of necessary codes, standards, and safety
practices to accompany the production, distribution, storage
and use of hydrogen or hydrogen-carrier fuels in
transportation.
(c) Matsunaga Act.--In carrying out programs and projects under
subsections (a) and (b), the Secretary shall ensure that such programs
and projects are consistent with, and do not unnecessarily duplicate,
activities carried out under the programs authorized under the Spark M.
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990
(42 U.S.C. 12401 et seq.).
(d) Advisory Committee.--The Hydrogen and Fuel Cell Technical
Advisory Committee authorized under section 107 of the Spark M.
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990
(42 U.S.C. 12408), as amended in this title, shall also advise the
Secretary on the programs and activities carried out under this
section.
(e) Solicitation.--The Secretary shall carry out the programs
authorized under this section through solicitation of proposals, and
evaluation using competitive merit review.
(f) Cost Sharing.--The Secretary shall require a commitment from non-
Federal sources of at least 50 percent of the costs directly relating
to a demonstration project under this section. The Secretary may reduce
such non-Federal requirement if the Secretary determines that the
reduction is appropriate considering the technological risks involved
in the project.
(g) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary--
(1) for activities pursuant to subsection (a), to remain
available until expended--
(A) $100,000,000 for each of fiscal years 2004 and
2005;
(B) $110,000,000 for each of fiscal years 2006 and
2007; and
(C) $120,000,000 for fiscal year 2008; and
(2) for activities pursuant to subsection (b), to remain
available until expended--
(A) $125,000,000 for fiscal year 2004;
(B) $150,000,000 for fiscal year 2005;
(C) $175,000,000 for fiscal year 2006; and
(D) $200,000,000 for each of fiscal years 2007 and
2008.
SEC. 804. INTERAGENCY TASK FORCE AND COORDINATION PLAN.
(a) Establishment.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall establish an interagency
task force to coordinate Federal hydrogen and fuel cell energy
activities.
(b) Composition.--The task force shall be chaired by a designee of
the Secretary, and shall include representatives of--
(1) the Office of Science and Technology Policy;
(2) the Department of Transportation;
(3) the Department of Defense;
(4) the Department of Commerce (including the National
Institute for Standards and Technology);
(5) the Environmental Protection Agency;
(6) the National Aeronautics and Space Administration;
(7) the Department of State; and
(8) other Federal agencies as the Director considers
appropriate.
(c) Coordination Plan.--The task force shall prepare a comprehensive
coordination plan for Federal hydrogen and fuel cell energy activities,
which shall include a summary of such activities.
(d) Report.--Not later than one year after it is established, the
task force shall report to Congress on the coordination plan in
subsection (c) and on the interagency coordination of Federal hydrogen
and fuel cell energy activities.
SEC. 805. REVIEW BY THE NATIONAL ACADEMIES.
Not later than two years after the date of enactment of this Act, and
every four years thereafter, the Secretary shall enter into a contract
with the National Academies. Such contract shall require the National
Academies to perform a review of the progress made through Federal
hydrogen and fuel cell energy programs and activities, including the
need for modified or additional programs, and to report to the Congress
on the results of such review. There are authorized to be appropriated
to the Secretary such sums as may be necessary to carry out the
requirements of this section.
Subtitle B--Demonstration Programs
SEC. 811. DEFINITIONS.
For the purposes of this subtitle and subtitle C:--
(1) The term ``fuel cell'' means a device that directly
converts the chemical energy of a fuel into electricity by an
electrochemical process.
(2) The term ``hydrogen-carrier fuel'' means any hydrocarbon
fuel that is capable of being thermochemically processed or
otherwise reformed to produce hydrogen;
(3) The term ``infrastructure'' means the equipment, systems,
or facilities used to produce, distribute, deliver, or store
hydrogen or hydrogen-carrier fuels.
(4) The term ``institution of higher education'' has the
meaning given that term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).
(5) The term ``Secretary'' means the Secretary of Energy.
SEC. 812. HYDROGEN VEHICLE DEMONSTRATION PROGRAM.
(a) In General.--The Secretary shall establish a program for
demonstration and commercial application of hydrogen-powered vehicles
and associated hydrogen fueling infrastructure in a variety of
transportation-related applications, including--
(1) fuel cell vehicles in light-duty vehicle fleets;
(2) heavy-duty fuel cell on-road and off-road vehicles,
including mass transit buses;
(3) use of hydrogen-powered vehicles and hydrogen fueling
infrastructure (including multiple hydrogen refueling stations)
along major transportation routes or in entire regions; and
(4) other similar projects as the Secretary may deem
necessary to contribute to the rapid demonstration and
deployment of hydrogen-based technologies in widespread use for
transportation.
(b) Eligibility.--Federal, state, tribal, and local governments,
academic and other non-profit organizations, private entities, and
consortia of these entities shall be eligible for these projects.
(c) Selection.--In selecting projects under this section, the
Secretary shall--
(1) consult with Federal, State, local and private fleet
managers to identify potential projects where hydrogen-powered
vehicles may be placed into service;
(2) identify not less than 10 sites at which to carry out
projects under this program, 2 of which must be based at
Federal facilities;
(3) select projects based on the following factors--
(A) geographic diversity;
(B) a diverse set of operating environments, duty
cycles, and likely weather conditions;
(C) the interest and capability of the participating
agencies, entities, or fleets;
(D) the availability and appropriateness of potential
sites for refueling infrastructure and for maintenance
of the vehicle fleet;
(E) the existence of traffic congestion in the area
expected to be served by the hydrogen-powered vehicles;
(F) proximity to non-attainment areas as defined in
section 171 of the Clean Air Act (42 U.S.C. 7501); and
(G) such other criteria as the Secretary determines
to be appropriate in order to carry out the purposes of
the program.
(d) Infrastructure.--In funding projects under this section, the
Secretary shall also support the installation of refueling
infrastructure at sites necessary for success of the project, giving
preference to those infrastructure projects that include co-production
of both--
(1) hydrogen for use in transportation; and
(2) electricity that can be consumed on site.
(e) Operation and Maintenance Period.--Vehicles purchased for
projects under this section shall be operated and maintained by the
participating agencies or entities in regular duty cycles for a period
of not less than 12 months.
(f) Training and Technical Support.--In funding proposals under this
section, the Secretary shall also provide funding for training and
technical support as may be necessary to assure the success of such
projects, including training and technical support in--
(1) the installation, operation, and maintenance of fueling
infrastructure;
(2) the operation and maintenance of fuel cell vehicles; and
(3) data collection necessary to monitor project performance.
(g) Cost-Sharing.--Except as otherwise provided, the Secretary shall
require a commitment from non-Federal sources of at least 50 percent of
the costs directly relating to a demonstration project under this
section. The Secretary may reduce such non-Federal requirement if the
Secretary determines that the reduction is appropriate considering the
technological risks involved in the project.
(h) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary
$50,000,000 for each of fiscal years 2006 through 2010, to remain
available until expended.
SEC. 813. STATIONARY FUEL CELL DEMONSTRATION PROGRAM.
(a) In General.--The Secretary shall establish a program for
demonstration and commercial application of hydrogen fuel cells in
stationary applications, including--
(1) fuel cells for use in residential and commercial
buildings;
(2) portable fuel cells, including auxiliary power units in
trucks;
(3) small form and micro fuel cells of 20 watts or less;
(4) distributed generation systems with fuel cells using
renewable energy; and
(5) other similar projects as the Secretary may deem
necessary to contribute to the rapid demonstration and
deployment of hydrogen-based technologies in widespread use.
(b) Competitive Evaluation.--Proposals submitted in response to
solicitations issued pursuant to this section shall be evaluated on a
competitive basis using peer review. The Secretary is not required to
make an award under this section in the absence of a meritorious
proposal.
(c) Preference.--The Secretary shall give preference, in making an
award under this section, to proposals that--
(1) are submitted jointly from consortia that include two or
more participants from institutions of higher education,
industry, State, tribal, or local governments, and Federal
laboratories; and
(2) that reflect proven experience and capability with
technologies relevant to the projects proposed.
(d) Training and Technical Support.--In funding proposals under this
section, the Secretary shall also provide funding for training and
technical support as may be necessary to assure the success of such
projects, including training and technical support in the installation,
operation, and maintenance of fuel cells and the collection of data to
monitor project performance.
(e) Cost-Sharing.--Except as otherwise provided, the Secretary shall
require a commitment from non-Federal sources of at least 50 percent of
the costs directly relating to a demonstration project under this
section. The Secretary may reduce such non-Federal requirement if the
Secretary determines that the reduction is appropriate considering the
technological risks involved in the project.
(f) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary
$50,000,000 for each of fiscal years 2006 through 2010, to remain
available until expended.
SEC. 814. HYDROGEN DEMONSTRATION PROGRAMS IN NATIONAL PARKS.
(a) Study.--Not later than 1 year after the date of enactment of this
section, the Secretary of the Interior and the Secretary of Energy
shall jointly study and report to Congress on--
(1) the energy needs and uses at National Parks; and
(2) the potential for fuel cell and other hydrogen-based
technologies to meet such energy needs in--
(A) stationary applications, including power
generation, combined heat and power for buildings and
campsites, and standby and backup power systems; and
(B) transportation-related applications, including
support vehicles, passenger vehicles and heavy-duty
trucks and buses.
(b) Pilot Projects.--Based on the results of the study conducted
under subsection (a), the Secretary of the Interior shall fund not
fewer than 3 pilot projects in national parks to provide for
demonstration of fuel cells or other hydrogen-based technologies in
those applications where the greatest potential for such use in
National Parks has been identified. Such pilot projects shall be
geographically distributed throughout the United States.
(c) Definition.--For the purpose of this section, the term ``National
Parks'' means those areas of land and water now or hereafter
administered by the Secretary of the Interior through the National Park
Service for park, monument, historic, parkway, recreational, or other
purposes.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of the Interior $1,000,000 for fiscal
year 2004, and $15,000,000 for fiscal year 2005, to remain available
until expended.
SEC. 815. INTERNATIONAL DEMONSTRATION PROGRAM.
(a) In General.--The Secretary, in consultation with the
Administrator of the U.S. Agency for International Development, shall
conduct demonstrations of fuel cells and associated hydrogen fueling
infrastructure in countries other than the United States, particularly
in areas where an energy infrastructure is not already well developed.
(b) Eligible Technologies.--The program may demonstrate--
(1) fuel cell vehicles in light-duty vehicle fleets;
(2) heavy-duty fuel cell on-road and off-road vehicles;
(3) stationary fuel cells in residential and commercial
buildings; or
(4) portable fuel cells, including auxiliary power units in
trucks.
(c) Participants.--
(1) Eligibility.--Foreign nations, non-profit organizations,
and private companies shall be eligible for these pilot
projects.
(2) Cooperation.--Eligible entities may perform the projects
in cooperation with United States non-profit organizations and
private companies.
(3) Cost-Sharing.--The Secretary may require a commitment
from participating private companies and from participating
foreign countries.
(d) Authorization of Appropriations.--For activities conducted under
this section, there are authorized to be appropriated to the Secretary
$25,000,000 for each of fiscal years 2006 through 2010, to remain
available until expended.
SEC. 816. TRIBAL STATIONARY HYBRID POWER DEMONSTRATION.
(a) In General.--Not later than 1 year after the date of enactment of
this Act, the Secretary, in cooperation with Indian tribes, shall
develop and transmit to Congress a strategy for a demonstration and
commercial application program to develop hybrid distributed power
systems on Indian lands that combine--
(1) one renewable electric power generating technology of 2
megawatts or less located near the site of electric energy use;
and
(2) fuel cell power generation suitable for use in
distributed power systems.
(b) Definition.--For the purposes of this section, the terms ``Indian
tribe'' and ``Indian land'' have the meaning given such terms under
title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et seq.),
as amended by this Act.
(c) Authorization of Appropriations.--For activities under this
section, there are authorized to be appropriated to the Secretary of
Energy $1,000,000 for fiscal year 2005, and $5,000,000 for each of
fiscal years 2006 through 2008.
SEC. 817. DISTRIBUTED GENERATION PILOT PROGRAM.
(a) Establishment.--The Secretary shall support a demonstration
program to develop, deploy, and commercialize distributed generation
systems to significantly reduce the cost of producing hydrogen from
renewable energy for use in fuel cells. Such program shall provide the
necessary infrastructure to test these distributed generation
technologies at pilot scales in a real-world environment.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy, to remain available until
expended, for the purposes of carrying out this section--
(1) $10,000,000 for fiscal year 2004;
(2) $15,000,000 for fiscal year 2005; and
(3) $20,000,000 for each of fiscal years 2006 through 2008.
Subtitle C--Federal Programs
SEC. 821. PUBLIC EDUCATION AND TRAINING.
(a) Education.--The Secretary shall conduct a public education
program designed to increase public interest in and acceptance of
hydrogen energy and fuel cell technologies.
(b) Training.--The Secretary shall conduct a program to promote
university-based training in critical skills for research in,
production of, and use of hydrogen energy and fuel cell technologies.
Such program may include research fellowships at institutions of higher
education, centers of excellence in critical technologies, internships
in industry, and such other measures as the Secretary deems
appropriate.
(c) Authorization of Appropriations.--For activities pursuant to this
section, there are authorized to be appropriated to the Secretary
$7,000,000 for each of fiscal years 2004 through 2008.
SEC. 822. HYDROGEN TRANSITION STRATEGIC PLANNING.
(a) In General.--Not later than September 30, 2004, the head of each
federal agency with annual outlays of greater than $20,000,000 shall
submit to the Director of the Office of Management and Budget and to
the Congress a hydrogen transition strategic plan containing a
comprehensive assessment of how the transition to a hydrogen-based
economy could to assist the mission, operation and regulatory program
of the agency.
(b) Contents.--At a minimum, each plan shall contain--
(1) a description of areas within the agency's control where
using hydrogen and/or fuel cells could benefit the operation of
the agency, assist in the implementation of its regulatory
functions or enhance the agency's mission; and
(2) a description of any agency management practices,
procurement policies, regulations, policies, or guidelines that
may inhibit the agency's transition to use of fuel cells and
hydrogen as an energy source.
(c) Duration and Revision.--The strategic plan shall cover a period
of not less than the five years following the fiscal year in which it
is submitted, and shall be updated and revised at least every three
years.
SEC. 823. MINIMUM FEDERAL FLEET REQUIREMENT.
(a) Section 303(b) of the Energy Policy Act of 1992 (42 U.S.C.
13212(b)) is amended by adding at the end the following:
``(4) Hydrogen vehicles.--
``(A) Of the number of vehicles acquired under
paragraph (1)(D) by a Federal fleet of 100 or more
vehicles, not less than--
``(i) 5 percent in fiscal years 2006 and
2007;
``(ii) 10 percent in fiscal years 2008 and
2009;
``(iii) 15 percent in fiscal years 2010 and
2011; and
``(iv) 20 percent in fiscal years 2012 and
thereafter,
shall be hydrogen-powered vehicles that meet standards
for performance, reliability, cost, and maintenance
established by the Secretary.
``(B) The Secretary may establish a lesser
percentage, or waive the requirement under subparagraph
(A) for any fiscal year entirely, if hydrogen-powered
vehicles meeting the standards set by the Secretary
pursuant to subparagraph (A) are not available at a
purchase price that is less than 150 percent of the
purchase price of other comparable alternative fueled
vehicles.
``(C) The Secretary may by rule, delay the
implementation of the requirements under subparagraph
(A) in the event that the Secretary determines that
hydrogen-powered vehicles are not commercially or
economically available, or that fuel for such vehicles
is not commercially or economically available.
``(D) The Secretary, in consultation with the
Administrator of General Services, may for reasons of
refueling infrastructure use and cost optimization,
elect to allocate the acquisitions necessary to achieve
the requirements in subparagraph (A) to certain Federal
fleets in lieu of requiring each Federal fleet to
achieve the requirements in subparagraph (A).''.
(b) Refueling.--Section 304 of the Energy Policy Act of 1992 (42
U.S.C. 13213) is amended--
(1) by redesignating subsection (b) as subsection (c);
(2) in the second sentence of subsection (a), by striking
``If publicly'' and inserting the following:
``(b) Commercial Arrangements.--
``(1) In general.--If publicly''; and
(3) in subsection (b) (as designated by paragraph (2)), by
adding at the end the following:
``(2) Mandatory arrangements.--
``(A) In general.--In a case in which publicly
available fueling facilities are not convenient or
accessible to the locations of 2 or more Federal fleets
for which hydrogen-powered vehicles are required to be
purchased under section 303(b)(4), the Federal agency
for which the Federal fleets are maintained (or the
Federal agencies for which the Federal fleets are
maintained, acting jointly under a memorandum of
agreement providing for cost sharing) shall enter into
a commercial arrangement as provided in paragraph (1).
``(B) Sunset.--Subparagraph (A) ceases to be
effective at the end of fiscal year 2013.''.
SEC. 824. STATIONARY FUEL CELL PURCHASE REQUIREMENT.
(a) Requirement.--The President, acting through the Secretary of
Energy, shall seek to ensure that, to the extent economically
practicable and technically feasible, of the total amount of electric
energy the Federal Government consumes during any fiscal year, the
following amounts shall be generated by fuel cells--
(1) not less than 1 percent in fiscal years 2006 through
2008;
(2) not less than 2 percent in fiscal years 2009 and 2010;
and
(3) not less than 3 percent in fiscal year 2011 and each
fiscal year thereafter.
(b) Compliance.--In complying with the requirements of subsection
(a), Federal agencies are encouraged to--
(1) use innovative purchasing practices;
(2) use fuel cells at the site of electricity usage and in
combined heat and power applications; and
(3) use fuel cells in stand alone power functions, such as
but not limited to battery power and backup power.
(c) Definitions.--For purposes of this section--
(1) the term ``fuel cells'' means an integrated system
comprised of a fuel cell stack assembly and balance of plant
components that converts a fuel into electricity using an
electrochemical means; and
(2) the term ``electrical energy'' includes on and off grid
power, including premium power applications, standby power
applications and electricity generation.
(d) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary of
Energy $30,000,000 for fiscal years 2004, $70,000,000 for fiscal year
2005, and $100,000,000 for each of fiscal years 2006 and thereafter.
SEC. 825. DEPARTMENT OF ENERGY STRATEGY.
Not later than 1 year after the date of enactment of this Act, the
Secretary shall publish and transmit to Congress a plan identifying
critical technologies, enabling strategies and applications, technical
targets, and associated timeframes that support the commercialization
of hydrogen-fueled fuel cell vehicles.
TITLE IX--RESEARCH AND DEVELOPMENT
SEC. 901. SHORT TITLE.
This Title may be cited as the ``Energy Research, Development,
Demonstration, and Commercial Application Act of 2003''.
SEC. 902. GOALS.
(a) In General.--In order to achieve the purposes of this title, the
Secretary shall conduct a balanced set of programs of energy research,
development, demonstration, and commercial application, focused on--
(1) increasing the efficiency of all energy intensive sectors
through conservation and improved technologies,
(2) promoting diversity of energy supply,
(3) decreasing the nation's dependence on foreign energy
supplies,
(4) improving United States energy security, and
(5) decreasing the environmental impact of energy-related
activities.
(b) Goals.--The Secretary shall publish measurable cost and
performance-based goals with each annual budget submission in at least
the following areas:
(1) energy efficiency for buildings, energy-consuming
industries, and vehicles;
(2) electric energy generation (including distributed
generation), transmission, and storage;
(3) renewable energy technologies including wind power,
photovoltaics, solar thermal systems, geothermal energy,
hydrogen-fueled systems, biomass-based systems, biofuels, and
hydropower;
(4) fossil energy including power generation, onshore and
offshore oil and gas resource recovery, and transportation; and
(5) nuclear energy including programs for existing and
advanced reactors, and education of future specialists.
(c) Public Comment.--The Secretary shall provide mechanisms for input
on the annually published goals from industry, university, and other
public sources.
(d) Effect of Goals.--Nothing in subsection (a) or the annually
published goals creates any new authority for any Federal agency, or
may be used by a Federal agency to support the establishment of
regulatory standards or regulatory requirements.
SEC. 903. DEFINITIONS.
For purposes of this title:
(1) The term ``Department'' means the Department of Energy.
(2) The term ``departmental mission'' means any of the
functions vested in the Secretary of Energy by the Department
of Energy Organization Act (42 U.S.C. 7101 et seq.) or other
law.
(3) The term ``institution of higher education'' has the
meaning given that term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).
(4) The term ``National Laboratory'' means any of the
following laboratories owned by the Department:
(A) Ames Laboratory.
(B) Argonne National Laboratory.
(C) Brookhaven National Laboratory.
(D) Fermi National Accelerator Laboratory.
(E) Idaho National Engineering and Environmental
Laboratory.
(F) Lawrence Berkeley National Laboratory.
(G) Lawrence Livermore National Laboratory.
(H) Los Alamos National Laboratory.
(I) National Energy Technology Laboratory.
(J) National Renewable Energy Laboratory.
(K) Oak Ridge National Laboratory.
(L) Pacific Northwest National Laboratory.
(M) Princeton Plasma Physics Laboratory.
(N) Sandia National Laboratories.
(O) Stanford Linear Accelerator Center.
(P) Thomas Jefferson National Accelerator Facility.
(5) The term ``nonmilitary energy laboratory'' means the
laboratories listed in (4) with the exclusion of (4)(G),
(4)(H), and (4)(N).
(6) The term ``Secretary'' means the Secretary of Energy.
(7) The term ``single-purpose research facility'' means any
of the primarily single-purpose entities owned by the
Department or any other organization of the Department
designated by the Secretary.
Subtitle A--Energy Efficiency
SEC. 911. ENERGY EFFICIENCY.
(a) In General.--The following sums are authorized to be appropriated
to the Secretary for energy efficiency and conservation research,
development, demonstration, and commercial application activities,
including activities authorized under this subtitle:
(1) for fiscal year 2004, $616,000,000;
(2) for fiscal year 2005, $695,000,000;
(3) for fiscal year 2006, $772,000,000;
(4) for fiscal year 2007, $865,000,000; and
(5) for fiscal year 2008, $920,000,000.
(b) Allocations.--From amounts authorized under subsection (a), the
following sums are authorized:
(1) For activities under section 912--
(A) for fiscal year 2004, $20,000,000; and
(B) for fiscal year 2005, $30,000,000.
(2) For activities under section 914--
(A) for fiscal year 2004, $4,000,000; and
(B) for each of fiscal years 2005 through 2008,
$7,000,000.
(3) For activities under section 915--
(A) for fiscal year 2004, $20,000,000;
(B) for fiscal year 2005, $25,000,000;
(C) for fiscal year 2006, $30,000,000;
(D) for fiscal year 2007, $35,000,000; and
(E) for fiscal year 2008, $40,000,000.
(c) Extended Authorization.--There are authorized to be appropriated
to the Secretary for activities under section 912, $50,000,000 for each
of fiscal years 2006 through 2013.
(d) None of the funds authorized to be appropriated under this
section may be used for--
(1) the promulgation and implementation of energy efficiency
regulations;
(2) the Weatherization Assistance Program under part A of
title IV of the Energy Conservation and Production Act;
(3) the State Energy Program under part D of title III of the
Energy Policy and Conservation Act; or
(4) the Federal Energy Management Program under part 3 of
title V of the National Energy Conservation Policy Act.
SEC. 912. NEXT GENERATION LIGHTING INITIATIVE.
(a) In General.--The Secretary shall carry out a Next Generation
Lighting Initiative in accordance with this section to support
research, development, demonstration, and commercial application
activities related to advanced solid-state lighting technologies based
on white light emitting diodes.
(b) Objectives.--The objectives of the initiative shall be to develop
advanced solid-state organic and inorganic lighting technologies based
on white light emitting diodes that, compared to incandescent and
fluorescent lighting technologies, are longer lasting; more energy-
efficient; cost-competitive and have less environmental impact.
(c) Industry Alliance.--The Secretary shall, within 3 months from the
date of enactment of this section, competitively select an Industry
Alliance to represent participants who are private, for-profit firms
which, as a group, are broadly representative of United States solid
state lighting research, development, infrastructure, and manufacturing
expertise as a whole.
(d) Research.--
(1) The Secretary shall carry out the research activities of
the Next Generation Lighting Initiative through competitively
awarded grants to researchers, including Industry Alliance
participants, national laboratories and institutions of higher
education.
(2) The Secretary shall annually solicit from the Industry
Alliance--
(A) comments to identify solid-state lighting
technology needs;
(B) assessment of the progress of the Initiative's
research activities; and
(C) assistance in annually updating solid-state
lighting technology roadmaps.
(3) The information and roadmaps under (2) shall be available
to the public.
(e) Development, Demonstration, and Commercial Application.--The
Secretary shall carry out a development, demonstration, and commercial
application program for the Next Generation Lighting Initiative through
competitively selected awards. The Secretary may give preference to
participants of the Industry Alliance selected pursuant to subsection
(c).
(f) Cost Sharing.--The Secretary shall require cost sharing according
to 42 U.S.C. 13542.
(g) Intellectual Property.--The Secretary may require, in accordance
with the authorities provided in 35 U.S.C. 202(a)(ii), 42 U.S.C. 2182
and 42 U.S.C. 5908, that for any new invention from subsection (d)--
(1) that the Industry Alliance members who are active
participants in research, development and demonstration
activities related to the advanced solid-state lighting
technologies that are the subject of this legislation shall be
granted first option to negotiate with the invention owner, at
least in the field of solid-state lighting, non-exclusive
licenses and royalties on terms that are reasonable under the
circumstances;
(2) that the invention owner must offer to negotiate licenses
with the Industry Alliance participants cited in (1), in good
faith, for at least 1 year after U.S. patents are issued on any
such new invention; and
(3) such other terms as the Secretary determines are required
to promote accelerated commercialization of inventions made
under the Initiative.
(h) National Academy Review.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to conduct periodic
reviews of the Next Generation Lighting Initiative.
(i) Definitions.--As used in this section:
(1) The term ``advanced solid-state lighting'' means a
semiconducting device package and delivery system that produces
white light using externally applied voltage.
(2) The term ``research'' includes research on the
technologies, materials and manufacturing processes required
for white light emitting diodes.
(3) The term ``Industry Alliance'' means an entity selected
by the Secretary under subsection (c).
(4) The term ``white light emitting diode'' means a
semiconducting package, utilizing either organic or inorganic
materials, that produces white light using externally applied
voltage.
SEC. 913. NATIONAL BUILDING PERFORMANCE INITIATIVE.
(a) Interagency Group.--Not later than 90 days after the date of
enactment of this Act, the Director of the Office of Science and
Technology Policy shall establish an interagency group to develop, in
coordination with the advisory committee established under subsection
(e), a National Building Performance Initiative (in this section
referred to as the ``Initiative''). The interagency group shall be co-
chaired by appropriate officials of the Department and the Department
of Commerce, who shall jointly arrange for the provision of necessary
administrative support to the group.
(b) Integration of Efforts.--The Initiative shall integrate Federal,
State, and voluntary private sector efforts to reduce the costs of
construction, operation, maintenance, and renovation of commercial,
industrial, institutional, and residential buildings.
(c) Plan.--Not later than 1 year after the date of enactment of this
Act, the interagency group shall submit to Congress a plan for carrying
out the appropriate Federal role in the Initiative. The plan shall
include--
(1) research, development, demonstration, and commercial
application of systems and materials for new construction and
retrofit relating to the building envelope and building system
components; and
(2) the collection, analysis, and dissemination of research
results and other pertinent information on enhancing building
performance to industry, government entities, and the public.
(d) Department of Energy Role.--Within the Federal portion of the
Initiative, the Department shall be the lead agency for all aspects of
building performance related to use and conservation of energy.
(e) Advisory Committee.--The Director of the Office of Science and
Technology Policy shall establish an advisory committee to--
(1) analyze and provide recommendations on potential private
sector roles and participation in the Initiative; and
(2) review and provide recommendations on the plan described
in subsection (c).
(f) Construction.--Nothing in this section provides any Federal
agency with new authority to regulate building performance.
SEC. 914. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.
(a) Definitions.--For purposes of this section:
(1) The term ``battery'' means an energy storage device that
previously has been used to provide motive power in a vehicle
powered in whole or in part by electricity.
(2) The term ``associated equipment'' means equipment located
where the batteries will be used that is necessary to enable
the use of the energy stored in the batteries.
(b) Program.--The Secretary shall establish and conduct a research,
development, demonstration, and commercial application program for the
secondary use of batteries. Such program shall be--
(1) designed to demonstrate the use of batteries in secondary
applications, including utility and commercial power storage
and power quality;
(2) structured to evaluate the performance, including useful
service life and costs, of such batteries in field operations,
and the necessary supporting infrastructure, including reuse
and disposal of batteries; and
(3) coordinated with ongoing secondary battery use programs
at the National Laboratories and in industry.
(c) Solicitation.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall solicit proposals to
demonstrate the secondary use of batteries and associated equipment and
supporting infrastructure in geographic locations throughout the United
States. The Secretary may make additional solicitations for proposals
if the Secretary determines that such solicitations are necessary to
carry out this section.
(d) Selection of Proposals.--
(1) The Secretary shall, not later than 90 days after the
closing date established by the Secretary for receipt of
proposals under subsection (c), select up to 5 proposals which
may receive financial assistance under this section once the
Department is in receipt of appropriated funds.
(2) In selecting proposals, the Secretary shall consider
diversity of battery type, geographic and climatic diversity,
and life-cycle environmental effects of the approaches.
(3) No one project selected under this section shall receive
more than 25 percent of the funds authorized for this Program.
(4) The Secretary shall consider the extent of involvement of
State or local government and other persons in each
demonstration project to optimize use of federal resources.
(5) The Secretary may consider such other criteria as the
Secretary considers appropriate.
(e) Conditions.--The Secretary shall require that--
(1) relevant information be provided to the Department, the
users of the batteries, the proposers, and the battery
manufacturers; and
(2) the proposer provide at least 50 percent of the costs
associated with the proposal.
SEC. 915. ENERGY EFFICIENCY SCIENCE INITIATIVE.
(a) Establishment.--The Secretary shall establish an Energy
Efficiency Science Initiative to be managed by the Assistant Secretary
in the Department with responsibility for energy conservation under
section 203(a)(9) of the Department of Energy Organization Act (42
U.S.C. 7133(a)(9)), in consultation with the Director of the Office of
Science, for grants to be competitively awarded and subject to peer
review for research relating to energy efficiency.
(b) Report.--The Secretary shall submit to the Congress, along with
the President's annual budget request under section 1105(a) of title
31, United States Code, a report on the activities of the Energy
Efficiency Science Initiative, including a description of the process
used to award the funds and an explanation of how the research relates
to energy efficiency.
Subtitle B--Distributed Energy and Electric Energy Systems
SEC. 921. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.
(a) In General.--
(1) The following sums are authorized to be appropriated to
the Secretary for distributed energy and electric energy
systems activities, including activities authorized under this
subtitle:
(A) for fiscal year 2004, $190,000,000;
(B) for fiscal year 2005, $200,000,000;
(C) for fiscal year 2006, $220,000,000;
(D) for fiscal year 2007, $240,000,000; and
(E) for fiscal year 2008, $260,000,000.
(2) For the Initiative in subsection 927(e), there are
authorized to be appropriated--
(A) for fiscal year 2004, $15,000,000;
(B) for fiscal year 2005, $20,000,000;
(C) for fiscal year 2006, $30,000,000;
(D) for fiscal year 2007, $35,000,000; and
(E) for fiscal year 2008, $40,000,000.
(b) Micro-Cogeneration Energy Technology.--From amounts authorized
under subsection (a), $20,000,000 for each of fiscal years 2004 and
2005 shall be available for activities under section 924.
SEC. 922. HYBRID DISTRIBUTED POWER SYSTEMS.
Not later than 1 year after the date of enactment of this Act, the
Secretary shall develop and transmit to the Congress a strategy for a
comprehensive research, development, demonstration, and commercial
application program to develop hybrid distributed power systems that
combine--
(1) one or more renewable electric power generation
technologies of 10 megawatts or less located near the site of
electric energy use; and
(2) nonintermittent electric power generation technologies
suitable for use in a distributed power system.
SEC. 923. HIGH POWER DENSITY INDUSTRY PROGRAM.
The Secretary shall establish a comprehensive research, development,
demonstration, and commercial application program to improve energy
efficiency of high power density facilities, including data centers,
server farms, and telecommunications facilities. Such program shall
consider technologies that provide significant improvement in thermal
controls, metering, load management, peak load reduction, or the
efficient cooling of electronics.
SEC. 924. MICRO-COGENERATION ENERGY TECHNOLOGY.
The Secretary shall make competitive, merit-based grants to consortia
for the development of micro-cogeneration energy technology. The
consortia shall explore the use of small-scale combined heat and power
in residential heating appliances, the use of excess power to operate
other appliances within the residence and supply of excess generated
power to the power grid.
SEC. 925. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION PROGRAM.
The Secretary, within the sums authorized under section 921(a)(1),
may provide financial assistance to coordinating consortia of
interdisciplinary participants for demonstrations designed to
accelerate the utilization of distributed energy technologies, such as
fuel cells, microturbines, reciprocating engines, thermally activated
technologies, and combined heat and power systems, in highly energy
intensive commercial applications.
SEC. 926. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.
(a) Creation of an Office of Electric Transmission and
Distribution.--Title II of the Department of Energy Organization Act is
amended by inserting the following after section 217 (42 U.S.C. 7144d):
``office of electric transmission and distribution
``Sec. 218. (a) There is established within the Department an Office
of Electric Transmission and Distribution. This Office shall be headed
by a Director, who shall be appointed by the Secretary. The Director
shall be compensated at the annual rate prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United States Code.
``(b) The Director shall--
``(1) coordinate and develop a comprehensive, multi-year
strategy to improve the Nation's electricity transmission and
distribution;
``(2) ensure that the recommendations of the Secretary's
National Transmission Grid Study are implemented;
``(3) carry out the research, development, and demonstration
functions;
``(4) grant authorizations for electricity import and export;
``(5) perform other electricity transmission and
distribution-related functions assigned by the Secretary; and
``(6) develop programs for workforce training in power and
transmission engineering.''.
(b) Conforming Amendments.--
(1) The table of contents of the Department of Energy Act is
amended by inserting after the item relating to section 217 the
following new item:
``218. Office of Electric Transmission and Distribution.''.
(2) Section 5315 of title 5, United States Code, is amended
by inserting ``Director, Office of Electric Transmission and
Distribution, Department of Energy.'' after ``Inspector
General, Department of Energy.''.
SEC. 927. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.
(a) Demonstration Program.--The Secretary, acting through the
Director of the Office of Electric Transmission and Distribution, shall
establish a comprehensive research, development, and demonstration
program to ensure the reliability, efficiency, and environmental
integrity of electrical transmission and distribution systems. This
program shall include--
(1) advanced energy and energy storage technologies,
materials, and systems, giving priority to new transmission
technologies, including composite conductor materials and other
technologies that enhance reliability, operational flexibility,
or power-carrying capability;
(2) advanced grid reliability and efficiency technology
development;
(3) technologies contributing to significant load reductions;
(4) advanced metering, load management, and control
technologies;
(5) technologies to enhance existing grid components;
(6) the development and use of high-temperature
superconductors to
(A) enhance the reliability, operational flexibility,
or power-carrying capability of electric transmission
or distribution systems; or
(B) increase the efficiency of electric energy
generation, transmission, distribution, or storage
systems;
(7) integration of power systems, including systems to
deliver high-quality electric power, electric power
reliability, and combined heat and power;
(8) supply of electricity to the power grid by small scale,
distributed and residential-based power generators;
(9) the development and use of advanced grid design,
operation and planning tools;
(10) any other infrastructure technologies, as appropriate;
and
(11) technology transfer and education.
(b) Program Plan.--Not later than 1 year after the date of the
enactment of this legislation, the Secretary, in consultation with
other appropriate Federal agencies, shall prepare and transmit to
Congress a 5-year program plan to guide activities under this section.
In preparing the program plan, the Secretary shall consult with
utilities, energy services providers, manufacturers, institutions of
higher education, other appropriate State and local agencies,
environmental organizations, professional and technical societies, and
any other persons the Secretary considers appropriate.
(c) Implementation.--The Secretary shall consider implementing this
program using a consortium of industry, university and national
laboratory participants.
(d) Report.--Not later than 2 years after the transmittal of the plan
under subsection (b), the Secretary shall transmit a report to Congress
describing the progress made under this section and identifying any
additional resources needed to continue the development and commercial
application of transmission and distribution infrastructure
technologies.
(e) Power Delivery Research Initiative.--The Secretary shall
establish a research, development and demonstration initiative
specifically focused on power delivery utilizing components
incorporating high temperature superconductivity.
(1) Goals of this Initiative shall be to--
(A) establish world-class facilities to develop high
temperature superconductivity power applications in
partnership with manufacturers and utilities;
(B) provide technical leadership for establishing
reliability for high temperature superconductivity
power applications including suitable modeling and
analysis;
(C) facilitate commercial transition toward direct
current power transmission, storage, and use for high
power systems utilizing high temperature
superconductivity; and
(D) facilitate the integration of very low impedance
high temperature superconducting wires and cables in
existing electric networks to improve system
performance, power flow control and reliability.
(2) The Initiative shall include--
(A) feasibility analysis, planning, research, and
design to construct demonstrations of superconducting
links in high power, direct current and controllable
alternating current transmission systems;
(B) public-private partnerships to demonstrate
deployment of high temperature superconducting cable
into testbeds simulating a realistic transmission grid
and under varying transmission conditions, including
actual grid insertions; and
(C) testbeds developed in cooperation with national
laboratories, industries, and universities to
demonstrate these technologies, prepare the
technologies for commercial introduction, and address
cost or performance roadblocks to successful commercial
use.
(g) Transmission and Distribution Grid Planning and Operations
Initiative.--The Secretary shall establish a research, development and
demonstration initiative specifically focused on tools needed to plan,
operate and expand the transmission and distribution grids in the
presence of competitive market mechanisms for energy, load demand,
customer response and ancillary services. Goals of this Initiative
shall be to:
(1) develop and utilize a geographically distributed Center,
consisting of research universities and national laboratories,
with expertise and facilities to develop the underlying theory
and software for power system application, and to assure
commercial development in partnership with software vendors and
utilities;
(2) provide technical leadership in engineering and economic
analysis for reliability and efficiency of power systems
planning and operations in the presence of competitive markets
for electricity;
(3) model, simulate and experiment with new market mechanisms
and operating practices to understand and optimize such new
methods before actual use; and
(4) provide technical support and technology transfer to
electric utilities and other participants in the domestic
electric industry and marketplace.
Subtitle C--Renewable Energy
SEC. 931. RENEWABLE ENERGY.
(a) In General.--The following sums are authorized to be appropriated
to the Secretary for renewable energy research, development,
demonstration, and commercial application activities, including
activities authorized under this subtitle:
(1) for fiscal year 2004, $480,000,000;
(2) for fiscal year 2005, $550,000,000;
(3) for fiscal year 2006, $610,000,000;
(4) for fiscal year 2007, $659,000,000; and
(5) for fiscal year 2008, $710,000,000.
(b) Bioenergy.--From the amounts authorized under subsection (a), the
following sums are authorized to be appropriated to carry out section
932:
(1) for fiscal year 2004, $135,425,000;
(2) for fiscal year 2005, $155,600,000;
(3) for fiscal year 2006, $167,650,000;
(4) for fiscal year 2007, $180,000,000; and
(5) for fiscal year 2008, $192,000,000.
(c) Biodiesel Engine Testing.--From amounts authorized under
subsection (a), $5,000,000 is authorized to be appropriated in each of
fiscal years 2004 and 2008 to carry out section 933.
(d) Concentrating Solar Power.--From amounts authorized under
subsection (a), the following sums are authorized to be appropriated to
carry out section 934:
(1) for fiscal year 2004, $20,000,000;
(2) for fiscal year 2005, $40,000,000; and
(3) for each of fiscal years 2006, 2007 and 2008,
$50,000,000.
(e) Limits on Use of Funds.--
(1) None of the funds authorized to be appropriated under
this section may be used for Renewable Support and
Implementation.
(2) Of the funds authorized under subsection (b), not less
than $5,000,000 for each fiscal year shall be made available
for grants to Historically Black Colleges and Universities,
Tribal Colleges, and Hispanic-Serving Institutions.
(f) Consultation.--In carrying out this section, the Secretary, in
consultation with the Secretary of Agriculture, shall demonstrate the
use of advanced wind power technology, including combined use with coal
gasification; biomass; geothermal energy systems; and other renewable
energy technologies to assist in delivering electricity to rural and
remote locations.
SEC. 932. BIOENERGY PROGRAMS.
(a) In General.--The Secretary shall conduct a program of research,
development, demonstration, and commercial application for bioenergy,
including--
(1) biopower energy systems;
(2) biofuels;
(3) bioproducts;
(4) integrated biorefineries that may produce biopower,
biofuels and bioproducts;
(5) cross-cutting research and development in feedstocks; and
(6) economic analysis.
(b) Biofuels and Bioproducts.--The goals of the biofuels and
bioproducts programs shall be to develop, in partnership with
industry--
(1) advanced biochemical and thermo-chemical conversion
technologies capable of making fuels from cellulosic feedstocks
that are price-competitive with gasoline or diesel in either
internal combustion engines or fuel cell-powered vehicles; and
(2) advanced biotechnology processes capable of making
biofuels and bioproducts with emphasis on development of
biorefinery technologies using enzyme-based processing systems.
(c) Definition.--For purposes of (b), the term ``cellulosic
feedstock'' means any portion of a crop not normally used in food
production or any non-food crop grown for the purpose of producing
biomass feedstock.
SEC. 933. BIODIESEL ENGINE TESTING PROGRAM.
(a) In General.--Not later that 180 days after enactment of this Act,
the Secretary shall initiate a partnership with diesel engine, diesel
fuel injection system, and diesel vehicle manufacturers and diesel and
biodiesel fuel providers to include biodiesel testing in advanced
diesel engine and fuel system technology.
(b) Scope.--The study shall provide for testing to determine the
impact of biodiesel on current and future emission control
technologies, with emphasis on--
(1) the impact of biodiesel on emissions warranty, in-use
liability, and anti-tampering provisions;
(2) the impact of long-term use of biodiesel on engine
operations;
(3) the options for optimizing these technologies for both
emissions and performance when switching between biodiesel and
diesel fuel; and
(4) the impact of using biodiesel in these fueling systems
and engines when used as a blend with 2006 Environmental
Protection Agency-mandated diesel fuel containing a maximum of
15-parts-per-million sulfur content.
(c) Report.--Not later than 2 years after the date of enactment, the
Secretary shall provide an interim report to Congress on the findings
of this study, including a comprehensive analysis of impacts from
biodiesel on engine operation for both existing and expected future
diesel technologies, and recommendations for ensuring optimal emissions
reductions and engine performance with biodiesel.
(d) Definition.--For purposes of this section, the term ``biodiesel''
means a diesel fuel substitute produced from non-petroleum renewable
resources that meets the registration requirements for fuels and fuel
additives established by the Environmental Protection Agency under
section 211 of the Clean Air Act (42 U.S.C. 7545) and that meets the
American Society for Testing and Materials D6751-02a ``Standard
Specification for Biodiesel Fuel (B100) Blend Stock for Distillate
Fuels''.
SEC. 934 CONCENTRATING SOLAR POWER RESEARCH PROGRAM.
(a) In General.--The Secretary shall conduct a program of research
and development to evaluate the potential of concentrating solar power
for hydrogen production, including co-generation approaches for both
hydrogen and electricity. Such program shall take advantage of existing
facilities to the extent possible and shall include--
(1) development of optimized technologies that are common to
both electricity and hydrogen production;
(2) evaluation of thermo-chemical cycles for hydrogen
production at the temperatures attainable with concentrating
solar power;
(3) evaluation of materials issues for the thermo-chemical
cycles in (2);
(4) system architectures and economics studies; and
(5) coordination with activities in the Advanced Reactor
Hydrogen Co-generation Project on high temperature materials,
thermo-chemical cycle and economic issues.
(b) Assessment.--In carrying out the program under this section, the
Secretary is directed to assess conflicting guidance on the economic
potential of concentrating solar power for electricity production
received from the National Research Council report entitled ``Renewable
Power Pathways: A Review of the U.S. Department of Energy's Renewable
Energy Programs'' in 2000 and subsequent DOE-funded reviews of that
report and provide an assessment of the potential impact of this
technology before, or concurrent with, submission of the fiscal year
2006 budget.
(c) Report.--Not later than 5 years after the date of enactment of
this section, the Secretary shall provide a report to Congress on the
economic and technical potential for electricity or hydrogen
production, with or without co-generation, with concentrating solar
power, including the economic and technical feasibility of potential
construction of a pilot demonstration facility suitable for commercial
production of electricity and/or hydrogen from concentrating solar
power.
SEC. 935. MISCELLANEOUS PROJECTS.
The Secretary shall conduct research, development, demonstration, and
commercial application programs for--
(1) ocean energy, including wave energy;
(2) the combined use of renewable energy technologies with
one another and with other energy technologies, including the
combined use of wind power and coal gasification technologies;
and
(3) renewable energy technologies for cogeneration of
hydrogen and electricity.
Subtitle D--Nuclear Energy
SEC. 941. NUCLEAR ENERGY.
(a) Core Programs.--The following sums are authorized to be
appropriated to the Secretary for nuclear energy research, development,
demonstration, and commercial application activities, including
activities authorized under this subtitle, other than those described
in subsection (b):
(1) for fiscal year 2004, $273,000,000;
(2) for fiscal year 2005, $305,000,000;
(3) for fiscal year 2006, $330,000,000;
(4) for fiscal year 2007, $355,000,000; and
(5) for fiscal year 2008, $495,000,000.
(b) Nuclear Infrastructure Support.--The following sums are
authorized to be appropriated to the Secretary for activities under
section 942(f):
(1) for fiscal year 2004, $125,000,000;
(2) for fiscal year 2005, $130,000,000;
(3) for fiscal year 2006, $135,000,000;
(4) for fiscal year 2007, $140,000,000; and
(5) for fiscal year 2008, $145,000,000.
(c) Allocations.--From amounts authorized under subsection (a), the
following sums are authorized:
(1) For activities under section 943--
(A) for fiscal year 2004, $140,000,000;
(B) for fiscal year 2005, $145,000,000;
(C) for fiscal year 2006, $150,000,000;
(D) for fiscal year 2007, $155,000,000; and
(E) for fiscal year 2008, $275,000,000.
(2) For activities under section 944--
(A) for fiscal year 2004, $33,000,000;
(B) for fiscal year 2005, $37,900,000;
(C) for fiscal year 2006, $43,600,000;
(D) for fiscal year 2007, $50,100,000; and
(E) for fiscal year 2008, $56,000,000.
(3) For activities under section 946, for each of fiscal
years 2004 through 2008, $6,000,000.
(d) None of the funds authorized under this section may be used for
decommissioning the Fast Flux Test Facility.
SEC. 942. NUCLEAR ENERGY RESEARCH PROGRAMS.
(a) Nuclear Energy Research Initiative.--The Secretary shall carry
out a Nuclear Energy Research Initiative for research and development
related to nuclear energy.
(b) Nuclear Energy Plant Optimization Program.--The Secretary shall
carry out a Nuclear Energy Plant Optimization Program to support
research and development activities addressing reliability,
availability, productivity, component aging, safety and security of
existing nuclear power plants.
(c) Nuclear Power 2010 Program.--The Secretary shall carry out a
Nuclear Power 2010 Program, consistent with recommendations in the
October 2001 report entitled ``A Roadmap to Deploy New Nuclear Power
Plants in the United States by 2010'' issued by the Nuclear Energy
Research Advisory Committee of the Department. The Program shall
include--
(1) utilization of the expertise and capabilities of
industry, universities, and National Laboratories in evaluation
of advanced nuclear fuel cycles and fuels testing;
(2) consideration of a variety of reactor designs suitable
for both developed and developing nations;
(3) participation of international collaborators in research,
development, and design efforts as appropriate; and
(4) encouragement for university and industry participation.
(d) Generation IV Nuclear Energy Systems Initiative.--The Secretary
shall carry out a Generation IV Nuclear Energy Systems Initiative to
develop an overall technology plan and to support research and
development necessary to make an informed technical decision about the
most promising candidates for eventual commercial application. The
Initiative shall examine advanced proliferation-resistant and passively
safe reactor designs, including designs that--
(1) are economically competitive with other electric power
generation plants;
(2) have higher efficiency, lower cost, and improved safety
compared to reactors in operation on the date of enactment of
this Act;
(3) use fuels that are proliferation resistant and have
substantially reduced production of high-level waste per unit
of output; and
(4) use improved instrumentation.
(e) Reactor Production of Hydrogen.--The Secretary shall carry out
research to examine designs for high-temperature reactors capable of
producing large-scale quantities of hydrogen using thermo-chemical
processes.
(f) Nuclear Infrastructure Support.--The Secretary shall develop and
implement a strategy for the facilities of the Office of Nuclear
Energy, Science, and Technology and shall transmit a report containing
the strategy along with the President's budget request to the Congress
for fiscal year 2006. Such strategy shall provide a cost-effective
means for--
(1) maintaining existing facilities and infrastructure, as
needed;
(2) closing unneeded facilities;
(3) making facility upgrades and modifications; and
(4) building new facilities.
SEC. 943. ADVANCED FUEL CYCLE INITIATIVE.
(a) In General.--The Secretary, through the Director of the Office of
Nuclear Energy, Science and Technology, shall conduct an advanced fuel
recycling technology research and development program to evaluate
proliferation-resistant fuel recycling and transmutation technologies
which minimize environmental or public health and safety impacts as an
alternative to aqueous reprocessing technologies deployed as of the
date of enactment of this Act in support of evaluation of alternative
national strategies for spent nuclear fuel and the Generation IV
advanced reactor concepts, subject to annual review by the Secretary's
Nuclear Energy Research Advisory Committee or other independent entity,
as appropriate. Opportunities to enhance progress of this program
through international cooperation should be sought.
(b) Reports.--The Secretary shall report on the activities of the
advanced fuel recycling technology research and development program as
part of the Department's annual budget submission.
SEC. 944. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.
(a) Establishment.--The Secretary shall support a program to invest
in human resources and infrastructure in the nuclear sciences and
engineering and related fields (including health physics and nuclear
and radiochemistry), consistent with departmental missions related to
civilian nuclear research and development.
(b) Duties.--In carrying out the program under this section, the
Secretary shall establish fellowship and faculty assistance programs,
as well as provide support for fundamental research and encourage
collaborative research among industry, national laboratories, and
universities through the Nuclear Energy Research Initiative. The
Secretary is encouraged to support activities addressing the entire
fuel cycle through involvement of both the Offices of Nuclear Energy,
Science and Technology and Civilian Radioactive Waste Management. The
Secretary shall support communication and outreach related to nuclear
science, engineering and nuclear waste management.
(c) Maintaining University Research and Training Reactors and
Associated Infrastructure.--Activities under this section may include--
(1) converting research reactors currently using high-
enrichment fuels to low-enrichment fuels, upgrading operational
instrumentation, and sharing of reactors among institutions of
higher education;
(2) providing technical assistance, in collaboration with the
United States nuclear industry, in relicensing and upgrading
training reactors as part of a student training program; and
(3) providing funding for reactor improvements as part of a
focused effort that emphasizes research, training, and
education.
(d) University-National Laboratory Interactions.--The Secretary shall
develop sabbatical fellowship and visiting scientist programs to
encourage sharing of personnel between national laboratories and
universities.
(e) Operating and Maintenance Costs.--Funding for a research project
provided under this section may be used to offset a portion of the
operating and maintenance costs of a research reactor at an institution
of higher education used in the research project.
SEC. 945. SECURITY OF NUCLEAR FACILITIES.
The Secretary, through the Director of the Office of Nuclear Energy,
Science and Technology shall conduct a research and development program
on cost-effective technologies for increasing the safety of nuclear
facilities from natural phenomena and the security of nuclear
facilities from deliberate attacks.
SEC. 946. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.
(a) Survey.--Not later than August 1, 2004, the Secretary shall
provide to the Congress results of a survey of industrial applications
of large radioactive sources. The survey shall--
(1) consider well-logging sources as one class of industrial
sources;
(2) include information on current domestic and international
Department, Department of Defense, State Department and
commercial programs to manage and dispose of radioactive
sources; and
(3) discuss available disposal options for currently deployed
or future sources and, if deficiencies are noted for either
deployed or future sources, recommend legislative options that
Congress may consider to remedy identified deficiencies.
(b) Plan.--In conjunction with the survey in subsection (a), the
Secretary shall establish a research and development program to develop
alternatives to such sources that reduce safety, environmental, or
proliferation risks to either workers using the sources or the public.
Miniaturized particle accelerators for well-logging or other industrial
applications and portable accelerators for production of short-lived
radioactive materials at an industrial site shall be considered as part
of the research and development efforts. Details of the program plan
shall be provided to the Congress by August 1, 2004.
Subtitle E--Fossil Energy
SEC. 951. FOSSIL ENERGY.
(a) In General.--The following sums are authorized to be appropriated
to the Secretary for fossil energy research, development,
demonstration, and commercial application activities, including
activities authorized under this subtitle:
(1) for fiscal year 2004, $523,000,000;
(2) for fiscal year 2005, $542,000,000;
(3) for fiscal year 2006, $558,000,000;
(4) for fiscal year 2007, $585,000,000; and
(5) for fiscal year 2008, $600,000,000.
(b) Allocations.--From amounts authorized under subsection (a), the
following sums are authorized:
(1) For activities under section 952(b)(2), $28,000,000 for
each of the fiscal years 2004 through 2008.
(2) For activities under section 953--
(A) for fiscal year 2004, $12,000,000;
(B) for fiscal year 2005, $15,000,000; and
(C) for each of fiscal years 2006 through 2008,
$20,000,000.
(3) For activities under section 954, to remain available
until expended--
(A) for fiscal year 2004, $200,000,000;
(B) for fiscal year 2005, $210,000,000; and
(C) for fiscal year 2006, $220,500,000.
(4) For the Office of Arctic Energy under section 3197 of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 (Public Law 106-398), $25,000,000 for each of fiscal
years 2004 through 2008.
(c) Extended Authorization.--There are authorized to be appropriated
to the Secretary for the Office of Arctic Energy under section 3197 of
the Floyd D. Spence National Defense Authorization Act for Fiscal Year
2001 (Public Law 106-398), $25,000,000 for each of fiscal years 2009
through 2012.
(d) Limits on Use of Funds.--
(1) None of the funds authorized under this section may be
used for Fossil Energy Environmental Restoration or Import/
Export Authorization.
(2) Of the funds authorized under subsection (b)(2), not less
than 20 percent of the funds appropriated for each fiscal year
shall be dedicated to research and development carried out at
institutions of higher education.
SEC. 952. OIL AND GAS RESEARCH PROGRAMS.
(a) Oil and Gas Research.--The Secretary shall conduct a program of
research, development, demonstration, and commercial application on oil
and gas, including--
(1) exploration and production;
(2) gas hydrates;
(3) reservoir life and extension;
(4) transportation and distribution infrastructure;
(5) ultraclean fuels;
(6) heavy oil and oil shale; and
(7) related environmental research.
(b) Fuel Cells.--
(1) The Secretary shall conduct a program of research,
development, demonstration, and commercial application on fuel
cells for low-cost, high-efficiency, fuel-flexible, modular
power systems.
(2) The demonstrations shall include fuel cell proton
exchange membrane technology for commercial, residential, and
transportation applications, and distributed generation
systems, utilizing improved manufacturing production and
processes.
(c) Natural Gas and Oil Deposits Report.--Not later than 2 years
after the date of the enactment of this Act, and every 2 years
thereafter, the Secretary of the Interior, in consultation with other
appropriate Federal agencies, shall transmit a report to the Congress
of the latest estimates of natural gas and oil reserves, reserves
growth, and undiscovered resources in Federal and State waters off the
coast of Louisiana and Texas.
(d) Integrated Clean Power and Energy Research.--
(1) The Secretary shall establish a national center or
consortium of excellence in clean energy and power generation,
utilizing the resources of the existing Clean Power and Energy
Research Consortium, to address the nation's critical
dependence on energy and the need to reduce emissions.
(2) The center or consortium will conduct a program of
research, development, demonstration and commercial application
on integrating the following six focus areas:
(A) efficiency and reliability of gas turbines for
power generation;
(B) reduction in emissions from power generation;
(C) promotion of energy conservation issues;
(D) effectively utilizing alternative fuels and
renewable energy;
(E) development of advanced materials technology for
oil and gas exploration and utilization in harsh
environments; and
(F) education on energy and power generation issues.
SEC. 953. RESEARCH AND DEVELOPMENT FOR COAL MINING TECHNOLOGIES.
(a) Establishment.--The Secretary shall carry out a program of
research and development on coal mining technologies. The Secretary
shall cooperate with appropriate Federal agencies, coal producers,
trade associations, equipment manufacturers, institutions of higher
education with mining engineering departments, and other relevant
entities.
(b) Program.--The research and development activities carried out
under this section shall--
(1) be guided by the mining research and development
priorities identified by the Mining Industry of the Future
Program and in the recommendations from relevant reports of the
National Academy of Sciences on mining technologies;
(2) include activities exploring minimization of contaminants
in mined coal that contribute to environmental concerns
including development and demonstration of electromagnetic wave
imaging ahead of mining operations;
(3) develop and demonstrate coal bed electromagnetic wave
imaging and radar techniques for horizontal drilling in order
to increase methane recovery efficiency, prevent spoilage of
domestic coal reserves and minimize water disposal associated
with methane extraction; and
(4) expand mining research capabilities at institutions of
higher education.
SEC. 954. COAL AND RELATED TECHNOLOGIES PROGRAM.
(a) In General.--In addition to the program authorized under Title II
of this Act, the Secretary of Energy shall conduct a program of
technology research, development and demonstration and commercial
application for coal and power systems, including programs to
facilitate production and generation of coal-based power through--
(1) innovations for existing plants;
(2) integrated gasification combined cycle;
(3) advanced combustion systems;
(4) turbines for synthesis gas derived from coal;
(5) carbon capture and sequestration research and
development;
(6) coal-derived transportation fuels and chemicals;
(7) solid fuels and feedstocks; and
(8) advanced coal-related research.
(b) Cost and Performance Goals.--In carrying out programs authorized
by this section, the Secretary shall identify cost and performance
goals for coal-based technologies that would permit the continued cost-
competitive use of coal for electricity generation, as chemical
feedstocks, and as transportation fuel in 2007, 2015, and the years
after 2020. In establishing such cost and performance goals, the
Secretary shall--
(1) consider activities and studies undertaken to date by
industry in cooperation with the Department of Energy in
support of such assessment;
(2) consult with interested entities, including coal
producers, industries using coal, organizations to promote coal
and advanced coal technologies, environmental organizations and
organizations representing workers;
(3) not later than 120 days after the date of enactment of
this section, publish in the Federal Register proposed draft
cost and performance goals for public comments; and
(4) not later than 180 days after the date of enactment of
this section and every four years thereafter, submit to
Congress a report describing final cost and performance goals
for such technologies that includes a list of technical
milestones as well as an explanation of how programs authorized
in this section will not duplicate the activities authorized
under the Clean Coal Power Initiative authorized under Title II
of this Act.
SEC. 955. COMPLEX WELL TECHNOLOGY TESTING FACILITY.
The Secretary of Energy, in coordination with industry leaders in
extended research drilling technology, shall establish a Complex Well
Technology Testing Facility at the Rocky Mountain Oilfield Testing
Center to increase the range of extended drilling technologies.
Subtitle F--Science
SEC. 961. SCIENCE.
(a) In General.--The following sums are authorized to be appropriated
to the Secretary for research, development, demonstration, and
commercial application activities of the Office of Science, including
activities authorized under this subtitle, including the amounts
authorized under the amendment made by section 967(c)(2)(D), and
including basic energy sciences, advanced scientific and computing
research, biological and environmental research, fusion energy
sciences, high energy physics, nuclear physics, and research analysis
and infrastructure support:
(1) for fiscal year 2004, $3,785,000,000;
(2) for fiscal year 2005, $4,153,000,000;
(3) for fiscal year 2006, $4,586,000,000;
(4) for fiscal year 2007, $5,000,000,000; and
(5) for fiscal year 2008, $5,400,000,000.
(b) Allocations.--From amounts authorized under subsection (a), the
following sums are authorized:
(1) For activities of the Fusion Energy Sciences Program,
including activities under section 962--
(A) for fiscal year 2004, $335,000,000;
(B) for fiscal year 2005, $349,000,000;
(C) for fiscal year 2006, $362,000,000;
(D) for fiscal year 2007, $377,000,000; and
(E) for fiscal year 2008, $393,000,000.
(2) For the Spallation Neutron Source--
(A) for construction in fiscal year 2004,
$124,600,000;
(B) for construction in fiscal year 2005,
$79,800,000;
(C) for completion of construction in fiscal year
2006, $41,100,000; and
(D) for other project costs (including research and
development necessary to complete the project,
preoperations costs, and capital equipment related to
construction), $103,279,000 for the period encompassing
fiscal years 2003 through 2006, to remain available
until expended through September 30, 2006.
(3) For Catalysis Research activities under section 965--
(A) for fiscal year 2004, $33,000,000;
(B) for fiscal year 2005, $35,000,000;
(C) for fiscal year 2006, $36,500,000;
(D) for fiscal year 2007, $38,200,000; and
(E) for fiscal year 2008, $40,100,000.
(4) For Nanoscale Science and Engineering Research activities
under section 966--
(A) for fiscal year 2004, $270,000,000;
(B) for fiscal year 2005, $290,000,000;
(C) for fiscal year 2006, $310,000,000;
(D) for fiscal year 2007, $330,000,000; and
(E) for fiscal year 2008, $375,000,000.
(5) For activities under subsection 966(c), from the amounts
authorized under subparagraph (4)--
(A) for fiscal year 2004, $135,000,000;
(B) for fiscal year 2005, $150,000,000;
(C) for fiscal year 2006, $120,000,000;
(D) for fiscal year 2007, $100,000,000; and
(E) for fiscal year 2008, $125,000,000.
(6) For activities in the Genomes to Life Program under
section 968--
(A) for fiscal year 2004, $100,000,000;
(B) for fiscal year 2005, $170,000,000;
(C) for fiscal year 2006, $325,000,000;
(D) for fiscal year 2007, $415,000,000; and
(E) for fiscal year 2008, $455,000,000.
(7) For construction and ancillary equipment of the Genomes
to Life User Facilities under section 968(d), of funds
authorized under (6)--
(A) for fiscal year 2004, $16,000,000;
(B) for fiscal year 2005, $70,000,000;
(C) for fiscal year 2006, $175,000,000;
(D) for fiscal year 2007, $215,000,000; and
(E) for fiscal year 2008, $205,000,000.
(8) For activities in the Water Supply Technologies Program
under section 970, $30,000,000 for each of fiscal years 2004
through 2008.
(c) In addition to the funds authorized under subsection (b)(1), the
following sums are authorized for construction costs associated with
the ITER project under section 962--
(1) for fiscal year 2006, $55,000,000;
(2) for fiscal year 2007, $95,000,000; and
(3) for fiscal year 2008, $115,000,000.
SEC. 962. UNITED STATES PARTICIPATION IN ITER.
(a) Participation.--
(1) The Secretary of Energy is authorized to undertake full
scientific and technological cooperation in the International
Thermonuclear Experimental Reactor project (referred to in this
title as ``ITER'').
(2) In the event that ITER fails to go forward within a
reasonable period of time, the Secretary shall send to Congress
a plan, including costs and schedules, for implementing the
domestic burning plasma experiment known as the Fusion Ignition
Research Expriment. Such a plan shall be developed with full
consultation with the Fusion Energy Sciences Advisory Committee
and be reviewed by the National Research Council.
(3) It is the intent of Congress that such sums shall be
largely for work performed in the United States and that such
work contributes the maximum amount possible to the U.S.
scientific and technological base.
(b) Planning.--
(1) Not later than 180 days of the date of enactment of this
act, the Secretary shall present to Congress a plan, with
proposed cost estimates, budgets and potential international
partners, for the implementation of the goals of this section.
The plan shall ensure that--
(A) existing fusion research facilities are more
fully utilized;
(B) fusion science, technology, theory, advanced
computation, modeling and simulation are strengthened;
(C) new magnetic and inertial fusion research
facilities are selected based on scientific innovation,
cost effectiveness, and their potential to advance the
goal of practical fusion energy at the earliest date
possible, and those that are selected are funded at a
cost-effective rate;
(D) communication of scientific results and methods
between the fusion energy science community and the
broader scientific and technology communities is
improved;
(E) inertial confinement fusion facilities are
utilized to the extent practicable for the purpose of
inertial fusion energy research and development; and
(F) attractive alternative inertial and magnetic
fusion energy approaches are more fully explored.
(2) Such plan shall also address the status of and, to the
degree possible, costs and schedules for--
(A) in coordination with the program in section 969,
the design and implementation of international or
national facilities for the testing of fusion
materials; and
(B) the design and implementation of international or
national facilities for the testing and development of
key fusion technologies.
SEC. 963. SPALLATION NEUTRON SOURCE.
(a) Definition.--For the purposes of this section, the term
``Spallation Neutron Source'' means Department Project 9909E 09334, Oak
Ridge National Laboratory, Oak Ridge, Tennessee.
(b) Report.--The Secretary shall report on the Spallation Neutron
Source as part of the Department's annual budget submission, including
a description of the achievement of milestones, a comparison of actual
costs to estimated costs, and any changes in estimated project costs or
schedule.
(c) Authorization of Appropriations.--The total amount obligated by
the Department, including prior year appropriations, for the Spallation
Neutron Source may not exceed--
(1) $1,192,700,000 for costs of construction;
(2) $219,000,000 for other project costs; and
(3) $1,411,700,000 for total project cost.
SEC. 964. SUPPORT FOR SCIENCE AND ENERGY FACILITIES AND INFRASTRUCTURE.
(a) Facility and Infrastructure Policy.--The Secretary shall develop
and implement a strategy for facilities and infrastructure supported
primarily from the Office of Science, the Office of Energy Efficiency
and Renewable Energy, the Office of Fossil Energy, or the Office of
Nuclear Energy, Science and Technology Programs at all national
laboratories and single-purpose research facilities. Such strategy
shall provide cost-effective means for--
(1) maintaining existing facilities and infrastructure, as
needed;
(2) closing unneeded facilities;
(3) making facility modifications; and
(4) building new facilities.
(b) Report.--
(1) The Secretary shall prepare and transmit, along with the
President's budget request to the Congress for fiscal year
2006, a report containing the strategy developed under
subsection (a).
(2) For each national laboratory and single-purpose research
facility, for the facilities primarily used for science and
energy research, such report shall contain--
(A) the current priority list of proposed facilities
and infrastructure projects, including cost and
schedule requirements;
(B) a current ten-year plan that demonstrates the
reconfiguration of its facilities and infrastructure to
meet its missions and to address its long-term
operational costs and return on investment;
(C) the total current budget for all facilities and
infrastructure funding; and
(D) the current status of each facility and
infrastructure project compared to the original
baseline cost, schedule, and scope.
SEC. 965. CATALYSIS RESEARCH PROGRAM.
(A) establishment.--The Secretary, through the Office of Science,
shall support a program of research and development in catalysis
science consistent with the Department's statutory authorities related
to research and development. The program shall include efforts to--
(1) enable catalyst design using combinations of experimental
and mechanistic methodologies coupled with computational
modeling of catalytic reactions at the molecular level;
(2) develop techniques for high throughput synthesis, assay,
and characterization at nanometer and sub-nanometer scales in
situ under actual operating conditions,
(3) synthesize catalysts with specific site architectures;
(4) conduct research on the use of precious metals for
catalysis; and
(5) translate molecular understanding to the design of
catalytic compounds.
(b) Duties of the Office of Science.--In carrying out this program,
the Director of the Office of Science shall--
(1) support both individual investigators and
multidisciplinary teams of investigators to pioneer new
approaches in catalytic design;
(2) develop, plan, construct, acquire, share, or operate
special equipment or facilities for the use of investigators in
collaboration with national user facilities such as nanoscience
and engineering centers;
(3) support technology transfer activities to benefit
industry and other users of catalysis science and engineering;
and
(4) coordinate research and development activities with
industry and other federal agencies.
(c) Triennial Assessment.--The National Academy of Sciences shall
review the catalysis program every three years to report on gains made
in the fundamental science of catalysis and its progress towards
developing new fuels for energy production and material fabrication
processes.
SEC. 966. NANOSCALE SCIENCE AND ENGINEERING RESEARCH.
(a) Establishment.--The Secretary, acting through the Office of
Science, shall support a program of research, development,
demonstration, and commercial application in nanoscience and
nanoengineering. The program shall include efforts to further the
understanding of the chemistry, physics, materials science, and
engineering of phenomena on the scale of nanometers and to apply this
knowledge to the Department's mission areas.
(b) Duties of the Office of Science.--In carrying out the program
under this section, the Office of Science shall--
(1) support both individual investigators and teams of
investigators, including multidisciplinary teams;
(2) carry out activities under subsection (c);
(3) support technology transfer activities to benefit
industry and other users of nanoscience and nanoengineering;
and
(4) coordinate research and development activities with other
DOE programs, industry and other Federal agencies.
(c) Nanoscience and Nanoengineering Research Centers and Major
Instrumentation.--
(1) The Secretary shall carry out projects to develop, plan,
construct, acquire, operate, or support special equipment,
instrumentation, or facilities for investigators conducting
research and development in nanoscience and nanoengineering.
(2) Projects under paragraph (1) may include the measurement
of properties at the scale of nanometers, manipulation at such
scales, and the integration of technologies based on
nanoscience or nanoengineering into bulk materials or other
technologies.
(3) Facilities under paragraph (1) may include electron
microcharacterization facilities, microlithography facilities,
scanning probe facilities, and related instrumentation.
(4) The Secretary shall encourage collaborations among DOE
programs, institutions of higher education, laboratories, and
industry at facilities under this subsection.
SEC. 967. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.
(a) In General.--The Secretary, acting through the Office of Science,
shall support a program to advance the Nation's computing capability
across a diverse set of grand challenge, computationally based, science
problems related to departmental missions.
(b) Duties of the Office of Science.--In carrying out the program
under this section, the Office of Science shall--
(1) advance basic science through computation by developing
software to solve grand challenge science problems on new
generations of computing platforms in collaboration with other
DOE program offices;
(2) enhance the foundations for scientific computing by
developing the basic mathematical and computing systems
software needed to take full advantage of the computing
capabilities of computers with peak speeds of 100 teraflops or
more, some of which may be unique to the scientific problem of
interest;
(3) enhance national collaboratory and networking
capabilities by developing software to integrate geographically
separated researchers into effective research teams and to
facilitate access to and movement and analysis of large
(petabyte) data sets;
(4) maintain a robust scientific computing hardware
infrastructure to ensure that the computing resources needed to
address departmental missions are available; and
(5) explore new computing approaches and technologies that
promise to advance scientific computing including developments
in quantum computing.
(c) High-Performance Computing Act of 1991 Amendments.--The High-
Performance Computing Act of 1991 is amended--
(1) in section 4 (15 U.S.C. 5503)--
(A) in paragraph (3) by striking ``means'' and
inserting ``and `networking and information technology'
mean'', and by striking ``(including vector
supercomputers and large scale parallel systems)''; and
(B) in paragraph (4), by striking ``packet
switched''.
(2) in section 203 (15 U.S.C. 5523)--
(A) in subsection (a), by striking all after ``As
part of the'' and inserting--
``Networking and Information Technology Research and
Development Program, the Secretary of Energy shall
conduct basic and applied research in networking and
information technology, with emphasis on supporting
fundamental research in the physical sciences and
engineering, and energy applications; providing
supercomputer access and advanced communication
capabilities and facilities to scientific researchers;
and developing tools for distributed scientific
collaboration.'';
(B) in subsection (b), by striking ``Program'' and
inserting ``Networking and Information Technology
Research and Development Program''; and
(C) by amending subsection (e) to read as follows:
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy to carry out the Networking and
Information Technology Research and Development Program such sums as
may be necessary for fiscal years 2004 through 2008.''.
(d) Coordination.--The Secretary shall ensure that the program under
this section is integrated and consistent with--
(1) the Accelerated Strategic Computing Initiative of the
National Nuclear Security Administration; and
(2) other national efforts related to advanced scientific
computing for science and engineering.
SEC. 968. GENOMES TO LIFE PROGRAM.
(a) Establishment.--The Secretary shall carry out a program of
research, development, demonstration, and commercial application, to be
known as the Genomes to Life Program, in systems biology and proteomics
consistent with the Department's statutory authorities.
(b) Planning.--
(1) The Secretary shall prepare a program plan describing how
knowledge and capabilities would be developed by the program
and applied to Department missions relating to energy security,
environmental cleanup, and national security.
(2) The program plan will be developed in consultation with
other relevant Department technology programs.
(3) The program plan shall focus science and technology on
long-term goals, including--
(A) contributing to U.S. independence from foreign
energy sources, including production of hydrogen;
(B) converting carbon dioxide to organic carbon;
(C) advancing environmental cleanup;
(D) providing the science and technology for new
biotechnology industries; and
(E) improving national security and combating
bioterrorism.
(4) The program plan shall establish specific short-term
goals and update these goals with the Secretary's annual budget
submission.
(c) Program Execution.--In carrying out the program under this Act,
the Secretary shall--
(1) support individual investigators and multidisciplinary
teams of investigators;
(2) subject to subsection (d), develop, plan, construct,
acquire, or operate special equipment or facilities for the use
of investigators conducting research, development,
demonstration, or commercial application in systems biology and
proteomics;
(3) support technology transfer activities to benefit
industry and other users of systems biology and proteomics; and
(4) coordinate activities by the Department with industry and
other federal agencies.
(d) Genomes to Life User Facilities and Ancillary Equipment.--
(1) Within the funds authorized to be appropriated pursuant
to this Act, the amounts specified under section 961(b)(7)
shall, subject to appropriations, be available for projects to
develop, plan, construct, acquire, or operate special
equipment, instrumentation, or facilities for investigators
conducting research, development, demonstration, and commercial
application in systems biology and proteomics and associated
biological disciplines.
(2) Projects under paragraph (1) may include--
(A) the identification and characterization of
multiprotein complexes;
(B) characterization of gene regulatory networks;
(C) characterization of the functional repertoire of
complex microbial communities in their natural
environments at the molecular level; and
(D) development of computational methods and
capabilities to advance understanding of complex
biological systems and predict their behavior.
(3) Facilities under paragraph (1) may include facilities,
equipment, or instrumentation for--
(A) the production and characterization of proteins;
(B) whole proteome analysis;
(C) characterization and imaging of molecular
machines; and
(D) analysis and modeling of cellular systems.
(4) The Secretary shall encourage collaborations among
universities, laboratories and industry at facilities under
this subsection. All facilities under this subsection shall
have a specific mission of technology transfer to other
institutions.
SEC. 969. FISSION AND FUSION ENERGY MATERIALS RESEARCH PROGRAM.
In the President's fiscal year 2006 budget request, the Secretary
shall establish a research and development program on material science
issues presented by advanced fission reactors and the Department's
fusion energy program. The program shall develop a catalog of material
properties required for these applications, develop theoretical models
for materials possessing the required properties, benchmark models
against existing data, and develop a roadmap to guide further research
and development in this area.
SEC. 970. ENERGY-WATER SUPPLY TECHNOLOGIES PROGRAM.
(a) Establishment.--There is established within the Office of
Science, Office of Biological and Environmental Research, the ``Energy-
Water Supply Technologies Program,'' to study energy-related issues
associated with water resources and municipal waterworks and to study
water supply issues related to energy production.
(b) Definitions.--
(1) The term ``Foundation'' means the American Water Works
Association Research Foundation.
(2) The term ``Indian tribe'' has the meaning given the term
in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b).
(3) The term ``Program'' means the Water Supply Technologies
Program established by section 970(a).
(c) Program Areas.--The program shall conduct research and
development, including--
(1) arsenic removal under subsection (d);
(2) desalination research program under subsection (e);
(3) the water and energy sustainability program under
subsection (f); and
(4) other energy-intensive water supply and treatment
technologies and other technologies selected by the Secretary.
(d) Arsenic Removal Program.--
(1) As soon as practicable after the date of enactment of
this Act, the Secretary shall enter into a contract with the
Foundation to utilize the facilities, institutions and
relationships established in the ``Consolidated Appropriations
Resolution, 2003'' as described in Senate Report 107-220 that
will carry out a research program to develop and demonstrate
innovative arsenic removal technologies.
(2) In carrying out the arsenic removal program, the
Foundation shall, to the maximum extent practicable, conduct
research on means of--
(A) reducing energy costs incurred in using arsenic
removal technologies;
(B) minimizing materials, operating, and maintenance
costs incurred in using arsenic removal technologies;
and
(C) minimizing any quantities of waste (especially
hazardous waste) that result from use of arsenic
removal technologies.
(3) The Foundation shall carry out peer-reviewed research and
demonstration projects to develop and demonstrate water
purification technologies.
(4) In carrying out the arsenic removal program--
(A) demonstration projects will be implemented with
municipal water system partners to demonstrate the
applicability of innovative arsenic removal
technologies in areas with different water chemistries
representative of areas across the United States with
arsenic levels near or exceeding EPA guidelines; and
(B) not less than 40 percent of the funds of the
Department used for demonstration projects under the
arsenic removal program shall be expended on projects
focused on needs of and in partnership with rural
communities or Indian tribes.
(5) The Foundation shall develop evaluations of cost
effectiveness of arsenic removal technologies used in the
program and an education, training, and technology transfer
component for the program.
(6) The Secretary shall consult with the Administrator of the
Environmental Protection Agency to ensure that activities under
the arsenic removal program are coordinated with appropriate
programs of the Environmental Protection Agency and other
federal agencies, state programs and academia.
(7) Not later than 1 year after the date of commencement of
the arsenic removal program, and annually thereafter, the
Secretary shall submit to Congress a report on the results of
the arsenic removal program.
(e) Desalination Program.--
(1) The Secretary, in cooperation with the Commissioner of
Reclamation, shall carry out a desalination research program in
accordance with the desalination technology progress plan
developed in Title II of the Energy and Water Development
Appropriations Act, 2002 (115 Stat. 498), and described in
Senate Report 107-39 under the heading ``WATER AND RELATED
RESOURCES'' in the ``BUREAU OF RECLAMATION'' section.
(2) The desalination program shall--
(A) draw on the national laboratory partnership
established with the Bureau of Reclamation to develop
the January 2003 national Desalination and Water
Purification Technology Roadmap for next-generation
desalination technology;
(B) focus on research relating to, and development
and demonstration of, technologies that are appropriate
for use in desalinating brackish groundwater,
wastewater and other saline water supplies; disposal of
residual brine or salt; and
(C) consider the use of renewable energy sources.
(3) Under the desalination program, funds made available may
be used for construction projects, including completion of the
National Desalination Research Center for brackish groundwater
and ongoing facility operational costs.
(4) The Secretary and the Commissioner of Reclamation shall
jointly establish a steering committee for the desalination
program. The steering committee shall be jointly chaired by 1
representative from this Program and 1 representative from the
Bureau of Reclamation.
(f) Water and Energy Sustainability Program.--
(1) The Secretary shall carry out a research program to
develop understanding and technologies to assist in ensuring
that sufficient quantities of water are available to meet
present and future requirements.
(2) Under this program and in collaboration with other
programs within the Department including those within the
Offices of Fossil Energy and Energy Efficiency and Renewable
Energy, the Secretary of the Interior, Army Corps of Engineers,
Environmental Protection Agency, Department of Commerce,
Department of Defense, state agencies, non-governmental
agencies and academia, the Secretary shall assess the current
state of knowledge and program activities concerning--
(A) future water resources needed to support energy
production within the United States including but not
limited to the water needs for hydropower and thermo-
electric power generation;
(B) future energy resources needed to support
development of water purification and treatment
including desalination and long-distance water
conveyance;
(C) reuse and treatment of water produced as a by-
product of oil and gas extraction;
(D) use of impaired and non-traditional water
supplies for energy production and other uses; and
(E) technologies to reduce water use in energy
production.
(3) In addition to the assessments in (2), the Secretary
shall--
(A) develop a research plan defining the scientific
and technology development needs and activities
required to support long-term water needs and planning
for energy sustainability, use of impaired water for
energy production and other uses, and reduction of
water use in energy production;
(B) carry out the research plan required under (A)
including development of numerical models, decision
analysis tools, economic analysis tools, databases,
planning methodologies and strategies;
(C) implement at least three planning demonstration
projects using the models, tools and planning
approaches developed under subparagraph (B) and assess
the viability of these tools at the scale of river
basins with at least one demonstration involving an
international border; and
(D) transfer these tools to other federal agencies,
state agencies, non-profit organizations, industry and
academia for use in their energy and water
sustainability efforts.
(4) Not later than 1 year after the date of enactment of this
Act, the Secretary shall submit to Congress a report on the
water and energy sustainability program that describes the
research elements described under paragraph (2), and makes
recommendations for a management structure that optimizes use
of Federal resources and programs.
(g) Cost Sharing.--
(1) Research projects under this section shall not require
cost-sharing.
(2) Each demonstration project carried out under the Program
shall be carried out on a cost-shared basis, as determined by
the Secretary.
(3) With respect to a demonstration project, the Secretary
may accept in-kind contributions, and waive the cost-sharing
requirement in appropriate circumstances.
Subtitle G--Energy and Environment
SEC. 971. UNITED STATES-MEXICO ENERGY TECHNOLOGY COOPERATION.
(a) Program.--The Secretary shall establish a research, development,
demonstration, and commercial application program to be carried out in
collaboration with entities in Mexico and the United States to promote
energy efficient, environmentally sound economic development along the
United States-Mexico border which minimizes public health risks from
industrial activities in the border region.
(b) Program Management.--The program under subsection (a) shall be
managed by the Department of Energy Carlsbad Environmental Management
Field Office.
(c) Technology Transfer.--In carrying out projects and activities
under this section, the Secretary shall assess the applicability of
technology developed under the Environmental Management Science Program
of the Department.
(d) Intellectual Property.--In carrying out this section, the
Secretary shall comply with the requirements of any agreement entered
into between the United States and Mexico regarding intellectual
property protection.
(e) Authorization of Appropriations.--The following sums are
authorized to be appropriated to the Secretary to carry out activities
under this section:
(1) For each of fiscal years 2004 and 2005, $5,000,000.
(2) For each of fiscal years 2006, 2007, and 2008,
$6,000,000.
SEC. 972. COAL TECHNOLOGY LOAN.
There are authorized to be appropriated to the Secretary $125,000,000
to provide a loan to the owner of the experimental plant constructed
under United States Department of Energy cooperative agreement number
DE-FC-22-91PC90544 on such terms and conditions as the Secretary
determines, including interest rates and upfront payments.
Subtitle H--Management
SEC. 981. AVAILABILITY OF FUNDS.
Funds authorized to be appropriated to the Department under this
title shall remain available until expended.
SEC. 982. COST SHARING.
(a) Research and Development.--Except as otherwise provided in this
title, for research and development programs carried out under this
title, the Secretary shall require a commitment from non-Federal
sources of at least 20 percent of the cost of the project. Cost sharing
is not required for research and development of a basic or fundamental
nature.
(b) Demonstration and Commercial Application.--Except as otherwise
provided in this subtitle, the Secretary shall require at least 50
percent of the costs directly and specifically related to any
demonstration or commercial application project under this subtitle to
be provided from non-Federal sources. The Secretary may reduce the non-
Federal requirement under this subsection if the Secretary determines
that the reduction is necessary and appropriate considering the
technological risks involved in the project and is necessary to meet
the objectives of this title.
(c) Calculation of Amount.--In calculating the amount of the non-
Federal commitment under subsection (a) or (b), the Secretary may
include personnel, services, equipment, and other resources.
SEC. 983. MERIT REVIEW OF PROPOSALS.
Awards of funds authorized under this title shall be made only after
an impartial review of the scientific and technical merit of the
proposals for such awards has been carried out by or for the
Department.
SEC. 984. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.
(a) National Energy Research and Development Advisory Boards.--
(1) The Secretary shall establish one or more advisory boards
to review Department research, development, demonstration, and
commercial application programs in energy efficiency, renewable
energy, nuclear energy, and fossil energy.
(2) The Secretary may designate an existing advisory board
within the Department to fulfill the responsibilities of an
advisory board under this subsection, and may enter into
appropriate arrangements with the National Academy of Sciences
to establish such an advisory board.
(b) Utilization of Existing Committees.--The Secretary shall continue
to use the scientific program advisory committees chartered under the
Federal Advisory Committee Act by the Office of Science to oversee
research and development programs under that Office.
(c) Membership.--Each advisory board under this section shall consist
of persons with appropriate expertise representing a diverse range of
interests.
(d) Meetings and Purposes.--Each advisory board under this section
shall meet at least semi-annually to review and advise on the progress
made by the respective research, development, demonstration, and
commercial application program or programs. The advisory board shall
also review the measurable cost and performance-based goals for such
programs as established under section 902, and the progress on meeting
such goals.
(e) Periodic Reviews and Assessments.--The Secretary shall enter into
appropriate arrangements with the National Academy of Sciences to
conduct periodic reviews and assessments of the programs authorized by
this title, the measurable cost and performance-based goals for such
programs as established under section 902, if any, and the progress on
meeting such goals. Such reviews and assessments shall be conducted
every 5 years, or more often as the Secretary considers necessary, and
the Secretary shall transmit to the Congress reports containing the
results of all such reviews and assessments.
SEC. 985. IMPROVED COORDINATION OF TECHNOLOGY TRANSFER ACTIVITIES.
(a) Technology Transfer Coordinator.--The Secretary shall designate a
Technology Transfer Coordinator to perform oversight of and policy
development for technology transfer activities at the Department. The
Technology Transfer Coordinator shall coordinate the activities of the
Technology Transfer Working Group, shall oversee the expenditure of
funds allocated to the Technology Transfer Working Group, and shall
coordinate with each technology partnership ombudsman appointed under
section 11 of the Technology Transfer Commercialization Act of 2000 (42
U.S.C. 7261c).
(b) Technology Transfer Working Group.--The Secretary shall establish
a Technology Transfer Working Group, which shall consist of
representatives of the National Laboratories and single-purpose
research facilities, to--
(1) coordinate technology transfer activities occurring at
National Laboratories and single-purpose research facilities;
(2) exchange information about technology transfer practices,
including alternative approaches to resolution of disputes
involving intellectual property rights and other technology
transfer matters; and
(3) develop and disseminate to the public and prospective
technology partners information about opportunities and
procedures for technology transfer with the Department,
including those related to alternative approaches to resolution
of disputes involving intellectual property rights and other
technology transfer matters.
(c) Technology Transfer Responsibility.--Nothing in this section
shall affect the technology transfer responsibilities of Federal
employees under the Stevenson-Wydler Technology Innovation Act of 1980.
SEC. 986. TECHNOLOGY INFRASTRUCTURE PROGRAM.
(a) Establishment.--The Secretary shall establish a Technology
Infrastructure Program in accordance with this section.
(b) Purpose.--The purpose of the Technology Infrastructure Program
shall be to improve the ability of National Laboratories and single-
purpose research facilities to support departmental missions by--
(1) stimulating the development of technology clusters that
can support departmental missions at the National Laboratories
or single-purpose research facilities;
(2) improving the ability of National Laboratories and
single-purpose research facilities to leverage and benefit from
commercial research, technology, products, processes, and
services; and
(3) encouraging the exchange of scientific and technological
expertise between National Laboratories or single-purpose
research facilities and entities that can support departmental
missions at the National Laboratories or single-purpose
research facilities, such as institutions of higher education;
technology-related business concerns; nonprofit institutions;
and agencies of State, tribal, or local governments.
(c) Projects.--The Secretary shall authorize the Director of each
National Laboratory or single-purpose research facility to implement
the Technology Infrastructure Program at such National Laboratory or
facility through projects that meet the requirements of subsections (d)
and (e).
(d) Program Requirements.--Each project funded under this section
shall meet the following requirements:
(1) Each project shall include at least one of each of the
following entities: a business; an institution of higher
education; a nonprofit institution; and an agency of a State,
local, or tribal government.
(2) Not less than 50 percent of the costs of each project
funded under this section shall be provided from non-Federal
sources. The calculation of costs paid by the non-Federal
sources to a project shall include cash, personnel, services,
equipment, and other resources expended on the project after
start of the project. Independent research and development
expenses of Government contractors that qualify for
reimbursement under section 3109205 0918(e) of the Federal
Acquisition Regulations issued pursuant to section 25(c)(1) of
the Office of Federal Procurement Policy Act (41 U.S.C.
421(c)(1)) may be credited towards costs paid by non-Federal
sources to a project, if the expenses meet the other
requirements of this section.
(3) All projects under this section shall be competitively
selected using procedures determined by the Secretary.
(4) Any participant that receives funds under this section
may use generally accepted accounting principles for
maintaining accounts, books, and records relating to the
project.
(5) No Federal funds shall be made available under this
section for construction or any project for more than 5 years.
(e) Selection Criteria.--
(1) The Secretary shall allocate funds under this section
only if the Director of the National Laboratory or single-
purpose research facility managing the project determines that
the project is likely to improve the ability of the National
Laboratory or single-purpose research facility to achieve
technical success in meeting departmental missions.
(2) The Secretary shall consider the following criteria in
selecting a project to receive Federal funds--
(A) the potential of the project to promote the
development of a commercially sustainable technology
cluster following the period of Department investment,
which will derive most of the demand for its products
or services from the private sector, and which will
support departmental missions at the participating
National Laboratory or single-purpose research
facility;
(B) the potential of the project to promote the use
of commercial research, technology, products,
processes, and services by the participating National
Laboratory or single-purpose research facility to
achieve its mission or the commercial development of
technological innovations made at the participating
National Laboratory or single-purpose research
facility;
(C) the extent to which the project involves a wide
variety and number of institutions of higher education,
nonprofit institutions, and technology-related business
concerns that can support the missions of the
participating National Laboratory or single-purpose
research facility and that will make substantive
contributions to achieving the goals of the project;
(D) the extent to which the project focuses on
promoting the development of technology-related
business concerns that are small businesses or involves
such small businesses substantively in the project; and
(E) such other criteria as the Secretary determines
to be appropriate.
(f) Allocation.--In allocating funds for projects approved under this
section, the Secretary shall provide--
(1) the Federal share of the project costs; and
(2) additional funds to the National Laboratory or single-
purpose research facility managing the project to permit the
National Laboratory or single-purpose research facility to
carry out activities relating to the project, and to coordinate
such activities with the project.
(g) Report to Congress.--Not later than July 1, 2006, the Secretary
shall report to Congress on whether the Technology Infrastructure
Program should be continued and, if so, how the program should be
managed.
(h) Definitions.--In this section:
(1) The term ``technology cluster'' means a concentration of
technology-related business concerns, institutions of higher
education, or nonprofit institutions, that reinforce each
other's performance in the areas of technology development
through formal or informal relationships.
(2) The term ``technology-related business concern'' means a
for-profit corporation, company, association, firm,
partnership, or small business concern that conducts scientific
or engineering research; develops new technologies;
manufactures products based on new technologies; or performs
technological services.
(i) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for activities under this section
$10,000,000 for each of fiscal years 2004, 2005, and 2006.
SEC. 987. SMALL BUSINESS ADVOCACY AND ASSISTANCE.
(a) Small Business Advocate.--The Secretary shall require the
Director of each National Laboratory, and may require the Director of a
single-purpose research facility, to designate a small business
advocate to--
(1) increase the participation of small business concerns,
including socially and economically disadvantaged small
business concerns, in procurement, collaborative research,
technology licensing, and technology transfer activities
conducted by the National Laboratory or single-purpose research
facility;
(2) report to the Director of the National Laboratory or
single-purpose research facility on the actual participation of
small business concerns in procurement and collaborative
research along with recommendations, if appropriate, on how to
improve participation;
(3) make available to small businesses training, mentoring,
and information on how to participate in procurement and
collaborative research activities;
(4) increase the awareness inside the National Laboratory or
single-purpose research facility of the capabilities and
opportunities presented by small business concerns; and
(5) establish guidelines for the program under subsection (b)
and report on the effectiveness of such program to the Director
of the National Laboratory or single-purpose research facility.
(b) Establishment of Small Business Assistance Program.--The
Secretary shall require the Director of each National Laboratory, and
may require the Director of a single-purpose research facility, to
establish a program to provide small business concerns--
(1) assistance directed at making them more effective and
efficient subcontractors or suppliers to the National
Laboratory or single-purpose research facility; or
(2) general technical assistance, the cost of which shall not
exceed $10,000 per instance of assistance, to improve the small
business concern's products or services.
(c) Use of Funds.--None of the funds expended under subsection (b)
may be used for direct grants to the small business concerns.
(d) Definitions.--In this section:
(1) The term ``small business concern'' has the meaning given
such term in section 3 of the Small Business Act (15 U.S.C.
632).
(2) The term ``socially and economically disadvantaged small
business concerns'' has the meaning given such term in section
8(a)(4) of the Small Business Act (15 U.S.C. 637(a)(4)).
(e) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary for activities under this section
$5,000,000 for each of fiscal years 2004 through 2008.
SEC. 988. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.
Not later than 2 years after the date of enactment of this section,
the Secretary shall transmit a report to the Congress identifying any
policies or procedures of a contractor operating a National Laboratory
or single-purpose research facility that create disincentives to the
temporary transfer of scientific and technical personnel among the
contractor-operated National Laboratories or contractor-operated
single-purpose research facilities and provide suggestions for
improving inter-laboratory exchange of scientific and technical
personnel.
SEC. 989. NATIONAL ACADEMY OF SCIENCES REPORT.
Not later than 90 days after the date of enactment of this Act, the
Secretary shall enter into an arrangement with the National Academy of
Sciences for the Academy to--
(1) conduct a study on--
(A) the obstacles to accelerating the research,
development, demonstration, and commercial application
cycle for energy technology; and
(B) the adequacy of Department policies and
procedures for, and oversight of, technology transfer-
related disputes between contractors of the Department
and the private sector; and
(2) report to the Congress on recommendations developed as a
result of the study.
SEC. 990. OUTREACH.
The Secretary shall ensure that each program authorized by this title
includes an outreach component to provide information, as appropriate,
to manufacturers, consumers, engineers, architects, builders, energy
service companies, institutions of higher education, facility planners
and managers, State and local governments, and other entities.
SEC. 991. COMPETITIVE AWARD OF MANAGEMENT CONTRACTS.
None of the funds authorized to be appropriated to the Secretary by
this title may be used to award a management and operating contract for
a nonmilitary energy laboratory of the Department unless such contract
is competitively awarded or the Secretary grants, on a case-by-case
basis, a waiver to allow for such a deviation. The Secretary may not
delegate the authority to grant such a waiver and shall submit to the
Congress a report notifying the Congress of the waiver and setting
forth the reasons for the waiver at least 60 days prior to the date of
the award of such a contract.
SEC. 992. REPROGRAMMING.
(a) Distribution Report.--Not later than 60 days after the date of
the enactment of an Act appropriating amounts authorized under this
title, the Secretary shall transmit to the appropriate authorizing
committees of the Congress a report explaining how such amounts will be
distributed among the authorizations contained in this title.
(b) Prohibition.--
(1) No amount identified under subsection (a) shall be
reprogrammed if such reprogramming would result in an
obligation which changes an individual distribution required to
be reported under subsection (a) by more than 5 percent unless
the Secretary has transmitted to the appropriate authorizing
committees of the Congress a report described in subsection (c)
and a period of 30 days has elapsed after such committees
receive the report.
(2) In the computation of the 30-day period described in
paragraph (1), there shall be excluded any day on which either
House of Congress is not in session because of an adjournment
of more than 3 days to a day certain.
(c) Reprogramming Report.--A report referred to in subsection (b)(1)
shall contain a full and complete statement of the action proposed to
be taken and the facts and circumstances relied on in support of the
proposed action.
SEC. 993. CONSTRUCTION WITH OTHER LAWS.
Except as otherwise provided in this title, the Secretary shall carry
out the research, development, demonstration, and commercial
application programs, projects, and activities authorized by this title
in accordance with the applicable provisions of the Atomic Energy Act
of 1954 (42 U.S.C. et seq.), the Federal Nonnuclear Research and
Development Act of 1974 (42 U.S.C. 5901 et seq.), the Energy Policy Act
of 1992 (42 U.S.C. 13201 et seq.), the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3701 et seq.), chapter 18 of title
35, United States Code (commonly referred to as the Bayh-Dole Act), and
any other Act under which the Secretary is authorized to carry out such
activities.
SEC. 994. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND
TECHNOLOGY PROGRAMS.
(a) Effective Top-Level Coordination of Research and Development
Programs.--Section 202(b) of the Department of Energy Organization Act
(42 U.S.C. 7132(b)) is amended to read as follows:
``(b)(1) There shall be in the Department an Under Secretary for
Energy and Science, who shall be appointed by the President, by and
with the advice and consent of the Senate. The Under Secretary shall be
compensated at the rate provided for at level III of the Executive
Schedule under section 5314 of title 5, United States Code.
``(2) The Under Secretary for Energy and Science shall be appointed
from among persons who--
``(A) have extensive background in scientific or engineering
fields; and
``(B) are well qualified to manage the civilian research and
development programs of the Department of Energy.
``(3) The Under Secretary for Energy and Science shall--
``(A) serve as the Science and Technology Advisor to the
Secretary;
``(B) monitor the Department's research and development
programs in order to advise the Secretary with respect to any
undesirable duplication or gaps in such programs;
``(C) advise the Secretary with respect to the well-being and
management of the multipurpose laboratories under the
jurisdiction of the Department;
``(D) advise the Secretary with respect to education and
training activities required for effective short- and long-term
basic and applied research activities of the Department;
``(E) advise the Secretary with respect to grants and other
forms of financial assistance required for effective short- and
long-term basic and applied research activities of the
Department; and
``(F) exercise authority and responsibility over Assistant
Secretaries carrying out energy research and development and
energy technology functions under sections 203 and 209, as well
as other elements of the Department assigned by the
Secretary.''.
(b) Reconfiguration of Position of Director of the Office of
Science.--
(1) Section 209 of the Department of Energy Organization Act
(41 U.S.C. 7139) is amended to read as follows:
``office of science
``Sec. 209. (a) There shall be within the Department an Office of
Science, to be headed by an Assistant Secretary for Science, who shall
be appointed by the President, by and with the advice and consent of
the Senate, and who shall be compensated at the rate provided for level
IV of the Executive Schedule under section 5315 of title 5, United
States Code.
``(b) The Assistant Secretary for Science shall be in addition to the
Assistant Secretaries provided for under section 203 of this Act.
``(c) It shall be the duty and responsibility of the Assistant
Secretary for Science to carry out the fundamental science and
engineering research functions of the Department, including the
responsibility for policy and management of such research, as well as
other functions vested in the Secretary which he may assign to the
Assistant Secretary.''.
(2) Notwithstanding section 3345(b)(1) of title 5, United
States Code, the President may designate the Director of the
Office of Science immediately prior to the effective date of
this Act to act in the office of the Assistant Secretary of
Energy for Science until the office is filled as provided in
section 209 of the Department of Energy Organization Act, as
amended by paragraph (1). While so acting, such person shall
receive compensation at the rate provided by this Act for the
office of Assistant Secretary for Science.
(c) Additional Assistant Secretary Position To Enable Improved
Management of Nuclear Energy Issues.--
(1) Section 203(a) of the Department of Energy Organization
Act (42 U.S.C. 7133(a)) is amended by striking ``There shall be
in the Department six Assistant Secretaries'' and inserting
``Except as provided in section 209, there shall be in the
Department seven Assistant Secretaries''.
(2) It is the sense of the Congress that the leadership for
departmental missions in nuclear energy should be at the
Assistant Secretary level.
(d) Technical and Conforming Amendments.--
(1) Section 202 of the Department of Energy Organization Act
(42 U.S.C. 7132) is further amended by adding the following at
the end:
``(d) There shall be in the Department an Under Secretary, who shall
be appointed by the President, by and with the advice and consent of
the Senate, and who shall perform such functions and duties as the
Secretary shall prescribe, consistent with this section. The Under
Secretary shall be compensated at the rate provided for level III of
the Executive Schedule under section 5314 of title 5, United States
Code.
``(e) There shall be in the Department a General Counsel, who shall
be appointed by the President, by and with the advice and consent of
the Senate, and who shall perform such functions and duties as the
Secretary shall prescribe. The General Counsel shall be compensated at
the rate provided for level IV of the Executive Schedule under section
5315 of title 5, United States Code.''.
(2) Section 5314 of title 5, United States Code, is amended
by striking ``Under Secretaries of Energy (2)'' and inserting
``Under Secretaries of Energy (3)''.
(3) Section 5315 of title 5, United States Code, is amended
by--
(A) striking ``Director, Office of Science,
Department of Energy.''; and
(B) striking ``Assistant Secretaries of Energy (6)''
and inserting ``Assistant Secretaries of Energy (8)''.
(4) The table of contents for the Department of Energy
Organization Act (42 U.S.C. 7101 note) is amended--
(A) by striking ``Section 209'' and inserting ``Sec.
209'';
(B) by striking ``213.'' and inserting ``Sec. 213.'';
(C) by striking ``214.'' and inserting ``Sec. 214.'';
(D) by striking ``215.'' and inserting ``Sec. 215.'';
and
(E) by striking ``216.'' and inserting ``Sec. 216.''.
SEC. 995. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.
(a) Section 3165a of the Department of Energy Science Education
Enhancement Act (42 U.S.C. 7381a) is amended by adding at the end:
``(14) Support competitive events for students, under
supervision of teachers, designed to encourage student interest
and knowledge in science and mathematics.''
(b) Section 3169 of the Department of Energy Science Education
Enhancement Act (42 U.S.C. 7381e), as redesignated by this Act, is
amended by inserting before the period: ``; and $40,000,000 for each of
fiscal years 2004 through 2008.''
SEC. 996. OTHER TRANSACTIONS AUTHORITY.
Section 646 of the Department of Energy Organization Act (42 U.S.C.
7256) is amended by adding at the end the following:
``(g)(1) In addition to other authorities granted to the Secretary
under law, the Secretary may enter into other transactions on such
terms as the Secretary may deem appropriate in furtherance of research,
development, or demonstration functions vested in the Secretary. Such
other transactions shall not be subject to the provisions of section 9
of the Federal Nonnuclear Energy Research and Development Act of 1974
(42 U.S.C. 5908).
``(2)(A) The Secretary shall ensure that--
``(i) to the maximum extent the Secretary determines
practicable, no transaction entered into under paragraph (1)
provides for research, development, or demonstration that
duplicates research, development, or demonstration being
conducted under existing projects carried out by the
Department;
``(ii) to the extent the Secretary determines practicable,
the funds provided by the Government under a transaction
authorized by paragraph (1) do not exceed the total amount
provided by other parties to the transaction; and
``(iii) to the extent the Secretary determines practicable,
competitive, merit-based selection procedures shall be used
when entering into transactions under paragraph (1).
``(B) A transaction authorized by paragraph (1) may be used for a
research, development, or demonstration project only if the Secretary
determines the use of a standard contract, grant, or cooperative
agreement for the project is not feasible or appropriate.
``(3)(A) The Secretary shall protect from disclosure, including
disclosure under section 552 of title 5, United States Code, for up to
5 years after the date the information is received by the Secretary--
``(i) a proposal, proposal abstract, and supporting documents
submitted to the Department in a competitive or noncompetitive
process having the potential for resulting in an award to the
party submitting the information entering into a transaction
under paragraph (1); and
``(ii) a business plan and technical information relating to
a transaction authorized by paragraph (1) submitted to the
Department as confidential business information.
``(B) The Secretary may protect from disclosure, for up to 5 years
after the information was developed, any information developed pursuant
to a transaction under paragraph (1) which developed information is of
a character that it would be protected from disclosure under section
552(b)(4) of title 5, United States Code, if obtained from a person
other than a Federal agency.
``(4) Not later than 90 days after the date of enactment of this
section, the Secretary shall prescribe guidelines for using other
transactions authorized by the amendment under subsection (a). Such
guidelines shall be published in the Federal Register for public
comment under rulemaking procedures of the Department.
``(5) The authority of the Secretary under this subsection may be
delegated only to an officer of the Department who is appointed by the
President by and with the advice and consent of the Senate and may not
be delegated to any other person.''.
SEC. 997. REPORT ON RESEARCH AND DEVELOPMENT PROGRAM EVALUATION
METHODOLOGIES.
Not later than 180 days after the date of enactment of this Act, the
Secretary shall enter into appropriate arrangements with the National
Academy of Sciences to investigate and report on the scientific and
technical merits of any evaluation methodology currently in use or
proposed for use in relation to the scientific and technical programs
of the Department by the Secretary or other Federal official. Not later
than 6 months after receiving the report of the National Academy, the
Secretary shall submit such report to Congress, along with any other
views or plans of the Secretary with respect to the future use of such
evaluation methodology.
TITLE X--PERSONNEL AND TRAINING
SEC. 1001. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.
(a) Workforce Trends.--
(1) The Secretary of Energy (in this title referred to as the
``Secretary''), in consultation with the Secretary of Labor and
utilizing statistical data collected by the Secretary of Labor,
shall monitor trends in the workforce of skilled technical
personnel supporting energy technology industries, including
renewable energy industries, companies developing and
commercializing devices to increase energy efficiency, the oil
and gas industry, the nuclear power industry, the coal
industry, and other industrial sectors as the Secretary may
deem appropriate.
(2) The Secretary shall report to the Congress whenever the
Secretary determines that significant national shortfalls of
skilled technical personnel in one or more energy industry
segments are forecast or have occurred.
(b) Traineeship Grants for Skilled Technical Personnel.--The
Secretary, in consultation with the Secretary of Labor, may establish
grant programs in the appropriate offices of the Department of Energy
to enhance training of skilled technical personnel for which a
shortfall is determined under subsection (a).
(c) Definition.--For purposes of this section, the term ``skilled
technical personnel'' means journey and apprentice level workers who
are enrolled in or have completed a State or federally recognized
apprenticeship program and other skilled workers in energy technology
industries.
(d) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary
$20,000,000 for each of fiscal years 2004 through 2008, to remain
available until expended.
SEC. 1002. RESEARCH FELLOWSHIPS IN ENERGY RESEARCH.
(a) Postdoctoral Fellowships.--The Secretary shall establish a
program of fellowships to encourage outstanding young scientists and
engineers to pursue postdoctoral research appointments in energy
research and development at institutions of higher education of their
choice.
(b) Distinguished Senior Research Fellowships.--The Secretary shall
establish a program of fellowships to allow outstanding senior
researchers in energy research and development and their research
groups to explore research and development topics of their choosing for
a fixed period of time. Awards under this program shall be made on the
basis of past scientific or technical accomplishment and promise for
continued accomplishment during the period of support, which shall not
be less than 3 years.
(c) Authorization of Appropriations.--For the purposes of this
section, there are authorized to be appropriated to the Secretary
$40,000,000 for each of fiscal years 2004 through 2008, to remain
available until expended.
SEC. 1003. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY PERSONNEL.
The Secretary of Labor, in consultation with the Secretary of Energy
and jointly with the electric industry and recognized employee
representatives, shall develop model personnel training guidelines to
support electric system reliability and safety. The training guidelines
shall, at a minimum--
(1) include training requirements for workers engaged in the
construction, operation, inspection, and maintenance of
electric generation, transmission, and distribution, including
competency and certification requirements, and assessment
requirements that include initial and ongoing evaluation of
workers, recertification assessment procedures, and methods for
examining or testing the qualification of individuals
performing covered tasks; and
(2) consolidate existing training guidelines on the
construction, operation, maintenance, and inspection of
electric generation, transmission, and distribution facilities,
such as those established by the National Electric Safety Code
and other industry consensus standards.
SEC. 1004. NATIONAL CENTER ON ENERGY MANAGEMENT AND BUILDING
TECHNOLOGIES.
The Secretary shall support the establishment of a National Center on
Energy Management and Building Technologies, to carry out research,
education, and training activities to facilitate the improvement of
energy efficiency and indoor air quality in industrial, commercial, and
residential buildings. The National Center shall be established by--
(1) recognized representatives of employees in the heating,
ventilation, and air-conditioning industry;
(2) contractors that install and maintain heating,
ventilation, and air-conditioning systems and equipment;
(3) manufacturers of heating, ventilation, and air-
conditioning systems and equipment;
(4) representatives of the advanced building envelope
industry, including design, windows, lighting, and insulation
industries; and
(5) other entities as the Secretary may deem appropriate.
SEC. 1005. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL
CAREERS.
(a) Department of Energy Science Education Programs.--Section 3164 of
the Department of Energy Science Education Enhancement Act (42 U.S.C.
7381a) is amended by adding at the end the following:
``(c) Programs for Students From Under-Represented Groups.--In
carrying out a program under subsection (a), the Secretary shall give
priority to activities that are designed to encourage students from
under-represented groups to pursue scientific and technical careers.''.
(b) Partnerships With Historically Black Colleges and Universities,
Hispanic-Servicing Institutions, and Tribal Colleges.--The Department
of Energy Science Education Enhancement Act (42 U.S.C. 7381 et seq.) is
amended--
(1) by redesignating sections 3167 and 3168 as sections 3168
and 3169, respectively; and
(2) by inserting after section 3166 the following:
``SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES, HISPANIC-SERVING INSTITUTIONS, AND
TRIBAL COLLEGES.
``(a) Definitions.--In this section:
``(1) Hispanic-serving institution.--The term `Hispanic-
serving institution' has the meaning given that term in section
502(a) of the Higher Education Act of 1965 (20 U.S.C.
1101a(a)).
``(2) Historically black college or university.-- The term
`historically Black college or university' has the meaning
given the term `part B institution' in section 322 of the
Higher Education Act of 1965 (20 U.S.C. 1061).
``(3) National laboratory.--The term `National Laboratory'
has the meaning given that term in section 903(5) of the Energy
Policy Act of 2003.
``(4) Science facility.--The term `science facility' has the
meaning given the term `single-purpose research facility' in
section 903(8) of the Energy Policy Act of 2003.
``(5) Tribal college.--The term `tribal college' has the
meaning given the term `tribally controlled college or
university' in section 2(a) of the Tribally Controlled College
or University Assistance Act of 1978 (25 U.S.C. 1801(a)).
``(b) Education Partnership.--The Secretary shall direct the Director
of each National Laboratory, and may direct the head of any science
facility, to increase the participation of historically Black colleges
or universities, Hispanic-serving institutions, or tribal colleges in
activities that increase the capacity of the historically Black
colleges or universities, Hispanic-serving institutions, or tribal
colleges to train personnel in science or engineering.
``(c) Activities.--An activity under subsection (b) may include--
``(1) collaborative research;
``(2) equipment transfer;
``(3) training activities conducted at a National Laboratory
or science facility; and
``(4) mentoring activities conducted at a National Laboratory
or science facility.
``(d) Report.--Not later than 2 years after the date of enactment of
this section, the Secretary shall submit to the Congress a report on
the activities carried out under this section.''.
SEC. 1006. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND EDUCATION
CENTER.
(a) Establishment.--The Secretary shall support the establishment of
a National Power Plant Operations Technology and Education Center (in
this section referred to as the ``Center''), to address the need for
training and educating certified operators for electric power
generation plants.
(b) Role.--The Center shall provide both training and continuing
education relating to electric power generation plant technologies and
operations. The Center shall conduct training and education activities
on site and through Internet-based information technologies that allow
for learning at remote sites.
(c) Criteria for Competitive Selection.--The Secretary shall support
the establishment of the Center at an institution of higher education
with expertise in power plant technology and operation and with the
ability to provide on-site as well as Internet-based training.
SEC. 1007. FEDERAL MINE INSPECTORS.
In light of projected retirements of Federal mine inspectors and the
need for additional personnel, the Secretary of Labor shall hire,
train, and deploy such additional skilled Federal mine inspectors as
necessary to ensure the availability of skilled and experienced
individuals and to maintain the number of Federal mine inspectors at or
above the levels authorized by law or established by regulation.
TITLE XI--ELECTRICITY
SEC. 1101. DEFINITIONS.
(a) Electric Utility.--Section 3(22) of the Federal Power Act (16
U.S.C. 796(22)) is amended to read as follows:
``(22) `electric utility' means any person or Federal or State agency
(including any municipality) that sells electric energy; such term
includes the Tennessee Valley Authority and each Federal power
marketing agency;``.
(b) Transmitting Utility.--Section 3(23) of the Federal Power Act (16
U.S.C. 796(23)) is amended to read as follows:
``(23) `transmitting utility' means an entity, including any entity
described in section 201(f), that owns or operates facilities used for
the transmission of electric energy--
``(A) in interstate commerce; or
``(B) for the sale of electric energy at wholesale;''.
(c) Additional Definitions.--At the end of section (3) of the Federal
Power Act, add the following:
``(26) `unregulated transmitting utility' means an entity that--
``(A) owns or operates facilities used for the transmission
of electric energy in interstate commerce, and
``(B) is an entity described in section 201(f) or a rural
electric cooperative with financing from the Rural Utilities
Service.
``(27) `distribution utility' means an electric utility that does not
own or operate transmission facilities or an unregulated transmitting
utility that provides 90 percent of the electric energy its transmits
to customers at retail.''
(d) For the purposes of this title, the term ``the Commission'' means
the Federal Energy Regulatory Commission.
Subtitle A--Reliability
SEC. 1111. ELECTRIC RELIABILITY STANDARDS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by adding the following:
``electric reliability
``SEC. 215. (a) For the purposes of this section:
``(1) The term `bulk-power system' means--
``(A) facilities and control systems necessary for
operating an interconnected electric energy
transmission network (or any portion thereof); and
``(B) electric energy from generation facilities
needed to maintain transmission system reliability.
The term does not include facilities used in the local
distribution of electric energy.
``(2) The terms `Electric Reliability Organization' and `ERO'
mean the organization certified by the Commission under
subsection (c), the purpose of which is to establish and
enforce reliability standards for the bulk-power system,
subject to Commission review.
``(3) The term `reliability standard' means a requirement,
approved by the Commission under this section, to provide for
reliable operation of the bulk-power system. The term includes
requirements for the operation of existing bulk-power system
components and the design of planned additions or modifications
to such components to the extent necessary to provide for
reliable operation of the bulk-power system, but the term does
not include any requirement to enlarge such components or to
construct new transmission capacity or generation capacity.
``(4) The term `reliable operation' means operating the
components of the bulk-power system within equipment and
electric system thermal, voltage, and stability limits so that
instability, uncontrolled separation, or cascading failures of
such system will not occur as a result of a sudden disturbance
or unanticipated failure of system components.
``(5) The term `Interconnection' means a geographic area in
which the operation of bulk-power system components is
synchronized such that the failure of one or more of such
components may adversely affect the ability of the operators of
other components within the system to maintain reliable
operation of the portion of the system within their control.
``(6) The term `transmission organization' means an RTO or
other transmission organization finally approved by the
Commission for the operation of transmission facilities.
``(7) The term `regional entity' means an entity having
enforcement authority pursuant to subsection (e)(4).
``(b) The Commission shall have jurisdiction, within the United
States, over the ERO certified by the Commission under subsection (c),
any regional entities, and all users, owners and operators of the bulk-
power system, including the entities described in section 201(f), for
purposes of approving reliability standards established under this
section and enforcing compliance with this section. All users, owners
and operators of the bulk-power system shall comply with reliability
standards that take effect under this section. The Commission shall
issue a final rule to implement the requirements of this section not
later than 180 days after the date of enactment of this section.
``(c) Following the issuance of a Commission rule under subsection
(b), any person may submit an application to the Commission for
certification as the Electric Reliability Organization. The Commission
may certify one such ERO if the Commission determines that such ERO--
``(1) has the ability to develop and enforce, subject to
subsection (d)(2), reliability standards that provide for an
adequate level of reliability of the bulk-power system; and
``(2) has established rules that--
``(A) assure its independence of the users and owners
and operators of the bulk-power system, while assuring
fair stakeholder representation in the selection of its
directors and balanced decisionmaking in any ERO
committee or subordinate organizational structure;
``(B) allocate equitably reasonable dues, fees, and
other charges among end users for all activities under
this section;
``(C) provide fair and impartial procedures for
enforcement of reliability standards through the
imposition of penalties in accordance with subsection
(e) (including limitations on activities, functions, or
operations, or other appropriate sanctions);
``(D) provide for reasonable notice and opportunity
for public comment, due process, openness, and balance
of interests in developing reliability standards and
otherwise exercising its duties; and
``(E) provide for taking, after certification,
appropriate steps to gain recognition in Canada and
Mexico.
``(d)(1) The ERO shall file each reliability standard or modification
to a reliability standard that it proposes to be made effective under
this section with the Commission.
``(2) The Commission may approve by rule or order a proposed
reliability standard or modification to a reliability standard if it
determines that the standard is just, reasonable, not unduly
discriminatory or preferential, and in the public interest. The
Commission shall give due weight to the technical expertise of the ERO
with respect to the content of a proposed standard or modification to a
reliability standard and to the technical expertise of a regional
entity organized on an Interconnection-wide basis with respect to a
reliability standard to be applicable within that Interconnection, but
shall not defer with respect to the effect of a standard on
competition. A proposed standard or modification shall take effect upon
approval by the Commission.
``(3) The ERO shall rebuttably presume that a proposal from a
regional entity organized on an Interconnection-wide basis for a
reliability standard or modification to a reliability standard to be
applicable on an Interconnection-wide basis is just, reasonable, and
not unduly discriminatory or preferential, and in the public interest.
``(4) The Commission shall remand to the ERO for further
consideration a proposed reliability standard or a modification to a
reliability standard that the Commission disapproves in whole or in
part.
``(5) The Commission, upon its own motion or upon complaint, may
order the ERO to submit to the Commission a proposed reliability
standard or a modification to a reliability standard that addresses a
specific matter if the Commission considers such a new or modified
reliability standard appropriate to carry out this section.
``(6) The final rule adopted under subsection (b) shall include fair
processes for the identification and timely resolution of any conflict
between a reliability standard and any function, rule, order, tariff,
rate schedule, or agreement accepted, approved, or ordered by the
Commission applicable to a transmission organization. Such transmission
organization shall continue to comply with such function, rule, order,
tariff, rate schedule or agreement accepted, approved, or ordered by
the Commission until--
``(A) the Commission finds a conflict exists between a
reliability standard and any such provision;
``(B) the Commission orders a change to such provision
pursuant to section 206 of this part; and
``(C) the ordered change becomes effective under this part.
If the Commission determines that a reliability standard needs to be
changed as a result of such a conflict, it shall order the ERO to
develop and file with the Commission a modified reliability standard
under paragraph (4) or (5) of this subsection.
``(e)(1) The ERO may impose, subject to paragraph (2), a penalty on a
user or owner or operator of the bulk-power system for a violation of a
reliability standard approved by the Commission under subsection (d) if
the ERO, after notice and an opportunity for a hearing--
``(A) finds that the user or owner or operator has violated a
reliability standard approved by the Commission under
subsection (d); and
``(B) files notice and the record of the proceeding with the
Commission.
``(2) A penalty imposed under paragraph (1) may take effect not
earlier than the 31st day after the ERO files with the Commission
notice of the penalty and the record of proceedings. Such penalty shall
be subject to review by the Commission, on its own motion or upon
application by the user, owner or operator that is the subject of the
penalty filed within 30 days after the date such notice is filed with
the Commission. Application to the Commission for review, or the
initiation of review by the Commission on its own motion, shall not
operate as a stay of such penalty unless the Commission otherwise
orders upon its own motion or upon application by the user, owner or
operator that is the subject of such penalty. In any proceeding to
review a penalty imposed under paragraph (1), the Commission, after
notice and opportunity for hearing (which hearing may consist solely of
the record before the ERO and opportunity for the presentation of
supporting reasons to affirm, modify, or set aside the penalty), shall
by order affirm, set aside, reinstate, or modify the penalty, and, if
appropriate, remand to the ERO for further proceedings. The Commission
shall implement expedited procedures for such hearings.
``(3) On its own motion or upon complaint, the Commission may order
compliance with a reliability standard and may impose a penalty against
a user or owner or operator of the bulk-power system, if the Commission
finds, after notice and opportunity for a hearing, that the user or
owner or operator of the bulk-power system has engaged or is about to
engage in any acts or practices that constitute or will constitute a
violation of a reliability standard.
``(4) The Commission shall establish regulations authorizing the ERO
to enter into an agreement to delegate authority to a regional entity
for the purpose of proposing reliability standards to the ERO and
enforcing reliability standards under paragraph (1) if--
``(A) the regional entity is governed by an independent
board, a balanced stakeholder board, or a combination
independent and balanced stakeholder board;
``(B) the regional entity otherwise satisfies the provisions
of subsection (c)(1) and (2); and
``(C) the agreement promotes effective and efficient
administration of bulk-power system reliability. The Commission
may modify such delegation. The ERO and the Commission shall
rebuttably presume that a proposal for delegation to a regional
entity organized on an Interconnection-wide basis promotes
effective and efficient administration of bulk-power system
reliability and should be approved. Such regulation may provide
that the Commission may assign the ERO's authority to enforce
reliability standards under paragraph (1) directly to a
regional entity consistent with the requirements of this
paragraph.
``(5) The Commission may take such action as is necessary or
appropriate against the ERO or a regional entity to ensure compliance
with a reliability standard or any Commission order affecting the ERO
or a regional entity.
``(6) Any penalty imposed under this section shall bear a reasonable
relation to the seriousness of the violation and shall take into
consideration the efforts of such user, owner, or operator to remedy
the violation in a timely manner.
``(f) The ERO shall file with the Commission for approval any
proposed rule or proposed rule change, accompanied by an explanation of
its basis and purpose. The Commission, upon its own motion or
complaint, may propose a change to the rules of the ERO. A proposed
rule or proposed rule change shall take effect upon a finding by the
Commission, after notice and opportunity for comment, that the change
is just, reasonable, not unduly discriminatory or preferential, is in
the public interest, and satisfies the requirements of subsection (c).
``(g) The ERO shall conduct periodic assessments of the reliability
and adequacy of the bulk-power system in North America.
``(h) The President is urged to negotiate international agreements
with the governments of Canada and Mexico to provide for effective
compliance with reliability standards and the effectiveness of the ERO
in the United States and Canada or Mexico.
``(i)(1) The ERO shall have authority to develop and enforce
compliance with reliability standards for only the bulk-power system.
``(2) This section does not authorize the ERO or the Commission to
order the construction of additional generation or transmission
capacity or to set and enforce compliance with standards for adequacy
or safety of electric facilities or services.
``(3) Nothing in this section shall be construed to preempt any
authority of any State to take action to ensure the safety, adequacy,
and reliability of electric service within that State, as long as such
action is not inconsistent with any reliability standard.
``(4) Within 90 days of the application of the ERO or other affected
party, and after notice and opportunity for comment, the Commission
shall issue a final order determining whether a State action is
inconsistent with a reliability standard, taking into consideration any
recommendation of the ERO.
``(5) The Commission, after consultation with the ERO, may stay the
effectiveness of any State action, pending the Commission's issuance of
a final order.
``(j) The Commission shall establish a regional advisory body on the
petition of at least two-thirds of the States within a region that have
more than one-half of their electric load served within the region. A
regional advisory body shall be composed of one member from each
participating State in the region, appointed by the Governor of each
State, and may include representatives of agencies, States, and
provinces outside the United States. A regional advisory body may
provide advice to the ERO, a regional entity, or the Commission
regarding the governance of an existing or proposed regional entity
within the same region, whether a standard proposed to apply within the
region is just, reasonable, not unduly discriminatory or preferential,
and in the public interest, whether fees proposed to be assessed within
the region are just, reasonable, not unduly discriminatory or
preferential, and in the public interest and any other responsibilities
requested by the Commission. The Commission may give deference to the
advice of any such regional advisory body if that body is organized on
an Interconnection-wide basis.
``(k) The provisions of this section do not apply to Alaska or
Hawaii.''.
Subtitle B--Regional Markets
SEC. 1121. IMPLEMENTATION DATE FOR PROPOSED RULEMAKING ON STANDARD
MARKET DESIGN.
The Commission's proposed rulemaking entitled ``Remedying Undue
Discrimination through Open Access Transmission Service and Standard
Electricity Market Design'' (Docket No. RM01-12-000) is remanded to the
Commission for reconsideration. No final rule pursuant to the proposed
rulemaking, including any rule or order of general applicability within
the scope of the proposed rulemaking, may be issued before July 1,
2005. Any final rule issued by the Commission pursuant to the proposed
rulemaking, including any rule or order of general applicability within
the scope of the proposed rulemaking, shall be proceeded by a notice of
proposed rulemaking issued after the date of enactment of this Act and
an opportunity for public comment.
SEC. 1122. SENSE OF THE CONGRESS ON REGIONAL TRANSMISSION
ORGANIZATIONS.
It is the sense of Congress that, in order to promote fair, open
access to electric transmission service, benefit retail consumers,
facilitate wholesale competition, improve efficiencies in transmission
grid management, promote grid reliability, remove opportunities for
unduly discriminatory or preferential transmission practices, and
provide for the efficient development of transmission infrastructure
needed to meet the growing demands of competitive wholesale power
markets, all transmitting utilities in interstate commerce should
voluntarily become members of independently administered Regional
Transmission Organizations (``RTO'') that have operational or
functional control of facilities used for the transmission of electric
energy in interstate commerce and do not own or control generation
facilities used to supply electric energy for sale at wholesale.
SEC. 1123. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION
ORGANIZATIONS.
(a) Definitions.--For purposes of this section:
(1) The term ``appropriate Federal regulatory authority''
means--
(A) with respect to a Federal power marketing agency,
the Secretary of Energy, except that the Secretary may
designate the Administrator of a Federal power
marketing agency to act as the appropriate Federal
regulatory authority with respect to the transmission
system of that Federal power marketing agency; and
(B) with respect to the Tennessee Valley Authority,
the Board of Directors of the Tennessee Valley
Authority.
(2) The term ``Federal utility'' means a Federal power marketing
agency or the Tennessee Valley Authority.
(3) The term ``transmission system'' means electric transmission
facilities owned, leased, or contracted for by the United States and
operated by a Federal utility.
(b) Transfer.--
(1) The appropriate Federal regulatory authority is
authorized to enter into a contract, agreement or other
arrangement transferring control and use of all or part of the
Federal utility's transmission system to a Regional
Transmission Organization (``RTO''). Such contract, agreement
or arrangement shall be voluntary and include--
(A) performance standards for operation and use of
the transmission system that the head of the Federal
utility determines necessary or appropriate, including
standards that assure recovery of all the Federal
utility's costs and expenses related to the
transmission facilities that are the subject of the
contract, agreement or other arrangement, consistency
with existing contracts and third-party financing
arrangements, and consistency with said Federal
utility's statutory authorities, obligations, and
limitations;
(B) provisions for monitoring and oversight by the
Federal utility of the RTO fulfillment of the terms and
conditions of the contract, agreement or other
arrangement, including a provision that may provide for
the resolution of disputes through arbitration or other
means with the RTO or with other participants,
notwithstanding the obligations and limitations of any
other law regarding arbitration; and
(C) a provision that allows the Federal utility to
withdraw from the RTO and terminate the contract,
agreement or other arrangement in accordance with its
terms.
(2) Neither this section, actions taken pursuant to it, nor
any other transaction of a Federal utility using an RTO shall
serve to confer upon the Commission jurisdiction or authority
over the Federal utility's electric generation assets, electric
capacity or energy that the Federal utility is authorized by
law to market, or the Federal utility's power sales activities.
(c) Existing Statutory and Other Obligations.--
(1) Any statutory provision requiring or authorizing a
Federal utility to transmit electric power, or to construct,
operate or maintain its transmission system shall not be
construed to prohibit a transfer of control and use of its
transmission system pursuant to, and subject to all
requirements of subsection (b).
(2) This subsection shall not be construed to--
(A) suspend, or exempt any Federal utility from any
provision of existing Federal law, including but not
limited to any requirement or direction relating to the
use of the Federal utility's transmission system,
environmental protection, fish and wildlife protection,
flood control, navigation, water delivery, or
recreation; or
(B) authorize abrogation of any contract or treaty
obligation.
SEC. 1124. REGIONAL CONSIDERATION OF COMPETITIVE WHOLESALE MARKETS.
(a) State Regulatory Commissions.--Not later than 90 days after the
date of enactment of this Act, the Commission shall convene regional
discussions with State regulatory commissions, as defined in section
3(21) of the Federal Power Act. The regional discussions should address
whether wholesale electric markets in each region are working
effectively to provide reliable service to electric consumers in the
region at the lowest reasonable cost. Priority should be given to
discussions in regions that do not have, as of the date of enactment of
this Act, a Regional Transmission Organization ``(RTO''). The regional
discussions shall consider--
(1) the need for an RTO or other organizations in the region
to provide non-discriminatory transmission access and
generation interconnection;
(2) a process for regional planning of transmission
facilities with State regulatory authority participation and
for consideration of multi-state projects;
(3) a means for ensuring that costs for all electric
consumers, as defined in section 3(5) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602(5)), and buyers
of wholesale energy or capacity are reasonable and economically
efficient;
(4) a means for ensuring that all electric consumers, as
defined in section 3(5) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2602(5)), within the region
maintain their ability to use the existing transmission system
without incurring unreasonable additional costs in order to
expand the transmission system for new customers;
(5) whether the integrated transmission and electric power
supply system can and should be operated in a manner that
schedules and economically prioritizes all available electric
generation resources, so as to minimize the costs of electric
energy to all consumers (``economic dispatch'') and maintaining
system reliability;
(6) a means to provide transparent price signals to ensure
efficient expansion of the electric system and efficiently
manage transmission congestion;
(7) eliminating in a reasonable manner, consistent with
applicable State and Federal law, multiple, cumulative charges
for transmission service across successive locations within a
region (``pancaked rates'');
(8) resolution of seams issues with neighboring regions and
inter-regional coordination;
(9) a means of providing information electronically to
potential users of the transmission system;
(10) implementation of a market monitor for the region with
State regulatory authority and Commission oversight and
establishment of rules and procedures that ensure that State
regulatory authorities are provided access to market
information and that provides for expedited consideration by
the Commission of any complaints concerning exercise of market
power and the operation of wholesale markets;
(11) a process by which to phase-in any proposed RTO or other
organization designated to provide non-discriminatory
transmission access so as to best meet the needs of a region,
and, if relevant, shall take into account the special
circumstances that may be found in the Western Interconnection
related to the existence of transmission congestion, the
existence of significant hydroelectric capacity, the
participation of unregulated transmitting utilities, and the
distances between generation and load; and,
(12) a timetable to meet the objectives of this section.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Commission shall report to Congress on the progress made
in addressing the issues in subsection (a) of this section in
discussions with the States.
(c) Savings.--Nothing in this section shall affect any discussions
between the Commission and State or other retail regulatory authorities
that are on-going prior to enactment of this Act.
Subtitle C--Improving Transmission Access and Protecting Service
Obligations
SEC. 1131. SERVICE OBLIGATION SECURITY AND PARITY.
The Federal Power Act (16 U.S.C. 824e) is amended by adding the
following:
``Sec. 220. (a)(1) The Commission shall exercise its authority under
this Act to ensure that any load-serving entity that, as of the date of
enactment of this section--
``(A) owns generation facilities, markets the output of
federal generation facilities, or holds rights under one or
more long-term contracts to purchase electric energy, for the
purpose of meeting a service obligation, and
``(B) by reason of ownership of transmission facilities, or
one or more contracts or service agreements for firm
transmission service, holds firm transmission rights for
delivery of the output of such generation facilities or such
purchased energy to meet such service obligation,
is entitled to use such firm transmission rights, or equivalent
financial transmission rights, in order to deliver such output or
purchased energy, or the output of other generating facilities or
purchased energy to the extent deliverable using such rights, to meet
its service obligation.
``(2) To the extent that all or a portion of the service obligation
covered by such firm transmission rights is transferred to another
load-serving entity, the successor load-serving entity shall be
entitled to use the firm transmission rights associated with the
transferred service obligation. Subsequent transfers to another load-
serving entity, or back to the original load-serving entity, shall be
entitled to the same rights.
``(3) The Commission shall exercise its authority under this Act in a
manner that facilitates the planning and expansion of transmission
facilities to meet the reasonable needs of load-serving entities to
satisfy their service obligations.
``(b) Nothing in this section shall affect any methodology for the
allocation of transmission rights by a Commission-approved entity that,
prior to the date of enactment of this section, has been authorized by
the Commission to allocate transmission rights.
``(c) Nothing in this Act shall relieve a load-serving entity from
any obligation under State or local law to build transmission or
distribution facilities adequate to meet its service obligations.
``(d) Nothing in this section shall provide a basis for abrogating
any contract or service agreement for firm transmission service or
rights in effect as of the date of the enactment of this subsection.
``(e) For purposes of this section:
``(1) The term `distribution utility' means an electric
utility that has a service obligation to end-users.
``(2) The term `load-serving entity' means a distribution
utility or an electric utility (including an entity described
in section 201(f) or a rural cooperative) that has a service
obligation to end-users or a distribution utility.
``(3) The term `service obligation' means a requirement
applicable to, or the exercise of authority granted to, an
electric utility (including an entity described in section
201(f) or a rural cooperative) under Federal, State or local
law or under long-term contracts to provide electric service to
end-users or to a distribution utility.
``(f) Nothing in the section shall apply to an entity located in an
area referred to in section 212(k)(2)(A).''.
SEC. 1132. OPEN NON-DISCRIMINATORY ACCESS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by inserting after section 211 the following:
``open access by unregulated transmitting utilities
``Sec. 211A. (a) Subject to section 212(h), the Commission may, by
rule or order, require an unregulated transmitting utility to provide
transmission services--
``(1) at rates that are comparable to those that the
unregulated transmitting utility charges itself; and
``(2) on terms and conditions (not relating to rates) that
are comparable to those under which such unregulated
transmitting utility provides transmission services to itself
and that are not unduly discriminatory or preferential.
``(b) The Commission shall exempt from any rule or order under this
subsection any unregulated transmitting utility that--
``(1) is a distribution utility that sells no more than
4,000,000 megawatt hours of electricity per year; or
``(2) does not own or operate any transmission facilities
that are necessary for operating an interconnected transmission
system (or any portion thereof); or
``(3) meets other criteria the Commission determines to be in
the public interest.
``(c) Whenever the Commission, after a hearing held upon a complaint,
finds any exemption granted pursuant to subsection (b) adversely
affects the reliable and efficient operation of an interconnected
transmission system, it may revoke the exemption.
``(d) The rate changing procedures applicable to public utilities
under subsections (c) and (d) of section 205 are applicable to
unregulated transmitting utilities for purposes of this section.
``(e) In exercising its authority under paragraph (1) of subsection
(a), the Commission may remand transmission rates to an unregulated
transmitting utility for review and revision where necessary to meet
the requirements of subsection (a).
``(f) The provision of transmission services under subsection (a)
does not preclude a request for transmission services under section
211.
``(g) The Commission may not require a State or municipality to take
action under this section that constitutes a private business use for
purposes of section 141 of the Internal Revenue Code of 1986 (26 U.S.C.
141).
``(h) Nothing in this Act authorizes the Commission to require an
unregulated transmitting utility to transfer control or operational
control of its transmitting facilities to an RTO or any other
Commission-approved organization designated to provide non-
discriminatory transmission access.''.
SEC. 1133. TRANSMISSION INFRASTRUCTURE INVESTMENT.
Part II of the Federal Power Act is amended by adding the following:
``sustainable transmission networks rulemaking
``Sec. 221. Within six months of enactment of this section, the
Commission shall issue a final rule establishing transmission pricing
policies applicable to all public utilities and policies for the
allocation of costs associated with the expansion, modification or
upgrade of existing interstate transmission facilities and for the
interconnection of new transmission facilities for utilities and
facilities which are not included within a Commission approved RTO.
Consistent with section 205 of this Act, such rule shall, to the
maximum extent practicable--
``(1) promote capital investment in the economically
efficient transmission systems;
``(2) encourage the construction of transmission and
generation facilities in a manner which provides the lowest
overall risk and cost to consumers;
``(3) encourage improved operation of transmission facilities
and deployment of transmission technologies designed to
increase capacity and efficiency of existing networks;
``(4) ensure that the costs of any transmission expansion or
interconnection be allocated in such a way that all users of
the affected transmission system bear the appropriate share of
costs; and
``(5) ensure that parties who pay for facilities necessary
for transmission expansion or interconnection receive
appropriate compensation for those facilities.''.
Subtitle D--Amendments to the Public Utility Regulatory Policies Act of
1978
SEC. 1141. NET METERING.
(a) Adoption of Standard.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
adding at the end the following:
``(11) Net metering.--
``(A) Each electric utility shall make available upon
request net metering service to any electric consumer
that the electric utility serves.
``(B) For purposes of implementing this paragraph,
any reference contained in this section to the date of
enactment of the Public Utility Regulatory Policies Act
of 1978 shall be deemed to be a reference to the date
of enactment of this paragraph.
``(C) Notwithstanding subsections (b) and (c) of
section 112, each State regulatory authority shall
consider and make a determination concerning whether it
is appropriate to implement the standard set out in
subparagraph (A) not later than 1 year after the date
of enactment of this paragraph.''.
(b) Special Rules for Net Metering.--Section 115 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is further
amended by adding at the end the following:
``(i) Net Metering.--In undertaking the consideration and making the
determination under section 111 with respect to the standard concerning
net metering established by section 111(d)(13), the term net metering
service shall mean a service provided in accordance with the following
standards:
``(1) An electric utility--
``(A) shall charge the owner or operator of an on-
site generating facility rates and charges that are
identical to those that would be charged other electric
consumers of the electric utility in the same rate
class; and
``(B) shall not charge the owner or operator of an
on-site generating facility any additional standby,
capacity, interconnection, or other rate or charge.
``(2) An electric utility that sells electric energy to the
owner or operator of an on-site generating facility shall
measure the quantity of electric energy produced by the on-site
facility and the quantity of electric energy consumed by the
owner or operator of an on-site generating facility during a
billing period in accordance with reasonable metering
practices.
``(3) If the quantity of electric energy sold by the electric
utility to an on-site generating facility exceeds the quantity
of electric energy supplied by the on-site generating facility
to the electric utility during the billing period, the electric
utility may bill the owner or operator for the net quantity of
electric energy sold, in accordance with reasonable metering
practices.
``(4) If the quantity of electric energy supplied by the on-
site generating facility to the electric utility exceeds the
quantity of electric energy sold by the electric utility to the
on-site generating facility during the billing period--
``(A) the electric utility may bill the owner or
operator of the on-site generating facility for the
appropriate charges for the billing period in
accordance with paragraph (2); and
``(B) the owner or operator of the on-site generating
facility shall be credited for the excess kilowatt-
hours generated during the billing period, with the
kilowatt-hour credit appearing on the bill for the
following billing period.
``(5) An eligible on-site generating facility and net
metering system used by an electric consumer shall meet all
applicable safety, performance, reliability, and
interconnection standards established by the National
Electrical Code, the Institute of Electrical and Electronics
Engineers, and Underwriters Laboratories.
``(6) The Commission, after consultation with State
regulatory authorities and unregulated electric utilities and
after notice and opportunity for comment, may adopt, by rule,
additional control and testing requirements for on-site
generating facilities and net metering systems that the
Commission determines are necessary to protect public safety
and system reliability.
``(7) For purposes of this subsection--
``(A) The term `eligible on-site generating facility'
means a facility on the site of a residential electric
consumer with a maximum generating capacity of 10
kilowatts or less that is fueled by solar energy, wind
energy, or fuel cells; or a facility on the site of a
commercial electric consumer with a maximum generating
capacity of 500 kilowatts or less that is fueled solely
by a renewable energy resource, landfill gas, or a high
efficiency system.
``(B) The term `renewable energy resource' means
solar, wind, biomass, or geothermal energy.
``(C) The term `high efficiency system' means fuel
cells or combined heat and power.
``(D) The term `net metering service' means service
to an electric consumer under which electric energy
generated by that electric consumer from an eligible
on-site generating facility and delivered to the local
distribution facilities may be used to offset electric
energy provided by the electric utility to the electric
consumer during the applicable billing period.''.
SEC. 1142. SMART METERING.
(a) In General.--Section 111(d) of the Public Utilities Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the
end the following:
``(12) Time-based metering and communications.--
``(A) Each electric utility shall offer each of its
customer classes, and provide individual customers upon
customer request, a time-based rate schedule under
which the rate charged by the electric utility varies
during different time periods and reflects the variance
in the costs of generating and purchasing electricity
at the wholesale level. The time-based rate schedule
shall enable the electric consumer to manage energy use
and cost through advanced metering and communications
technology.
``(B) The types of time-based rate schedules that may
be offered under the schedule referred to in
subparagraph (A) include, among others--
``(i) time-of-use pricing whereby electricity
prices are set for a specific time period on an
advance or forward basis, typically not
changing more often than twice a year. Prices
paid for energy consumed during these periods
shall be pre-established and known to consumers
in advance of such consumption, allowing them
to vary their demand and usage in response to
such prices and manage their energy costs by
shifting usage to a lower cost period or
reducing their consumption overall;
``(ii) critical peak pricing whereby time-of-
use prices are in effect except for certain
peak days, when prices may reflect the costs of
generating and purchasing electricity at the
wholesale level and when consumers may receive
additional discounts for reducing peak period
energy consumption; and
``(iii) real-time pricing whereby electricity
prices are set for a specific time period on an
advanced or forward basis and may change as
often as hourly.
``(C) Each electric utility subject to subparagraph
(A) shall provide each customer requesting a time-based
rate with a time-based meter capable of enabling the
utility and customer to offer and receive such rate,
respectively.
``(D) For purposes of implementing this paragraph,
any reference contained in this section to the date of
enactment of the Public Utility Regulatory Policies Act
of 1978 shall be deemed to be a reference to the date
of enactment of this paragraph.
``(E) In a State that permits third-party marketers
to sell electric energy to retail electric consumers,
such consumers shall be entitled to receive that same
time-based metering and communications device and
service as a retail electric consumer of the electric
utility.
``(F) Notwithstanding subsections (b) and (c) of
section 112, each State regulatory authority shall, not
later than twelve (12) months after enactment of this
paragraph conduct an investigation in accordance with
section 115(i) and issue a decision whether it is
appropriate to implement the standards set out in
subparagraphs (A) and (C).''.
(b) State Investigation of Demand Response and Time-Based Metering.--
Section 115 of the Public Utilities Regulatory Policies Act of 1978 (16
U.S.C. 2625) is amended by adding the at the end the following:
``(k) Time-Based Metering and Communications.--Each State regulatory
authority shall conduct an investigation and issue a decision whether
or not it is appropriate for electric utilities to provide and install
time-based meters and communications devices for each of their
customers which enable such customers to participate in time-based
pricing rate schedules and other demand response programs.''.
(c) Federal Assistance on Demand Response.--Section 132(a) of the
Public Utility Regulatory Polices Act of 1978 (16 U.S.C. 2642(a)) is
amended by striking ``and'' at the end of paragraph (3), striking the
period at the end of paragraph (4) and inserting ``; and'', and by
adding the following at the end thereof:
``(5) technologies, techniques and rate-making methods
related to advanced metering and communications and the use of
these technologies, techniques and methods in demand response
programs.''.
(d) Federal Guidance.--Section 132 of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2643) is amended by adding the
following at the end thereof:
``(d) Demand Response.--The Secretary shall be responsible for--
``(1) educating consumers on the availability, advantages and
benefits of advanced metering and communications technologies,
including the funding of demonstration or pilot projects;
``(2) working with States, utilities, other energy providers
and advanced metering and communications experts to identify
and address barriers to the adoption of demand response
programs; and
``(3) not later than 180 days after the date of enactment of
the Energy Policy Act of 2003, providing the Congress with a
report that identifies and quantifies the national benefits of
demand response and makes a recommendation on achieving
specific levels of such benefits by January 1, 2005.''.
(e) Demand Response and Regional Coordination.--
(1) It is the policy of the United States to encourage States
to coordinate, on a regional basis, State energy policies to
provide reliable and affordable demand response services to the
public.
(2) The Secretary of Energy shall provide technical
assistance to States and regional organizations formed by two
or more States to assist them in--
(A) identifying the areas with the greatest demand
response potential;
(B) identifying and resolving problems in
transmission and distribution networks, including
through the use of demand response; and
(C) developing plans and programs to use demand
response to respond to peak demand or emergency needs.
(3) Not later than 1 year after the date of enactment of this
Act, the Commission shall prepare and publish an annual report,
by appropriate region, that assesses demand response resources,
including those available from all consumer classes, and which
identifies and reviews--
(A) saturation and penetration rate of advanced
meters and communications technologies, devices and
systems;
(B) existing demand response programs and time-based
rate programs;
(C) the annual resource contribution of demand
resources;
(D) the potential for demand response as a
quantifiable, reliable resource for regional planning
purposes; and
(E) steps taken to ensure that, in regional
transmission planning and operations, demand resources
are provided equitable treatment as a quantifiable,
reliable resource relative to the resource obligations
of any load-serving entity, transmission provider, or
transmitting party.
(f) Federal Encouragement of Demand Response Devices.--It is the
policy of the United States that time-based pricing and other forms of
demand response, whereby electricity customers are provided with
electricity price signals and the ability to benefit by responding to
them, shall be encouraged and the deployment of such technology and
devices that enable electricity customers to participate in such
pricing and demand response systems shall be facilitated.
SEC. 1143. ADOPTION OF ADDITIONAL STANDARDS.
(a) Adoption of Standards.--Section 113(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by
adding at the end the following:
``(6) Each electric utility shall provide distributed
generation, combined heat and power, and district heating and
cooling systems competitive access to the local distribution
grid and competitive pricing of service, and shall use
simplified standard contracts for the interconnection of
generating facilities that have a power production capacity of
250 kilowatts or less.
``(7) No electric utility may refuse to interconnect a
generating facility with the distribution facilities of the
electric utility if the owner or operator of the generating
facility complies with technical standards adopted by the State
regulatory authority and agrees to pay the costs established by
such State regulatory authority.
``(8) Each electric utility shall develop a plan to minimize
dependence on one fuel source and to ensure that the electric
energy it sells to consumers is generated using a diverse range
of fuels and technologies, including renewable technologies.
``(9) Each electric utility shall develop and implement a
ten-year plan to increase the efficiency of its fossil fuel
generation.''.
(b) Time for Adopting Standards.--Section 113 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is further amended by
adding at the end the following:
``(d) Special Rule.--For purposes of implementing paragraphs (6),
(7), (8), and (9) of subsection (b), any reference contained in this
section to the date of enactment of the Public Utility Regulatory
Policies Act of 1978 shall be deemed to be a reference to the date of
enactment of this subsection.''.
SEC. 1144. TECHNICAL ASSISTANCE.
Section 132(c) of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2642(c)) is amended to read as follows:
``(c) Technical Assistance for Certain Responsibilities.--The
Secretary may provide such technical assistance as determined
appropriate to assist State regulatory authorities and electric
utilities in carrying out their responsibilities under section
111(d)(11) and paragraphs (6), (7), (8), and (9) of section 113(b).''.
SEC. 1145. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE
REQUIREMENTS.
(a) Termination of Mandatory Purchase and Sale Requirements.--Section
210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
824a-3) is amended by adding at the end the following:
``(m) Termination of Mandatory Purchase and Sale Requirements.--
``(1) Obligation to purchase.--After the date of enactment of
this subsection, no electric utility shall be required to enter
into a new contract or obligation to purchase electric energy
from a qualifying cogeneration facility or a qualifying small
power production facility under this section if the Commission
finds that the qualifying cogeneration facility or qualifying
small power production facility has access to an independently
administered, auction-based day ahead and real time wholesale
market for the sale of electric energy.
``(2) Obligation to sell.--After the date of enactment of
this subsection, no electric utility shall be required to enter
into a new contract or obligation to sell electric energy to a
qualifying cogeneration facility or a qualifying small power
production facility under this section if competing retail
electric suppliers are able to provide electric energy to the
qualifying cogeneration facility or qualifying small power
production facility.
``(3) No effect on existing rights and remedies.--Nothing in
this subsection affects the rights or remedies of any party
under any contract or obligation, in effect on the date of
enactment of this subsection, to purchase electric energy or
capacity from or to sell electric energy or capacity to a
facility under this Act (including the right to recover costs
of purchasing electric energy or capacity).
``(4) Recovery of costs.--
``(A) Regulation.--The Commission shall promulgate
such regulations as are necessary to ensure that an
electric utility that purchases electric energy or
capacity from a qualifying cogeneration facility or
qualifying small power production facility in
accordance with any legally enforceable obligation
entered into or imposed under this section before the
date of enactment of this subsection recovers all
prudently incurred costs associated with the purchase.
``(B) Enforcement.--A regulation under subparagraph
(A) shall be enforceable in accordance with the
provisions of law applicable to enforcement of
regulations under the Federal Power Act (16 U.S.C. 791a
et seq.).''.
(b) Elimination of Ownership Limitations.--Section 3 of the Federal
Power Act (16 U.S.C. 796) is amended--
(1) by striking paragraph (17)(C) and inserting the
following:
``(C) `qualifying small power production facility'
means a small power production facility that the
Commission determines, by rule, meets such requirements
(including requirements respecting minimum size, fuel
use, and fuel efficiency) as the Commission may, by
rule, prescribe;''; and
(2) by striking paragraph (18)(B) and inserting the
following:
``(B) `qualifying cogeneration facility' means a
cogeneration facility that the Commission determines,
by rule, meets such requirements (including
requirements respecting minimum size, fuel use, and
fuel efficiency) as the Commission may, by rule,
prescribe;''.
SEC. 1146. RECOVERY OF COSTS.
(a) Regulation.--To ensure recovery by any electric utility that
purchases electricity or capacity from a qualifying facility pursuant
to any legally enforceable obligation entered into or imposed under
section 210 of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 824a-3) before the date of enactment of this Act of all costs
associated with the purchases, the Commission shall promulgate and
enforce such regulations as are required to ensure that no utility
shall be required directly or indirectly to absorb the costs associated
with the purchases.
(b) Treatment.--A regulation under subsection (a) shall be treated as
a rule enforceable under the Federal Power Act (16 U.S.C. 791a et
seq.).
Subtitle E--Provisions Regarding the Public Utility Holding Company Act
of 1935
SEC. 1151. DEFINITIONS.
For the purposes of this subtitle:
(1) The term ``affiliate'' of a company means any company 5
percent or more of the outstanding voting securities of which
are owned, controlled, or held with power to vote, directly or
indirectly, by such company.
(2) The term ``associate company'' of a company means any
company in the same holding company system with such company.
(3) The term ``Commission'' means the Federal Energy
Regulatory Commission.
(4) The term ``company'' means a corporation, partnership,
association, joint stock company, business trust, or any
organized group of persons, whether incorporated or not, or a
receiver, trustee, or other liquidating agent of any of the
foregoing.
(5) The term ``electric utility company'' means any company
that owns or operates facilities used for the generation,
transmission, or distribution of electric energy for sale.
(6) The terms ``exempt wholesale generator'' and ``foreign
utility company'' have the same meanings as in sections 32 and
33, respectively, of the Public Utility Holding Company Act of
1935 (15 U.S.C. 79z-5, 79z-5b), as those sections existed on
the day before the effective date of this subtitle.
(7) The term ``gas utility company'' means any company that
owns or operates facilities used for distribution at retail
(other than the distribution only in enclosed portable
containers or distribution to tenants or employees of the
company operating such facilities for their own use and not for
resale) of natural or manufactured gas for heat, light, or
power.
(8) the term ``holding company'' means--
(A) any company that directly or indirectly owns,
controls, or holds, with power to vote, 10 percent or
more of the outstanding voting securities of a public
utility company or of a holding company of any public
utility company; and
(B) any person, determined by the Commission, after
notice and opportunity for hearing, to exercise
directly or indirectly (either alone or pursuant to an
arrangement or understanding with one or more persons)
such a controlling influence over the management or
policies of any public utility company or holding
company as to make it necessary or appropriate for the
rate protection of utility customers with respect to
rates that such person be subject to the obligations,
duties, and liabilities imposed by this subtitle upon
holding companies.
(9) The term ``holding company system'' means a holding
company, together with its subsidiary companies.
(10) The term ``jurisdictional rates'' means rates
established by the Commission for the transmission of electric
energy in interstate commerce, the sale of electric energy at
wholesale in interstate commerce, the transportation of natural
gas in interstate commerce, and the sale in interstate commerce
of natural gas for resale for ultimate public consumption for
domestic, commercial, industrial, or any other use.
(11) The term ``natural gas company'' means a person engaged
in the transportation of natural gas in interstate commerce or
the sale of such gas in interstate commerce for resale.
(12) The term ``person'' means an individual or company.
(13) The term ``public utility'' means any person who owns or
operates facilities used for transmission of electric energy in
interstate commerce or sales of electric energy at wholesale in
interstate commerce.
(14) The term ``public utility company'' means an electric
utility company or a gas utility company.
(15) The term ``State commission'' means any commission,
board, agency, or officer, by whatever name designated, of a
State, municipality, or other political subdivision of a State
that, under the laws of such State, has jurisdiction to
regulate public utility companies.
(16) The term ``subsidiary company'' of a holding company
means--
(A) any company, 10 percent or more of the
outstanding voting securities of which are directly or
indirectly owned, controlled, or held with power to
vote, by such holding company; and
(B) any person, the management or policies of which
the Commission, after notice and opportunity for
hearing, determines to be subject to a controlling
influence, directly or indirectly, by such holding
company (either alone or pursuant to an arrangement or
understanding with one or more other persons) so as to
make it necessary for the rate protection of utility
customers with respect to rates that such person be
subject to the obligations, duties, and liabilities
imposed by this subtitle upon subsidiary companies of
holding companies.
(17) The term ``voting security'' means any security
presently entitling the owner or holder thereof to vote in the
direction or management of the affairs of a company.
SEC. 1152. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.
The Public Utility Holding Company Act of 1935 (15 U.S.C. 79a et
seq.) is repealed, effective 12 months after the date of enactment of
this Act.
SEC. 1153. FEDERAL ACCESS TO BOOKS AND RECORDS.
(a) In General.--Each holding company and each associate company
thereof shall maintain, and shall make available to the Commission,
such books, accounts, memoranda, and other records as the Commission
determines are relevant to costs incurred by a public utility or
natural gas company that is an associate company of such holding
company and necessary or appropriate for the protection of utility
customers with respect to jurisdictional rates.
(b) Affiliate Companies.--Each affiliate of a holding company or of
any subsidiary company of a holding company shall maintain, and make
available to the Commission, such books, accounts, memoranda, and other
records with respect to any transaction with another affiliate, as the
Commission determines are relevant to costs incurred by a public
utility or natural gas company that is an associate company of such
holding company and necessary or appropriate for the protection of
utility customers with respect to jurisdictional rates.
(c) Holding Company Systems.--The Commission may examine the books,
accounts, memoranda, and other records of any company in a holding
company system, or any affiliate thereof, as the Commission determines
are relevant to costs incurred by a public utility or natural gas
company within such holding company system and necessary or appropriate
for the protection of utility customers with respect to jurisdictional
rates.
(d) Confidentiality.--No member, officer, or employee of the
Commission shall divulge any fact or information that may come to his
or her knowledge during the course of examination of books, accounts,
memoranda, or other records as provided in this section, except as may
be directed by the Commission or by a court of competent jurisdiction.
SEC. 1154. STATE ACCESS TO BOOKS AND RECORDS.
(a) In General.--Upon the written request of a State commission
having jurisdiction to regulate a public utility company in a holding
company system, and subject to such terms and conditions as may be
necessary and appropriate to safeguard against unwarranted disclosure
to the public of any trade secrets or sensitive commercial information,
a holding company or any associate company or affiliate thereof,
wherever located, shall produce for inspection books, accounts,
memoranda, and other records that--
(1) have been identified in reasonable detail in a proceeding
before the State commission;
(2) the State commission determines are relevant to costs
incurred by such public utility company; and
(3) are necessary for the effective discharge of the
responsibilities of the State commission with respect to such
proceeding.
(b) Effect on State Law.--Nothing in this section shall preempt
applicable State law concerning the provision of books, accounts,
memoranda, or other records, or in any way limit the rights of any
State to obtain books, accounts, memoranda, or other records, under
Federal law, contract, or otherwise.
(c) Court Jurisdiction.--Any United States district court located in
the State in which the State commission referred to in subsection (a)
is located shall have jurisdiction to enforce compliance with this
section.
SEC. 1155. EXEMPTION AUTHORITY.
(a) Rulemaking.--Not later than 90 days after the date of enactment
of this title, the Commission shall promulgate a final rule to exempt
from the requirements of section 203 any person that is a holding
company, solely with respect to one or more--
(1) qualifying facilities under the Public Utility Regulatory
Policies Act of 1978;
(2) exempt wholesale generators; or
(3) foreign utility companies.
(b) Other Authority.--If, upon application or upon its own motion,
the Commission finds that the books, accounts, memoranda, and other
records of any person are not relevant to the jurisdictional rates of a
public utility company or natural gas company, or if the Commission
finds that any class of transactions is not relevant to the
jurisdictional rates of a public utility company, the Commission shall
exempt such person or transaction from the requirements of section 203.
SEC. 1156. AFFILIATE TRANSACTIONS.
Nothing in this subtitle shall preclude the Commission or a State
commission from exercising its jurisdiction under otherwise applicable
law to determine whether a public utility company, public utility, or
natural gas company may recover in rates any costs of an activity
performed by an associate company, or any costs of goods or services
acquired by such public utility company, public utility, or natural gas
company from an associate company.
SEC. 1157. APPLICABILITY.
No provision of this subtitle shall apply to, or be deemed to
include--
(1) the United States;
(2) a State or any political subdivision of a State;
(3) any foreign governmental authority not operating in the
United States;
(4) any agency, authority, or instrumentality of any entity
referred to in paragraph (1), (2), or (3); or
(5) any officer, agent, or employee of any entity referred to
in paragraph (1), (2), or (3) acting as such in the course of
such officer, agent, or employee's official duty.
SEC. 1158. EFFECT ON OTHER REGULATIONS.
Nothing in this subtitle precludes the Commission or a State
commission from exercising its jurisdiction under otherwise applicable
law to protect utility customers.
SEC. 1159. ENFORCEMENT.
The Commission shall have the same powers as set forth in sections
306 through 317 of the Federal Power Act (16 U.S.C. 825e-825p) to
enforce the provisions of this subtitle.
SEC. 1160. SAVINGS PROVISIONS.
(a) In General.--Nothing in this subtitle prohibits a person from
engaging in or continuing to engage in activities or transactions in
which it is legally engaged or authorized to engage on the date of
enactment of this Act, if that person continues to comply with the
terms of any such authorization, whether by rule or by order.
(b) Effect on Other Commission Authority.--Nothing in this subtitle
limits the authority of the Commission under the Federal Power Act (16
U.S.C. 791a and following) (including section 301 of that Act) or the
Natural Gas Act (15 U.S.C. 717 and following) (including section 8 of
that Act).
SEC. 1161. IMPLEMENTATION.
Not later than 12 months after the date of enactment of this title,
the Commission shall--
(1) promulgate such regulations as may be necessary or
appropriate to implement this subtitle; and
(2) submit to Congress detailed recommendations on technical
and conforming amendments to Federal law necessary to carry out
this subtitle and the amendments made by this subtitle.
SEC. 1162. TRANSFER OF RESOURCES.
All books and records that relate primarily to the functions
transferred to the Commission under this subtitle shall be transferred
from the Securities and Exchange Commission to the Commission.
SEC. 1163. EFFECTIVE DATE.
This subtitle shall take effect 12 months after the date of enactment
of this title.
SEC. 1164. CONFORMING AMENDMENT TO THE FEDERAL POWER ACT.
Section 318 of the Federal Power Act (16 U.S.C. 825q) is repealed.
Subtitle F--Market Transparency, Anti-Manipulation And Enforcement
SEC. 1171. MARKET TRANSPARENCY RULES.
Part II of the Federal Power Act is amended by adding:
``market transparency rules
``Sec. 222. (a) Not later than 180 days after the date of enactment
of this section, the Commission shall issue rules establishing an
electronic information system to provide the Commission and the public
with access to such information as is necessary or appropriate to
facilitate price transparency and participation in markets subject to
the Commission's jurisdiction. Such systems shall provide information
about the availability and market price of wholesale electric energy
and transmission services to the Commission, State commissions, buyers
and sellers of wholesale electric energy, users of transmission
services, and the public. The Commission shall have authority to obtain
such information from any electric and transmitting utility, including
any entity described in section 201(f).
``(b) The Commission shall exempt from disclosure information it
determines would, if disclosed, be detrimental to the operation of an
effective market or jeopardize system security. This section shall not
apply to an entity described in section 212(k)(2)(B) with respect to
transactions for the purchase or sale of wholesale electric energy and
transmission services within the area described in section
212(k)(2)(A).''.
SEC. 1172. MARKET MANIPULATION.
Part II of the Federal Power Act is amended by the following:
``prohibition on filing false information
``Sec. 223. It shall be a violation of this Act for any person or any
other entity (including entities described in section 201(f)) willfully
and knowingly to report any information relating to the price of
electricity sold at wholesale, which information the person or any
other entity knew to be false at the time of the reporting, to any
governmental entity with the intent to manipulate the data being
compiled by such governmental entity.
``prohibition on round trip trading
``Sec. 224. (a) It shall be a violation of this Act for any person or
any other entity (including entities described in section 201(f))
willfully and knowingly to enter into any contract or other arrangement
to execute a `round-trip trade' for the purchase or sale of electric
energy at wholesale.
``(b) For the purposes of this section, the term `round trip trade'
means a transaction, or combination of transactions, in which a person
or any other entity--
``(1) enters into a contract or other arrangement to purchase
from, or sell to, any other person or other entity electric
energy at wholesale;
``(2) simultaneously with entering into the contract or
arrangement described in paragraph (1), arranges a financially
offsetting trade with such other person or entity for the same
such electric energy, at the same location, price, quantity and
terms so that, collectively, the purchase and sale transactions
in themselves result in no financial gain or loss; and
``(3) enters into the contract or arrangement with the intent
to deceptively affect reported revenues, trading volumes, or
prices.''.
SEC. 1173. ENFORCEMENT.
(a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C.
825e) is amended by--
(1) inserting ``electric utility (including entities
described in section 201(f) and rural cooperative entities),''
after ``Any person,''; and
(2) inserting ``transmitting utility,'' after ``licensee''
each place it appears.
(b) Investigations.--Section 307(a) of the Federal Power Act (16
U.S.C. 825f(a)) is amended by inserting ``or transmitting utility''
after ``any person'' in the first sentence.
(c) Review of Commission Orders.--Section 313(a) of the Federal Power
Act (16 U.S.C. 8251) is amended by inserting ``electric utility,''
after ``Any person,'' in the first sentence.
(d) Criminal Penalties.--Section 316 of the Federal Power Act (16
U.S.C. 825o) is amended--
(1) in subsection (a), by striking ``$5,000'' and inserting
``$1,000,000'', and by striking ``two years'' and inserting
``five years'';
(2) in subsection (b), by striking ``$500'' and inserting
``$25,000''; and
(3) by striking subsection (c).
(e) Civil Penalties.--Section 316A of the Federal Power Act (16
U.S.C. 825o-1) is amended--
(1) in subsections (a) and (b), by striking ``section 211,
212, 213, or 214'' each place it appears and inserting ``Part
II''; and
(2) in subsection (b), by striking ``$10,000'' and inserting
``$1,000,000''.
(f) General Penalties.--Section 21 of the Natural Gas Act (15 U.S.C.
717t) is amended--
(1) in subsection (a), by striking ``$5,000'' and inserting
``$1,000,000'', and by striking ``two years'' and inserting
``five years''; and
(2) in subsection (b), by striking ``$500'' and inserting
``$50,000''.
SEC. 1174. REFUND EFFECTIVE DATE.
Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is
amended by--
(1) striking ``the date 60 days after the filing of such
complaint nor later than 5 months after the expiration of such
60-day period'' in the second sentence and inserting ``the date
of the filing of such complaint nor later than 5 months after
the filing of such complaint'';
(2) striking ``60 days after'' in the third sentence and
inserting ``of'';
(3) striking ``expiration of such 60-day period'' in the
third sentence and inserting ``publication date''; and
(4) striking the fifth sentence and inserting: ``If no final
decision is rendered by the conclusion of the 180-day period
commencing upon initiation of a proceeding pursuant to this
section, the Commission shall state the reasons why it has
failed to do so and shall state its best estimate as to when it
reasonably expects to make such decision.''.
Subtitle G--Consumer Protections
SEC. 1181. CONSUMER PRIVACY.
The Federal Trade Commission shall issue rules protecting the privacy
of electric consumers from the disclosure of consumer information in
connection with the sale or delivery of electric energy to a retail
electric consumer. If the Federal Trade Commission determines that a
State's regulationsprovide equivalent or greater protection than the
provisions of this section, such State regulations shall apply in that
State in lieu of the regulations issued by the Commission under this
section.
SEC. 1182. UNFAIR TRADE PRACTICES.
(a) Slamming.--The Federal Trade Commission shall issue rules
prohibiting the change of selection of an electric utility except with
the informed consent of the electric consumer or if determined by the
appropriate State regulatory authority to be necessary to prevent loss
of service.
(b) Cramming.--The Federal Trade Commission shall issue rules
prohibiting the sale of goods and services to an electric consumer
unless expressly authorized by law or the electric consumer.
(c) State Authority.--If the Federal Trade Commission determines that
a State's regulations provide equivalent or greater protection than the
provisions of this section, such State regulations shall apply in that
State in lieu of the regulations issued by the Commission under this
section.
SEC. 1183. DEFINITIONS.
For purposes of this subtitle--
(1) ``State regulatory authority'' has the meaning given that
term in section 3(21) of the Federal Power Act (16 U.S.C.
796(21)).
(2) ``Electric consumer'' and ``electric utility'' have the
meanings given those terms in section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602).
Subtitle H--Technical Amendments
SEC. 1191. TECHNICAL AMENDMENTS.
(a) Section 211(c) of the Federal Power Act (16 U.S.C. 824j(c)) is
amended by--
(1) striking ``(2)'';
(2) striking ``(A)'' and inserting ``(1)'';
(3) striking ``(B)'' and inserting ``(2)''; and
(4) striking ``termination of modification'' and inserting
``termination or modification''.
(b) Section 211(d)(1) of the Federal Power Act (16 U.S.C. 824j(d)) is
amended by striking ``electric utility'' the second time it appears and
inserting ``transmitting utility''.
(c) Section 315 of the Federal Power Act (16 U.S.C. 825n) is amended
by striking ``subsection'' and inserting ``section''.
Purpose of the Measure
The purpose of the measure is to provide a comprehensive
national energy policy that balances domestic energy production
with conservation and efficiency efforts to enhance the
security of the United States and decrease dependence on
foreign sources of oil.
Summary of Major Provisions
Title I--Oil and Gas. Title I provides a variety of
production incentives, improves the Federal permitting process
and expedites the construction of the Alaska Natural Gas
Pipeline to increase domestic production of oil and gas
supplies in order to meet the rising demand expected over the
next 20 years. Subtitle A permanently authorizes the Strategic
Petroleum Reserve, which will protect oil markets against
severe supply disruptions. The subtitle provides financial
relief to encourage development of deep water production and
production from deep natural gas wells in the Central and
Western Planning Areas and a portion of the Eastern Planning
Area in the Gulf of Mexico, as well as provide royalty relief
to marginal wells located on Federal lands and the Outer
Continental Shelf in order to extend the life of wells that
might be abandoned due to economic factors. In Alaska, the
Secretary of the Interior is authorized to provide royalty
relief to existing, non-producing offshore leases. Subtitle B
includes several provisions that will improve access to Federal
lands, as well as expedite the designation and approval of
permits on multiple use designated lands and improve inspection
and enforcement of existing permits. In an effort to improve
energy infrastructure development, the Secretaries of the
Interior and Agriculture are instructed to designate energy
corridors on western lands that can be used for the deployment
of energy transportation and transmission rights-of-way.
Subtitle C authorizes the expedited certification and
permitting of a natural gas pipeline to transport natural gas
from Alaska to markets in the continental United States in
order to meet rapidly growing demand for natural gas. Over 30
trillion cubic feet of Alaska natural gas have been discovered
and developed, but has been stranded due to the risks involved
in undertaking this enormous and costly construction project.
The construction of a pipeline will stimulate further
development of natural gas resources in Alaska.
Title II--Coal. Title II contains provisions that provide
critical research of our most abundant fossil resource, coal.
The development of cleaner burning coal, as well as the
improvement of Federal mining rules to provide operators the
flexibility to optimize the recovery of existing and new coal
production, are also included. Today, more than one-half of
U.S. electricity is generated from low cost domestic coal and
can play a greater role in meeting future demand. At current
consumption rates, it would provide more than 250 years of
supply. The coal option needs to be preserved to ensure a
diversity of supply, and affordable and reliable electricity.
Subtitle A authorizes the Clean Coal Power Initiative, which
provides $200 million annually to be applied toward clean coal
research in coal based gasification technologies. The Secretary
of Energy is charged with setting increasingly restrictive
emission targets over the life of the program to develop state-
of-the-art technology. Subtitle B amends several provisions of
the Mineral Leasing Act governing the Federal Coal Leasing
Program, including those pertaining to lease modifications to
avoid the bypass of coal, mining requirements for logical
mining units, payment of advance royalties, and the deadline
for submission of a coal lease operation and reclamation plan.
Subtitle C authorizes the Secretary of the Interior to review
the Department of Interior's authority to resolve conflicts
between the development of coal and coalbed methane from the
same lease.
Title III--Indian Energy. Title III, referred to as the
Indian Tribal Energy Development and Self-Determination Act of
2003, assists Indian Tribes in the development of Indian energy
resources by increasing Tribes' internal capacity to develop
their own resources by providing grants and technical
assistance, and streamlining the approval process for Tribal
leases, agreements, and rights-of-way so that outside parties
have more incentive to partner with Tribes in developing energy
resources. Included in this title are provisions creating an
Office of Indian Energy Policy and Programs within the
Department of Energy to support the development of tribal
energy resources. Section 305 makes Dine Power Authority, a
Navajo Nation enterprise, eligible for funding under this
title. Section 306, directs the Secretary of Housing and Urban
Development to promote energy efficiency for Indian housing.
The title also provides a complete substitute for title 26
of the Energy Policy Act of 1992. Sections 2602 and 2603
authorizes the Secretary of the Interior to provide grants to
tribes to develop and utilize their energy resources and to
enhance the legal and administrative ability of tribes to
manage their resources. Section 2604 establishes a process by
which an Indian tribe, upon demonstrating its technical and
financial capacity, could negotiate and execute energy resource
development leases, agreements and rights-of-way with third
parties without first obtaining the approval of the Secretary
of the Interior. Section 2605 authorizes WAPA to make power
allocations to meet the firming and reserve needs of Indian-
owned energy projects and acquire power generated by Indian
tribes for firming and reserve needs, so long as the rates and
terms are competitive. Section 2606 authorizes the Secretary of
the Interior to review activities authorized under the Indian
Mineral Development Act. Section 2607 authorizes a study of
wind and hydropower potential along the Missouri River.
Title IV--Nuclear. Title IV provides for programs to ensure
that nuclear energy continues as a major component of the
Nation's energy supply. Price Anderson liability protection is
permanently extended for both NRC licensees and DOE
contractors, coverage is increased and indexed for inflation,
and non-profit contractors of the Department are made subject
to payment of penalties assessed for nuclear safety violations.
The Secretary of Energy is authorized to provide loan
guarantees and purchase agreements in financing new nuclear
plants, if the plants are needed for energy security, to ensure
fuel or technology diversity, or to attain clean air goals. The
Secretary's loan guarantee authority may extend to half of a
project's cost and up to 8400 megawatts of new plant
construction are eligible for assistance. A research,
development, and construction project is authorized for a new
test reactor, to be constructed at the Idaho National
Engineering and Environmental Laboratory, to provide a national
testbed for advanced reactor technologies and for co-generation
of hydrogen by nuclear energy. This advanced test reactor must
provide improved attributes over existing plants. Limits, with
several listed exemptions, are imposed on future sales or
transfers of government stockpiles of uranium, subject to tests
that fair market value is received for sales and that national
security is not adversely impacted.
Title V--Renewable Energy. Title V provides for an ongoing
assessment of renewable energy resources, extends existing
authority for incentive programs for production of renewable
electricity, requires an update of energy plans for insular
areas, and requires the Federal government to purchase a set
amount of electric energy from renewable resources. Subtitle B
amends the Federal Power Act to require the consideration, and
upon meeting certain requirements, adoption of applicant-
proposed alternatives by Federal resource agencies in imposing
mandatory conditions or fishway prescriptions on hydroelectric
licenses.
Subtitle C updates the Geothermal Steam Act by amending the
leasing provisions to replicate more closely aspects of the oil
and gas leasing law by changing from a system in which the
Federal Government determines where the high value geothermal
prospects are located by designating ``Known Geothermal
Resource Areas'' to a competitive leasing system as well as
directing other actions for the purpose of facilitating new
development of Geothermal Resources.
The programs authorized in Subtitle D are designed to
encourage the use of biomass from Federal or Indian lands to
produce electric energy, transportation fuels, or substitutes
for petroleum products, and to encourage removal of hazardous
fuels from the highest risk areas on Federal and Indian lands
and to develop new technology to use biomass. The programs are
not intended to off-set the costs of the production of existing
petroleum-based products, such as plastics. The grants are to
be awarded to individuals in communities or Indian reservations
that are located near an area that suffers from, or is at
significant risk from, catastrophic wildfire, disease, or
insect infestation.
Title VI--Energy Efficiency. Title VI sets new performance
requirements for the operations of Federal agencies and
buildings, requires Federal agencies to procure only energy
efficient products, and requires energy use metering in all
Federal buildings. It permanently authorizes the Energy Savings
Performance Contracting program, and authorizes pilot projects
under such program for ``non-building'' applications. The bill
authorizes funding for new programs to expand state and local
energy efficiency programs to improve efficiency in low-income
communities and public buildings such as schools, hospitals and
government facilities, and the bill provides for funding to
States and local governments to encourage consumers to exchange
existing appliances for new, more energy efficient units. The
bill also sets by law energy efficiency standards for a number
of new consumer products, and calls on the Department of Energy
to initiate rulemaking processes to set standards for others.
It requires the Federal Trade Commission to review and improve
energy efficiency labeling programs, and authorizes funding for
the Energy Star program and a consumer education program on
HVAC maintenance. The bill includes a number of changes to
existing public housing law to enable improved energy
efficiency in the construction and maintenance of public
housing, improves Federal efficiency standards for public
housing facilities, and requires public housing agencies to
purchase energy efficient products.
Title VII--Transportation Fuels. Title VII makes a number
of changes to the alternative fuel vehicle mandate program
applicable to Federal, State, local and fuel provider vehicle
fleets pursuant to the Energy Policy Act of 1992. In
particular, credits towards compliance with fleet mandates can
be accrued for the actual use of alternative fuels, the
purchase of neighborhood electric vehicles, investment in
alternative fuel infrastructures, or equivalent contributions
towards other fleets compliance with their mandates through the
purchase of vehicles or fueling infrastructure. The bill
requires a complete review of alternative fuel vehicle mandate
programs, and enables States to enact regulations to allow
alternative fuel vehicles to use High Occupancy Vehicle lanes
regardless of the number of passengers carried. The bill
removes the 50 percent cap on biodiesel credits. The bill
requires the National Highway Transportation Safety
Administration (NHTSA) to additionally consider the effects on
passenger safety and employment levels in the U.S. auto
industry when setting fuel economy standards, requires an
analysis of proposed changes, and extends incentives for
``dual-fuel'' vehicles for another four years. It requires the
Federal fleet to improve its fuel economy by 3 miles per gallon
by 2005 relative to 1999 levels, authorizes funding for
improved railroad efficiency programs, and authorizes a weight
exemption of 400 lbs for heavy duty trucks that install
approved devices to limit engine idling.
Title VIII--Hydrogen. Title VIII reauthorizes and updates
the Spark M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990, which provides for basic hydrogen
energy research and development programs. The title also
authorizes new research and development programs for hydrogen
vehicle technologies (``FreedomCAR'') and for use as a
transportation fuel. The title provides authorization for a
variety of programs to demonstrate hydrogen and fuel cells for
use in light- and heavy-duty vehicle fleets, stationary power
applications (including by Indian tribes and as distributed
generation facilities using renewable energy), national parks,
and international projects. The title requires Federal agencies
to consider how they can incorporate hydrogen and fuel cell
technologies into their missions, and sets new mandates for
displacement of Federal electric energy demand via fuel cells
and use of hydrogen fueled vehicles in Federal fleets.
Title IX--Research and Development. Title IX provides the
research and development base underpinning the full range of
energy-related technologies. Subtitles of the title are devoted
to Energy Efficiency, Distributed Energy and Electric Energy
Systems, Renewable Energy, Nuclear Energy, Fossil Energy,
Science, Energy and Environment, and Management. Authorizations
are provided in each Subtitle for the programs described
therein. Broad goals are established to guide the research and
development activities of: diversifying energy supplies,
increasing energy efficiency, decreasing dependence on foreign
energy supplies, improving energy security, and decreasing
environmental impact. The Secretary is annually directed to
publish specific goals in major program areas consistent with
these broad goals. The Management section includes initiatives
to improve technology transfer and small business interactions,
to authorize funding for science education, and to create a new
Undersecretary for Science and Energy.
Title X--Personnel and Training. Title X requires the
Secretary of Energy to monitor energy workforce trends and,
where necessary, use grants, fellowships, traineeships or other
training programs to ensure a sufficient number of workers in
energy fields. The bill requires establishment of training
guidelines for electric energy industry personnel,
establishment of centers for building technologies and power
plant operations training, and increased activity by the
Department of Energy to improve recruitment of under-
represented groups into energy fields of education and
employment. The Secretary of Labor is required to hire and
train sufficient Federal mine operators to ensure safety of
mining activities.
Title XI--Electricity. Title XI will reduce regulatory
uncertainty, promote transmission infrastructure development
and security, and increase consumer protections. Subtitle A
requires mandatory rules for operation to ensure transmission
grid reliability. Subtitle B remands the proposed rulemaking on
Standard Market Design to FERC and prohibits issuance of a
final rule before July 1, 2005. Subtitle C protects
transmission access for native load customers and authorizes
FERC to exercise limited jurisdiction over unregulated
transmitting utilities (like municipals and cooperatives) to
ensure open access to the transmission grid. It also directs
FERC to issue rules on transmission pricing policies and cost
allocation for transmission expansion. Subtitle D amends the
Public Utility Regulatory Policies Act of 1978 (PURPA). It
prospectively repeals the mandatory purchase and sale from
qualifying facilities requirements on electric utilities if
there is a competitive market, meaning an independently
administered, auction-based day ahead and real time market.
Subtitle E repeals the Public Utility Holding Company Act of
1935 (PUHCA). Subtitle F addresses market transparency and
manipulation and increases penalties for violations of the
Federal Power Act and the Natural Gas Act. Subtitle G directs
the Federal Trade Commission to promulgate rules to increase
consumer protections. Subtitle H makes technical changes in the
Federal Power Act.
Background and Need
Nearly five decades ago energy demand in the United States
began exceeding domestic supply. That trend has increased over
the years as the Nation has grown in population and expanded
its economy. Current Department of Energy projections indicate
that the disparity between energy supply and demand will
continue to grow. The widening gap between supply and demand,
accompanied by reliance on foreign sources to close that gap,
has created profound concerns in the Congress over the Nation's
energy security. The supply and demand gap places pressure on
the market and leads to volatile prices, exacerbating economic
problems. Coupled with those concerns is the recognition that
meeting demand must be accomplished in an environmentally sound
manner. A combination of energy production, conservation,
efficiency, and development of new technologies is the bedrock
of a sound energy policy aimed at closing the supply and demand
imbalance. Such a policy is necessary to ensure the country's
continued growth and prosperity and to protect our national
security.
PRODUCTION
Today, U.S. oil production is at a 50-year low and
continues to decline, placing increasing importance on imports,
often from unstable regimes. Oil imports accounted for roughly
60 percent of U.S. consumption in 2002, and nearly a third of
the current trade deficit. Currently, the United States
consumes roughly 19 million barrels of oil per day (mmbd)--12
million in the transportation sector alone. Demand in the
transportation sector is projected to grow by 2.5 percent per
year from 1999 to 2020, a higher pace than that forecast for
energy demand as a whole. The growing demand for petroleum used
in transportation is of particular concern to the United States
for a number of reasons, including energy security issues
related to increasing dependence on foreign oil, and
environmental concerns over emissions of air pollutants and
greenhouse gases resulting from increased oil usage.
Projected growth in domestic production of natural gas and
coal provides a limited counterbalance to the dismal oil
outlook. Over the next 20 years, natural gas production is
expected to grow by 1.3 percent per year, and coal by 0.9
percent per year. Natural gas currently represents 24 percent
of all energy consumed in the U.S. and supplies nearly one-
fifth of all electricity generation. Coal remains the primary,
and most efficient, fuel for electricity generation, currently
accounting for over half of all electric generation in the U.S.
Even though production is expected to grow in the two sectors,
demand for natural gas is projected to outpace supply, and
neither fuel is able to offset the overall gap between energy
supply and energy demand in the United States.
Despite the growing dependence on imports, the Nation has a
wealth of domestic resources that are currently untapped. The
United States currently has an estimated 22.4 billion barrels
of proven oil reserves--12th highest in the world--with over 65
percent of proven oil reserves concentrated in the Gulf of
Mexico and Alaska. A 1999 National Petroleum Council study
found that the lower 48 States, including the Gulf of Mexico,
hold a tremendous supply of natural gas (1,466 tcf). Obstacles
to development of these resources include regulatory hurdles,
price volatility, and lack of infrastructure. While the price
spikes in 2000 led to a significant increase in gas well
drilling activity in 2001, domestic gas producers have not
responded to recent higher prices as robustly. U.S. production
fell by 2.3 percent in 2002. World market prices for crude oil
remain high, but domestic producers need additional incentives
to encourage the development of available resources.
Resource development on onshore Federal land administered
by the Bureau of Land Management (BLM) provides 5 percent of
the Nation's oil production; 11 percent of its natural gas
production; 35 percent of its coal production; 20 percent of
its wind power production; and 48 percent of its geothermal
energy production. Oil and gas development on the OCS,
administered by the Minerals Management Service (MMS), is
projected to produce more than 25 percent of both the Nation's
oil and natural gas in 2003. In addition to traditional sources
of energy, Federal lands provide significant renewable
resources, accounting for 17 percent of the Nation's
hydropower, 20 percent of its wind power, and 48 percent of its
geothermal production. However, various regulatory restrictions
and processes hinder full development of all of these
resources.
Production on Federal lands and in the OCS can be
encouraged through regulatory streamlining and incentives such
as royalty relief. Certain renewable energy sources have been
provided royalty relief to increase their economic viability.
Other energy sources such as geothermal and OCS oil and gas
production, still face a significant financial burden that
prevents increased development. Hydropower projects on Federal
lands can take years to license, hampering long-term investment
and stability.
In addition to their potential for providing new domestic
energy production, Federal lands could also play an important
role in developing a comprehensive interstate delivery system
for the Nation's energy supplies. Streamlining the permitting
and siting of energy infrastructure investments on Federal
lands will add to the reliability of energy supplies and help
to reduce the cost of domestic production.
There are abundant energy resources available for
production on Indian Lands. Development of those resources must
be encouraged.
Currently, nuclear power provides over 20 percent of our
electricity. Reauthorization of the liability and
indemnification provisions of the Price-Anderson Act is
critical for protection of consumers as well as stability in
the industry. The importance of continued investments in
nuclear energy cannot be overstated. Only nuclear and
hydroelectric power can provide significant levels of power
with zero air emissions. While renewables can and must play a
role in a diverse energy mix, only nuclear power offers
significant long-term potential to address global climate
concerns.
An important aspect of accessing available domestic energy
supplies will be the assurance that supplies are able to reach
the growing demand. A 1999 study published by the INGAA
Foundation estimates that $47.7 billion in new investment in
pipeline infrastructure is needed to deliver new gas supplies.
Over 30 trillion cubic feet of natural gas have already been
discovered in Prudhoe Bay in Alaska. At present, there is no
viable means of moving the gas to market. As a result, oil
producers have been reinjecting the gas into the formation for
later use. Construction of a pipeline to bring this gas to
markets in the lower 48 states would stimulate additional
production of natural gas on the North Slope and other areas of
Alaska.
Siting difficulties for electric transmission lines is a
major factor hindering expansion of the electric system. Better
coordination among the States is needed on transmission siting.
Recent instability in the electricity industry may also
limit needed infrastructure investment. Lack of certainty as to
the viability of market structures and the financial stability
of market participants impedes access to and increases the cost
of capital for the electricity sector. Delay or cancellation of
a number of power plants and declining investment in
transmission have raised concerns that shortages loom. The
Energy Policy Act of 1992 facilitated the development of a
competitive electric sector by allowing non-utility power
producers to compete in wholesale markets. Utilities were
required to open their transmission lines to these new
competitors. These changes in the law allowed development of
the merchant generator and power marketer sectors. Only a few
years ago, merchant generators and power marketers had soaring
stock prices and held high expectations for strong returns.
Today, the merchant industry is in a crisis and even the stocks
of traditional utilities have declined measurably. Many
companies have halted new power plant development. According to
Platts, for the period of January 2000 through July 2002, more
than 90,000 MW of capacity were delayed and more than 86,000 MW
of capacity were cancelled. Uncertainty in the marketplace
about the rules and regulations that will govern generation and
transmission facilities contributes to financial instability
and endangers reliability of service.
CONSERVATION AND EFFICIENCY
In addition to increasing domestic supplies of energy,
reducing demand and using supplies wisely is an essential part
of a balanced national energy policy. According to the Energy
Information Administration, as energy prices increased between
1970 and 1986, energy intensity (measured by energy use per
dollar of GDP) declined at an average annual rate of 2.3
percent. About half of that decrease comes from efficiency
measures. Energy intensity is projected to continue its decline
at an average annual rate of 1.5 percent through 2025 as
continued efficiency gains and structural shifts in the economy
offset increasing energy demand.
One of the key roles the Federal Government plays in
conservation is ensuring the efficient operation of Federal
facilities. The annual energy bill for the Federal Government
is about $9.6 billion. However, through the Federal Energy
Management Program, the Federal Government spent $2.3 billion
less in real dollars for energy for its buildings in FY 2000
compared to FY 1985. The Energy Policy Act of 1992 set a 20
percent energy reduction goal (per square foot) for Federal
facilities by FY 2000 relative to FY 1985. Preliminary FEMP
data indicated that this goal was exceeded by 2.7 percent
additional savings relative to the FY 1985 baseline. The
current goals of the FEMP program, established in 1999 by
Executive Order 13123, are to reduce energy consumption in
federal facilities by 30 percent per square foot in 2005 and 35
percent in 2010 relative to 1990 levels.
On the consumer side, efficiency standards for homes and
appliances have also added to the improved use of scarce energy
resources. The National Appliance Energy Conservation Act
(NAECA), enacted in 1987, provided the framework for
establishing minimum energy efficiency standards for more than
two dozen types of appliances and equipment. Congress expanded
the products covered by NAECA in 1988 and 1992. DOE estimates
that the 12 standards developed by the Department have saved
consumers over $25 billion in cumulative electricity costs. A
2001 study by the American Council for an Energy Efficient
Economy (ACEEE) estimated that standards in place through the
year 2000 reduced U.S. electricity use by 2.5 percent and
reduced peak demand by approximately 21,000 megawatts. There
are several appliances and equipment types not currently
covered by Federal standards that offer the significant energy
savings potential in the future. Additional incentives are
needed to encourage new development in these areas.
INNOVATION
The third aspect of a balanced national energy policy looks
to the long-term future. New sources of energy and improved
technologies for existing resources will lead to long-term
energy security. Research and development opportunities range
from new advanced nuclear technologies to improved conductivity
of transmission lines to improved efficiency of light bulbs.
President Bush announced a $1.2-billion Hydrogen Fuel
Initiative to develop hydrogen-powered fuel cells during his
State of the Union speech on January 28, 2003. This initiative
will develop the technology needed for commercially viable
hydrogen-powered fuel cells to power cars, trucks, homes, and
businesses. Central to the development of hydrogen as a fuel
source will be research into the technologies and
infrastructure needed to produce, store, and distribute
hydrogen fuel.
The production of hydrogen is currently inefficient when
generated using any fuel source other than nuclear power.
Nuclear cogeneration is a new opportunity for nuclear power,
along with deployment of the next generation of nuclear
reactors. New nuclear reactors offer the ability to provide
energy security, add to fuel and technology diversity, and meet
clean air goals. The next generation of reactors is safer and
more efficient, and is vital to the nation's energy supply. A
new and aggressive program into innovative nuclear technologies
can foster the development of a new generation of nuclear
powerplants to meet future demand.
Innovation for the future also includes improving on
technologies for existing fuel resources. New advances in the
oil and gas industry have led to less intrusive drilling,
improved success in drilling wells, and stronger stewardship of
the environment. Clean coal initiatives have resulted in
drastic reductions in emissions without limiting the ability of
coal to serve as the most reliable and efficient means of
electric generation. Looking to the future, clean coal research
will ensure that new power plants meet high standards of
economic viability and environmental protection.
The Committee believes that the provisions contained in
this legislation, especially when combined with provisions
dealing with LIHEAP and weatherization that the Committee has
approved and tax provisions to be offered from the Finance
Committee, are the genesis for improving the national security
of this Nation, enhancing the environment, strengthening self-
government for Native American communities, decreasing
dependence on foreign sources of energy, aiding the economy,
and diversifying the energy base of the country.
Legislative History
During the 107th Congress, numerous measures were
introduced dealing with energy issues either on a comprehensive
or more limited basis. Both the Senate and the House of
Representatives passed comprehensive energy policy legislation
using H.R. 4, the Securing America's Future Energy Act of 2001,
as the primary legislative vehicle. The House of
Representatives passed H.R. 4 on August 2, 2001 and it was
placed on the Senate Calendar on September 4, 2001 without
reference to Committee. The Senate considered comprehensive
legislation in the context of Senate Amendment 2917, an
amendment in the nature of a substitute, offered by Senators
Daschle and Bingaman. The amendment was offered to S. 517, the
National Laboratories Partnership Improvement Act of 2001. The
Senate debated S. 517 on February 15, March 5, 6, 7, 8, 11, 12,
13, 14, 15, 19, 20, and 21, and April 8, 9, 10, 11, 16, 17, 18,
22, 23, 24, and 25, 2002 adopting approximately 125 amendments.
On April 25, 2002, the Senate passed H.R. 4 after agreeing to
Amendment 2917, as amended, striking the House-passed text of
H.R. 4 and inserting the text of S. 517, as amended. A
conference was agreed to and met on June 27, July 25, September
12, 19, 25, and 26, and October 2 and 3, but was unable to
resolve the differences between the two bodies before the 107th
Congress adjourned.
During the 108th Congress, the Committee conducted several
hearings examining various aspects of energy. On February 13,
the Committee conducted a hearing on Oil Supply and Prices; on
February 25 on Natural Gas Supply and Prices; on February 27 on
Energy Production on Federal Lands; on March 4 on the Financial
Condition of the Electricity Market; on March 6 on Energy Use
in the Transportation Sector; on March 11 on Energy Efficiency
and Conservation; and on March 27 on various legislative
proposals dealing with Electricity. The Committee held business
meetings on April 8, addressing title V--Renewable Energy,
title VI--Energy Efficiency, title VIII--Hydrogen, title X--
Personnel and Training, and title XIII--State Energy Programs;
on April 9 to consider title I--Oil and Gas and title II--Coal;
on April 10 to consider title IV--Nuclear Matters; on April 29
to consider title III--Indian Energy, title VII--Transportation
Fuels, and title IX--Research and Development; and on April 30
to consider title XI--Electricity. On April 30, 2003, the
Committee voted to order an original bill reported to the
Senate, including all titles except title XIII, which the
Chairman intends to introduce as an amendment during floor
consideration of a comprehensive energy bill. Also on April 30,
Senator Domenici introduced S. 14, the Energy Policy Act of
2003, which includes the provisions of this measure as ordered
reported. S. 14 was placed directly on the Senate calendar.
Committee Recommendations
The Senate Committee on Energy and Natural Resources, in
open business section on May 1, 2003, by a majority vote of a
quorum present recommends that the Senate pass S. , as
described herein.
The roll call vote on reporting the measure was 13 yeas, 10
nays as follows:
YEAS NAYS
Mr. Domenici Mr. Bingaman
Mr. Nickles Mr. Akaka
Mr. Craig Mr. Dorgan \1\
Mr. Campbell \1\ Mr. Graham \1\
Mr. Thomas Mr. Wyden
Mr. Alexander Mr. Johnson
Ms. Murkowski \1\ Mr. Bayh \1\
Mr. Talent \1\ Ms. Feinstein \1\
Mr. Burns Mr. Schumer \1\
Mr. Smith Ms. Cantwell
Mr. Bunning \1\
Mr. Kyl
Ms. Landrieu
\1\ Indicates vote by proxy.
Section-by-Section Analysis
TITLE I--OIL AND GAS
Subtitle A--Oil and Natural Gas Production Incentives
Section 101. Permanent Authority to Operate the Strategic Petroleum
Reserve
Section 101 permanently authorizes the Strategic Petroleum
Reserve.
Section 102. Study on Petroleum and Natural Gas Storage Capacity
Section 102 requires the Secretary of Energy to undertake a
review of national minimum operating working storage levels
across the nation and prepare a report for Congress on the
storage outlook and the minimum inventories the U.S. economy
can function on without interruption or rationing.
Section 103. Program on Oil and Gas Royalty-in-Kind
Section 103 provides that all royalty accruing for oil or
gas under a Federal lease issued pursuant to the Mineral
Leasing Act or the Outer Continental Shelf Lands Act shall, on
the demand of the Secretary, be paid in oil or gas beginning on
the date of enactment through September 30, 2013. The section
gives the Secretary the authority to retain and use a portion
of the revenues generated from RIK sales to pay costs of
transporting, processing, or disposing of the royalty
production. The Secretary may receive royalties in kind only if
the Secretary determines that doing so provides benefits to the
United States greater than or equal to those likely to have
been received had royalties been taken in value.
Section 104. Marginal Well Production Incentives
Section 104 defines ``marginal property'' with respect to
Federal onshore oil and gas leases. It sets forth conditions
for the reduction of the royalty rate on such properties, and
sets the reduced royalty rate. The section provides authority
for the Secretary of the Interior to prescribe different
standards for royalty relief by regulation. It directs the
Secretary to issue rules prescribing standards for royalty
relief for marginal properties under federal oil and gas lease
on the Outer Continental Shelf.
Section 105. Inventory of OCS Resources
Section 105 requires the Secretary to survey all OCS oil
and gas resources currently in existing production areas and
those under moratoria to develop an inventory of potential oil
and gas resources of the U.S. The Secretary is directed to use
data on resources in Canada and Mexico, as well as using any
available technology (except for drilling which is explicitly
prohibited), including 3-D seismic technology, to develop
accurate domestic oil and gas resource estimates.
Section 106. Royalty Relief for Deep Water Production
Section 106 provides royalty relief to encourage the
development of oil and gas resources located in water depth
between 400-1,600 meters in the Western and Central Gulf of
Mexico Planning Areas and a specified portion of the Eastern
Gulf of Mexico Planning Area. This section will provide the
same level of royalty relief as currently in effect to all
lease sales over the next five years.
Section 107. Alaska Offshore Royalty Suspension
Section 107 authorizes the Secretary of the Interior under
the Outer Continental Shelf Lands Act to give royalty relief to
existing, non-producing leases for production in Alaska
frontier regions, as specified in the section.
Section 108. Orphaned, Abandoned, or Idled Wells on Federal Lands
Section 108 provides a five-year, $20,000,000 annual
authorization to the Secretary of the Interior to develop a
program to remediate, reclaim, and close, orphaned, abandoned,
or idled wells on Federal lands administered by the Secretaries
of the Interior and Agriculture. This section also establishes
a technical assistance program to provide assistance to states
in dealing with orphaned and abandoned wells on state and
private lands.
Section 109. Incentives for Natural Gas Production from Deep Wells in
the Shallow Water of the Gulf of Mexico
Section 109 directs the Secretary of the Interior to
publish a final rule providing royalty incentives for shallow
water, deep gas production on the Outer Continental Shelf in
the Gulf of Mexico wholly west of 87 degrees, 30 minutes West
longitude.
Section 110. Alternate Energy-Related Uses on the Outer Continental
Shelf
Section 110 amends the Outer Continental Shelf Lands Act to
provide authority to the Secretary of the Interior to grant
easements and rights-of-way for energy and related purposes on
the Outer Continental Shelf, as specified. The section does not
allow the grant of easements or rights-of-way for activities
that support the exploration, development, or production of oil
and gas in areas where oil and gas preleasing, leasing and
related activities are prohibited by a Congressional moratorium
or a withdrawal pursuant to section 12 of the Outer Continental
Shelf Lands Act. The authority does not apply to any area
within the exterior boundaries of any unit of the National Park
System, National Wildlife Refuge System, or National Marine
Sanctuary System, or any National Monument.
Section 111. Coastal Impact Assistance
Section 111 authorizes the appropriation for fiscal years
2004 through 2009 of an amount equal to 12.5 percent of
qualified Outer Continental Shelf revenues for payments to
Producing Coastal States with approved Coastal Impact
Assistance Plans and political subdivisions in accordance with
a formula set forth in the section. Thirty-five percent of a
State's allocable share will be paid directly to the coastal
political subdivisions in the state. Amounts provided under the
section must be used for projects and activities for the
conservation, protection, or restoration of coastal areas,
including wetlands, mitigating damage to fish, wildlife, or
natural resources, planning assistance and administrative costs
of complying with the provisions of this section,
implementation of approved marine, coastal or conservation
plans, and mitigating the impacts of Outer Continental Shelf
activities through funding onshore infrastructure and public
service needs.
Section 112. National Energy Resource Database
Section 112 directs the Secretary of the Interior to
develop the National Energy Data Preservation Program, working
in cooperation with the States. This program would archive
geological, geophysical, and engineering data and samples
related to oil and gas development.
Section 113. Acreage Limitation
Section 113 amends the Mineral Leasing Act provision
relating to the limitation on the amount of acreage that can be
held by a person under lease in any one state.
Section 114. Hawaii Energy Assessment
Section 114 requires the Secretary of Energy to assess the
economic implication of the dependence of the State of Hawaii
on oil as the principal source of energy for the State.
Subtitle B--Access to Federal Lands
Section 121. Office of Federal Energy Permit Coordination
Section 121 authorizes the creation of the Office of
Federal Energy Permit Coordination within the Executive Office
of the President. The office will be staffed with experts from
Federal agencies and departments as needed. The office is
charged with preparing an annual report to Congress detailing
activities put in place to coordinate and expedite Federal
decisions on energy projects and making recommendations on
regulatory improvements needed to improve the federal
permitting process.
Section 122. Pilot Program to Improve Federal Permit Coordination
Section 122 requires the Secretary of the Interior to
establish a Federal Permit Streamlining Pilot Project. Six
Western offices of the Bureau of Land Management (BLM) are
identified for participation in the project. The provision
requires that relevant federal agencies deploy staff to work
with BLM land managers as a team on all environmental permits
and land use planning documents in order to coordinate and
improve Federal decisionmaking with respect to the permits.
Each office will prepare an annual report for submission to the
President. The section directs the Secretary of the Interior to
assign such additional personnel to the six BLM offices as
necessary to ensure effective implementation of the Pilot
Program and the other programs administered by the BLM offices
pursuant to the statutory mandate for the multiple use of
public lands.
Section 123. Onshore Federal Leasing
Section 123 directs the Secretary of the Interior to ensure
expeditious compliance with the requirements of the National
Environmental Policy Act of 1969, improve consultation and
coordination with the States, and improve collection, storage,
and retrieval of information; related to onshore oil and gas
leasing on lands otherwise available for leasing. The section
directs the Secretary to improve inspection and enforcement of
oil and gas activities under the onshore oil and gas leasing
program. The section authorizes additional appropriations for
these purposes.
Section 124. Estimate of Oil and Gas Resources Underlying Onshore
Federal Lands
Section 124 requires the Secretary of the Interior to
expand the inventory of onshore Federal lands required in the
Energy Act of 2000, as specified.
Section 125. Split Estate Federal Oil and Gas Leasing and Development
Practices
Section 125 requires the Secretary of the Interior to
undertake a review of the policies and management practices of
federal subsurface oil and gas development and the effects on
privately-owned surface lands.
Section 126. Coordination of Federal Agencies To Establish Priority
Energy Transmission Rights-of-Way
Section 126 requires the Secretary of the Interior, with
respect to public lands, and the Secretary of Agriculture, with
respect to National Forest System lands, to designate utility
corridors in Western States and to incorporate such corridors
into land use and resource management plans within 24 months
following enactment of the section. The section also requires
the Secretary of Energy to develop a memorandum of
understanding with the Secretary of the Interior, the Secretary
of Agriculture, and the Secretary of Defense to coordinate
applicable Federal authorizations and environmental reviews
related to a proposed or existing utility facility.
Subtitle C--Alaska Natural Gas Pipeline
Section 131. Short Title
Section 131 designates the subtitle ``The Alaska Natural
Gas Pipeline Act''.
Section 132. Definitions
Section 132 defines terms used in the subtitle.
Section 133. Issuance of Certificate of Public Convenience and
Necessity
Section 133 stipulates several criteria on the Federal
Energy Regulatory Commission's (FERC) authority to issue a
certificate of public convenience and necessity authorizing the
construction, operation, expansion and regulation of the Alaska
gas pipeline. The section finds that there is public need and
sufficient downstream capacity. The section prohibits FERC from
approving a Northern pipeline route through Canada. The section
also requires that procedures governing the conduct of open
seasons for capacity on an Alaska natural gas transportation
project be established by FERC consistent with promoting
competition in the exploration and production of natural gas in
Alaska. The language clarifies that regular Natural Gas Act
certificate procedures will apply to new or expanded projects
to deliver Alaska gas from the end point of the project to the
contiguous United States. FERC is authorized to provide for
reasonable access to the pipeline for transportation of the
Alaska royalty gas for local consumption.
Section 134. Environmental Review
Section 134 designates FERC as the lead agency for purposes
of NEPA compliance; requires a single EIS which consolidates
the environmental reviews of all Federal agencies concerning
the project; requires all Federal agencies to meet deadlines
established by FERC; and establishes an 18-month deadline for
completion of the EIS.
Section 135. Pipeline Expansion
Section 135 establishes several criteria that must be met
before FERC is authorized to permit expansion of the pipeline
including that the expansion will not undermine the operation
or financial stability of the pipeline.
Section 136. Federal Coordinator
Section 136 establishes the Office of the Federal
Coordinator within the Executive branch. This position will
serve at the pleasure of the President and be approved by the
Senate. The Coordinator will serve a term that lasts one year
beyond the completion of construction on the pipeline. The
Federal Coordinator is authorized to overrule terms and
conditions imposed by Federal agencies if they are not required
by law and would significantly delay the construction of an
Alaska pipeline, excluding specified FERC authorities. The
section also directs the Federal Coordinator to work with the
State of Alaska and transfers to the Federal Coordinator the
functions and authority of the Office of Federal Inspector for
the Alaska Natural Gas Transportation System.
Section 137. Judicial Review
Section 137 provides the U.S. Court of Appeals for the
District of Columbia Circuit with exclusive jurisdiction over
claims arising under this subtitle and provides a deadline for
filing claims. It also provides for expedited consideration of
claims arising under this subtitle or under the Alaska Natural
Gas Transportation Act of 1976.
Section 138. State Jurisdiction Over In-State Delivery of Natural Gas
Section 138 restates existing law, which is that the State
may regulate local distribution of natural gas. It clarifies
that other pipelines in Alaska are not precluded by the
provision banning a particular route in section 704(d). It
restates existing law providing the FERC jurisdiction over
interstate pipeline rates and directs the FERC to confer with
the State of Alaska as authorized under the Natural Gas Act
regarding rates for transporting gas for use within the State.
Section 139. Study of Alternative Means of Construction
Section 139 requires the Secretary of Energy to conduct a
study of alternative approaches to the construction and
operation within 18 months following enactment, unless an
application for certificate of public convenience and necessity
has been filed with FERC.
Section 140. Clarification of ANGTA Status and Authorities
This section is self-explanatory.
Section 141. Sense of Congress
Section 141 is a Sense of Congress urging pipeline sponsors
to use North American steel and to negotiate a project labor
agreement to expedite construction.
Section 142. Participation of Small Business Concerns
Section 143 is a Sense of Congress urging pipeline sponsors
to maximize the participation of small business concerns in
contracts. Requires the Comptroller to conduct a study to the
extent small businesses participate in construction of the
pipeline.
Section 143. Alaska Pipeline Construction Training Program
Section 143 authorizes the Secretary of Labor to make
grants to the Alaska Department of Labor and Workforce
Development to train dislocated workers, including Alaska
Natives, in the construction and operation of the Alaska gas
pipeline. Up to $20 million is authorized to carry out this
section.
Section 144. Loan Guarantees
Section 144 authorizes the Secretary of Energy to enter
into an agreement with one or more of the certificate holders
authorizing the construction of the Alaska natural gas
transportation project to provide a Federal loan guarantee up
to 80 of the total capital costs and not to exceed $18 billion.
Section 145. Sense of Congress on Natural Gas Demand
Section 145 is a Sense of the Congress regarding future
natural gas demand and need for additional production from
Alaska, the continental U.S. and Canada.
TITLE II--COAL
Subtitle A--Clean Coal Power Initiative
Section 201. Authorization of Appropriations
Section 201 provides $200 million annually between 2003-
2011. The section establishes emissions milestones for the
advancement on technology eligible for funding, requires that
80 percent of the funding be used for gasification
technologies, and requires the Secretary to submit a report to
Congress regarding expenditure of funds on projects selected
before September 30, 2004.
Section 202. Project Criteria
Section 202 requires the Secretary to fund gasification
technologies, carbon separation and capture technologies,
hybrid gasification/combustion and other technologies. All
projects must demonstrate financial viability before they are
eligible for funding assistance under this program. Federal
assistance can not exceed 50 percent of project funding.
Section 203. Report to Congress
Section 203 requires the Secretary of Energy to report to
Congress on the assessment of the program and whether or not
the technical milestones have been achieved.
Section 204. Clean Coal Centers of Excellence
Section 204 authorizes the Secretary of Energy to make
competitive, merit-based grants to universities for research of
clean coal technology.
Subtitle B--Federal Coal Leases
Section 211. Coal Lease Modification
Section 211 authorizes the Secretary to add no more than
320 contiguous or cornering acres to a coal lease upon finding
that such lease modification would be in the interest of the
United States, would not displace competitive interest in the
lands, and would not include lands or deposits that can be
developed as part of another potential or existing operation.
Section 212. Mining Plans
Section 212 provides that the Secretary, upon making
certain determinations as specified, may establish a period of
greater than 40 years for the reserves of an entire logical
mining unit to be mined.
Section 213. Payment of Advanced Royalties
Section 213 authorizes the Secretary to accept advance
royalties in lieu of the condition of continued operation for
not to exceed twenty years and eliminates the prohibition on
using advance royalties paid during the initial twenty year
term of a lease to reduce production royalties after the
twentieth year of a lease.
Section 214. Elimination of Deadline For Submission of Coal Lease
Operation and Reclamation Plan
Section 214 eliminates the deadline for submission of the
coal lease operation and reclamation plan.
Section 215. Application of Amendments
Section 215 pertains to the applicability of the amendments
to a coal lease issued before the date of enactment of the Act.
Subtitle C--Powder River Basin Share Mineral Estate
Section 221. Resolution of Federal Resource Development Conflicts in
the Powder River Basin
Section 221 requires the Secretary of the Interior to
review the Department authority to resolve a conflict between
the development of coal and coalbed methane from the same
lease. The Secretary is required to report to Congress on a
potential solution to this problem.
TITLE III--INDIAN ENERGY
Section 301. Short Title
Section 301 designates Title III as ``Indian Tribal Energy
Development and Self-Determination Act of 2003.
Section 302. Office of Indian Energy Policy and Programs
Section 302 establishes an Office of Indian Energy Policy
and Programs within the Department of Energy that is charged
with improving the energy infrastructure to increase resource
development, improve electrification, and lower energy costs on
tribal land. This section authorizes $20 million in annual
grant authority to the Director of this office to promote
planning and development of energy infrastructure. In addition,
$2 billion is authorized to provide loan guarantees for energy
projects.
Section 303. Indian Energy
Section 303 amends title XXVI of the Energy Policy Act of
1992 as follows:
TITLE XXVI--INDIAN ENERGY
Section 2601. Definitions
Section 2601 defines terms used in the title.
Section 2602. Indian Energy Resource Development
Section 2602 authorizes the Secretary of Energy to provide
tribes grants, and low-interest loans as well as technical
assistance in developing energy resources located on Indian
land and to expand a tribe's technical and managerial
abilities.
Section 2603. Indian Tribal Energy Resource Regulation
Section 2603 authorizes the Secretary of the Interior to
provide grants in order to cultivate legal training and
implementation of tribal laws governing the development of
energy projects and protection of the environment. The section
also provides funding for feasibility studies as necessary to
help tribes develop their energy resources.
Section 2604. Leases Involving Energy Development or
Transmission
Section 2604 authorizes tribes to enter into leases or
business agreements and issue rights-of-way without Secretarial
approval, so long as those leases, business agreements, or
rights-of-way conform to regulations promulgated by the
Secretary. It establishes a process by which a tribe must
submit a plan governing leases and rights-of-way to the
Secretary for approval. Prior to approval, the Secretary must
be satisfied that the plan includes provisions regarding lease
and contract terms, an environmental review process, and public
notification and comment. The section also requires the
Secretary to conduct an annual trust asset evaluation as well
as providing for compliance review of any energy resource
agreement.
Section 2605. Federal Power Marketing Administrations
Section 2605 encourages the Administrators of the
Bonneville Power Authority, and Western Area Power Authority to
support Indian tribal energy development and clarifies their
authority to purchase firm and replacement power from tribes
and for tribes to use WAPA allocations for the same purpose. It
also prohibits the Administrator from purchasing power supplies
that exceed the prevailing market rates or terms. In addition,
it requires the Secretary of Energy to review the power
allocations made to tribes and any impediments to the use of
PMA power by tribes.
Section 2606. Indian Mineral Development Act Review
Section 2606 directs the Secretary of the Interior to
submit a report to the relevant Committees about possible
barriers to energy development contained in the Indian Mineral
Development Act, with suggestions for removing those
impediments.
Section 2607. Wind and Hydropower Feasibility Study
Section 2607 requires the Secretary of Energy in
cooperation with the Secretary of Interior and the Secretary of
the Army to study the feasibility of developing a demonstration
project to use wind energy generated by Indian tribes and
hydropower generated by the Army Corps of Engineers on the
Missouri River to supply firming power to Western Area Power
Authority.
Section 304. Four Corners Transmission Project
Section 304 makes Dine Power Authority, of the Navajo
Nation, eligible for funding under section 2602 and section 302
of this Act.
Section 305. Energy Efficiency and Structures on Indian Lands
Section 305 directs the Secretary of Housing and Urban
Development to provide technical assistance to Tribes and other
Tribal housing entities that will initiate and expand the use
of energy-saving technologies in new home construction and
housing rehabilitation.
Section 306. Consultation with Indian Tribes
Section 306 requires the Secretary of Energy and Secretary
of the Interior to consult with Indian Tribes in carrying out
this Act.
TITLE IV--NUCLEAR MATTERS
Subtitle A--Price-Anderson Act Amendments
Section 401. Short Title
Section 401 is self-explanatory.
Section 402. Extension of Indemnification Authority
The authorization period is indefinitely extended for
indemnification provisions for Nuclear Regulatory Commission
(NRC) licensees and Department of Energy (DOE) contractors.
Section 403. Maximum Assessment
Section 403 increases the maximum annual assessment under
the standard deferred premium on NRC licensees from $10 million
to $15 million, and adjusts this number for inflation in the
future.
Section 404. Department of Energy Liability Limit
Section 404 sets the total amount of indemnification for
DOE contractors at $10 billion, and adjusts this number for
inflation in the future.
Section 405. Incidents Outside the United States
This section increases the amount of indemnification for
DOE contractors engaged in nuclear activities outside the
United States from $100 million to $500 million.
Section 406. Reports
Section 406 requires DOE and NRC to issue a report to
Congress on the status of the Price-Anderson program by August
2013.
Section 407. Inflation Adjustment
Section 407 requires the NRC to adjust for inflation the
standard deferred premium for NRC licensees every five years.
Section 408. Treatment of Modular Reactors
Section 408 allows NRC to consider a combination of small
modular reactors at one site to be a single facility for
purposes of Price-Anderson indemnification.
Section 409. Applicability
Section 409 clarifies that these amendments do not apply to
a nuclear incident that occurs before the date of their
enactment.
Section 410. Civil Penalties
Section 410 ends the automatic remission of civil penalties
for nuclear safety violations by DOE contractors that are
nonprofit institutions and establishes a limit on such civil
penalties not to exceed the total fees paid within one year to
the nonprofit institution.
Subtitle B--Deployment of New Nuclear Plants
Section 421. Short Title
This section is self-explanatory.
Section 422. Definitions
This section is self-explanatory.
Section 423. Responsibilities of the Secretary
Section 423 allows the Secretary to provide financial
assistance to supplement private sector financing for new
nuclear power plants if it is determined that the plant is
necessary to contribute to energy security, fuel or technology
diversity, or clean air attainment goals. The Secretary
prescribes terms and conditions for the program to protect the
financial interests of the nation. Financial assistance shall
not exceed 50 percent of the project costs. The total
generating capacity eligible for assistance is 8400 megawatts.
Section 424. Regulations
This section is self-explanatory.
Subtitle C--Advanced Reactor Hydrogen Co-generation Project
Section 431. Project Establishment
This section is self-explanatory.
Section 432. Project Definition
Section 432 defines the Project to include research,
development, design, construction and operation of a hydrogen
production co-generation system using an advanced reactor to
enable research and development on advanced reactors and on
alternative approaches for hydrogen production. Any reactor
studied must offer improved attributes over existing commercial
reactors of: enhanced safety, reduced waste, enhanced
efficiency, potential for enhanced economic viability and
physical security, and increased proliferation resistance.
Section 433. Project Management
Section 433 designates the Idaho National Engineering and
Environmental Laboratory (INEEL) as the lead laboratory and
requires a national steering committee be established to guide
the program.
Section 434. Project Requirements
Section 434 sets forth project requirements as follows: the
industrial lead of the project must be a U.S. company,
international cooperation must be sought, the overall project
must demonstrate both electricity and hydrogen production,
cost-shared partnerships with U.S. or international industry
are encouraged, a system must be operational by 2010, the
Secretary may waive DOE rule 413.3 to expedite project
progress, up to two teams may be funded to develop competing
designs, use of university test facilities is encouraged, the
NRC must be involved to develop risk-based criteria for future
licensing actions, and a comprehensive program plan is to be
produced and updated annually. Selection of the final project
design must maximize cost-sharing opportunities and minimize
federal expenditures.
The Committee anticipates that other national laboratories
will participate and share in the development of the reactor,
which will be constructed in Idaho.
Section 435. Authorization of Appropriations
This section is self-explanatory.
Subtitle D--Miscellaneous Matters
Section 441. Uranium Sales and Transfers
Section 441 limits annual deliveries of uranium from the
government to 3,000,000,000 pounds of U\3\O\8\ equivalent
annually through 2009, to 5,000,000 pounds in 2010 and 2011,
7,000,000 pounds in 2012, and 10,000,000 pounds in subsequent
years. It requires sales to be conducted through long-term
contracts and establishes a preference for government transfer
to entities employing recovery and extraction of uranium from
contaminated uranium-bearing materials. Exemptions to the
policy are allowed for sales or transfers to TVA in support of
the nation's HEU or tritium needs, to research reactors, to
replace up to 3,293 metric tons of the contaminated uranium
provided to USEC prior to privatization, and to support an
advanced commercial plant with nonstandard fuel requirements. A
blanket exemption is provided for sale or transfer in response
to an emergency resulting in disruption in supply of uranium to
domestic users. Certification by the President is required
prior to any sale or transfer to assure that the material is
not needed for national security. The price paid to the
Secretary for any sale cannot be less than fair market value.
The Secretary must solicit views from the Department of State
and National Security Council to assure that any sale will not
adversely affect national security interests including
implementation of the HEU arrangement. A report on
implementation is required within 5 years, and biennially
thereafter.
Section 442. Decommissioning Pilot Program
Section 442 establishes a pilot program to decommission and
decontaminate the sodium-cooled fast breeder experimental test-
site reactor in Arkansas and authorizes appropriation of
$16,000,000.
TITLE V--RENEWABLE ENERGY
Subtitle A--General Provisions
Section 501. Assessment of Renewable Energy Resources
Section 501 requires DOE to carry out periodic assessments
of renewable energy resources available in the United States,
available infrastructure and other relevant information, and
requires annual reports.
Section 502. Renewable Energy Production Incentive
Section 502 extends funding authorization for incentive
programs for producing electricity from renewable energy
sources, expands eligibility to cooperatives and municipal
utilities, and includes landfill gas as an eligible energy
resource. The section also provides that if funds are not
available for full payments in a given calendar year, 60
percent of available funds shall be assigned to solar, wind,
geothermal, and closed-loop biomass.
Section 503. Renewable Energy on Federal Lands
Section 503 requires the Secretary of the Interior, in
consultation with DOE and USDA, to develop recommendations on
development of renewable energy on specified public lands, and
report to Congress. The section also requires the Secretary of
the Interior to contract with the National Academy of Sciences
to study potential for renewable energy development in Outer
Continental Shelf areas, and report to Congress.
Section 504. Federal Purchase Requirement
Section 504 requires the Federal Government to purchase not
less than 3 percent renewable electric energy in fiscal years
2005 through 2007, increasing to not less than 7.5 percent
renewable electric energy in fiscal year 2011 and thereafter.
The section also provides double credit for renewable electric
energy produced and used on-site at a Federal facility, as well
as for renewable energy produced on Federal or Indian lands and
used at a Federal facility.
Section 505. Insular Area Renewable and Energy Efficiency Plans
Section 505 requires the Secretary of Energy to update the
energy surveys, estimates, and assessments in certain insular
areas and is self-explanatory.
Subtitle B--Hydroelectric Licensing
Section 511. Alternative Conditions and Fishways
Section 511 deals with alternatives to mandatory conditions
or fishway prescriptions under sections 4(e) and 18 of the
Federal Power Act and is self-explanatory.
Subtitle C--Geothermal Energy
Section 521. Competitive Lease Sale Requirements
Section 521 directs the Secretary of the Interior to accept
nominations for lands to be leased under the Geothermal Steam
Act of 1970. The provision requires the Secretary to hold a
competitive lease sale at least once every two years in States
where there are nominations pending and where such lands are
otherwise available for leasing. The section provides for non-
competitive leasing for a period of two years for lands for
which a competitive sale was held but for which no competitive
bids were received. The section addresses pending lease
applications.
Section 522. Geothermal Leasing and Permitting on Federal Lands
Section 522 requires the Secretaries of the Interior and
Agriculture to enter into a Memorandum of Understanding
regarding leasing and permitting for geothermal development on
Federal lands under their respective jurisdictions. The MOU
must identify known geothermal resources areas, require a
review of management plans where necessary, and establish
procedures for application processing. The section requires the
establishment of a joint data retrieval system.
Section 523. Leasing and Permitting on Federal Lands Withdrawn for
Military Purposes
Section 523 requires the Secretaries of the Interior and
Defense to submit a joint report regarding differences in
leasing and permitting procedures for geothermal development
under the Geothermal Steam Act of 1970, administered by the
Secretary of the Interior, and section 2689 of title 10, United
States Code, administered by the Secretary of Defense, and
procedures for interagency coordination. The report will also
provide recommendations for legislative or administrative
actions that could facilitate program administration, including
a common royalty structure.
Section 524. Reinstatement of Leases Terminated for Failure to Pay Rent
Section 524 authorizes the Secretary to reinstate leases
terminated after an inadvertent failure to pay rental payments.
Section 525. Royalty Reduction and Relief
Section 525 requires the Secretary of the Interior to
promulgate regulations that simplify the methodology of
determining the royalties for geothermal production. The
Secretary is required to consider the use of a percent of
revenue method and to ensure that the final rule will result in
the same level of royalty revenues as the regulation in effect
on the date of enactment of the section. The section requires
that with respect to the direct use of low temperature
geothermal resources for purposes other than the generation of
electricity, the Secretary establish a schedule of fees and
collect fees pursuant to the schedule in lieu of a royalty.
Subtitle D--Biomass Energy
Section 531. Definitions
This section is self-explanatory.
Section 532. Biomass Commercial Utilization Program
Section 532 authorizes a grant program to help offset the
cost of purchasing certain biomass from Federal or Indian lands
for electricity, heat, transportation fuels, or petroleum-based
product substitutes. Grants are limited to no more than $20 per
green ton of biomass delivered.
Section 533. Improved Biomass Utilization Grant Program
Section 533 authorizes grants to encourage the use of
biomass within communities located near areas of Federal lands
that are at significant risk to catastrophic wildfire, disease
or insect infestation, with individual grants limited to no
more than $500,000.
Section 534. Report
Three years after the date of enactment, the Secretaries of
the Interior and Agriculture will prepare and submit a joint
report to Congress that describes the interim results of the
program. The report will include, at minimum, information
identifying the amount and types of acres from which biomass
was purchased with grant funds; a description of the types of
biomass purchased with grant funds and the relative quantities
of each type; the types of contracts utilized to transfer
ownership of the biomass from federal or Indian ownership; the
uses of the biomass; a description of the proposals for
improved use of biomass and their results; a list of grant
recipients; a list of eligible operations; a list of
participating communities; and an evaluation of the economic
and environmental benefits, if any, that result from the grants
awarded under this subtitle.
TITLE VI--ENERGY EFFICIENCY
Subtitle A--Federal Programs
Section 601. Energy Management Requirements
Section 601 changes the baseline for measuring Federal
energy performance from 1985 to 2000 and requires a 20 percent
improvement over 2000 levels by 2013. The section provides
exclusions from these requirements under certain conditions and
directs the Secretary to issue guidelines that establish
criteria for excluding buildings from these requirements.
Agencies are authorized to retain funds appropriated for energy
expenditures that are not spent because of energy savings in
agency buildings and to use those funds for energy efficiency
and renewable energy projects.
Section 602. Energy Use Measurement and Accountability
Section 602 requires Federal buildings to be metered or
sub-metered by October 1, 2010, using advanced meters, to the
maximum extent practicable. Agencies must also develop plans to
use real-time electricity consumption data to reduce energy
costs and consumption.
Section 603. Federal Building Performance Standards
Section 603 directs the Secretary to establish new energy
efficiency performance standards for new Federal buildings.
Such standards shall require that new building achieve energy
consumption levels at least 30 percent below specified building
codes and incorporate sustainable design principles.
Section 604. Energy Savings Performance Contracts
Section 604 permanently extends existing authority provided
to Federal agencies to contract with energy service companies
to assume the capital costs of installing energy and water
conservation equipment and renewable energy systems in Federal
facilities or buildings, and recover costs and profit from
associated energy cost savings over the term of the contract.
The section expands use of Energy Savings Performance Contracts
(ESPCs) to cover replacement of existing Federal buildings or
facilities with new, more energy-efficient buildings or
facilities and expands the definition of energy savings to
include a reduction in water costs. The section also includes
authorization for a pilot program for up to 10 ESPC contracts
to be used for ``non-building applications'' such as vehicles
or electric power generation, provided that the aggregate cost
of projects under the pilot program does not exceed $100
million.
Section 605. Procurement of Energy Efficient Products
Section 605 directs agencies to procure, with specified
exceptions, Energy Star or FEMP-designated energy efficient
products and requires agencies to select only premium
efficiency motors.
Section 606. Congressional Building Efficiency
Section 606 directs the Architect of the Capitol to develop
an energy and water conservation plan for Congressional
buildings to comply with energy efficiency standards applicable
to other Federal buildings.
Section 607. Increased Federal Use of Recovered Mineral Components
Section 607 amends the Solid Waste Disposal Act to provide
for increased use of recovered mineral components in Federally
funded projects involving procurement of cement or concrete and
requires the EPA Administrator to report to Congress on the
potential energy savings and environmental benefits that may be
realized from implementation of existing procurement
requirements.
Section 608. Utility Energy Service Contracts
Section 608 amends the National Energy Conservation Policy
Act to encourage Federal agencies to participate in utility
services programs to improve energy efficiency, conserve water,
or manage electricity demand.
Section 609. Study of Energy Efficiency Standards
Section 609 requires the Secretary of Energy to contract
with the National Academy of Sciences to study the means by
which energy efficiency standards are determined and the
relative merits of measurement of energy use and efficiency at
the point of energy use versus over the full fuel cycle.
Subtitle B--State and Local Programs
Section 611. Low Income Community Energy Efficiency Pilot Program
Section 611 authorizes $20 million for each of fiscal years
2004 through 2006 to make grants to local governments,
community development corporations, and Indian tribes for
energy efficiency and renewable energy projects (including
electric thermal storage technology) in low-income urban and
rural communities.
Section 612. Energy Efficient Public Buildings
Section 612 authorizes the Secretary of Energy to make
grants to States to assist local governments to improve energy
efficiency and environmental quality of public buildings. The
section also authorizes such sums as may be necessary for
fiscal years 2003 through 2012, with not more than 30 percent
for administration.
Section 613. Energy Efficient Appliance Rebate Programs
Section 613 authorizes DOE to provide funds to States with
rebate programs for consumers who exchange inefficient
appliances for new, energy efficient units.
Subtitle C--Consumer Products
Section 621. Energy Conservation Standards for Additional Products
Section 621 establishes test procedures for illuminated
exit signs, low-voltage dry-type distribution transformers,
traffic signal modules, and medium base compact fluorescent
lamps; requires the Secretary of Energy to prescribe test
procedures for ceiling fans, vending machines, commercial
refrigerators and freezers and to prescribe definitions and
test procedures for measurement of energy consumption of
battery chargers and external power supplies in standby mode
and, within three years, to determine whether to issue energy
conservation standards for such products; and requires the
Secretary to consider in a public hearing additional covered
products to receive energy conservation standards limiting
standby mode energy consumption. The section requires
rulemakings to establish standards for three products and
establishes standards for six others. It also provides that
existing State and local standards for a product covered by
this section are not preempted until the standard for such
product goes into effect.
Section 622. Energy Labeling
Section 622 directs the Federal Trade Commission to
complete a rulemaking within two months to determine the
effectiveness of the existing labeling FTC labeling program and
directs the Secretary of Energy or the FTC to prescribe
labeling requirements for battery chargers and external power
supplies in standby mode, ceiling fans, vending machines,
commercial refrigerators and freezers, exit signs, torchiere
lamps, low-voltage dry-type distribution transformers, traffic
signal modules, unit heaters, and medium base compact
fluorescent lamps, if standards are set by rule or by statute
in the previous section.
Section 623. Energy Star Program
Section 623 provides statutory authority for the Energy
Star program at DOE and EPA; requires solicitation of comments
from interested parties prior to establishment of new Energy
Star categories, specifications or criteria, and publication of
a notice of any changes to categories, specifications or
criteria along with responses to such comments; allows 12
months of lead time before such changes take effect unless such
time period is waived or reduced by mutual consent between EPA
or DOE and the affected parties.
Section 624. HVAC Maintenance Consumer Education Program
Section 624 authorizes DOE, in cooperation with EPA, to
carry out a cost-shared public education program on energy
savings benefits of maintenance of air conditioning, heating
and ventilation systems and authorizes the Small Business
Administration to work with the DOE and EPA to provide energy
efficiency information to small businesses.
Subtitle D--Public Housing
Section 631. Capacity Building for Energy-efficient, Affordable Housing
Section 631 requires activities that provide energy
efficient, affordable housing and residential energy
conservation measures under the HUD Demonstration Act.
Section 632. Increase of CDBG Public Services Cap for Energy
Conservation and Efficiency Activities
Section 632 increases the amount of Community Development
assistance for providing public services involving energy
conservation or efficiency by 10 percent.
Section 633. FHA Mortgage Insurance Incentives for Energy Efficient
Housing
Section 633 provides for additional 10 percent increase in
property value covered by Federal Housing Administration
mortgage insurance when a solar energy system is installed.
Section 634. Public Housing Capital Fund
Section 634 allows the Public Housing Capital Fund to
include use for certain improvements for energy efficiency,
including integrated utility management and capital planning
and third party contracts similar to Energy Savings Performance
Contracts (ESPCs).
Section 635. Grants for Energy-conserving Improvements for Assisted
Housing
Section 635 allows grants for multifamily housing projects
to be used for improved energy efficiency.
Section 636. North American Development Bank
Section 636 amends NAFTA Implementation Act to encourage
U.S. Board members to encourage the Bank to finance projects
related to clean and efficient energy, including energy
conservation.
Section 637. Energy-efficient Appliances
Section 637 requires public housing agencies to purchase
Energy Star or FEMP-designated products where cost-effective.
Section 638. Energy Efficiency Standards
Section 638 updates efficiency standards used in Cranston-
Gonzalez low-income housing programs to current best codes and
practices.
Section 639. Energy Strategy for HUD
Section 639 requires HUD to develop and implement an
integrated energy strategy for public and assisted housing and
requires report to Congress and updates of report every two
years.
TITLE VII--TRANSPORTATION FUELS
Subtitle A--Alternative Fuel Programs
Section 701. Use of Alternative Fuels by Dual-fueled Vehicles
Section 701 requires alternative-fueled vehicles acquired
by Federal agencies to be operated on alternative fuel unless
the Secretary determines that the alternative fuel is not
reasonably available or unreasonably more expensive compared to
gasoline.
Section 702. Fuel Use Credits
Section 702 amends the Energy Policy Act of 1992 to allow
Federal fleets or covered persons to earn credits towards
compliance with alternative fuel vehicle purchase mandates by
using alternative fuels in medium- and heavy-duty vehicles. One
credit is awarded for each volume used of alternative fuel
equivalent in energy content to 450 gallons of biodiesel or
greater amount if determined by rule. Credits are bankable from
one year to the next, and tradeable to someone else. The 50
percent cap on use of fuel credits in any one year is removed.
Section 703. Neighborhood Electric Vehicles
Section 703 includes zero-emission, low-speed electric
vehicles in the definition of alternative fuel vehicles under
the Energy Policy Act of 1992, provided that such vehicles have
a top speed not greater than 25 miles per hour.
Section 704. Credits For Medium and Heavy Duty Vehicles
Section 704 allows Federal fleets or covered persons to
earn multiple credits towards compliance with alternative fuel
vehicle purchase mandates through the purchase of medium-duty
vehicles (greater than 8,500 lbs. gross vehicle weight, 2
credits) or heavy-duty vehicles (greater than 14,000 lbs. gross
vehicle weight, 3 credits).
Section 705. Alternative Fuel Infrastructure
Section 705 allows Federal fleets or covered persons to
earn credits towards compliance with alternative fuel vehicle
purchase mandates through investment in alternative fuel
infrastructure, including fueling stations and distribution
lines.
Section 706. Incremental Cost Allocation
Section 706 requires the General Services Administration to
allocate the incremental cost of alternative fueled vehicles
compared to comparable gasoline vehicles across the entire
fleet of motor vehicles distributed by the GSA, instead of on a
vehicle-by-vehicle basis.
Section 707. Review of Alternative Fuel Programs
Section 707 requires the Secretary of Energy to conduct a
study that determines the impact of alternative fuel vehicle
programs in the Energy Policy Act of 1992 on development of
technologies for use of alternative fuels, availability of
fuel, and cost of alternative fueled vehicles.
Section 708. High Occupancy Vehicle Exception
Section 708 allows State highway agencies to establish
procedures for allowing alternative fuel vehicles to utilize
High Occupancy Vehicle lanes on highways regardless of the
number of passengers carried.
Section 709. Alternative Compliance
Section 709 provides any person covered by section 501 and
any State subject to the requirements of section 507(o) to opt
out of the Energy Policy Act of 1992. The section also provides
credits under the Energy Policy Act of 1992 for hybrid
vehicles, dedicated alternative fuel vehicles and
infrastructure and allows the blending of lease condensate gas
liquids from natural gas wells with diesel fuel to manufacture
an alternative fuel.
Subtitle B--Automobile Fuel Economy
Section 711. Automobile Fuel Economy Standards
Section 711 requires the Secretary of Transportation to
also consider effects on motor vehicle and passenger safety,
and effects on levels of U.S. employment when setting fuel
economy standards. The section also clarifies DOT authority to
amend fuel economy standards for passenger cars and requires an
environmental assessment under NEPA to be conducted for any
changes in fuel economy standards.
Section 712. Dual Fueled Automobiles
Section 712 extends for an additional four years the
manufacturer incentives and maximum fuel economy increase
allowable under the Corporate Average Fuel Economy program for
the manufacture and sale of dual fueled automobiles.
Section 713. Federal Fleet Fuel Economy
Section 713 requires Federal agencies to increase fuel
economy of new Federal fleet passenger cars and light trucks by
at least 3 miles per gallon by 2005 compared to year 1999
acquisitions.
Section 714. Railroad Efficiency
Section 714 requires establishment of a cost-shared public-
private partnership to improve fuel economy, reduce emissions
and lower costs of operation of railroad locomotives. It
authorizes $25 million in fiscal year 2004, $35 million in
fiscal year 2005, and $50 million in fiscal year 2006.
Section 715. Reduction of Engine Idling in Heavy-Duty Vehicles
Section 715 requires DOE, in consultation with DOT and EPA,
to study potential technologies to reduce the idling of engines
in heavy-duty vehicles and, upon completion of such study,
publish a list of certified technologies in the Federal
Register. It increases vehicle weight limits for heavy-duty
vehicles to allow for installation of such technologies
provided they are less than 400 pounds additional weight.
TITLE VIII--HYDROGEN
Subtitle A--Basic Research Programs
Section 801. Short Title
This section is self-explanatory.
Section 802. Matsunaga Act Amendment
Section 802 provides a complete substitute for the Spark M.
Matsunaga Hydrogen Research, Development, and Demonstration Act
of 1990 (42 U.S.C. 12401 et seq.), authorizes basic research
and development activities related to hydrogen energy, fuel
cells and related infrastructure.
Section 803. Hydrogen Transportation and Fuel Initiative
Section 803 authorizes applied research, development,
demonstration and commercial application activities on advanced
hydrogen-powered vehicle technologies, and related activities
needed to enable rapid and coordinated introduction of
hydrogen-powered vehicles and associated infrastructure into
commerce. Activities under these programs must be coordinated
with basic research activities conducted under the Matsunaga
Act.
Section 804. Interagency Task Force and Coordination Plan
Section 804 requires the Secretary of Energy to establish
an interagency task force to coordinate Federal activities in
the area of hydrogen energy, fuel cells, and related
technologies and requires the task force to develop and submit
to Congress a coordination plan within one year of
establishment.
Section 805. Review by the National Academies
Section 805 requires the National Academies to review
Federal hydrogen energy programs and activities within two
years of enactment, and every four years thereafter.
Subtitle B--Demonstration Programs
Section 811. Definitions
This section is self-explanatory.
Section 812. Hydrogen Vehicle Demonstration Program
Section 812 requires the Secretary of Energy to establish a
demonstration and commercial application program for hydrogen-
powered vehicles and associated hydrogen fueling infrastructure
in a variety of applications, including fleets of light- and
heavy-duty vehicles, transit buses, refueling corridors, and
other similar projects.
Section 813. Stationary Fuel Cell Demonstration Program
Section 813 requires the Secretary of Energy to establish a
demonstration and commercial application program for stationary
hydrogen fuel cells, including applications in residential and
commercial buildings, portable applications, small form and
micro fuel cells, and for distributed generation from renewable
energy and other similar projects.
Section 814. Hydrogen Demonstrations in National Parks
Section 814 requires the Secretary of the Interior and the
Secretary of Energy to jointly study opportunities to use
hydrogen fuel cells and other related technologies in national
parks and authorizes $1 million in fiscal year 2004 for such
study, and $15 million in fiscal year 2005 for not fewer than 3
geographically distributed pilot projects.
Section 815. International Demonstration Program
Section 815 requires the Secretary of Energy to establish a
demonstration program for fuel cells and related hydrogen
technologies for stationary or transportation applications in
countries other than the United States.
Section 816. Tribal Stationary Hybrid Power Demonstration
Section 816 requires the Secretary to develop and transmit
to Congress a strategy for a demonstration and commercial
application program to develop hybrid systems combining
distributed renewable generation with fuel cells for use on
Indian land. The section also authorizes $1 million in fiscal
year 2005 for the study and $5 million in each of fiscal years
2006 through 2008 for the demonstration program.
Section 817. Distributed Generation Pilot Program
Section 817 requires the Secretary of Energy to establish a
demonstration program to develop, deploy and commercialize
distributed generation systems that significantly reduce the
cost of producing hydrogen from renewable energy.
Subtitle C--Federal Programs
Section 821. Public Education and Training
Section 821 requires the Secretary of Energy to establish
programs designed to increase public interest and acceptance of
hydrogen fuel technologies, and to provide university-based
training for research in critical hydrogen and fuel cell-
related technologies.
Section 822. Hydrogen Transition Strategic Planning
Section 822 requires the head of each Federal agency with
an annual outlay of $20 million or less to submit to OMB and
the Congress a hydrogen transition plan, describing areas in
which use of hydrogen energy technologies could benefit the
operation of the agency and any impediments that may prevent
the agency from using such hydrogen energy technologies.
Section 823. Minimum Federal Fleet Requirement
Section 823 amends the Energy Policy Act of 1992 to require
each agency to purchase 5 percent of its new vehicles as
hydrogen-powered vehicles in fiscal years 2006 and 2007,
increasing to 20 percent for fiscal years 2012 and thereafter.
The section also provides for waiver, delay, or reduction in
mandated requirements if hydrogen-powered vehicles are not
available at less than 150 percent of the cost of a comparable
alternative fueled vehicle. The Secretary of Energy, in
consultation with the GSA Administrator, may opt to implement
the fleet requirement by allocation of acquisitions to certain
Federal fleets. Commercial refueling arrangements are required
where possible.
Section 824. Stationary Fuel Cell Purchase Requirement
Section 824 requires the Federal Government to offset not
less than 1 percent of its total electric energy consumption
from fuel cells in fiscal years 2006 through 2008, increasing
to not less than 3 percent in 2011 and thereafter. The section
also authorizes $400 million over five years to offset costs to
Federal agencies.
Section 825. Department of Energy Strategy
Section 825 requires the Secretary of Energy to publish and
submit to Congress a plan to identify critical technologies and
related targets and timetables for development of such
technologies to support commercialization of hydrogen-fueled
fuel cell vehicles.
TITLE IX--RESEARCH AND DEVELOPMENT
Section 901. Short Title
Section 901 designates the title as the ``Energy Research,
Development, Demonstration, and Commercial Application Act of
2003''.
Section 902. Goals
Section 902 defines broad goals and requires the Secretary
of Energy to publish specific goals with each annual budget
submission.
Section 903. Definitions
This section is self-explanatory.
Subtitle A--Energy Efficiency
Section 911. Energy Efficiency
This section sets authorization levels and is self-
explanatory.
Section 912. Next Generation Lighting Initiative
Section 912 authorizes a new initiative to develop advanced
solid state lighting options through research, development,
demonstration, and commercial application activities. A
definition regarding the selection of an Industry Alliance to
assist in updating roadmaps and assessing progress of the
Initiative is provided within this section.
Section 913. National Building Performance Initiative
Section 913 authorizes the Director of Office of Science
and Technology Policy (OSTP) to establish an interagency
program to address energy conservation and R&D efforts to
reduce energy use in buildings. An advisory committee is
established to oversee creation and implementation of a plan,
and requires annual progress reports.
Section 914. Secondary Electric Vehicle Battery Use Program
Section 914 authorizes a program to evaluate secondary use
of electric vehicle batteries through research, development,
demonstration, and commercial application activities.
Section 915. Energy Efficiency Science Initiative
Section 915 authorizes a research program administered by
the Assistant Secretary responsible for energy conservation.
Subtitle B--Distributed Energy and Electric Energy Systems
Section 921. Distributed Energy and Electric Energy Systems
Section 921 provides authorization levels and is self-
explanatory.
Section 922. Hybrid Distributed Power Systems
Section 922 authorizes the development of a strategy for
the development of hybrid distributed power systems that
combine a renewable technology and non-intermittent power
generation technologies.
Section 923. High Power Density Industry Program
Section 923 authorizes the creation of a research and
demonstration program for high power density facilities.
Section 924. Micro-Cogeneration Energy Technology
Section 924 authorizes grants to consortia to develop
small-scale combined heat and power systems for residential
applications.
Section 925. Distributed Energy Technology Demonstration Program
Section 925 authorizes assistance to demonstration projects
using distributed energy technologies in highly energy
intensive commercial applications.
Section 926. Office of Electric Transmission and Distribution
Section 926 amends title II of the Department of Energy
Organization Act to create a new Office of Electric
Transmission and Distribution.
Section 927. Electric Transmission and Distribution Programs
Section 927 authorizes research, development and
demonstration programs to ensure reliability, efficiency and
environmental integrity of electrical transmission systems and
requires a 5-year program plan to be completed within the first
year. This section authorizes a Power Delivery Research
Initiative focused on establishing test beds at national
laboratories, universities, or in industry, to evaluate and
demonstrate the technologies required to move high temperature
superconductivity into commercial use. A Transmission and
Distribution Grid Planning and Operations Initiative for
research, development and demonstration of tools to plan,
operate, and expand transmission and distribution grids in
realistic market scenarios is authorized and this initiative
shall use a distributed research center involving universities
and national laboratories with a focus on transfer of useful
technologies to industry.
Subtitle C--Renewable Energy
Section 931. Renewable Energy.
Section 931 provides authorization levels and is self-
explanatory.
Section 932. Bioenergy Programs
Section 932 authorizes a broad program of research in
biopower, biofuels and bioproducts, including technologies
utilizing cellulosic feedstocks or enzyme-based processing.
Section 933. Biodiesel Engine Testing Program
Section 933 authorizes testing to determine the impact of
biodisel on current and future emission control technologies
and requires a report within 2 years on the findings of the
study.
Section 934. Concentrating Solar Power Research Program
Section 934 authorizes a program of research on
concentrating solar power research to establish technologies
and economics of both electricity and hydrogen production. A
report with recommendations for future research is required
within 4 years.
Section 935. Miscellaneous Projects
Section 935 authorizes research and development in ocean
energy, combining renewable and other energy sources, and
hydrogen carrier fuels.
Subtitle D--Nuclear Energy
Section 941. Nuclear Energy
Section 941 provides authorization levels and is self-
explanatory.
Section 942. Nuclear Energy Research Programs
Section 942 authorizes the Nuclear Energy Research
Initiative, Nuclear Energy Plant Optimization, Nuclear Power
2010, Generation IV Nuclear Energy Systems, Reactor Production
of Hydrogen, and Nuclear Infrastructure Support Programs.
Section 943. Advanced Fuel Cycle Initiative
Section 943 authorizes the Advanced Fuel Cycle Initiative
to evaluate proliferation-resistant fuel recycling and
transmutation technologies, which support evaluation of
alternative national strategies for spent fuel management and
Generation IV advanced reactor concepts. An annual progress
report is required.
Section 944. University Nuclear Science and Engineering Support
Section 944 authorizes fellowship and faculty assistance
programs, maintains university research and training reactor,
and encourages university-national laboratory interactions.
Section 945. Security of Nuclear Facilities
Section 945 authorizes research and development on
technologies for improving safety and security of reactors.
Section 946. Alternatives to Industrial Radioactive Sources
Section 946 authorizes research and development on
alternatives to large industrial radioactive sources, including
well-logging sources, that reduce safety, environmental, or
proliferation risks. A survey and report to Congress are
required of existing types of commercial sources, along with
review of available disposal options for such sources and
evaluation of the need for alternative future disposal options.
Subtitle E--Fossil Energy
Section 951. Fossil Energy
Section 951 provides authorization levels and is self-
explanatory.
Section 952. Fossil Energy Research Programs
Section 952 authorizes research programs for coal, oil and
gas, and fuel cells and requires a report at two year intervals
on oil and gas reserves off the coast of Louisiana and Texas.
It establishes a national center or consortium of excellence in
clean energy and power generation.
Section 953. Research and Development for Coal Mining Technologies
Section 953 authorizes research and development program on
coal mining technologies. The research is to be guided by the
Mining Industry of the Future program, and NAS reports, and is
to include technologies to enable mining of coal with reduced
contaminant levels.
Sec. 954. Coal and Related Technologies Program
Section 954 authorizes a broad research, development,
demonstration and commercial application program for coal and
power systems and requires the Secretary to identify goals for
coal-based technologies.
Sec. 955. Complex Well Technology Testing Facility
Section 955 is self-explanatory.
Subtitle F--Science
Section 961. Science
Section 961 establishes authorization levels for Office of
Science and authorizes funding for the International
Thermonuclear Experimental Reactor separate from the rest of
the Office of Science budget.
Section 962. United States Participation in ITER
Section 962 authorizes the U.S. participation in the
International Thermonuclear Experimental Reactor (ITER) and
requires a comprehensive report within 180 days on overall
program directions.
Section 963. Spallation Neutron Source
Section 963 sets limits on total funds expended for the
Spallation Neutron Source and requires a report on the SNS as
part of the annual budget submission.
Section 964. Support for Science and Energy Facilities and
Infrastructure
Section 964 requires the development and implementation of
a strategy for maintaining or building essential facilities and
infrastructure primarily supporting programs at the Office of
Science, the Office of Energy Efficiency and Renewable Energy,
the Office of Fossil Energy, or the Office of Nuclear Energy,
Science and Technology.
Section 965. Catalysis Research Program
Section 965 authorizes a broad research and development
program for catalysis science including use of precious metals
and requires National Academy of Science review every 3 years.
Section 966. Nanoscale Science and Engineering Research
Section 966 authorizes nanoscale science and engineering
programs supportive of the Department's mission areas and
authorizes construction of Nanoscience and Nanoengineering
Research Centers.
Section 967. Advanced Scientific Computing for Energy Missions
Section 967 authorizes a robust scientific computing
program supporting the Department's mission areas and requires
coordination with other national efforts, including the
National Nuclear Security Administration's Accelerated
Strategic Computing Initiative. A report to Congress is
required before undertaking development of new computational
architectures. The High-Performance Computing Act of 1991 is
amended to include authorization levels as necessary for fiscal
years 2004 through 2007.
Section 968. Genomes to Life Program
Section 968 authorizes research and development in systems
biology and proteomics toward understanding biological systems
on the scale of proteins to cells and authorizes construction
and ancillary equipment for the Genomes to Life user
facilities.
Section 969. Fission and Fusion Energy Materials Research Program
Section 969 authorizes a research and development program
on material science issues presented by advanced fission
reactors and Department's fusion program.
Section 970. Energy-Water Supply Technologies Program
Section 970 authorizes a research and demonstration program
to study energy-related issues associated with water resources
and issues associated with sustaining water supplies for energy
production. Program topics shall include arsenic removal,
desalination, and energy and water sustainability. The arsenic
removal program is to be run by the American Water Works
Association Research Foundation for the Department.
Desalination program is to follow the national Desalination and
Water Purification Technology Roadmap in partnership with the
U.S. Bureau of Reclamation. The sustainability program supports
water modeling studies, on the level of major national river
basins, to understand water usage patterns and the impact of
energy production activities in these basins.
Subtitle G--Energy and Environment
Section 971. United States-Mexico Energy Technology Cooperation
Section 971 authorizes a joint U.S.-Mexico collaborative
program in the border region to promote energy efficiency and
reduced environmental risks that contribute to public health
issues.
Section 972. Coal Technology Loan
Section 972 authorizes the Secretary to provide a loan to
the clean coal plant in Healy, Alaska.
Subtitle H--Management
Section 981. Availability of Funds
Section 981 authorizes funding under entire title to remain
available until expended.
Section 982. Cost Sharing
Section 982 sets cost sharing requirements for programs (20
percent for R&D, 50 percent for Demonstration and Commercial
Application) with ability to the Secretary to waive this
requirement and allows in-kind contributions.
Section 983. Merit Review of Proposals
Section 983 requires merit review of proposals in this
title.
Section 984. External Technical Review of Departmental Programs
Section 984 requires advisory boards for Department
programs and authorizes the Secretary to use the National
Academy of Sciences to establish such boards and to conduct
other reviews and assessments of programs and goals on at least
5-year intervals.
Section 985. Improved Coordination of Technology Transfer Activities
Section 985 requires the Secretary to appoint a Technology
Transfer Coordinator and establishes a Tech Transfer Working
Group with representation from each DOE facility.
Section 986. Technology Infrastructure Program
Section 986 requires the Secretary to establish a pilot
program to encourage the creation of technology clusters in
support of departmental mission areas and authorizes
$10,000,000 annually for FY2004, FY2005 and FY2006.
Section 987. Small Business Advocacy and Assistance
Section 987 requires each National Laboratory and enables
each single purpose research facility to designate a small
business advocate to facilitate participation of small
businesses in procurement and research opportunities. Small
business technical assistance grants are authorized, but will
not exceed $10,000 each to improve a concern's products or
services and authorizes $5,000,000 annually.
Section 988. Mobility of Scientific and Technical Personnel
Section 988 requires a report on barriers that may exist to
inhibit transfer of personnel among Department's facilities and
laboratories.
Section 989. National Academy of Sciences Report
Section 989 requires a National Academy study on obstacles
to accelerating the transition of energy technology into
commercial application.
Section 990. Outreach
Section 990 requires that all programs include an outreach
component to provide the public with information.
Section 991. Competitive Award of Management Contracts
Section 991 requires that management and operating
contracts for nonmilitary laboratories shall be subject to
competition unless the Secretary grants a waiver and informs
Congress.
Section 992. Reprogramming
Section 992 states that reprogramming that changes an
individual distribution by more than 5 percent is not allowed
unless the Secretary has provided 30 days notice to the
appropriate authorizing committees.
Section 993. Construction with Other Laws
Section 993 requires the Secretary to conform this title to
existing laws.
Section 994. Improved Coordination and Management of Civilian Science
and Technology
Section 994 amends the Department of Energy Organization
Act to establish an additional Under Secretary designated as
the Under Secretary for Science and Energy. The Office of
Science shall now be headed by the Assistant Secretary for
Science instead of a Director. An additional Assistant
Secretary position is created, accompanied by a sense of
Congress that leadership in nuclear energy shall be at
Assistant Secretary level. Sections 5314 and 5315 of title 5,
United States Code, are amended to show 3, instead of 2, Under
Secretaries of Energy and 8, instead of 6, Assistant
Secretaries of Energy.
Section 995. Educational Programs in Science and Mathematics
Section 995 amends the Department of Energy Science
Education Enhancement Act (42 U.S.C. 7381a) to authorize the
Department of Energy to support competitive science and
mathematics events and reauthorizes funding of that Act for
$40,000,000 for each of fiscal years 2004 through 2008.
Section 996. Other Transactions Authority
Section 996 amends the Department of Energy Organization
Act (42 U.S.C. 7256) to allow transactions by the Secretary of
Energy to further research, development, or demonstrations and
exempts them from provisions of section 9 of the Federal
Nonnuclear Energy Research and Development Act of 1974 (42
U.S.C. 5908). These other transactions can only be entered if
standard contract, grant or cooperative agreements are not
feasible or appropriate. The amendment also allows the
Secretary to protect from disclosure certain business
information for up to 5 years and requires that the Secretary
develop guidelines within 3 months for using the other
transactions mechanism.
Section 997. Report on Research and Development Program Evaluation
Methodologies
Section 997 requires the Secretary within 6 months to
arrange with the National Academy of Sciences to investigate
and report on the scientific and technical merits of any
evaluation methodology for scientific and technical programs of
the Department then to submit this report to Congress within 6
months of its receipt.
TITLE X--PERSONNEL AND TRAINING
Section 1001. Workforce Trends and Traineeship Grants
Section 1001 requires the Department of Energy, in
consultation with the Department of Labor, to monitor workforce
trends in the energy industry and report to Congress.
Authorizes the Department of Energy, in consultation with the
Department of Labor, to establish traineeship grants to address
shortages of trained personnel.
Section 1002. Research Fellowships in Energy Research
Section 1002 authorizes the Secretary of Energy to
establish fellowships for postdoctoral and senior researchers
in energy research and development fields.
Section 1003. Training Guidelines for Electric Energy Industry
Personnel
Section 1003 requires the Secretary of Labor, in
consultation with the Secretary of Energy, to develop, jointly
with the electric industry and recognized employee
representatives, model personnel training guidelines to support
electric system reliability and safety.
Section 1004. National Center on Energy Management and Building
Technologies
Section 1004 requires the Secretary of Energy to support
the establishment of a National Center on Energy Management and
Building Technologies, to carry out research, education, and
training activities to facilitate the improvement of energy
efficiency and indoor air quality in industrial, commercial,
and residential buildings.
Section 1005. Improved Access to Energy-related Scientific and
Technical Careers
Section 1005 requires the Director of each National
Laboratory, and, at the discretion of the Secretary of Energy,
each science facility operated by the Department, to take
actions to increase the participation of historically Black
colleges or universities, Hispanic-serving institutions, or
tribal colleges in activities that improve these institutions'
ability to train students in scientific and technical careers.
Section 1006. National Power Plant Operations Technology and Education
Center
Section 1006 requires the Secretary of Energy to support
the establishment of a national training center to address the
need for training and educating certified operators for
electric power generation plants.
Section 1007. Federal Mine Inspectors
Section 1007 requires the Secretary of Labor to hire,
train, and deploy additional skilled mine inspectors to
maintain the number of Federal mine inspectors at or above the
levels authorized by law or established by regulation.
TITLE XI--ELECTRICITY
Section 1101. Definitions
Section 1101 amends definitions used in the Federal Power
Act (FPA).
Subtitle A--Reliability
Section 1111. Electric Reliability Standards
Section 1111 provides procedures for Federal Energy
Regulatory Commission's (FERC) certification and oversight of a
FERC approved electric reliability organization that sets
mandatory, enforceable reliability rules for the interstate
transmission grid.
Subtitle B--Regional Markets
Section 1121. Implementation Date for Proposed Rulemaking on Standard
Market Design
Section 1121 remands the proposed rulemaking on Standard
Market Design (Docket No. RM01-12-000) to FERC for further
reconsideration and prohibits FERC from issuing a final rule or
any order of general applicability dealing with matters within
the scope of the proposed rule before July 1, 2005.
Section 1122. Sense of the Congress on Regional Transmission
Organizations
Section 1122 provides a sense of Congress that voluntary
Regional Transmission Organizations (RTO) promote competitive
markets and benefit consumers.
Section 1123. Federal Utility Participation in Regional Transmission
Organizations
Section 1123 authorizes power marketing agencies and the
Tennessee Valley Authority (TVA) to join RTOs.
Section 1124. Regional Consideration of Competitive Wholesale Markets
Section 1124 directs FERC to convene regional discussions
with States to address wholesale competitive markets with a
focus on issues such as RTO development, interconnection,
transmission planning, price signals, seams, and market
monitoring.
Subtitle C--Improving Transmission Access and Protecting Service
Obligations
Section 1131. Service Obligation Security and Parity
Section 1131 amends the FPA to protect transmission access
for load serving entities in order to ensure electric service
to retail customers.
Section 1132. Open Non-Discriminatory Access
Section 1132 authorizes FERC to require that unregulated
transmitting utilities provide open access to their
transmission systems at rates that are comparable to those they
charge themselves and on comparable terms and conditions that
are not unduly discriminatory. Small distribution utilities or
unregulated transmitting utilities that do not own assets that
are necessary for grid operation are exempted. FERC may revoke
an exemption that adversely affects the efficiency and
reliability of a transmission system. FERC may remand rates to
an unregulated transmitting utility. The Committee recognizes
that the Bonneville Power Administration sets rates in
accordance with various laws and treaties, including the
Pacific Northwest Electric Power Planning and Conservation Act
and the Bonneville Power Administration Transmission Act. The
limited authority provided FERC to ensure access at comparable
rates and terms that are not unduly discriminatory neither
alters nor affects the specific prescriptions applicable to the
Bonneville Power Administration, nor precludes the Bonneville
Power Administration from establishing prices, terms, and
conditions in accordance with its enabling statutes. Those
statutes, and their implementation by the Bonneville Power
Administration, are unaffected. Specifically, the Committee
notes that the Bonneville Power Administration will continue to
establish its cost-based rates in accordance with existing law
and the rates, as well as terms and conditions, shall not be
considered unduly discriminatory.
Section 1133. Transmission Infrastructure Investment
Section 1133 requires FERC to establish by rule within one
year of the date of enactment transmission pricing policies and
policies for the allocation of costs associated with
interconnection of new transmission facilities that are not
located within an RTO. The cost allocation rulemaking shall
seek to ensure that such interconnection costs are allocated in
a way that ensures all users of the system bear their
appropriate share of costs and that anyone who pays for new
facilities is appropriately compensated.
Subtitle D--Amendments to the Public Utility Regulatory Policies Act of
1978
Section 1141. Net Metering
Section 1141 amends the Public Utility Regulatory Policies
Act of 1978 (PURPA) to require States to consider the adoption
of net metering standards regarding how on-site energy
production will be measured and billed.
Section 1142. Smart Metering
Section 1142 amends PURPA to require States to consider
real time and time based pricing and other forms of demand
response systems that benefit consumers.
Section 1143. Adoption of Additional Standards
Section 1143 amends PURPA to require States to consider
standards for interconnection of distributed generation and
other generators to the distribution grid; for minimum fuel and
technology diversity; and for fossil fuel efficiency.
Section 1144. Technical Assistance.
Section 1144 permits the Secretary of Energy to offer
technical assistance to States and electric utilities.
Section 1145. Cogeneration and Small Power Production Purchase and Sale
Requirements
Section 1145 prospectively repeals PURPA's mandatory
purchase requirements (which oblige electric utilities to buy
power from qualifying cogeneration and small power production
facilities) if an independently administered, auction-based day
ahead and real time market exists and prospectively repeals
PURPA's mandatory sale requirements (which oblige electric
utilities to sell back-up power to qualifying cogeneration and
small power production facilities) if competing retail
suppliers are available.
Section 1146. Recovery of Costs
Section 1146 ensures that public utilities do not directly
or indirectly absorb costs associated with purchases from
qualifying cogeneration and small power production facilities.
Subtitle E--Provisions Regarding the Public Utility Holding Company Act
Section 1151. Definitions
Section 1151 is self-explanatory.
Section 1152. Repeal of the Public Utility Holding Company Act of 1935
Section 1152 repeals the Public Utility Holding Company Act
of 1935 (PUHCA).
Section 1153. Federal Access to Books and Records
Section 1153 gives FERC authority to require that each
holding company, associate company and affiliate company make
available to FERC books, accounts and records that FERC
determines are relevant to costs incurred by a public utility
or natural gas company that is an associate of a holding
company and that are necessary and appropriate to protect
utility customers with respect to jurisdictional rates.
Section 1154. State Access to Books and Records
Section 1154 provides that upon request of a State
commission having jurisdiction to regulate a public utility
company in a holding company system, and under conditions to
ensure confidentiality of trade secrets or sensitive commercial
information, a holding company, associate company or affiliate
company is to make available to the State commission books,
accounts and records that have been identified in a proceeding
of the State commission and that the State commission
determines are relevant to costs incurred by such public
utility company and that are necessary and appropriate to
protect utility customers with respect to jurisdictional rates.
States can obtain books and records under state law or other
applicable Federal law.
Section 1155. Exemption Authority
Section 1155 provides that not later than 90 days after the
date of enactment, FERC is to promulgate a final rule exempting
from the Federal books and records requirement any person that
is a holding company solely with respect to a qualifying
facility, exempt wholesale generator, or foreign utility
companies. FERC can exempt other records for any class of
transactions that it finds are not relevant to jurisdictional
rates.
Section 1156. Affiliate Transactions
Section 1156 preserves the authority of FERC or a State
commission to determine if a jurisdictional public utility
company can recover in rates costs incurred through
transactions with affiliates.
Section 1157. Applicability
Section 1157 provides that PUHCA provisions do not apply to
the U.S. Government, any state or political subdivision, any
foreign government authority not operating in the U.S., or any
agency, authority or instrumentality of any of the above.
Section 1158. Effect on Other Regulations
Section 1158 preserves authorities of FERC or State
commissions under other applicable law.
Section 1159. Enforcement
Section 1159 authorizes FERC to use its enforcement
authorities under the FPA to enforce this subtitle.
Section 1160. Savings Provisions
Section 1160 permits continuation of activities authorized
as of the date of enactment and preserves FERC authority under
the FPA and the Natural Gas Act.
Section 1161. Implementation
Section 1161 authorizes FERC to promulgate regulations to
implement this subtitle and to submit recommendations to
Congress for technical and conforming amendments within 12
months of enactment.
Section 1162. Transfer of Resources
Section 1162 provides that the Securities and Exchange
Commission is to transfer books and records to FERC.
Section 1163. Effective Date
Section 1163 provides that this subtitle takes effect 12
months after the date of enactment.
Section 1164. Conforming Amendments to the Federal Power Act
Section 1164 repeals FPA section 318, dealing with
conflicts in jurisdiction between PUHCA and the FPA.
Subtitle F--Market Transparency, Anti Manipulation and Enforcement
Section 1171. Market Transparency Rules
Section 1171 requires FERC to establish an electronic
system to provide information on availability and price of
wholesale electric energy and transmission services.
Section 1172. Market Manipulation
Section 1172 amends the FPA to prohibit the filing of false
information and provides that a round-trip trade is a violation
of the FPA. Round-trip trade is defined as a transaction or
combination of transactions in which a person or other entity
simultaneously enters into financially offsetting transactions
to sell the same electric energy at the same location, price,
quantity and terms so that collectively the purchase and sale
transactions themselves result in no financial gain or loss and
enters into the contract or arrangement with the intent to
deceptively affect reported revenues, trading volumes or
prices.
Section 1173. Enforcement
Section 1173 expands scope of who can file complaints and
against whom complaints can be filed under the FPA, extends
FERC's investigation authority to transmitting utilities, and
increases penalties under the FPA and the Natural Gas Act.
Section 1174. Refund Effective Date
Section 1174 amends FERC's authority to allow refunds under
the FPA as of the date of the filing of a complaint.
Subtitle G--Consumer Protections
Section 1181. Consumer Privacy
Section 1181 directs the Federal Trade Commission (FTC) to
promulgate rules regarding disclosure of consumer information.
Section 1182. Unfair Trade Practices
Section 1182 directs the FTC to issue rules to prohibit
changes of electric utility service without consumer consent
(slamming) and sales of services without consumer consent
(cramming).
Section 1183. Definitions
Section 1183 defines terms for this subtitle and is self-
explanatory.
Subtitle H--Technical Amendments
Section 1191. Technical Amendments
Section 1191 corrects technical errors in the FPA.
Cost and Budgetary Considerations
The Congressional Budget Office estimate of the costs of
this measure has been requested but was not received at the
time the report was filed. When the report is available, the
Chairman will request it to be printed in the Congressional
Record for the advice of the Senate.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. . The bill contains a variety of regulatory
measures in the sense of imposing Government-established
standards on private individuals and businesses in establishing
efficiency standards and similar programs. There may be some
economic costs associated with certain of the requirements.
There are also voluntary programs, such as the authorization
for Tribal governments to enter into agreements that would
allow them to assume full responsibility for development of
energy resources. Compliance with those agreements will require
commitments of resources and the establishment of a regulatory
program by the Tribes. Various grant and other assistance
programs will require submission of documentation or plans as a
condition for the assistance and the amendments to the Federal
Power Act may result in information being made available in
different modes or times than at present, especially under
market transparency provisions. The Committee believes that the
effects are not undue and are reasonable in light of the
benefits of the programs.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. , as ordered reported, with the exception
of the various studies required by the legislation and the
reporting associated with grant and financial assistance
programs, the Tribal energy development agreement
implementation, or the requirements associated with amendments
to the Federal Power Act and the Public Utility Regulatory
Purposes Act of 1978.
Executive Communications
Executive views on the original bill have not been
received.
MINORITY VIEWS OF SENATOR BINGAMAN
Our nation has been blessed with an abundance of natural
resources. This fact has long shaped our national energy
policy, and our energy policy has shaped both our economy and
our society. Cheap, abundant energy has made us the world's
dominant economic power and it has enabled us to attain a
standard of living that is the envy of the world.
Our demand for energy has long since outpaced our own
resources. We consume far more than we can produce at home. We
are increasingly dependent on low-cost oil from abroad. And the
environmental consequences of our dependence on fossil fuels
are growing increasingly apparent and alarming.
Plainly, then, a new energy policy--an energy policy for
the 21st century--is needed. Such a policy must, as the
President has said, ``help the private sector * * * promote
dependable, affordable, and environmentally sound production
and distribution of energy for the future.'' But it must do
more than promote production. It must promote conservation and
efficiency, technological innovation, and the formation of new,
competitive energy markets. At the same time, it must protect
consumers from exploitation and the environment from
degradation.
The bill ordered reported by the Committee on Energy and
Natural Resources, largely along party lines, fails the test.
While it contains a host of good provisions, overall, it lacks
the balance needed to provide an effective energy policy for
the 21st century.
Automobile fuel efficiency
The bill does nothing to address our growing demand for
imported oil to fuel our cars and trucks. To the contrary, the
bill's fuel ``economy'' provisions, which extend provisions of
existing law that give extra fuel economy credits to so-called
``dual-fuel alternative fuel vehicles,'' will actually increase
gasoline consumption by an estimated 11.5 billion barrels.
During the Committee's consideration of the bill, Senator
Feinstein offered an amendment that would have required sport
utility vehicles (SUVs) and light-duty trucks to meet, by 2011,
the same fuel economy standards that passenger vehicles have
met since 1985. Closing this ``SUV loophole'' would save one
million barrels of oil per day. It would reduce oil imports by
ten percent. And it would prevent about 240 million tons of
carbon dioxide--the top greenhouse gas and biggest single cause
of global warming--from entering the atmosphere. Regrettably,
the Committee rejected Senator Feinstein's amendment on a
largely party-line vote.
Renewable energy
The bill does not do enough to increase the use of
renewable energy. Last year, the Senate approved an energy bill
containing both a renewable fuel standard for transportation
fuels and a renewable portfolio standard for electricity. The
renewable fuel standard would have added 5 billion gallons of
homegrown ethanol to the nation's gasoline supply by 2012. The
renewable portfolio standard would have ensured that 10 percent
of the nation's electricity would be generated from renewable
energy sources by 2019. The Committee abandoned both
initiatives.
During the Committee's consideration of the bill, I offered
an amendment to add a renewable portfolio standard, similar to
the one approved by the Senate last year. The Committee
rejected it on a straight party-line vote.
Nuclear subsidies
The bill contains huge subsidies for the nuclear power
industry. It authorizes the Secretary of Energy to guarantee up
to half the cost of building as many as six new nuclear power
plants. It places no ceiling on these loan guarantees, which
would make the federal taxpayers potentially liable for
billions of dollars in construction and delay costs.
During the Committee's consideration of the bill, I offered
an amendment to strike these subsidies. The Committee rejected
it largely on a party-line vote.
In addition, the bill authorizes the Secretary of Energy to
build and operate a new advanced nuclear reactor to generate
both hydrogen and electricity. It authorizes $1.135 billion for
this project through fiscal year 2008, and such sums as may be
needed beyond 2008. It exempts the project from the management
controls the Department of Energy normally applies to its
projects, and does not require the reactor to be licensed by
the Nuclear Regulatory Commission.
Repeal of the Public Utility Holding Company Act
The bill repeals the Public Utility Holding Company Act
without providing any offsetting protection for electricity
consumers. The Holding Company Act is a Depression-era law
designed to protect investors and consumers from abuses they
suffered at the hands of public utility holding companies.
While the Act may be outdated and more restrictive than it
needs to be, it should not be repealed without putting in place
the new regulatory authorities needed to prevent future abuses.
Proponents of the Act's repeal say that federal antitrust law
and state utility regulation will be sufficient to prevent
abuses. But both federal antitrust regulators and state utility
regulators say they lack the tools to do the job.
The energy bill approved by the Senate last year repealed
the Holding Company Act, but gave the Federal Energy Regulatory
Commission new authority to review electric utility mergers.
Under last year's bill, mergers and acquisitions that the
Holding Company Act now bans would have been permitted, if the
Federal Energy Regulatory Commission found they did not harm
electric consumers or the public interest. The Committee
abandoned this sensible check on the increasing concentration
in the electric utility industry.
Manipulation of electricity markets
The bill does little to protect electricity consumers from
market manipulation. The Federal Energy Regulatory Commission's
recent investigation of price manipulation in the western
electricity markets disclosed a host of practices used by
energy traders to manipulate prices. The Committee prohibits
only one of these practices--round-trip trading--and leaves all
the others unregulated.
During the Committee's consideration of the bill, I offered
an amendment that contained a broad-based prohibition on market
manipulation. My proposal was based on similar language in the
Securities Exchange Act of 1934, which has served the public
well for nearly 70 years. This amendment was also rejected on a
straight party-line vote.
Energy development on Indian land
The bill contains a beneficial title that offers Indian
tribes financial and technical assistance to develop energy
resources on their lands. Unfortunately, the bill goes too far.
Under current law, the Secretary of the Interior, as the
trustee for the Indian tribes, must approve of any energy
project on Indian land. The Secretary's approval is a major
federal action subject to environmental review under the
National Environmental Policy Act. The bill would permit the
tribes to open their lands to oil and gas drilling, coal
mining, pipeline and transmission line rights-of-way, and all
manner of energy projects without the Secretary's approval of
individual projects. Since the tribes are not federal agencies
and the Secretary would no longer be required to approve energy
projects on Indian land, they would no longer require an
environmental review under the National Environmental Policy
Act. In addition, the provision waives federal liability for
any harm to a tribe resulting from a project approved under
this authority. Thus, in a stroke, the provision eliminates
comprehensive environmental reviews, meaningful public
participation, and the Secretary's trust responsibility with
respect to energy projects on Indian land.
I offered an amendment to strike this provision during the
Committee's consideration of the bill. This amendment was also
rejected by a straight party-line vote.
Hydroelectric licensing
More than 80 years ago, the Federal Water Power Act struck
a balance between the power industry and the champions of
government control over water power development. The power
industry won the right to appropriate water resources from the
public domain for periods of up to 50 years. The champions of
government control won the right to license hydroelectric
projects and to hold them to a public interest test. The
Federal Energy Regulatory Commission cannot consider the
hydroelectric benefits of a proposed project alone, but must
give equal consideration to the project's effect on fish and
wildlife, recreation, and other environmental concerns. In
addition, where the project is to be built on an Indian
reservation, a national forest, or other federal reservation,
the Commission is required to include in the license whatever
conditions the Secretary responsible for the reservation deems
necessary for the adequate protection and use of the
reservation.
The bill reported by the Committee would tip this long-
standing balance in the power industry's favor by giving the
license applicant the power to propose ``alternative''
conditions that the Secretary must accept if they provide
``adequate'' protection to the reservation, even though
``adequate'' protection may mean less protection than the
Secretary's conditions. There are similar provisions for
fishway prescriptions. In addition, the bill gives the license
applicant special procedural rights on alternative conditions
and the right to trial-type hearings on the Secretary's
conditions that will not be available to other people whose
interests may be affected. These trial-type hearings are likely
to delay the issuance of both new licenses and renewals by
three years or more.
During the last Congress, both the House and the Senate
passed provisions giving license applicants the ability to
propose alternative conditions. The House required them to be
at least as protective of the reservation as the Secretary's,
while the Senate did not. Neither the House nor the Senate gave
license applicants special procedural rights.
During the Committee's consideration of the bill, I offered
an amendment to replace these provisions with the ones approved
by the House last year. Adoption of my amendment would have
eliminated the special procedural rights to trial-type
hearings, placed all parties on an equal procedural footing,
and required alternative conditions and fishway prescriptions
to be at least as protective as the Secretary's. The Committee
rejected the amendment on a largely party-line vote.
Climate change
The bill does little or nothing to address the serious
problem of global climate change. The energy bill passed by the
Senate last year, by contrast, contained several useful, if
modest, climate change initiatives. They would not have solved
the serious health, environmental, and economic problems posed
by climate change, but they at least acknowledged the existence
of the problems and would have put us on a track to begin
solving those problems by creating new offices, providing for
data collection, and authorizing research and development
programs.
The bill reported by the Committee should do no less, but
it does. I was prepared to offer a climate change amendment
based on the provisions approved by the Senate last year.
Regrettably, the Committee elected to defer any consideration
of this central issue, despite the fact that many aspects of
the matter are within the jurisdiction of the Committee.
The Committee's unwillingness to address climate change in
its energy bill stands in sharp and unfavorable contrast with
the United Kingdom's energy policy adopted earlier this year.
Britain sees climate change as the primary challenge to be
addressed by its energy policy and has committed itself to
reducing its carbon dioxide emissions by 60 percent of current
levels by 2050.
The bill on balance
The bill is not without its good points. It contains many
useful provisions on oil and gas development, construction of
the Alaska Natural Gas Pipeline, clean coal development, Indian
energy, renewal of the Price-Anderson Act, renewable energy,
energy efficiency, hydrogen, energy research and development,
workforce training, and electricity.
But a vote to report the bill is a vote on the overall
balance and scope of the bill. As it now stands, the bill does
not do enough, or goes in the wrong direction, on too many key
issues for me to vote for it.
Jeff Bingaman.
MINORITY VIEWS OF SENATOR BOB GRAHAM
The Energy Policy Act of 2003 does little to extract the
United States from the web of fossil fuel dependence,
demonstrating an unwillingness to move away from a policy that
could be described as ``Drill America First.'' Nothing more
clearly illustrates this point than Section 105 of Title I,
which requires the Department of the Interior to sue invasive
exploration technologies to inventory oil and natural gas in
areas of the outer continental shelf that are currently
protected by moratoria. Section 105 demonstrates the narrow
focus of this energy legislation when it comes our energy
future. It constitutes a backsliding on moratoria that have
been upheld for two decades by Democratic and Republican
Administrations and Congress, rather than a step forward to
efficient use of our current supplies of fossil fuels.
Section 105 has been represented as a simple study of our
nation's oil and gas resources. However, authorizing seismic
surveys and dart core sampling in protected areas of the outer
continental shelf does not constitute an innocuous study.
Dart core sampling, which could be used to collect data, is
similar in nature to exploratory drilling. Samples are
collected by dropping large hollow metal tubes from survey
ships, to vertically puncture the seafloor. The heavy free-
falling tube gathers velocity as a result of the pull of
gravity, penetrates the seabed to a substantial depth, and is
then retrieved shipboard. Environmental impacts of dart core
sampling, usually done at frequent spatial intervals, include
the smothering of seabed organisms with substantial silt
plumes.
Seismic 3-D surveys will also be used to collect date in
moratoria areas and have serious negative impacts on marine
life. A study from the University of Maryland in February of
this year indicates that seismic shockwaves damage the auditory
organs of fish and whales. Internal hemorrhaging in whales
caused by the sonar pulses used for seismic surveys may
correlate to beaching.
Why risk these environmental impacts to protected areas of
the outer continental shelf when the Minerals Management
Service already conducts an oil and gas inventory every five
years?
The most recent MMS study, the Outer Continental Shelf
Petroleum Assessment, was completed in 2000. Data on fossil
fuel resources in moratoria areas is gathered through modeling
and is included in the assessment. The 2000 assessment is an
example of the appropriate way to study areas currently under
moratoria.
Policies that increase fuel efficiency and expand the use
of renewable energy sources were not included in the committee
mark of the Energy Policy Act of 2003. The bill risks the
economic and ecological security of coastal states by focusing
on fossil fuel rather then addressing comprehensive energy
needs. For twenty years, Congress and the Administration have
agreed with states like Florida, California, Oregon, and
Washington that the risks posed by drilling to their economies
and shores is too great to be borne. For these reasons, I
oppose reporting the Energy Policy Act of 2003 from committee.
Bob Graham.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. , as ordered 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):
MINERAL LEASING ACT
Act of February 25, 1920, as amended (30 U.S.C. 181 et seq.)
COAL
Sec. 2.
* * * * * * *
(d)(1) * * *
(2)(A) After the Secretary has approved the establishment
of a logical mining unit, any mining plan approved for that
unit must require such diligent development, operation, and
production that the reserves of the entire unit will be mined
within a period established by the Secretary which shall not be
more than forty years.
(B) The Secretary may establish a period of more than forty
years if the Secretary determines that the longer period will
ensure the maximum economic recovery of a coal deposit, or the
longer period is in the interest of the orderly, efficient, or
economic development of a coal resource.
* * * * * * *
Sec. 3. Any person, association, or corporation holding a
lease of coal lands or coal deposits under the provisions of
this chapter may with the approval of the Secretary of the
Interior, upon [a finding by him that it would be in the
interest of the United States, secure modifications of the
original coal lease by including additional coal lands or coal
deposits contiguous or cornering to those embraced in such
lease, but in no event shall the total area added by such
modifications to an existing coal lease exceed one hundred
sixty acres, or add acreage larger than that in the original
lease.] a finding by the Secretary that it (1) would be in the
interest of the United States, (2) would not displace a
competitive interest in the lands, and (3) would not include
lands or deposits that can be developed as part of another
potential or existing operation, secure modifications of the
original coal lease by including additional coal lands or coal
deposits contiguous or cornering to those embraced in such
lease, but in no event shall the total area added by such
modifications to an existing coal lease exceed 320 acres, or
add acreage larger than that in the original lease. The
Secretary shall prescribe terms and conditions which shall be
consistent with this chapter and applicable to all of the
acreage in such modified lease except that nothing in this
section shall require the Secretary to apply the production or
mining plan requirements of sections 202a(2) and 207(c) of this
title. The minimum royalty provisions of section 207(a) of this
title shall not apply to any lands covered by this modified
lease prior to a modification until the term of the original
lease or extension thereof which became effective prior to the
effective date of this Act has expired.
* * * * * * *
Sec. 7. * * *
(b) Each lease shall be subject to the conditions of
diligent development and continued operation of the mine or
mines, except where operations under the lease are interrupted
by strikes, the elements, or casualties not attributable to the
lessee. The Secretary of the Interior, upon determining that
the public interest will be served thereby, may suspend the
condition of continued operation upon the payment of advance
royalties. Such advance royalties shall be no less than the
production royalty which would otherwise be paid and shall be
computed on a fixed reserve to production ratio (determined by
the Secretary). [The aggregate number of years during the
period of any lease for which advance royalties may be accepted
in lieu of the condition of continued operation shall not
exceed ten. The amount of any production royalty paid for any
year shall be reduced (but not below 0) by the amount of any
advance royalties paid under such lease to the extent that such
advance royalties have not been used to reduce production
royalties for a prior year. No advance royalty paid during the
initial twenty-year term of a lease shall be used to reduce a
production royalty after the twentieth year of a lease.] The
aggregate number of years during the period of any lease for
which advance royalties may be accepted in lieu of the
condition of continued operation shall not exceed twenty. The
amount of any production royalty paid for any year shall be
reduced (but not below 0) by the amount of any advance
royalties paid under such lease to the extent that such advance
royalties have not been used to reduce production royalties for
a prior year. The Secretary may, upon six months' notification
to the lessee cease to accept advance royalties in lieu of the
requirement of continued operation. Nothing in this subsection
shall be construed to affect the requirement contained in the
second sentence of subsection (a) of this section relating to
commencement of production at the end of ten years.
(c) Prior to taking any action on a leasehold which might
cause a significant disturbance of the environment, [and not
later than three years after a lease is issued,] the lessee
shall submit for the Secretary's approval an operation and
reclamation plan. The Secretary shall approve or disapprove the
plan or require that it be modified. Where the land involved is
under the surface jurisdiction of another Federal agency, that
other agency must consent to the terms of such approval.
* * * * * * *
Sec. 27. * * *
(d)(1) No person, association, or corporation, except as
otherwise provided in this chapter, shall take, hold, own or
control at one time whether acquired directly from the
Secretary under this chapter, or otherwise, oil or gas leases
(including options for such leases or interests therein) on
land held under the provisions of this chapter exceeding in the
aggregate two hundred forty-six thousand and eighty acres in
any one State other than Alaska Provided, however, That acreage
held in special tar sand areas as well as acreage under any
lease any portion of which has been committed to a federally
approved unit or cooperative plan or communitization agreement,
or for which royalty, including compensatory royalty or
royalty-in-kind, was paid in the preceding calendar year, shall
not be chargeable against such State limitations. In the case
of the State of Alaska, the limit shall be three hundred
thousand acres in the northern leasing district and three
hundred thousand sand acres in the southern leasing district,
and the boundary between said two districts shall be the left
limit of the Tanana River from the border between the United
States and Canada to the confluence of the Tanana and Yukon
Rivers, and the left limit of the Yukon River from said
confluence to its principal southern mouth.
----------
FEDERAL POWER ACT
Act of June 10, 1920, chapter 285, as amended (16 U.S.C. 791a-825r)
PART I
* * * * * * *
Sec. 3. The words defined in this section shall have the
following meanings for the purpose of this Act, to wit:
* * * * * * *
(17) (A) * * *
[(C) ``qualifying small power production facility''
means a small power production facility--
(i) which the Commission determines, by rule,
meets such requirements (including requirements
respecting fuel use, fuel efficiency, and
reliability) as the Commission may, by rule,
prescribe; and
(ii) which is owned by a person not primarily
engaged in the generation or sale of electric
power (other than electric power solely from
cogeneration facilities or small power
production facilities);]
(C) ``qualifying small power production facility''
means a small power production facility that the
Commission determines, by rule, meets such requirements
(including requirements respecting fuel use, fuel
efficiency, and reliability) as the Commission may, by
rule, prescribe;
* * * * * * *
(18) (A) ``cogeneration facility'' means a facility
which produces--
(i) electric energy, and
(ii) steam or forms of useful energy (such as
heat) which are used for industrial,
commercial, heating, or cooling purposes;
[(B) ``qualifying cogeneration facility'' means a
cogeneration facility which--
(i) the Commission determines, by rule, meets
such requirements (including requirements
respecting minimum size, fuel use, and fuel
efficiency) as the Commission may, by rule,
prescribe; and
(ii) is owned by a person not primarily
engaged in the generation or sale of electric
power (other than electric power solely from
cogeneration facilities or small power
production facilities);]
(B) ``qualifying cogeneration facility'' means a
cogeneration facility that the Commission determines,
by rule, meets such requirements (including
requirements respecting minimum size, fuel use, and
fuel efficiency) as the Commission may, by rule,
prescribe;
* * * * * * *
(22) ``electric utility'' [means any person or State
agency (including any municipality) which sells
electric energy; such term includes the Tennessee
Valley Authority, but does not include any Federal
power marketing agency;] means any person or Federal or
State agency (including any municipality) that sells
electric energy; such term includes the Tennessee
Valley Authority and each Federal power marketing
agency;
(23) ``transmitting utility'' [means any electric
utility, qualifying cogeneration facility, qualifying
small power production facility, or Federal power
marketing agency which owns or operates electric power
transmission facilities which are used for the sale of
electric energy at wholesale;] means an entity,
including any entity described in section 201(f), that
owns or operates facilities used for the transmission
of electric energy--
(A) in interstate commerce; or
(B) for the sale of electric energy at
wholesale.
* * * * * * *
(26) ``unregulated transmitting utility'' means an
entity that--
(A) owns or operates facilities used for the
transmission of electric energy in interstate
commerce, and
(B) is an entity described in section 2010 or
a rural electric cooperative with financing
from the Rural Utilities Service.
(27) ``distribution utility'' means an electric
utility that does not own or operate transmission
facilities or an unregulated transmitting utility that
provides 90 percent of the electric energy its
transmits to customers at retail.
Sec. 4. * * *
(e) To issue licenses to citizens of the United States, or
to any association of such citizens, or to any corporation
organized under the laws of the United States or any State
thereof, or to any State or municipality for the purpose of
constructing, operating, and maintaining dams, water conduits,
reservoirs, power houses, transmission lines, or other project
works necessary or convenient for the development and
improvement of navigation and for the development,
transmission, and utilization of power across, along, from or
in any of the streams or other bodies of water over which
Congress has jurisdiction under its authority to regulate
commerce with foreign nations and among the several States, or
upon any part of the public lands and reservations of the
United States (including the Territories), or for the purpose
of utilizing the surplus water or water power from any
Government dam, except as herein provided: Provided, That
licenses shall be issued within any reservation only after a
finding by the Commission that the license will not interfere
or be inconsistent with the purpose for which such reservation
was created or acquired, and shall be subject to and contain
such conditions as the Secretary of the department under whose
supervision such reservation falls shall deem necessary for the
adequate protection and utilization of such reservation. The
license applicant shall be entitled to a determination on the
record, after opportunity for an agency trial-type hearing of
any disputed issues of material fact, with respect to such
conditions. Provided further, That no license affecting the
navigable capacity of any navigable waters of the United States
shall be issued until the plans of the dam or other structures
affecting navigation have been approved by the Chief of
Engineers and the Secretary of the Army.
* * * * * * *
Sec. 18. 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 the Interior
or the Secretary of Commerce. The license applicant shall be
entitled to a determination on the record, after opportunity
for an agency trial-type hearing of any disputed issues of
material fact, with respect to such fishways. 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.
* * * * * * *
SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.
(a) Alternative Conditions.--
(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 (referred to in this
subsection as ``the Secretary'') deems a condition to
such license to be necessary under the first proviso of
section 4(e), the license applicant may propose an
alternative condition.
(2) Notwithstanding the first proviso of section
4(e), the Secretary 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 determines,
based on substantial evidence provided by the license
applicant or otherwise available to the Secretary, that
such alternative condition--
(A) provides for the adequate protection and
utilization of the reservation; 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 initially deemed necessary by
the Secretary.
(3) The Secretary concerned shall submit into the
public record of the Commission proceeding with any
condition under section 4(e) or alternative condition
it accepts under this section, a written statement
explaining the basis for such condition, and reason for
not accepting any alternative condition under this
section. The written statement must demonstrate that
the Secretary gave equal consideration to the effects
of the condition adopted and alternatives not accepted
on energy supply, distribution, cost, and use; flood
control; navigation; water supply; and air quality (in
addition to the preservation of other aspects of
environmental quality); based on such information as
may be available to the Secretary, including
information voluntarily provided in a timely manner by
the applicant and others. The Secretary shall also
submit, together with the aforementioned written
statement, all studies, data, and other factual
information available to the Secretary and relevant to
the Secretary's decision.
(4) Nothing in this section shall prohibit other
interested parties from proposing alternative
conditions.
(5) If the Secretary does not accept an applicant's
alternative condition under this section, and the
Commission finds that the Secretary's condition would
be inconsistent with the purposes of this part, or
other applicable law, the Commission may refer the
dispute to the Commission's Dispute Resolution Service.
The Dispute Resolution Service shall consult with the
Secretary and the Commission and issue a non-binding
advisory within 90 days. The Secretary may accept the
Dispute Resolution Service advisory unless the
Secretary finds that the recommendation will not
adequately protect the reservation. The Secretary shall
submit the advisory and the Secretary's final written
determination into the record of the Commission's
proceeding.
(b) Alternative Prescriptions.--
(1) Whenever the Secretary of the Interior or the
Secretary of Commerce prescribes a fishway under
section 18, the license applicant or licensee may
propose an alternative to such prescription to
construct, maintain, or operate a fishway. The
alternative may include a fishway or an alternative to
a fishway.
(2) Notwithstanding section 18, 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 licensee or otherwise available to the
Secretary, that such alternative--
(A) will be no less protective of the fish
resources 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 deemed necessary by the
Secretary.
(3) The Secretary concerned shall submit into the
public record of the Commission proceeding with any
prescription under section 18 or alternative
prescription it accepts under this section, a written
statement explaining the basis for such prescription,
and reason for not accepting any alternative
prescription under this section. The written statement
must demonstrate that the Secretary gave equal
consideration to the effects of the condition adopted
and alternatives not accepted on energy supply,
distribution, cost, and use; flood control; navigation;
water supply; and air quality (in addition to the
preservation of other aspects of environmental
quality); based on such information as may be available
to the Secretary, including information voluntarily
provided in a timely manner by the applicant and
others. The Secretary shall also submit, together with
the aforementioned written statement, all studies,
data, and other factual information available to the
Secretary and relevant to the Secretary's decision.
(4) Nothing in this section shall prohibit other
interested parties from proposing alternative
prescriptions.
(5) If the Secretary concerned does not accept an
applicant's alternative prescription under this
section, and the Commission finds that the Secretary's
prescription would be inconsistent with the purposes of
this part, or other applicable law, the Commission may
refer the dispute to the Commission's Dispute
Resolution Service. The Dispute Resolution Service
shall consult with the Secretary and the Commission and
issue a non-binding advisory within 90 days. The
Secretary may accept the Dispute Resolution Service
advisory unless the Secretary finds that the
recommendation will not adequately protect the fish
resources. The Secretary shall submit the advisory and
the Secretary's final written determination into the
record of the Commission's proceeding.
* * * * * * *
PART II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE
COMMERCE
* * * * * * *
FIXING RATES AND CHARGES; DETERMINATION OF COST OF PRODUCTION OR
TRANSMISSION
Sec. 206. * * *
(b) Whenever the Commission institutes a proceeding under
this section, the Commission shall establish a refund effective
date. In the case of a proceeding instituted on complaint, the
refund effective date shall not be earlier than [the date 60
days after the filing of such complaint nor later than 5 months
after the expiration of such 60-day period] the date of the
filing of such complaint nor later than 5 months after the
filing of such complaint. In the case of a proceeding
instituted by the Commission on its own motion, the refund
effective date shall not be earlier than the date [60 days
after] of the publication by the Commission of notice of its
intention to initiate such proceeding nor later than 5 months
after the [expiration of such 60-day period] publication date.
Upon institution of a proceeding under this section, the
Commission shall give to the decision of such proceeding the
same preference as provided under section 205 of this Act and
otherwise act as speedily as possible. [If no final decision is
rendered by the refund effective date or by the conclusion of
the 180-day period commencing upon initiation of a proceeding
pursuant to this section, whichever is earlier, the Commission
shall state the reasons why it has failed to do so and shall
state its best estimate as to when it reasonably expects to
make such decision.] If no final decision is rendered by the
conclusion of the 180-day period commencing upon initiation of
a proceeding pursuant to this section, the Commission shall
state the reasons why it has failed to do so and shall state
its best estimate as to when it reasonably expects to make such
decision. In any proceeding under this section, the burden of
proof to show that any rate, charge, classification, rule,
regulation, practice, or contract is unjust, unreasonable,
unduly discriminatory, or preferential shall be upon the
Commission or the complainant.
* * * * * * *
CERTAIN WHEELING AUTHORITY
Sec. 211. (a) * * *
* * * * * * *
(c)[(2)] No order may e issued under subsection (a) or (b)
which requires the transmitting utility subject to the order to
transmit, during any period, an amount of electric energy which
replaces any amount of electric energy--
[(A)] (1) required to be provided to such applicant
pursuant to a contract during such period, or
[(B)] (2) currently provided to the applicant by the
utility subject to the order pursuant to a rate
schedule on file during such period with the
Commission: Provided, That nothing in this subparagraph
shall prevent an application for an order hereunder to
be filed prior to [termination of modification]
termination or modification of [or] an existing rate
schedule: Provided, That such order shall not become
effective until termination of such rate schedule or
the modification becomes effective.
(d)(1) Any transmitting utility ordered under subsection
(a) or (b) to provide transmission services may apply to the
Commission for an order permitting such transmitting utility to
cease providing all, or any portion of, such services. After
public notice, notice to each affected State regulatory
authority, each affected Federal power marketing agency, each
affected transmitting utility, and each affected electric
utility, and after an opportunity for an evidentiary hearing,
the Commission shall issue an order terminating or modifying
the order issued under subsection (a) or (b), if the [electric
utility] transmitting utility providing such transmission
services has demonstrated, and the Commission has found, that--
(A) due to changed circumstances, the requirements
applicable, under this section and section 212, to the
issuance of an order under subsection (a) or (b) are no
longer met, or
(B) any transmission capacity of the utility
providing transmission services under such order which
was, at the time such order was issued, in excess of
the capacity necessary to serve its own customers is no
longer in excess of the capacity necessary for such
purposes, or
(C) the ordered transmission services require
enlargement of transmission capacity and the
transmitting utility subject to the order has failed,
after making a good faith effort, to obtain the
necessary approvals or property rights under applicable
Federal, State, and local laws.
No order shall be issued under this subsection pursuant to a
finding under subparagraph (A) unless the Commission finds that
such order is in the public interest.
* * * * * * *
OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES
Sec. 211A. (a) Subject to section 212(h), the Commission
may, by rule or order, require an unregulated transmitting
utility to provide transmission services--
(1) at rates that are comparable to those that the
unregulated transmitting utility charges itself; and
(2) on terms and conditions (not relating to rates)
that are comparable to those under which such
unregulated transmitting utility provides transmission
services to itself and that are not unduly
discriminatory or preferential.
(b) The Commission shall exempt from any rule or order
under this subsection any unregulated transmitting utility
that--
(1) is a distribution utility that sells no more than
4,000,000 megawatt hours of electricity per year; or
(2) does not own or operate any transmission
facilities that are necessary for operating an
interconnected transmission system (or any portion
thereof); or
(3) meets other criteria the Commission determines to
be in the public interest.
(c) Whenever the Commission, after a hearing held upon a
complaint, finds any exemption granted pursuant to subsection
(b) adversely affects the reliable and efficient operation of
an interconnected transmission system, it may revoke the
exemption.
(d) The rate changing procedures applicable to public
utilities under subsections (c) and (d) of section 205 are
applicable to unregulated transmitting utilities for purposes
of this section.
(e) In exercising its authority under paragraph (1) of
subsection (a), the Commission may remand transmission rates to
an unregulated transmitting utility for review and revision
where necessary to meet the requirements of subsection (a).
(f) The provision of transmission services under subsection
(a) does not preclude a request for transmission services under
section 211.
(g) The Commission may not require a State or municipality
to take action under this section that constitutes a private
business use for purposes of section 141 of the Internal
Revenue Code of 1986 (26 U.S.C. 141).
(h) Nothing in this Act authorizes the Commission to
require an unregulated transmitting utility to transfer control
or operational control of its transmitting facilities to an RTO
or any other Commission-approved organization designated to
provide non-discriminatory transmission access.
* * * * * * *
ELECTRIC RELIABILITY
Sec. 215. (a) For the purposes of this section:
(1) The term ``bulk power system'' means--
(A) facilities and control systems necessary
for operating an interconnected electric energy
transmission network (or any portion thereof;
and
(B) electric energy from generation
facilities needed to maintain transmission
system reliability.
The term does not include facilities used in the local
distribution of electric energy.
(2) The terms ``Electric Reliability Organization''
and ``ERO'' mean the organization certified by the
Commission under subsection (c), the purpose of which
is to establish and enforce reliability standards for
the bulk-power system, subject to Commission review.
(3) The term ``reliability standard'' means a
requirement, approved by the Commission under this
section, to provide for reliable operation of the bulk
power system. The term includes requirements for the
operation of existing bulk-power system components and
the design of planned additions or modifications to
such components to the extent necessary to provide for
reliable operation of the bulk power system, but the
term does not include any requirement to enlarge such
components or to construct new transmission capacity or
generation capacity.
(4) The term ``reliable operation'' means operating
the components of the bulkpower system within equipment
and electric system thermal, voltage, and stability
limits so that instability, uncontrolled separation, or
cascading failures of such system will not occur as a
result of a sudden disturbance or unanticipated failure
of system components.
(5) The term ``Interconnection'' means a geographic
area in which the operation of bulk-power system
components is synchronized such that the failure of one
or more of such components may adversely affect the
ability of the operators of other components within the
system to maintain reliable operation of the portion of
the system within their control.
(6) The term ``transmission organization'' means an
RTO or other transmission organization finally approved
by the Commission for the operation of transmission
facilities.
(7) The term ``regional entity'' means an entity
having enforcement authority pursuant to subsection
(e)(4).
(b) The Commission shall have jurisdiction, within the
United States, over the ERO certified by the Commission under
subsection (c), any regional entities, and all users, owners
and operators of the bulk power system, including the entities
described in section 201(f), for purposes of approving
reliability standards established under this section and
enforcing compliance with this section. All users, owners and
operators of the bulk power system shall comply with
reliability standards that take effect under this section. The
Commission shall issue a final rule to implement the
requirements of this section not later than 180 days after the
date of enactment of this section.
(c) Following the issuance of a Commission rule under
subsection (b), any person may submit an application to the
Commission for certification as the Electric Reliability
Organization. The Commission may certify one such ERO if the
Commission determines that such ERO--
(1) has the ability to develop and enforce, subject
to subsection (d)(2), reliability standards that
provide for an adequate level of reliability of the
bulk power system; and
(2) has established rules that--
(A) assure its independence of the users and
owners and operators of the bulk power system,
while assuring fair stakeholder representation
in the selection of its directors and balanced
decisionmaking in any ERO committee or
subordinate organizational structure;
(B) allocate equitably reasonable dues, fees,
and other charges among end users for all
activities under this section;
(C) provide fair and impartial procedures for
enforcement of reliability standards through
the imposition of penalties in accordance with
subsection (e) (including limitations on
activities, functions, or operations, or other
appropriate sanctions);
(D) provide for reasonable notice and
opportunity for public comment, due process,
openness, and balance of interests in
developing reliability standards and otherwise
exercising its duties; and
(E) provide for taking, after certification,
appropriate steps to gain recognition in Canada
and Mexico.
(d)(1) The ERO shall file each reliability standard or
modification to a reliability standard that it proposes to be
made effective under this section with the Commission.
(2) The Commission may approve by rule or order a proposed
reliability standard or modification to a reliability standard
if it determines that the standard is just, reasonable, not
unduly discriminatory or preferential, and in the public
interest. The Commission shall give due weight to the technical
expertise of the ERO with respect to the content of a proposed
standard or modification to a reliability standard and to the
technical expertise of a regional entity organized on an
Interconnection-wide basis with respect to a reliability
standard to be applicable within that Interconnection, but
shall not defer with respect to the effect of a standard on
competition. A proposed standard or modification shall take
effect upon approval by the Commission.
(3) The ERO shall rebuttably presume that a proposal from a
regional entity organized on an Interconnection-wide basis for
a reliability standard or modification to a reliability
standard to be applicable on an Interconnection-wide basis is
just, reasonable, and not unduly discriminatory or
preferential, and in the public interest.
(4) The Commission shall remand to the ERO for further
consideration a proposed reliability standard or a modification
to a reliability standard that the Commission disapproves in
whole or in part.
(5) The Commission, upon its own motion or upon complaint,
may order the ERO to submit to the Commission a proposed
reliability standard or a modification to a reliability
standard that addresses a specific matter if the Commission
considers such a new or modified reliability standard
appropriate to carry out this section.
(6) The final rule adopted under subsection (b) shall
include fair processes for the identification and timely
resolution of any conflict between a reliability standard and
any function, rule, order, tariff, rate schedule, or agreement
accepted, approved, or ordered by the
Commission applicable to a transmission organization. Such
transmission organization shall continue to comply with such
function, rule, order, tariff, rate schedule or agreement
accepted approved, or ordered by the Commission until--
(A) the Commission finds a conflict exists between a
reliability standard and any such provision;
(B) the Commission orders a change to such provision
pursuant to section 206 of this part; and
(C) the ordered change becomes effective under this
part.
If the Commission determines that a reliability standard needs
to be changed as a result of such a conflict, it shall order
the ERO to develop and file with the Commission a modified
reliability standard under paragraph (4) or (5) of this
subsection.
(e)(1) The ERO may impose, subject to paragraph (2), a
penalty on a user or owner or operator of the bulk-power system
for a violation of a reliability standard approved by the
Commission under subsection (d) if the ERO, after notice and an
opportunity for a hearing--
(A) finds that the user or owner or operator has
violated a reliability standard approved by the
Commission under subsection (d); and
(B) files notice and the record of the proceeding
with the Commission.
(2) A penalty imposed under paragraph (1) may take effect
not earlier than the 31st day after the ERO files with the
Commission notice of the penalty and the record of proceedings.
Such penalty shall be subject to review by the Commission, on
its own motion or upon application by the user, owner or
operator that is the subject of the penalty filed within 30
days after the date such notice is filed with the Commission.
Application to the Commission for review, or the initiation of
review by the Commission on its own motion, shall not operate
as a stay of such penalty unless the Commission otherwise
orders upon its own motion or upon application by the user,
owner or operator that is the subject of such penalty. In any
proceeding to review a penalty imposed under paragraph (1), the
Commission, after notice and opportunity for hearing (which
hearing may consist solely of the record before the ERO and
opportunity for the presentation of supporting reasons to
affirm, modify, or set aside the penalty), shall by order
affirm, set aside, reinstate, or modify the penalty, and, if
appropriate, remand to the ERO for further proceedings. The
Commission shall implement expedited procedures for such
hearings.
(3) On its own motion or upon complaint, the Commission may
order compliance with a reliability standard and may impose a
penalty against a user or owner or operator of the bulk power
system, if the Commission finds, after notice and opportunity
for a hearing, that the user or owner or operator of the bulk
power system has engaged or is about to engage in any acts or
practices that constitute or will constitute a violation of a
reliability standard.
(4) The Commission shall establish regulations authorizing
the ERO to enter into an agreement to delegate authority to a
regional entity for the purpose of proposing reliability
standards to the ERO and enforcing reliability standards under
paragraph (1) if--
(A) the regional entity is governed by an independent
board, a balanced stakeholder board, or a combination
independent and balanced stakeholder board;
(B) the regional entity otherwise satisfies the
provisions of subsection (c)(1) and (2); and
(C) the agreement promotes effective and efficient
administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO and the
Commission shall rebuttably presume that a proposal for
delegation to a regional entity organized on an
Interconnection-wide basis promotes effective and efficient
administration of bulk power system reliability and should be
approved. Such regulation may provide that the Commission may
assign the ERO's authority to enforce reliability standards
under paragraph (1) directly to a regional entity consistent
with the requirements of this paragraph.
(5) The Commission may take such action as is necessary or
appropriate against the ERO or a regional entity to ensure
compliance with a reliability standard or any Commission order
affecting the ERO or a regional entity.
(6) Any penalty imposed under this section shall bear a
reasonable relation to the seriousness of the violation and
shall take into consideration the efforts of such user, owner,
or operator to remedy the violation in a timely manner.
(f) The ERO shall file with the Commission for approval any
proposed rule or proposed rule change, accompanied by an
explanation of its basis and purpose. The Commission, upon its
own motion or complaint, may propose a change to the rules of
the ERO. A proposed rule or proposed rule change shall take
effect upon a finding by the Commission, after notice and
opportunity for comment, that the change is just, reasonable,
not unduly discriminatory or preferential, is in the public
interest, and satisfies the requirements of subsection (c).
(g) The ERO shall conduct periodic assessments of the
reliability and adequacy of the bulk power system in North
America.
(h) The President is urged to negotiate international
agreements with the governments of Canada and Mexico to provide
for effective compliance with reliability standards and the
effectiveness of the ERO in the United States and Canada or
Mexico.
(i)(1) The ERO shall have authority to develop and enforce
compliance with reliability standards for only the bulk power
system.
(2) This section does not authorize the ERO or the
Commission to order the construction of additional generation
or transmission capacity or to set and enforce compliance with
standards for adequacy or safety of electric facilities or
services.
(3) Nothing in this section shall be construed to preempt
any authority of any State to take action to ensure the safety,
adequacy, and reliability of electric service within that
State, as long as such action is not inconsistent with any
reliability standard.
(4) Within 90 days of the application of the ERO or other
affected party, and after notice and opportunity for comment,
the Commission shall issue a final order determining whether a
State action is inconsistent with a reliability standard,
taking into consideration any recommendation of the ERO.
(5) The Commission, after consultation with the ERO, may
stay the effectiveness of any State action, pending the
Commission's issuance of a final order.
(j) The Commission shall establish a regional advisory body
on the petition of at least two-thirds of the States within a
region that have more than one-half of their electric load
served within the region. A regional advisory body shall be
composed of one member from each participating State in the
region, appointed by the Governor of each State, and may
include representatives of agencies, States, and provinces
outside the United States. A regional advisory body may provide
advice to the ERO, a regional entity, or the Commission
regarding the governance of an existing or proposed regional
entity within the same region, whether a standard proposed to
apply within the region is just, reasonable, not unduly
discriminatory or preferential, and in the public interest,
whether fees proposed to be assessed within the region are
just, reasonable, not unduly discriminatory or preferential,
and in the public interest and any other responsibilities
requested by the Commission. The Commission may give deference
to the advice of any such regional advisory body if that body
is organized on an Interconnection-wide basis.
(k) The provisions of this section do not apply to Alaska
or Hawaii.
Sec. 220. (a)(1) The Commission shall exercise its
authority under this Act to ensure that any load-serving entity
that, as of the date of enactment of this section--
(A) owns generation facilities, markets the output of
federal generation facilities, or holds rights under
one or more long-term contracts to purchase electric
energy, for the purpose of meeting a service
obligation, and
(B) by reason of ownership of transmission
facilities, or one or more contracts or service
agreements for firm transmission service, holds firm
transmission rights for delivery of the output of such
generation facilities or such purchased energy to meet
such service obligation, is entitled to use such firm
transmission rights, or equivalent financial
transmission rights, in order to deliver such output or
purchased energy, or the output of other generating
facilities or purchased energy to the extent
deliverable using such rights, to meet its service
obligation.
(2) To the extent that all or a portion of the service
obligation covered by such firm transmission rights is
transferred to another load-serving entity, the successor load-
serving entity shall be entitled to use the firm transmission
rights associated with the transferred service obligation.
Subsequent transfers to another load-serving entity, or back to
the original load-serving entity, shall be entitled to the same
rights.
(3) The Commission shall exercise its authority under this
Act in a manner that facilitates the planning and expansion of
transmission facilities to meet the reasonable needs of load-
serving entities to satisfy their service obligations.
(b) Nothing in this section shall affect any methodology
for the allocation of transmission rights by a Commission-
approved entity that, prior to the date of enactment of this
section, has been authorized by the Commission to allocate
transmission rights.
(c) Nothing in this Act shall relieve a load-serving entity
from any obligation under State or local law to build
transmission or distribution facilities adequate to meet its
service obligations.
(d) Nothing in this section shall provide a basis for
abrogating any contract or service agreement for firm
transmission service or rights in effect as of the date of the
enactment of this subsection.
(e) For purposes of this section:
(1) The term ``distribution utility'' means an
electric utility that has a service obligation to end-
users.
(2) The term ``load-serving entity'' means a
distribution utility or an electric utility (including
an entity described in section 201(f) or a rural
cooperative) that has a service obligation to end-users
or a distribution utility.
(3) The term ``service obligation'' means a
requirement applicable to, or the exercise of authority
granted to, an electric utility (including an entity
described in section 201(f) or a rural cooperative)
under Federal, State or local law or under long-term
contracts to provide electric service to end-users or
to a distribution utility.
(f) Nothing in the section shall apply to an entity located
in an area referred to in section 212(k)(2)(A).
SUSTAINABLE TRANSMISSION NETWORKS RULEMAKING
Sec. 221. Within six months of enactment of this section,
the Commission shall issue a final rule establishing
transmission pricing policies applicable to all public
utilities and policies for the allocation of costs associated
with the expansion, modification or upgrade of existing
interstate transmission facilities and for the interconnection
of new transmission facilities for utilities and facilities
which are not included within a Commission approved RTO.
Consistent with section 205 of this Act, such rule shall, to
the maximum extent practicable--
(1) promote capital investment in the economically
efficient transmission systems;
(2) encourage the construction of transmission and
generation facilities in a manner which provides the
lowest overall risk and cost to consumers;
(3) encourage improved operation of transmission
facilities and deployment of transmission technologies
designed to increase capacity and efficiency of
existing networks;
(4) ensure that the costs of any transmission
expansion or interconnection be allocated in such a way
that all users of the affected transmission system bear
the appropriate share of costs; and
(5) ensure that parties who pay for facilities
necessary for transmission expansion or interconnection
receive appropriate compensation for those facilities.
MARKET TRANSPARENCY RULES
Sec. 222. (a) Not later than 180 days after the date of
enactment of this section, the Commission shall issue rules
establishing an electronic information system to provide the
Commission and the public with access to such information as is
necessary or appropriate to facilitate price transparency and
participation in markets subject to the Commission's
jurisdiction. Such systems shall provide information about the
availability and market price of wholesale electric energy and
transmission services to the Commission, State commissions,
buyers and sellers of wholesale electric energy, users of
transmission services, and the public. The Commission shall
have authority to obtain such information from any electric and
transmitting utility, including any entity described in section
2010.
(b) The Commission shall exempt from disclosure information
it determines would, if disclosed, be detrimental to the
operation of an effective market or jeopardize system security.
This section shall not apply to an entity described in section
212(k)(2)(B) with respect to transactions for the purchase or
sale of wholesale electric energy and transmission services
within the area described in section 212(k)(2)(A).
PROHIBITION ON FILING FALSE INFORMATION
Sec. 223. It shall be a violation of this Act for any
person or any other entity (including entities described in
section 201(f) willfully and knowingly to report any
information relating to the price of electricity sold at
wholesale, which information the person or any other entity
knew to be false at the time of the reporting, to any
governmental entity with the intent to manipulate the data
being compiled by such governmental entity.
PROHIBITION ON ROUND TRIP TRADING
Sec. 224. (a) It shall be a violation of this Act for any
person or any other entity (including entities described in
section 201(f)) willfully and knowingly to enter into any
contract or other arrangement to execute a round-trip trade for
the purchase or sale of electric energy atwholesale.
(b) For the purposes of this section, the term ``round trip
trade'' means a transaction, or combination of transactions, in
which a person or any other entity--
(1) enters into a contract or other arrangement to
purchase from, or sell to, any other person or other
entity electric energy at wholesale;
(2) simultaneously with entering into the contract or
arrangement described in paragraph (1), arranges a
financially offsetting trade with such other person or
entity for the same such electric energy, at the same
location, price, quantity and terms so that,
collectively, the purchase and sale transactions in
themselves result in no financial gain or loss; and
(3) enters into the contract or arrangement with the
intent to deceptively affect reported revenues, trading
volumes, or prices.
* * * * * * *
PART III--LICENSEES AND PUBLIC UTILITIES PROCEDURAL AND ADMINISTRATIVE
PROVISIONS
* * * * * * *
COMPLAINTS
Sec. 306. Any person, electric utility (including entities
described in section 210(f) and rural cooperative entities),
State, municipality, or State commission complaining of
anything done or omitted to be done by any licensee,
transmitting utility, or public utility in contravention of the
provisions of this Act may apply to the Commission by petition
which shall briefly state the facts, whereupon a statement of
the complaint thus made shall be forwarded by the Commission to
such licensee, transmitting utility, or public utility, who
shall be called upon to satisfy the complaint or to answer the
same in writing within a reasonable time to be specified by the
Commission. If such licensee, transmitting utility, or public
utility shall not satisfy the complaint within the time
specified or there shall appear to be any reasonable ground for
investigating such complaint, it shall be the duty of the
Commission to investigate the matters complained of in such
manner and by such means as it shall find proper.
INVESTIGATIONS BY COMMISSION
Sec. 307. (a) The Commission may investigate any facts,
conditions, practices, or matters which it may find necessary
or proper in order to determine whether any person or
transmitting utility has violated or is about to violate any
provision of this Act or any rule, regulation, or order
thereunder, or to aid in the enforcement of the provisions of
this Act or in prescribing rules or regulations thereunder, or
in obtaining information to serve as a basis for recommending
further legislation concerning the matters to which this Act
relates.
* * * * * * *
REHEARINGS; COURT REVIEW OF ORDERS
Sec. 313. (a) Any person, electric utility, State,
municipality, or State to which such person, State,
municipality, or State commission is a party may apply for a
rehearing within thirty days after the issuance of such order.
* * *
GENERAL FORFEITURE PROVISIONS; VENUE
Sec. 315. * * *
(c) This [subsection] section shall not apply in the case
of any provision of section 211, 212, 213, or 214 or any rule
or order issued under any such provision.
* * * * * * *
GENERAL PENALTIES
Sec. 316. (a) Any person who willfully and knowingly does
or causes or suffers to be done any act, matter, or thing in
this Act prohibited or declared to be unlawful, or who
willfully and knowingly omits or fails to do any act, matter,
or thing in this Act required to be done, or willfully and
knowingly causes or suffers such omission or failure, shall,
upon conviction thereof, be punished by a fine of not more than
[$5,000] $1,000,000 or by imprisonment for not more than [two
years] five years, or both.
(b) Any person who willfully and knowingly violates any
rule, regulation, restriction, condition, or order made or
imposed by the Commission under authority of this Act, or any
rule or regulation imposed by the Secretary of the Army under
authority of Part I of this Act shall, in addition to any other
penalties provided by law, be punished upon conviction thereof
by a fine of not exceeding [$500] $25,000 for each and every
day during which such offense occurs.
[(c)This subsection shall not apply in the case of any
provision of section 211, 212, 213, or 214 or any rule or order
issued under any such provision.]
SEC. 316A. ENFORCEMENT OF CERTAIN PROVISIONS
(a) Violations.--It shall be unlawful for any person to
violate any provision of [section 211, 212, 213, or 214] Part
II or any rule or order issued under any such provision.
(b) Civil Penalties.--Any person who violates any provision
of [section 211, 212, 213, or 214] Part II or any provision of
any rule or order thereunder shall be subject to a civil
penalty of not more than [$10,000] $1,000,000 for each day that
such violation continues.
* * * * * * *
[CONFLICT OF JURISDICTION
Sec. 318. If, with respect to the issue, sale, or guaranty
of a security, or assumption of obligation or liability in
respect of a security, the method of keeping accounts, the
filing of reports, or the acquisition or disposition of any
security, capital assets, facilities, or any other subject
matter, any person is subject both to a requirement of the
Public Utility Holding Company Act of 1935 or of a rule,
regulation, or order thereunder and to a requirement of this
Act or of a rule, regulation, or order thereunder, the
requirement of the Public Utility Holding Company Act of 1935
shall apply to such person, and such person shall not be
subject to the requirement of this Act, or of any rule,
regulation, or order thereunder, with respect to the same
subject matter, unless the Securities and Exchange Commission
has exempted such person from such requirement of the Public
Utility Holding Company Act of 1935, in which case the
requirements of this Act shall apply to such person.]
----------
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
Act of August 26, 1935, chapter 687, as amended (15 U.S.C. 79-79z-6)
[PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
[(References in brackets [ ] are to title 15, United States Code)
[AN ACT To provide for control and regulation of public-utility holding
companies, and for other purposes
[Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That
this Act may be cited as the ``Public Utility Act of 1935.''
[TITLE I--CONTROL OF PUBLIC-UTILITY HOLDING COMPANIES
[NECESSITY FOR CONTROL OF HOLDING COMPANIES
[Section 1. (a) Public-utility holding companies and their
subsidiary companies are affected with a national public
interest in that, among other things, (1) their securities are
widely marketed and distributed by means of the mails and
instrumentalities of interstate commerce and are sold to a
large number of investors in different States; (2) their
service, sales, construction, and other contracts and
arrangements are often made and performed by means of the mails
and instrumentalities of interstate commerce; (3) their
subsidiary public-utility companies often sell and transport
gas and electric energy by the use of means and
instrumentalities of interstate commerce; (4) their practices
in respect of and control over subsidiary companies often
materially affect the interstate commerce in which those
companies engage; (5) their activities extending over many
States are not susceptible of effective control by any State
and make difficult, if not impossible, effective State
regulation of public-utility companies.
[(b) Upon the basis of facts disclosed by the reports of
the Federal Trade Commission made pursuant to S. Res. 83
(Seventieth Congress, first session), the reports of the
Committee on Interstate and Foreign Commerce, House of
Representatives, made pursuant to H. Res. 59 (Seventy-second
Congress, first session) and H.J. Res. 572 (Seventy-second
Congress, second session) and otherwise disclosed and
ascertained, it is hereby declared that the national public
interest, the interest of investors in the securities of
holding companies and their subsidiary companies and
affiliates, and the interest of consumers of electric energy
and natural and manufactured gas, are or may be adversely
affected--
[(1) when such investors cannot obtain the
information necessary to appraise the financial
position or earning power of the issuers, because of
the absence of uniform standard accounts; when such
securities are issued without the approval or consent
of the States having jurisdiction over subsidiary
public-utility companies; when such securities are
issued upon the basis of fictitious or unsound asset
values having no fair relation to the sums invested in
or the earning capacity of the properties and upon the
basis of paper profits from intercompany transactions,
or in anticipation of excessive revenues from
subsidiary public-utility companies; when such
securities are issued by a subsidiary public-utility
company under circumstances which subject such company
to the burden of supporting an overcapitalized
structure and tend to prevent voluntary rate
reductions;
[(2) when subsidiary public-utility companies are
subjected to excessive charges for services,
construction work, equipment, and materials, or enter
into transactions in which evils result from an absence
of arm's-length bargaining or from restraint of free
and independent competition; when service, management,
construction, and other contracts involve the
allocation of charges among subsidiary public-utility
companies in different States so as to present problems
of regulation which cannot be dealt with effectively by
the States;
[(3) when control of subsidiary public-utility
companies affects the accounting practices and rate,
dividend, and other policies of such companies so as to
complicate and obstruct State regulation of such
companies, or when control of such companies is exerted
through disproportionately small investment;
[(4) when the growth and extension of holding
companies bears no relation to economy of management
and operation or the integration and coordination of
related operating properties; or
[(5) when in any other respect there is lack of
economy of management and operation of public-utility
companies or lack of efficiency and adequacy of service
rendered by such companies, or lack of effective public
regulation, or lack of economies in the raising of
capital.
[(c) When abuses of the character above enumerated become
persistent and wide-spread the holding company becomes an
agency which, unless regulated, is injurious to investors,
consumers, and the general public; and it is hereby declared to
be the policy of this title, in accordance with which policy
all the provisions of this title shall be interpreted, to meet
the problems and eliminate the evils as enumerated in this
section, connected with public-utility holding companies which
are engaged in interstate commerce or in activities which
directly affect or burden interstate commerce; and for the
purpose of effectuating such policy to compel the
simplification of public-utility holding-company systems and
the elimination therefrom of properties detrimental to the
proper functioning of such systems, and to provide as soon as
practicable for the elimination of public-utility holding
companies except as otherwise expressly provided in this title.
[DEFINITIONS
[Sec. 2. (a) When used in this title, unless the context
otherwise requires--
[(1) ``Person'' means an individual or company.
[(2) ``Company'' means a corporation, a partnership,
an association, a joint-stock company, a business
trust, or an organized group of persons, whether
incorporated or not; or any receiver, trustee, or other
liquidating agent of any of the foregoing in his
capacity as such.
[(3) ``Electric utility company'' means any company
which owns or operates facilities used for the
generation, transmission, or distribution of electric
energy for sale, other than sale to tenants or
employees of the company operating such facilities for
their own use and not for resale. The Commission, upon
application, shall by order declare a company operating
any such facilities not to be an electric utility
company if the Commission finds that (A) such company
is primarily engaged in one or more businesses other
than the business of an electric utility company, and
by reason of the small amount of electric energy sold
by such company it is not necessary in the public
interest or for the protection of investors or
consumers that such company be considered an electric
utility company for the purposes of this title, or (B)
such company is one operating within a single State,
and substantially all of its outstanding securities are
owned directly or indirectly by another company to
which such operating company sells or furnishes
electric energy which it generates; such other company
uses and does not resell such electric energy, is
engaged primarily in manufacturing (other than the
manufacturing of electric energy or gas) and is not
controlled by any other company; and by reason of the
small amount of electric energy sold or furnished by
such operating company to other persons it is not
necessary in the public interest or for the protection
of investors or consumers that it be considered an
electric utility company for the purposes of this
title. The filing of an application hereunder in good
faith shall exempt such company (and the owner of the
facilities operated by such company) from the
application of this paragraph until the Commission has
acted upon such application. As a condition to the
entry of any such order, and as a part thereof, the
Commission may require application to be made
periodically for a renewal of such order, and may
require the filing of such periodic or special reports
regarding the business of the company as the Commission
may find necessary or appropriate to insure that such
company continues to be entitled to such exemption
during the period for which such order is effective.
The Commission, upon its own motion or upon
application, shall revoke such order whenever it finds
that the conditions specified in clause (A) or (B) are
not satisfied in the case of such company. Any action
of the Commission under the preceding sentence shall be
by order. Application under this paragraph may be made
by the company in respect of which the order is to be
issued or by the owner of the facilities operated by
such company. Any order issued under this paragraph
shall apply equally to such company and such owner. The
Commission may by rules or regulations conditionally or
unconditionally provide that any specified class or
classes of companies which it determines to satisfy the
conditions specified in clause (A) or (B), and the
owners of the facilities operated by such companies,
shall not be deemed electric utility companies within
the meaning of this paragraph.
[(4) ``Gas utility company'' means any company which
owns operates facilities used for the distribution at
retail (other than distribution only in enclosed
portable containers, or distribution to tenants or
employees of the company operating such facilities for
their own use and not for resale) of natural or
manufactured gas for heat, light, or power. The
Commission, upon application, shall by order declare a
company operating any such facilities not to be a gas
utility company if the Commission finds that (A) such
company is primarily engaged in one or more businesses
other than the business of a gas utility company, and
(B) by reason of the small amount of natural or
manufactured gas distributed at retail by such company
it is not necessary in the public interest or for the
protection of investors or consumers that such company
be considered a gas utility company for the purposes of
this title. The filing of an application hereunder in
good faith shall exempt such company (and the owner of
the facilities operated by such company) from the
application of this paragraph until the Commission has
acted upon such application. As a condition to the
entry of any such order, and as a part thereof, the
Commission may require application to be made
periodically for a renewal of such order, and may
require the filing of such periodic or special reports
regarding the business of the company as the Commission
may find necessary or appropriate to insure that such
company continues to be entitled to such exemption
during the period for which such order is effective.
The Commission, upon its own motion or upon
application, shall revoke such order whenever it finds
that the conditions specified in clauses (A) and (B)
are not satisfied in the case of such company. Any
action of the Commission under the preceding sentence
shall be by order. Application under this paragraph may
be made by the company in respect of which the order is
to be issued or by the owner of the facilities operated
by such company. Any order issued under this paragraph
shall apply equally to such company and such owner. The
Commission may by rules or regulations conditionally or
unconditionally provide that any specified class or
classes of companies which it determines to satisfy the
conditions specified in clauses (A) and (B), and the
owners of the facilities operated by such companies,
shall not be deemed gas utility companies within the
meaning of this paragraph.
[(5) ``Public-utility company'' means an electric
utility company or a gas utility company.
[(6) ``Commission'' means the Securities and Exchange
Commission.
[(7) ``Holding company'' means--
[(A) any company which directly or indirectly
owns, controls, or holds with power to vote, 10
per centum or more of the outstanding voting
securities of a public-utility company or of a
company which is a holding company by virtue of
this clause or clause (B), unless the
Commission, as hereinafter provided, by order
declares such company not lo be a holding
company; and
[(B) any person which the Commission
determines, after notice and opportunity for
hearing, directly or indirectly to exercise
(either alone or pursuant to an arrangement or
understanding with one or more other persons)
such a controlling influence over the
management or policies of any public-utility or
holding company as to make it necessary or
appropriate in the public interest or for the
protection of investors or consumers that such
person be subject to the obligations, duties,
and liabilities imposed in this title upon
holding companies.
[The Commission, upon application, shall by order
declare that a company is not a holding company under
clause (A) if the Commission finds that the applicant
(i) does not, either alone or pursuant to an
arrangement or understanding with one or more other
persons, directly or indirectly control a public-
utility or holding company either through one or more
intermediary persons or by any means or device
whatsoever, (ii) is not an intermediary company through
which such control is exercised, and (iii) does not,
directly or indirectly, exercise (either alone or
pursuant to an arrangement or understanding with one or
more other persons) such a controlling influence over
the management or policies of any public-utility or
holding company as to make it necessary or appropriate
in the public interest or for the protection of
investors or consumers that the applicant be subject to
the obligations, duties, and liabilities imposed in
this title upon holding companies. The filing of an
application hereunder in good faith by a company other
than a registered holding company shall exempt the
applicant from any obligation, duty, or liability
imposed in this title upon the applicant as a holding
company, until the Commission has acted upon such
application. Within a reasonable time after the receipt
of any application hereunder, the Commission shall
enter an order granting, or, after notice and
opportunity for hearing, denying or otherwise disposing
of, such application. As a condition to the entry of
any order granting such application and as a part of
any such order, the Commission may require the
applicant to apply periodically for a renewal of such
order and to do or refrain from doing such acts or
things, in respect of exercise of voting rights,
control over proxies, designation of officers and
directors, existence of interlocking officers,
directors and other relationships, and submission of
periodic or special reports regarding affiliations or
intercorporate relationships of the applicant, as the
Commission may find necessary or appropriate to ensure
that in the case of the applicant the conditions
specified in clauses (i), (ii), and (iii) are satisfied
during the period for which such order is effective.
The Commission, upon its own motion or upon application
of the company affected, shall revoke the order
declaring such company not to be a holding company
whenever in its judgment any condition specified in
clause (i), (ii), or (iii) is not satisfied in the case
of such company, or modify the terms of such order
whenever in its judgment such modification is necessary
to ensure that in the case of such company the
conditions specified in clauses (i), (ii), and (iii)
are satisfied during the period for which such order is
effective. Any action of the Commission under the
preceding sentence shall be by order.
[(8) ``Subsidiary company'' of a specified holding
company means--
[(A) any company 10 per centum or more of the
outstanding voting securities of which are
directly or indirectly owned, controlled, or
held with power to vote, by such holding
company (or by a company that is a subsidiary
company of such holding company by virtue of
this clause or clause (B)), unless the
Commission, as hereinafter provided, by order
declares such company not to be a subsidiary
company of such holding company; and
[(B) any person the management or policies of
which the Commission, after notice and
opportunity for hearing, determines to be
subject to a controlling influence, directly or
indirectly, by such holding company (either
alone or pursuant to an arrangement or
understanding with one or more other persons)
so as to make it necessary or appropriate in
the public interest or for the protection of
investors or consumers that such person be
subject to the obligations, duties, and
liabilities imposed in this title upon
subsidiary companies of holding companies.
[The Commission, upon application, shall by order
declare that a company is not a subsidiary company of a
specified holding company under clause (A) if the
Commission finds that (i) the applicant is not
controlled, directly or indirectly, by such holding
company (either alone or pursuant to an arrangement or
understanding with one or more other persons) either
through one or more intermediary persons or by any
means or device whatsoever, (ii) the applicant is not
an intermediary company through which such control of
another company is exercised, and (iii) the management
or policies of the applicant are not subject to a
controlling influence, directly or indirectly, by such
holding company (either alone or pursuant to an
arrangement or understanding with one or more other
persons) so as to make it necessary or appropriate in
the public interest or for the protection of investors
or consumers that the applicant be subject to the
obligations, duties, and liabilities imposed in this
title upon subsidiary companies of holding companies.
The filing of an application hereunder in good faith
shall exempt the applicant from any obligation, duty,
or liability imposed in this title upon the applicant
as a subsidiary company of such specified holding
company until the Commission has acted upon such
application. Within a reasonable time after the receipt
of any application hereunder, the Commission shall
enter an order granting, or, after notice and
opportunity for hearing, denying or otherwise disposing
of, such application. As a condition to the entry of,
and as a part of, any order granting such application,
the Commission may require the applicant to apply
periodically for a renewal of such order and to file
such periodic or special reports regarding the
affiliations or intercorporate relationships of the
applicant as the Commission may find necessary or
appropriate to enable it to determine whether in the
case of the applicant the conditions specified in
clauses (i), (ii), and (iii) are satisfied during the
period for which such order is effective. The
Commission, upon its own motion or upon application,
shall revoke the order declaring such company not to be
a subsidiary company whenever in its judgment any
condition specified in clause (i), (ii), or (iii) is
not satisfied in the case of such company, or modify
the terms of such order whenever in its judgment such
modification is necessary to ensure that in the case of
such company the conditions specified in clauses (i),
(ii), and (iii) are satisfied during the period for
which such order is effective. Any action of the
Commission under the preceding sentence shall be by
order. Any application under this paragraph may be made
by the holding company or the company in respect of
which the order is to be entered, but as used in this
paragraph the term ``applicant'' means only the company
in respect of which the order is to be entered.
[(9) ``Holding-company system'' means any holding
company, together with all its subsidiary companies,
and all mutual service companies (as defined in
paragraph (13) of this subsection) of which such
holding company or any subsidiary company thereof is a
member company (as defined in paragraph (14) of this
subsection).
[(10) ``Associate company'' of a company means any
company in the same holding-company system with such
company.
[(11) ``Affiliate'' of a specified company means--
[(A) any person that directly or indirectly
owns, controls, or holds with power to vote, 5
per centum or more of the outstanding voting
securities of such specified company;
[(B) any company 5 per centum or more of
whose outstanding voting securities are owned,
controlled, or held with power to vote,
directly or indirectly, by such specified
company;
[(C) any individual who is an officer or
director of such specified company, or of any
company which is an affiliate thereof under
clause (A) of this paragraph; and
[(D) any person or class of persons that the
Commission determines, after appropriate notice
and opportunity for hearing, to stand in such
relation to such specified company that there
is liable to be such an absence of arm's length
bargaining in transactions between them as to
make it necessary or appropriate in the public
interest or for the protection of investors or
consumers that such person be subject to the
obligations, duties, and liabilities imposed in
this title upon affiliates of a company.
[(12) ``Registered holding company'' means a person
whose registration is in effect under section 5.
[(13) ``Mutual service company'' means a company
approved mutual service company under section 13.
[(14) ``Member company'' means a company which is a
member of an association or group of companies mutually
served by a mutual service company.
[(15) ``Director'' means any director of a
corporation or any individual who performs similar
functions in respect of any company.
[(16) ``Security'' means any note, draft, stock,
treasury stock, bond, debenture, certificate of
interest or participation in any profit-sharing
agreement or in any oil, gas, other mineral royalty or
lease, any collateral-trust certificate,
preorganization certificate or subscription,
transferable share, investment contract, voting-trust
certificate, certificate of deposit for a security,
receiver's or trustee's certificate, or, in general,
any instrument commonly known as a ``security''; or any
certificate of interest or participation in, temporary
or interim certificate for, receipt for, guaranty of,
assumption of liability on, or warrant or right to
subscribe to or purchase, any of the foregoing.
[(17) ``Voting security'' means any security
presently entitling the owner or holder thereof to vote
in the direction or management of the affairs of a
company, or any security issued under or pursuant to
any trust, agreement, or arrangement whereby a trustee
or trustees or agent or agents for the owner or holder
of such security are presently entitled to vote in the
direction or management of the affairs of a company;
and a specified per centum of the outstanding voting
securities of a company means such amount of the
outstanding voting securities of such company as
entitles the holder or holders thereof to cast said
specified per centum of the aggregate votes which the
holders of all the outstanding voting securities of
such company are entitled to cast in the direction or
management of the affairs of such company.
[(18) ``Utility assets'' means the facilities, in
place, of any electric utility company or gas utility
company for the production, transmission,
transportation, or distribution of electric energy or
natural or manufactured gas.
[(19) ``Service contract'' means any contract,
agreement, or understanding whereby a person undertakes
to sell or furnish, for a charge, any managerial,
financial, legal, engineering, purchasing, marketing,
auditing, statistical, advertising, publicity, tax
research, or any other service, information, or data.
[(20) ``Sales contract'' means any contract,
agreement, or understanding whereby a person undertakes
to sell, lease, or furnish, for a charge, any goods,
equipment, materials, supplies, appliances, or similar
property. As used in this paragraph the term
``property'' does not include electric energy or
natural or manufactured gas.
[(21) ``Construction contract'' means any contract,
agreement, or understanding for the construction,
extension, improvement, maintenance, or repair of the
facilities or any park thereof of a company for a
charge.
[(22) ``Buy'', ``acquire'', ``acquisition'', or
``purchase'' includes any purchase, acquisition by
lease, exchange, merger, consolidation, or other
acquisition.
[(23) ``Sale'' or ``sell'' includes any sale,
disposition by lease, exchange or pledge, or other
disposition.
[(24) ``State'' means any State of the United States
or the District of Columbia.
[(25) ``United States'', when used in a geographical
sense, means the States.
[(26) ``State commission'' means any commission,
board, agency, or officer, by whatever name designated,
of a State, municipality, or other political
subdivision of a State which under the law of such
State has jurisdiction to regulate public utility
companies.
[(27) ``State securities commission'' means any
commission, board, agency, or officer, by whatever name
designated, other than a State commission as defined in
paragraph (26) of this subsection, which under the law
of a State has jurisdiction to regulate, approve, or
control the issue or sale of a security by a company.
[(28) ``Interstate commerce'' means trade, commerce,
transportation, transmission, or communication among
the several States or between any State and any place
outside thereof.
[(29) ``Integrated public-utility system'' means--
[(A) As applied to electric utility
companies, a system consisting of one or more
units of generating plants and/ or transmission
lines and/or distributing facilities, whose
utility assets, whether owned by one or more
electric utility companies, are physically
interconnected or capable of physical
interconnection and which under normal
conditions may be economically operated as a
single interconnected and coordinated system
confined in its operations to a single area or
region, in one or more States, not so large as
to impair (considering the state of the art and
the area or region affected) the advantages of
localized management, efficient operation, and
the effectiveness of regulation; and
[(B) As applied to gas utility companies, a
system consisting of one or more gas utility
companies which are so located and related that
substantial economies may be effectuated by
being operated as a single coordinated system
confined in its operations to a single area or
region, in one or more States, not so large as
to impair (considering the state of the art and
the area or region affected) the advantages of
localized management, efficient operation, and
the effectiveness of regulation; Provided, That
gas utility companies deriving natural gas from
a common source of supply may be deemed to be
included in a single area or region.
[(b) No person shall be deemed to be a holding company
under clause (B) of paragraph (7) of subsection (a), or a
subsidiary company under clause (B) of paragraph (8) of such
subsection, or an affiliate under clause (D) of paragraph (11)
of such subsection, unless the Commission, after appropriate
notice and opportunity for hearing, has issued an order
declaring such person to be a holding company, a subsidiary
company, or an affiliate, or declaring a class of which such
person is a member to be affiliates. Such an order shall not
become effective for at least thirty days after the mailing of
a copy thereof to the person thereby declared to be a holding
company, subsidiary company, or affiliate; or, in the case of
determination of affiliates by classes, until at least thirty
days after appropriate publication thereof in such manner as
the Commission shall determine. Whenever the Commission, on its
own motion or upon application by the person declared to be a
holding company, subsidiary company, or affiliate, finds that
the circumstances which gave rise to the issuance of any such
order no longer exist, the Commission shall by order revoke
such order.
[(c) No provision in this title shall apply to, or be
deemed to include, the United States, a State, or any political
subdivision of a State, or any agency, authority, or
instrumentality of any one or more of the foregoing, or any
corporation which is wholly owned directly or indirectly by any
one or more of the foregoing, or any officer, agent, or
employee of any of the foregoing acting as such in the course
of his official duty, unless such provision makes specific
reference thereto.
POWER TO MAKE PARTICULAR EXEMPTIONS REGARDING HOLDING COMPANIES,
SUBSIDIARY COMPANIES, AND AFFILIATES
[Sec. 3. (a)\1\ The Commission, by rules and regulations
upon its own motion, or by order upon application, shall exempt
any holding company, and every subsidiary company thereof as
such, from any provision or provisions of this title, unless
and except insofar as it finds the exemption detrimental to the
public interest or the interest of investors or consumers, if--
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\1\Public Law 99-648 (100 Stat. 3632), entitled ``An Act to clarify
the exemptive authority of the Securities and Exchange Commission,''
provides as follows:
``Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That notwithstanding
section 3(a) of the Public Utility Holding Company Act of 1935 (15
U.S.C. 79c(a)), a holding company which has only one subsidiary company
that is solely e gas utility company, as defined in said Act, shall be
exempt from all provisions, except section 9(a)(2), of said Act if
neither the holding company nor any other subsidiary company is a
public utility company, the operations of such subsidiary gas utility
company do not exceed beyond the State in which it is organized, the
subsidiary company was incorporated on June 16, 1986, for the express
purpose of operating as a gas utility company, and all of whose voting
securities are owned by the holding company, and neither the holding
company, nor any of its subsidiary companies are an aged in residential
or commercial plumbing, heating, refrigeration, air-conditioning, or in
the sale, installation or servicing of such or related equipment.''
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[(1) such holding company, and every subsidiary
company thereof which is a public-utility company from
which such holding company derives, directly or
indirectly, any material part of its income, are
predominantly intrastate in character and carry on
their business substantially in a single State in which
such holding company and every such subsidiary company
thereof are organized;
[(2) such holding company is predominantly a public-
utility company whose operations as such do not extend
beyond the State in which it is organized and States
contiguous thereto;
[(3) such holding company is only incidentally a
holding company, being primarily engaged or interested
in one or more businesses other than the business of a
public-utility company and (A) not deriving, directly
or indirectly, any material part of its income from any
one or more subsidiary companies, the principal
business of which is that of a public-utility company,
or (B) deriving a material part of its income from any
one or more such subsidiary companies, if substantially
all the outstanding securities of such companies are
owned, directly or indirectly, by such holding company;
[(4) such holding company is temporarily a holding
company solely by reason of the acquisition of
securities for purposes of liquidation or distribution
in connection with a bona fide debt previously
contracted or in connection with a bona fide
arrangement for the underwriting or distribution of
securities; or
[(5) such holding company is not, and derives no
material part of its income, directly or indirectly,
from any one or more subsidiary companies which are, a
company or companies the principal business of which
within the United States is that of public-utility
company.
[(b) The Commission, by rules and regulations upon its own
motion, or by order upon application, shall exempt any
subsidiary company, as such, of a holding company from any
provision or provisions of this title, the application of which
to such subsidiary company the Commission finds is not
necessary in the public interest or for the protection of
investors, if such subsidiary company derives no material part
of its income, directly or indirectly, from sources within the
United States, and neither it nor any of its subsidiary
companies is a public-utility company operating in the United
States.
[(c) Within a reasonable time after the receipt of an
application for exemption under subsection (a) or (b), the
Commission shall enter an order granting, or, after notice and
opportunity for hearing, denying or otherwise disposing of such
application. The filing of an application in good faith under
subsection (a) by a person other than a registered holding
company shall exempt the applicant from any obligation, duty,
or liability imposed in this title upon the applicant as a
holding company until the Commission has acted upon such
application. The filing of an application in good faith under
subsection (b) shall exempt the applicant from any obligation,
duty, or liability imposed in this title upon the applicant as
a subsidiary company until the Commission has acted upon such
application. Whenever the Commission, on its own motion, or
upon application by the holding company or any subsidiary
company thereof exempted by any order issued under subsection
(a), or by the subsidiary company exempted by any order issued
under subsection (b), finds that the circumstances which gave
rise to the issuance of such order no longer exist, the
Commission shall by order revoke such order.
[(d) The Commission may, by rules and regulations,
conditionally or unconditionally exempt any specified class or
classes of persons from the obligations, duties, or liabilities
imposed upon such persons as subsidiary companies or affiliates
under any provision or provisions of this title, and may
provide within the extent of any such exemption that such
specified class or classes of persons shall not be deemed
subsidiary companies or affiliates within the meaning of any
such provision or provisions, if and to the extent that it
deems the exemption necessary or appropriate in the public
interest or for the protection of investors or consumers and
not contrary to the purposes of this title.
[TRAN8ACTIONS BY UNREGISTERED HOLDING COMPANIES
[Sec. 4. (a) After December 1, 1935, unless a holding
company is registered under section 5, it shall be unlawful for
such holding company, directly or indirectly--
[(1) to sell, transport, transmit, or distribute, or
own or operate any utility assets for the
transportation, transmission, or distribution of,
natural or manufactured gas or electric energy in
interstate commerce;
[(2) by use of the mails or any means or
instrumentality of interstate commerce, to negotiate,
enter into, or take any step in the performance of, any
service, sales, or construction contract undertaking to
perform services or construction work for, or sell
goods to, any public-utility company or holding
company;
[(3) to distribute or make any public offering for
sale or exchange of any security of such holding
company, any subsidiary company or affiliate of such
holding company, any public-utility company, or any
holding company, by use of the mails or any means or
instrumentality of interstate commerce, or to sell any
such security having reason to believe that such
security, by use of the mails or any means or
instrumentality of interstate commerce, will be
distributed or made the subject of a public offering;
[(4) by use of the mails or any means or
instrumentality of interstate commerce, to acquire or
negotiate for the acquisition of any security or
utility assets of any subsidiary company or affiliate
of such holding company, any public-utility company,
orany holding company;
[(5) to engage in any business in interstate
commerce; or
[(6) to own, control, or hold with power to vote, any
security of any subsidiary company thereof that does
any of the acts enumerated in paragraphs (1) to (5),
inclusive, of this subsection.
[(b) Every holding company which has outstanding any
security any of which, by use of the mails or any means or
instrumentality of interstate commerce, has been distributed or
made the subject of a public offering subsequent to January 1,
1925, and any of which security is owned or held on October 1,
1935 (or, if such company is not a holding company on that
date, on the date such company becomes a holding company) by
persons not resident in the State in which such holding company
is organized, shall register under section 5 on or before
December 1, 1935 or the thirtieth day after such company
becomes a holding company, whichever date is later.
[REGISTRATION OF HOLDING COMPANIES
[Sec. 5. (a) On or at any time after October 1, 1935, any
holding company or any person purposing to become a holding
company may register by filing with the Commission a
notification of registration, in such form as the Commission
may by rules and regulations prescribe as necessary or
appropriate in the public interest or for the protection of
investors or consumers. A person shall be deemed to be
registered upon receipt by the Commission of such notification
of registration.
[(b) It shall be the duty of every registered holding
company to file with the Commission, within such reasonable
time after registration as the Commission shall fix by rules
and regulations or order, a registration statement in such form
as the Commission shall by rules and regulations or order
prescribe as necessary or appropriate in the public interest or
for the protection of investors or consumers. Such registration
statement shall include--
[(1) such copies of the charter or articles of
incorporation, partnership, or agreement, with all
amendments thereto, and the bylaws, trust indentures,
mortgages, underwriting arrangements, voting-trust
agreements, and similar documents, by whatever name
known, of or relating to the registrant or any of its
associate companies as the Commission may by rules and
regulations or order prescribe as necessary or
appropriate in the public interest or for the
protection of investors or consumers;
[(2) such information in such form and in such detail
relating to, and copies of such documents of or
relating to, the registrant and its associate companies
as the Commission may by rules and regulations or order
prescribe as necessary or appropriate in the public
interest or for the protection of investors or
consumers in respect of--
[(A) the organization and financial structure
of such companies and the nature of their
business;
[(B) the terms, position, rights, and
privileges of the different classes of their
securities outstanding;
[(C) the terms and underwriting arrangements
under which their securities, during not more
than the five preceding years, have been
offered to the public or otherwise disposed of
and the relations of underwriters to, and their
interest in, such companies;
[(D) the directors and officers of such
companies, their remuneration, their interest
in the securities of, their material contracts
with, and their borrowings from, any of such
companies;
[(E) bonus and profit-sharing arrangements;
[(F) material contracts, not made in the
ordinary course of business, and service,
sales, and construction contracts;
[(G) options in respect of securities;
[(H) balance sheets for not more than the
five preceding fiscal years certified, if
required by the rules and regulations of the
Commission, by an independent public
accountant;
[(I) profit and loss statements for not more
than the five preceding fiscal years,
certified, if required by the rules and
regulations of the Commission, by an
independent public accountant;
[(3) such further information or documents regarding
the registrant or its associate companies or the
relations between them as the Commission may by rules
and regulations or order prescribe as necessary or
appropriate in the public interest or for the
protection of investors or consumers.
[(c) The Commission by such rules and regulations or order
as it deems necessary or appropriate in the public interest or
for the protection of investors or consumers, may permit a
registrant to file a preliminary registration statement without
complying with the provisions of subsection (b); but every
registrant shall file a complete registration statement with
the Commission within such reasonable period of time as the
Commission shall fix by rules and regulations or order, but not
later than one year after the date of registration.
[(d) Whenever the Commission, upon application, finds that
a registered holding company has ceased to be a holding
company, it shall so declare by order and upon the taking
effect of such order the registration of such company shall,
upon such terms and conditions as the Commission finds and in
such order prescribes as necessary for the protection of
investors, cease to be in effect. The denial of any such
application by the Commission shall be by order.
[LAWFUL SECURITY TRANSACTIONS BY REGISTERED HOLDING AND SUBSIDIARY
COMPANIES
[Sec. 6. (a) Except in accordance with a declaration
effective under section 7 and with the order under such section
permitting such declaration to become effective, it shall be
unlawful for any registered holding company or subsidiary
company thereof, by use of the mails or any means or
instrumentality of interstate commerce, or otherwise, directly
or indirectly (1) to issue or sell any security of such
company; or (2) to exercise any privilege or right to alter the
priorities, preferences, voting power, or other rights of the
holders of an outstanding security of such company.
[(b) The provisions of subsection (a) shall not apply to
the issue, renewal, or guaranty by a registered holding company
or subsidiary company thereof of a note or draft (including the
pledge of any security as collateral therefor) if such note or
draft (1) is not part of a public offering, (2) matures or is
renewed for not more than nine months, exclusive of days of
grace, after the date of such issue, renewal, or guaranty
thereof, and (3) aggregates (together with all other then
outstanding notes and drafts of a maturity of nine months or
less, exclusive of days of grace, as to which such company is
primarily or secondarily liable) not more than 5 per centum of
the principal amount and par value of the other securities of
such company then outstanding, or such greater per centum
thereof as the Commission upon application may by order
authorize as necessary or appropriate in the public interest or
for the protection of investors or consumers. In the case of
securities having no principal amount or no par value, the
value for the purposes of this subsection shall be the
fairmarket value as of the date of issue. The Commission by
rules and regulations or order, subject to such terms and
conditions as it deems appropriate in the public interest or
for the protection of investors or consumers, shall exempt from
the provisions of subsection (a) the issue or sale of any
security by any subsidiary company of a registered holding
company, if the issue and sale of such security are solely for
the purpose of financing the business of such subsidiary
company and have been expressly authorized by the State
commission of the State in which such subsidiary company is
organized and doing business, or if the issue and sale of such
security are solely for the purpose of financing the business
of such subsidiary company when such subsidiary company is not
a holding company, a public-utility company, an investment
company, or a fiscal or financing agency of a holding company,
a public-utility company, or an investment company. The
provisions of subsection (a) shall not apply to the issue, by a
registered holding company or subsidiary company thereof, of a
security issued pursuant to the terms of any security
outstanding on January 1, 1935, giving the holder of such
outstanding security the right to convert such outstanding
security into another security of the same issuer or of another
person, or giving the right to subscribe to another security of
the same issuer or another issuer. Within ten days after any
issue, sale, renewal, or guaranty exempted from the application
of subsection (a) by or under authority of this subsection,
such holding company or subsidiary company thereof shall file
with the Commission a certificate of notification in such form
and setting forth such of the information required in a
declaration under section 7 as the Commission may by rules and
regulations or order prescribe as necessary or appropriate in
the public interest or for the protection of investors or
consumers.
[(c) It shall be unlawful, by use of the mails or any means
or instrumentality of interstate commerce, or otherwise, for
any registered holding company or any subsidiary company
thereof, directly or indirectly--
[(1) to sell or offer for sale or to cause to be sold
or offered for sale, from house to house, any security
of such holding company; or
[(2) to cause any officer or employee of any subsidiary
company of such holding company to sell or cause to be
sold any security of such holding company.
As used in this subsection the term ``house'' shall not include
an office used for business purposes.
DECLARATIONS BY REGISTERED HOLDING AND SUBSIDIARY COMPANIES IN RESPECT
OF SECURITY TRANSACTIONS
[Sec. 7. (a) A registered holding company or subsidiary
company thereof may file a declaration with the Commission,
regarding any of the acts enumerated in subsection (a) of
section 6, in such form as the Commission may be rules and
regulations prescribe as necessary or appropriate in the public
interest or for the protection of investors or consumers. Such
declaration shall include--
[(1) such of the information and documents which are
required to be filed in order to register a security
under section 7 of the Securities Act of 1933, as
amended, as the Commission may by rules and regulations
or order prescribe as necessary or appropriate in the
public interest or for the protection of investors or
consumers; and
[(2) such additional information, in such form and
detail, and such documents regarding the declarant or
any associate company thereof, the particular security
and compliance with such State laws as may apply to the
act in question as the Commission may by rules and
regulations or order prescribe as necessary or
appropriate in the public interest or for the proection
of investors or consumers.
[(b) A declaration filed under this section shall become
effective witTi'1n such reasonable period of time after the
filing thereof as the Commission shall fix by rules and
regulations or order, unless the Commission prior to the
expiration of such period shall have issued an order to the
declarant to show cause why such declaration should become
effective. Within a reasonable time after an opportunity for
hearing upon an order to show cause under this subsection,
unless the declarant shall withdraw its declaration, the
Commission shall enter an order either permitting such
declaration to become effective as filed or amended, or
refusing to permit such declaration to become effective.
Amendments to a declaration may be made upon such terms and
conditions as the Commission may prescribe.
[(c) The Commission shall not permit a declaration
regarding the issue or sale of a security to become effective
unless it finds that--
[(1) such security is (A) a common stock having a par
value and being without preference as to dividends or
distribution over, and having at least equal voting
rights with, any outstanding security of the declarant;
(B) a bond (i) secured by a first lien on physical
property of the declarant, or (ii) secured by an
obligation of a subsidiary company of the declarant
secured by a first lien on physical property of such
subsidiary company, or (iii) secured by any other
assets of the type and character which the Commission
by rules and regulations or order may prescribe as
appropriate in the public interest or for the
protection of investors; (C) a guaranty of, or
assumption of liability on, a security of another
company; or (D) a receiver's or trustee's certificate
duly authorized by the appropriate court or courts; or
[(2) such security is to be issued or sold solely (A)
for the purpose of refunding, extending, exchanging, or
discharging an outstanding security of the declarant
and/or a predecessor company thereof or for the purpose
of effecting a merger, consolidation, or other
reorganization; (B) for the purpose of financing the
business of the declarant as a public-utility company;
(C) for the purpose of financing the business of the
declarant, when the declarant is neither a holding
company nor a public-utility company; and/or (D) for
necessary and urgent corporate purposes of the
declarant where the requirements of the provisions of
paragraph (1) would impose an unreasonable financial
burden upon the declarant and are not necessary or
appropriate in the public interest or for the
protection of investors or consumers; or
[(3) such security is one the issuance of which was
authorized by the company prior to January 1, 1935, and
which the Commission by rules and regulations or order
authorizes as necessary or appropriate in the public
interest or for the protection of investors or
consumers.
[(d) If the requirements of subsections (c) and (g) are
satisfied, the Commission shall permit a declaration regarding
the issue or sale of a security to become effective unless the
Commission finds that
[(1) the security is not reasonably adapted to the
security structure of the declarant and other companies
in the same holding-company system;
[(2) the security is not reasonably adapted to the
earning power of the declarant;
[(3) financing by the issue and sale of the
particular security is not necessary or appropriate to
the economical and efficient operation of a business in
which the applicant lawfully is engaged or has an
interest;
[(4) the fees, commissions, or other remuneration, to
whomsoever paid, directly or indirectly, in connection
with the issue, sale or distribution of the security
are not reasonable;
[(5) in the case of a security that is a guaranty of,
or assumption of liability on, a security of another
company, the circumstances are such as to constitute
the making of such guaranty or the assumption of such
liability an improper risk for he declarant; or
[(6) the terms and conditions of the issue or sale of
the security are detrimental to the public interest or
the interest of investors or consumers.
[(e) If the requirements of subsection (g) are satisfied,
the Commission shall permit a declaration to become effective
regarding the exercise of a privilege or right to alter the
priorities, preferences, voting power, or other rights of the
holders of an outstanding security unless the Commission finds
that such exercise of such privilege or right will result in an
unfair or inequitable distribution of voting power among
holders of the securities of the declarant or is otherwise
detrimental to the public interest or the interest of investors
or consumers.
[(f) Any order permitting a declaration to become effective
may contain such terms and conditions as the Commission finds
necessary to assure compliance with the conditions specified in
this section.
[(g) If a State commission or State securities commission,
having jurisdiction over any of the acts enumerated in
subsection (a) of section 6, shall inform the Commission, upon
request by the Commission for an opinion or otherwise, that
State laws applicable to the act in question have not been
complied with, the Commission shall not permit a declaration
regarding the act in question to become effective until and
unless the Commission is satisfied that such compliance has
been effected.
ACQUIRING INTEREST IN ELECTRIC AND GAS UTILITY COMPANIES SERVING SAME
TERRITORY
[Sec. 8. Whenever a State law prohibits, or requires
approval or authorization of, the ownership or operation by a
single company of the utility assets of an electric utility
company and a gas utility company serving substantially the
same territory, it shall be unlawful for a registered holding
company, or any subsidiary company thereof, by use of the mails
or any means or instruntality of interstate commerce, or
otherwise--
[(1) to take any step, without the express approval
of the State commission of such State, which results in
its having a direct or indirect interest in an electric
utility company and a gas utility company serving
substantially the same territory; or
[(2) if it already has any such interest, to acquire,
without the express approval of the State commission,
any direct or indirect interest in an electric utility
company or gas utility company serving substantially
the same territory as that served by such companies in
which it already has an interest.
(ACQUISITION OF SECURITIES AND UTILITY ASSETS AND OTHER INTERESTS
(Sec. (a) Unless the acquisition has been approved by the
Commission under section 10, it shall be unlawful--
[(1) for any registered holding company or any
subsidiary company thereof, by use of the mails or any
means or instrumentality of interstate commerce, or
otherwise, to acquire, directly or indirectly, any
securities or utility assets or any other interest in
any business;
[(2) for any person, by use of the mails or any means
or instrumentality of interstate commerce, to acquire,
directly or indirectly, any security of any public-
utility company, if such person is an affiliate, under
clause (A) of paragraph (11) of subsection (a) of
section 2, of such company and of any other public
utility or holding company, or will by virtue of such
acquisition become such an affiliate.
[(b) Subsection (a) shall not apply to--
[(1) the acquisition by a public-utility company of
utility assets the acquisition of which has been
expressly authorized by a State commission; or
[(2) the acquisition by a public-utility company of
securities of a subsidiary public-utility company
thereof, provided that both such public-utility
companies and all other public-utility companies in the
same holding-company system are organized in the same
State, that the business of each such company in such
system is substantially confined to such State, and
that the acquisition of such securities has been
expressly authorized by the State commission of such
State.
[(c) Subsection (a) shall not apply to the acquisition by a
registered holding company, or a subsidiary company thereof,
of--
[(1) securities of, or securities the principal or
interest of which is guaranteed by, the United States,
a State, or political subdivision of a State, or any
agency, authority, or instrumentality of any one or
more of the foregoing, or any corporation which is
wholly owned, directly or indirectly, by any one or
more of the foregoing;
[(2) such other readily marketable securities, within
the limitation of such amounts, as the Commission may
by rules and regulations prescribe as appropriate for
investment of current funds and as not detrimental to
the public interest or the interest of investors or
consumers; or
[(3) such commercial paper and other securities,
within such limitations, as the Commission may by rules
and regulations or order prescribe as appropriate in
the ordinary course of business of a registered holding
company or subsidiary company thereof and as not
detrimental to the public interest or the interest of
investors or consumers.
APPROVAL OF ACQUISITION OF SECURITIES AND UTILITY ASSETS AND OTHER
INTERESTS
[Sec. 10. (a) A person may apply for approval of the
acquisition of securities or utility assets, or of any
other interest in any business, by filing an
application in such form as the Commission may by rules
and regulations prescribe as necessary or appropriate
in the public interest or for the protection of
investors and consumers. Such application shall
include--
[(1) in the case of the acquisition of securities,
such information and copies of such documents as the
Commission may by rules and regulations or order
prescribe as necessary or appropriate in the public
interest or for the protection of investors or
consumers in respect of--
[(A) the security to be acquired, the
consideration to be paid therefor, and
compliance with such State laws as may apply in
respect of the issue, sale, or acquisition
thereof,
[(B) the outstanding securities of the
company whose security is to be acquired, the
terms, position, rights, and privileges of each
class and the options in respect of any such
securities,
[(C) the names of all security holders of
record (or otherwise known to the applicant)
owning, holding, or controlling 1 per centum or
more of any class of security of such company,
the officers and directors of such company, and
their remuneration, security holdings in,
material contracts with, and borrowings from
such company and the offices or directorships
held, and securities owned, held, or
controlled, by them in other companies,
[(D) the bonus, profit-sharing and voting-
trust agreement, underwriting arrangements,
trust indentures, mortgages, and similar
documents, by whatever name known, of or
relating to such company,
[(E) the material contracts, not made in the
ordinary course of business, and the service,
sales, and construction contracts of such
company,
[(F) the securities owned, held, or
controlled, directly or indirectly, by such
company,
[(G) balance sheets and profit and loss
statements of such company for not more than
the five preceding fiscal years, certified, if
required by the rules and regulations of the
Commission by an independent public accountant,
[(H) any further information regarding such
company and any associate company or affiliate
thereof, or its relation with the applicant
company, and
[(I) if the applicant be not a registered
holding company,any of the information and
documents which may be required under section 5
from a registered holding company;
[(2) in the case of the acquisition of utility
assets, such information concerning such assets, the
value thereof and consideration to be paid therefor,
the owner or owners thereof and their relation to,
agreements with, and interest in the securities of, the
applicant or any associate company thereof as the
Commission may by rules and regulations or order
prescribe as necessary or appropriate in the public
interest or for the protection of investors or
consumers; and
[(3) in the case of the acquisition of any other
interest in an business, such information concerning
such business and the interest to be acquired, and the
consideration to be paid, as the Commission may by
rules and regulations or order prescribe as necessary
or appropriate in the public interest or for the
protection of investors or consumers.
[(b) If the requirements of subsection (f) are satisfied,
the Commission shall approve the acquisition unless the
Commission finds that--
[(1) such acquisition will tend towards interlocking
relations or the concentration of control of public-
utility companies, of a kind or to an extent
detrimental to the public interest or the interest of
investors, or consumers;
[(2) in case of the acquisition of securities or
utility assets, the consideration, including all fees,
commissions, and other remuneration, to whomsoever
paid, to be given, directly or indirectly, in
connection with such acquisition is not reasonable or
does not bear a fair relation to the sums invested in
or the earning capacity of the utility assets to be
acquired or the utility assets underlying the
securities to be acquired; or
[(3) such acquisition will unduly complicate the
capital structure of the holding-company system of the
applicant or will be detrimental to the public interest
or the interest of investors or consumers or the proper
functioning of such holding-company system.
The Commission may condition its approval of the acquisition of
securities of another company upon such a fair offer to
purchase such of the other securities of the company whose
security is to be acquired as the Commission may find necessary
or appropriate in the public interest or for the protection of
investors or consumers.
[(c) Notwithstanding the provisions of subsection (b), the
Commission shall not approve--
[(1) an acquisition of securities or utility assets,
or of any other interest, which is unlawful under the
provisions of section 8 or is detrimental to the
carrying out of the provisions of section 11; or
[(2) the acquisition of securities or utility assets
of a public utility or holding company unless the
Commission finds that such acquisition will serve the
public interest by tending towards the economical and
efficient development of an integrated public-utility
system. This paragraph shall not apply to the
acquisition of securities or utility assets of a
public-utility company operating exclusively outside
the United States.
[(d) Within such reasonable time after the filing of an
application under this section as the Commission shall fix by
rules and regulations or order, the Commission shall enter an
order either granting or, after notice and opportunity for
hearing, denying approval of the acquisition unless the
applicant shall withdraw its application. Amendments to an
application may be made upon such terms and conditions as the
Commission may prescribe.
[(e) The Commission, in any order approving the acquisition
of securities or utility assets, may prescribe such terms and
conditions in respect of such acquisition, including the price
to be paid for such securities or utility assets, as the
Commission may find necessary or appropriate in the public
interest or for the protection of investors or consumers.
[((f) The Commission shall not approve any acquisition as
to which an application is made under this section unless it
appears to the satisfaction of the Commission that such State
laws as may apply in respect of such acquisition have been
complied with, except where the Commission finds that
compliance with such State laws would be detrimental to the
carrying out of the provisions of section 11.
S[IMPLIFICATION OF HOLDING-COMPANY SYSTEMS
[(Sec. 11. (a) It shall be the duty of the Commission to
examine the corporate structure of every registered holding
company and subsidiary company thereof, the relationships among
the companies in the holding-company system of every such
company and the character of the interests thereof and the
properties owned or controlled thereby to determine the extent
to which the corporate structure of such holding-company system
and the companies therein may be simplified, unnecessary
complexities therein eliminated, voting power fairly and
equitably distributed among the holders of securities thereof,
and the properties and business thereof confined to those
necessary or appropriate to the operations of an integrated
public-utility system.
[(b) It shall be the duty of the Commission, as soon as
practical after January 1, 1938:
[(1) \1\ To require by order, after notice and
opportunity for hearing, that each registered holding
company, and each subsidiary company thereof, shall
take such action as the Commission shall find necessary
to limit the operations of the holding-company system
of which such company is a part to a single integrated
public-utility system, and to such other businesses as
are reasonably incidental, or economically necessary or
appropriate to the operations of such integrated
public-utility system: Provided, however, That the
Commission shall permit a registered holding company to
continue to control one or more additional integrated
public-utility systems, if, after notice and
opportunity for hearing, it finds that--
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\1\ Public Law 99-186 (99 Stat. 1180), entitled ``An Act to clarify
the application of the Public Utility Holding Company Act of 1935 to
encourage cogeneration activities by gas utility holding company
systems,'' as amended by Public Law 99-553 (100 Stat. 3087) and Public
Law 102-486 (106 Stat. 2911), provides as follows:
``Section 1. Notwithstanding section 11(b)(1) of the Public Utility
Holding Company Act of 1935, a company registered under said Act, or a
subsidiary company of such registered company, may acquire or retain,
in any geographic area, an interest in any qualifying cogeneration
facilities and qualifying small power production facilities as defined
pursuant to the Public Utility Regulatory Policies Act of 1978, and
shall qualify for any exemption relating to the Public Utility Holding
Company Act of 1935 prescribed pursuant to section 210 of the Public
Utility Regulatory Policies Act of 1978.
``Sec. 2. Nothing herein shall be construed to affect the
applicability of section 3(17)(C) or section 3(18)(B) of the Federal
Power Act or any provision of the Public Utility Holding Company Act of
1935, other than section 11(b)(1), to the acquisition or retention of
any such interest by any such company.''
Public Law 101-572 (104 Stat. 2810), entitled ``Gas Related
Activities Act of 1990'' provides as follows:
SEC. 2. RULE OF CONSTRUCTION.
(A) Treatment of Certain Acquisitions Involving Gas Companies or
Gas Transportation or Storage.--The acquisition by a registered company
or any interest in any natural gas company or of any interest in any
company organized to participate in activities involving the
transportation or storage of natural gas, shall be deemed, for the
purposes of section 11(b)(1) of the Act, to be reasonably incidental or
economically necessary or appropriate to the operation of such gas
utility companies.
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(b) Treatment of Acquisitions Related to Supply of Natural Gas;
Commission Determination of Customer Interest.--The acquisition by a
registered company of any interest in any company organized to
participate in activities (other than those of a natural gas company or
involving the transportation or storage of natural gas) related to the
supply of natural gas, including exploration, development, production,
marketing, manufacture, or other similar activities related to the
supply of natural or manufactured gas, shall be deemed, for purposes of
section 11(b)(1) of the Act, to be reasonably incidental or
economically necessary or appropriate to the operation of such gas
utility companies, if--
(1) the Commission determines, after notice and opportunity for
hearing in which the company proposing the acquisition shall have the
burden of proving, that such acquisition is in the interest of
consumers of each gas utility company of such registered company or
consumers of any other subsidiary of such registered company; and
(2) The Commission determines that such acquisition will not be
detrimental to the interest of consumers of any such gas utility
company or other subsidiary or to the proper functioning of the
registered holding company system.
(c) Case-By-Case Decisions Required.--Each such determination under
this section shall be made on a case-by-case basis, and not be based on
any present criteria.
(d) Savings Provision.--Nothing herein shall be construed to affect
the applicability of any other provisions of the Act to the acquisition
or retention of any such interest by any such company.
(e) Defintions.--For purposes of this section--
(1) the term ``registered company'' means a company registered
under the Act solely by reason of direct or indirect ownership of
voting securities of one or more gas utility companies, or any
subsidiary company of such registered company;
(2) the term ``natural gas company'' has the meaning given such
term under the Natural Gas Act (15 U.S.C. 717(a) et seq.); and
(3) the term ``the Act'' means the Public Utility Holding Company
Act of 1935.
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[(A) Each of such additional systems cannot be
operated as an independent system without the
loss of substantial economies which can be
secured by the retention of control by such
holding company of such system;
[(B) All of such additional systems are located
in one State, or in adjoining States, or in a
contiguous foreign country; and
[(C) The continued combination of such systems
under the control of such holding company is
not so large (considering the state of the art
and the area of region affected) as to impair
the advantages of localized management,
efficient operation, or the effectiveness of
regulation.
The Commission may permit as reasonably incidental, or
economically necessary or appropriate to the operations
of one or more integrated public-utility systems the
retention of an interest in any business (other than
the business of a public-utility company as such) which
the Commission shall find necessary or appropriate in
the public interest or for the protection of investors
or consumers and not detrimental to the proper
functioning of such system or systems.
[(2) To require by order, after notice and
opportunity for hearing, that each registered holding
company, and each subsidiary company thereof, shall
take such steps as the Commission shall find necessary
to ensure that the corporate structure or continued
existence of any company in the holding-company system
does not unduly or unnecessarily complicate the
structure, or unfairly or inequitably distribute voting
power among security holders, of such holding-company
system. In carrying out the provisions of this
paragraph the Commission shall require each registered
holding company (and any company in the same holding-
company system with such holding company) to take such
action as the Commission shall find necessary in order
that such holding company shall cease to be a holding
company with respect to each of its subsidiary
companies which itself has a subsidiary company which
is a holding company. Except for the purpose of fairly
and equitably distributing voting power among the
security holders of such company, nothing in this
paragraph shall authorize the Commission to require any
change in the corporate structure or existence of any
company which is not a holding company, or of any
company whose principal business is that of a public-
utility company.
The Commission may by order revoke or modify any order
previously made under this subsection, if, after notice and
opportunity for hearing, it finds that the conditions upon
which the order was predicated do not exist. Any order made
under this subsection shall be subject to judicial review as
provided in section 24.
[(c) Any order under subsection (b) shall be complied with
within one year from the date of such order; but the Commission
shall, upon a showing (made before or after the entry of such
order) that the applicant has been or will be unable in the
exercise of due diligence to comply with such order within such
time, extend such time for an additional period not exceeding
one year if it finds such extension necessary or appropriate in
the public interest or for the protection of investors or
consumers.
[(d) The Commission may apply to a court, in accordance
with the provisions of subsection (f) of section 18, to enforce
compliance with any order issued under subsection (b). In any
such proceeding, the court as a court of equity may, to such
extent as it deems necessary for purposes of enforcement of
such order, take exclusive jurisdiction and possession of the
company or companies and the assets thereof, wherever located;
and the court shall have jurisdiction, in any such proceeding,
to appoint a trustee, and the court may constitute and appoint
the Commission as a sole trustee, to hold or administer under
the direction of the court the assets so possessed. In any
proceeding for the enforcement of an order of the Commission
issued under subsection (b), the trustee with the approval of
the court shall have power to dispose of any or all of such
assets and, subject to such terms and conditions as the court
may prescribe, may make such disposition in accordance with a
fair and equitable reorganization plan which shall have been
approved by the Commission after opportunity for hearing. Such
reorganization plan may be proposed in the first instance by
the Commission, or, subject to such rules and regulations as
the Commission may deem necessary or appropriate in the public
interest or for the protection of investors, by any person
having a bona fide interest (as defined by the rules and
regulations of the Commission) in the reorganization.
[(e) In accordance with such rules and regulations or order
as the Commission may deem necessary or appropriate in the
public interest or for the protection of investors or
consumers, any registered holding company or any subsidiary
company of a registered holding company may, at any time after
January 1, 1936, submit a plan to the Commission for the
divestment of control, securities, or other assets, or for
other action by such company or any subsidiary company thereof
for the purpose of enabling such company or any subsidiary
company thereof to comply with the provisions of subsection
(b). If, after notice and opportunity for hearing, the
Commission shall find such plan, as submitted or as modified,
necessary to effectuate the provisions of subsection (b) and
fair and equitable to the persons affected by such plan, the
Commission shall make an order approving such plan; and the
Commission, at the request of the company, may apply to a
court, in accordance with the provisions of subsection (f) of
section 18, to enforce and carry out the terms and provisions
of such plan. If, upon any such application, the court, after
notice and opportunity for hearing, shall approve such plan as
fair and equitable and as appropriate to effectuate the
provisions of section 11, the court as a court of equity may,
to such extent as it deems necessary for the purpose of
carrying out the terms and provisions of such plan, take
exclusive jurisdiction and possession of the company or
companies and the assets thereof, wherever located; and the
court shall have jurisdiction to appoint a trustee, and the
court may constitute and appoint the Commission as sole
trustee, to hold or administer, under the direction of the
court and in accordance with the plan theretofore approved, by
the court and the Commission, the assets so possessed.
[(f) In any proceeding in a court of the United States,
whether under this section or otherwise, in which a receiver or
trustee is appointed for any registered holding company, or any
subsidiary company thereof, the court may constitute and
appoint the Commission as sole trustee or receiver, subject to
the directions and orders of the court, whether or not a
trustee or receiver shall theretofore have been appointed, and
in any such proceeding the court shall not appoint any person
other than the Commission trustee or receiver without notifying
the Commission and giving it an opportunity to be heard before
making any such appointment. In no proceeding under this
section or otherwise shall the Commission be appointed as
trustee or receiver without its express consent. In any such
proceeding a reorganization plan for a registered holding
company or any subsidiary company thereof shall not become
effective unless such plan shall have been approved by the
Commission after opportunity for hearing prior to its
submission to the court. Notwithstanding any other provision of
law, any such reorganization plan may be proposed in the first
instance by the Commission or, subject to such ru1es and
regulations as the Commission may deem necessary or appropriate
in the public interest or for the protection of investors, by
any person having a bona fide interest (as defined by the rules
and regulations of the Commission) in the reorganization. The
Commission may, by such rules and regulations or order as it
may deem necessary or appropriate in the public interest or for
the protection of investors or consumers, require that any or
all fees, expenses, and remuneration, to whomsoever paid, in
connection with any reorganization, dissolution, liquidation,
bankruptcy, or receivership of a registered holding company or
subsidiary company thereof, in any such proceeding, shall be
subject to approval by the Commission.
[(g) It shall be unlawful for any person to solicit or
permit the use of his or its name to solicit, by use of the
mails or any means or instrumentality of interstate commerce,
or otherwise, any proxy, consent, authorization, power of
attorney, deposit, or dissent in respect of any reorganization
plan of a registered holding company or any subsidiary company
thereof under this section, or otherwise, or in respect of any
plan under this section for the divestment of control,
securities, or other assets, or for the dissolution of any
registered holding company or any subsidiary company thereof,
unless--
[(1) the plan has been proposed by the Commission, or
the plan and such information regarding' it and its
sponsors as the Commission may deem necessary or
appropriate in the public interest or for the
protection of investors or consumers has been submitted
to the Commission by a person having a bona fide
interest (as defined by the rules and regulations of
the Commission) in such reorganization;
[(2) each such solicitation is accompanied or preceded
by a copy of a report on the plan which shall be made
by the Commission after an opportunity for a hearing on
the plan and other plans submitted to it, or by an
abstract of such report made or approved by the
Commission; and
[(3) each such solicitation is made not in
contravention of such rules and regulations or orders
as the Commission may deem necessary or appropriate in
the public interest or for the protection of investors
or consumers.
Nothing in this subsection or the rules and regulations
thereunder shall prevent any person from appearing before the
Commission or any court through an attorney or proxy.
INTERCOMPANY LOANS; DIVIDENDS; SECURITY TRANSACTIONS; SALE OF UTILITY
ASSETS; PROXIES; OTHER TRANSACTIONS
[Sec. 12. (a) It shall be unlawful for any registered
holding company, by use of the mails or any means or
instrumentality of interstate commerce, or otherwise, directly
or indirectly, to borrow, or to receive any extension of credit
or indemnity, from any public-utility company in the same
holding-company system or from any subsidiary company of such
holding company, but it shall not be unlawful under this
subsection to renew, or extend the time of, any loan, credit,
or indemnity outstanding on the date of the enactment of this
title.
[(b) It shall be unlawful for any registered holding
company or subsidiary company thereof, by use of the mails or
any means or instrumentality of interstate commerce, or
otherwise, directly or indirectly, to lend or in any manner
extend its credit to or indemnify any company in the same
holding-company system in contravention of such rules and
regulations or orders as the Commission deems necessary or
appropriate in the public interest or for the protection of
investors or consumers or to prevent the circumvention of the
provisions of this title or the rules, regulations, or orders
thereunder).
[(c) It shall be unlawful for any registered holding
company or any subsidiary company thereof, by use of the mails
or any means or instrumentality of interstate commerce, or
otherwise, to declare or pay any dividend on any security of
such company or to acquire, retire, or redeem any security of
such company, in contravention of such rules and regulations or
orders as the Commission deems necessary or appropriate to
protect the financial integrity of companies in holding-company
systems, to safeguard the working capital of public-utility
companies, to prevent the payment of dividends out of capital
or unearned surplus, or to prevent the circumvention of the
provisions of this title or the rules, regulations, or orders
thereunder.
[(d) It shall be unlawful for any registered holding
company, by use of the mails or any means or instrumentality of
interstate commerce, or otherwise, to sell any security which
it owns of any public-utility company, or any utility assets,
in contravention of such rules and regulations or orders
regarding the consideration to be received for such sale,
maintenance of competitive conditions, fees and commissions,
accounts, disclosure of interest, and similar matters as the
Commission deems necessary or appropriate in the public
interest or for the protection of investors or consumers or to
prevent the circumvention of the provisions of this title or
the rules, regulations, or orders thereunder.
[(e) It shall be unlawful for any person to solicit or to
permit the use of his or its name to solicit, by use of the
mails or any means or instrumentality of interstate commerce,
or otherwise, any proxy, power of attorney, consent, or
authorization regarding any security of a registered holding
company or a subsidiary company thereof in contravention of
such rules and regulations or orders as the Commission deems
necessary or appropriate in the public interest or for the
protection of investors or consumers or to prevent the
circumvention of the provisions of this title or the rules,
regulations, or orders thereunder.
[(f) It shall be unlawful for any registered holding
company or subsidiary company thereof, by use of the mails or
any means or instrumentality of interstate commerce, or
otherwise, to negotiate, enter into, or take any step in the
performance of any transaction not otherwise unlawful under
this title, with any company in the same holding-company system
or with any affiliate of a company in such holding-company
system in contravention of such rules and regulations or orders
regarding reports, accounts, costs, maintenance of competitive
conditions, a disclosure of interest, duration of contracts,
and similar matters as the Commission deems necessary or
appropriate in the public interest or for the protection of
investors or consumers or to prevent the circumvention of the
provisions of this title or the rules and regulations
thereunder.
[(g) It shall be unlawful for any affiliate of any public-
utility company, by use of the mails or any means or
instrumentality of interstate commerce, or for any affiliate of
any public-utility company engaged in interstate commerce, or
of any registered holding company or any subsidiary company
thereof, by use of the mails or any means or instrumentality of
interstate commerce, or otherwise, to negotiate, enter into, or
take any step in the performance of any transaction not
otherwise unlawful under this title, with any such company of
which it is an affiliate, in contravention of such rules and
regulations or orders regarding reports, accounts, costs,
maintenance of competitive conditions, disclosure of interest,
duration of contracts, and similar matters as the Commission
deems necessary or appropriate to prevent the circumvention of
the provisions of this title.
[(h) It shall be unlawful for any registered holding
company, or any subsidiary company thereof, by use of the mails
or any means or instrumentality of interstate commerce, or
otherwise, directly or indirectly--
[(1) to make any contribution whatsoever in
connection with the candidacy, nomination, election or
appointment of any person for or to any office or
position in the Government of the United States, a
State, or any political subdivision of a State, or any
agency, authority, or instrumentality of any one or
more of the foregoing; or
[(2) to make any contribution to or in support of any
political party or any committee or agency thereof.
The term ``contribution'' as used in this subsection includes
any gift, subscription, loan, advance, or deposit of money or
anything of value, and includes any contract, agreement, or
promise, whether or not legally enforceable, to make a
contribution.
[(i) It shall be unlawful for any person employed or
retained by any registered holding company, or any subsidiary
company thereof, to present, advocate, or oppose any matter
affecting any registered holding company or any subsidiary
company thereof, before the Congress or any Member or committee
thereof, or before the Commission or Federal Power Commission,
or any member, officer, or employee of either such Commission,
unless such person shall file with the Commission in such form
and detail and at such time as the Commission shall by rules
and regulations or order prescribe as necessary or appropriate
in the public interest or for the protection of investors or
consumers, a statement of the subject matter in respect of
which such person is retained or employed, the nature and
character of such retainer or employment, and the amount of
compensation received or to be received by such person,
directly or indirectly, in connection therewith. It shall be
the duty of every such person so employed or retained to file
with the Commission within ten days after the close of each
calendar month during such retainer or employment, in such form
and detail as the Commission shall by rules and regulations or
order prescribe as necessary or appropriate in the public
interest or for the protection of investors or consumers, a
statement of the expenses incurred and the compensation
received by such person during such month in connection with
such retainer or employment.
[SERVICE, SALES, AND CONSTRUCTION CONTRACTS
[Sec. 13. (a) After April 1, 1936, it shall be unlawful for
any registered holding company, by use of the mails or any
means or instrumentality of interstate commerce, or otherwise,
to enter into or take any step in the performance of any
service, sales, or construction contract by which such company
undertakes to perform services or construction work for, or
sell goods to, any associate company thereof which is a public-
utility or mutual service company. This provision shall not
apply to such transactions, involving special or unusual
circumstances or not in the ordinary course of business, as the
Commission by rules and regulations or order may conditionally
or unconditionally exempt as being necessary or appropriate in
the public interest or for the protection of investors or
consumers.
[(b) After April 1, 1936, it shall be unlawful for any
subsidiary company of any registered holding company or for any
mutual service company, by use of the mails or any means or
instrumentality of interstate commerce, or otherwise, to enter
into or take any step in the performance of any service, sales,
or construction contract by which such company undertakes to
perform services or construction work for, or sell goods to,
any associate company thereof except in accordance with such
terms and conditions and subject to such limitations and
prohibitions as the Commission by rules and regulations or
order shall prescribe as necessary or appropriate in the public
interest or for the protection of investors or consumers and to
insure that such contracts are performed economically and
efficiently for the benefit of such associate companies at
cost, fairly and equitably allocated among such companies. This
provision shall not apply to such transactions as the
Commission by rules and regulations or order may conditionally
or unconditionally exempt as being necessary or appropriate in
the public interest or for the protection of investors or
consumers, if such transactions (1) are with any associate
company which does not derive, directly or indirectly, any
material part of its income from sources within the United
States and which is not a public-utility company operating
within the United States, or (2) involve special or unusual
circumstances or are not in the ordinary course of business.
[(c) The rules and regulations and orders of the Commission
under this section may prescribe, among other things, such
terms and conditions regarding the determination of costs and
the allocation thereof among specified classes of companies and
for specified classes of service, sales, and construction
contracts, the duration of such contracts, the making and
keeping of accounts and cost-accounting procedures, the filing
of annual and other periodic and special reports, the
maintenance of competitive conditions, the disclosure of
interests, and similar matters, as the Commission deems
necessary or appropriate in the public interest or for the
protection of investors or consumers.
[(d) The rules and regulations and orders of the Commission
under this section shall prescribe, among other things, such
terms and conditions regarding the manner in which application
may be made for approval as a mutual service company and the
granting and continuance of such approval, the nature and
enforcement of agreements for the sharing of expenses and
distributing of revenues among member companies, and matters
relating to such agreements, the nature and types of businesses
and transactions in which mutual service companies may engage,
and the manner of engaging therein, and the relations and
transactions with member companies and affiliates, as the
Commission deems necessary or appropriate in the public
interest or for the protection of investors or consumers. The
Commission shall not approve, or continue the approval of, any
company as a mutual service company unless the Commission finds
such company is so organized as to ownership, costs, revenues,
and the sharing thereof as reasonably to insure the efficient
and economical performance of service, sales, or construction
contracts by such company for member companies, at cost fairly
and equitably allocated among such member companies, at a
reasonable saving to member companies over the cost to such
companies of comparable contracts performed by independent
persons. The Commission, upon its own motion or at the request
of a member company or a State commission, may, after notice
and opportunity for hearing, by order require a reallocation or
reapportionment of costs among member companies of a mutual
service company if it finds the existing allocation inequitable
and may require the elimination of a service or services to a
member company which does not bear its fair proportion of costs
or which, by reason of its size or other circumstances, does
not require such service or services. The Commission, after
notice and opportunity for hearing, by order shall revoke,
suspend, or modify the approval given any mutual service
company if it finds that such company has persistently violated
any provision of this section or any rule, regulation, or order
thereunder.
[(e) It shall be unlawful for any affiliate of any public-
utility company engaged in interstate commerce, or of any
registered holding company or subsidiary company thereof, by
use of the mails or any means or instrumentality of interstate
commerce, or otherwise, to enter into or take any step in the
performance of any service, sales, or construction contract, by
which such affiliate undertakes to perform services or
construction work for, or sell goods to, any such company of
which it is an affiliate, in contravention of such rules and
regulations or orders regarding reports, accounts, costs,
maintenance of competitive conditions, disclosure of interest,
duration of contracts, and similar matters, as the Commission
deems necessary or appropriate to prevent the circumvention of
the provisions of this title or the rules, regulations, or
orders thereunder.
[(f) It shall be unlawful for any person whose principal
business is the performance of service, sales, or construction
contracts for public-utility or holding companies, by use of
the mails or any means or instrumentality of interstate
commerce, to enter into or take any step in the performance of
any service, sales, or construction contract with any public-
utility company, or for any such person, by use of the mails or
any means or instrumentality of interstate commerce, or
otherwise, to enter into or take any step in the performance of
any service, sales, or construction contract with any public-
utility company engaged in interstate commerce, or with any
registered holding company or any subsidiary company of a
registered holding company, in contravention of such rules and
regulations or order regarding reports, accounts, costs,
maintenance of competitive conditions, disclosure of interest,
duration of contract, and similar matters as the Commission
deems necessary or appropriate in the public interest or for
the protection of investors or consumers or to prevent the
circumvention of the provisions of this title or the rules,
regulations, or orders thereunder.
[(g) The Commission, in order to obtain information to
serve as a basis for recommending further legislation, shall
from time to time conduct investigations regarding the making,
performance, and costs of service, sales, and construction
contracts with holding companies and subsidiary companies
thereof and with public-utility companies, the economies
resulting therefrom, and the desirability thereof. The
Commission shall report to Congress, from time to time, the
results of such investigations, together with such
recommendations for legislation as it deems advisable. On the
basis of such investigations the Commission shall classify the
different types of such contracts and the work done thereunder,
and shall make recommendations from time to time regarding the
standards and scope of such contracts in relation to public-
utility companies of different kinds and sizes and the costs
incurred thereunder and economies resulting therefrom. Such
recommendations shall be made available to State commissions,
public-utility companies, and to the public in such form and at
such reasonable charge as the Commission may prescribe.
[PERIODIC AND OTHER REPORTS
[Sec. 14. Every registered holding company and every mutual
service company shall file with the Commission such annual,
quarterly, and other periodic and special reports, the answers
to such specific questions and the minutes of such directors',
stockholders', and other meetings, as the Commission may by
rules and regulations or order prescribe as necessary or
appropriate in the public interest or for the protection of
investors or consumers. Such reports, if required by the rules
and regulations of the Commission, shall be certified by an
independent public accountant, and shall be made and filed at
such time and in such form and detail as the Commission shall
prescribe. The Commission may require that there be included in
reports filed with it such information and documents as it
finds necessary or appropriate to keep reasonably current the
information filed under section 5 or 13, and such further
information concerning the financial condition, security
structure, security holdings, assets, and cost thereof,
wherever determinable, and affiliation of the reporting company
and the associate companies, member companies, and affiliates
thereof as the Commission deems necessary or appropriate in the
public interest or for the protection of investors or
consumers.
[ACCOUNTS AND RECORDS
[Sec. 15. (a) Every registered holding company and every
subsidiary company thereof shall make, keep, and preserve for
such periods, such accounts, cost-accounting procedures,
correspondence, memoranda, papers, books, and other records as
the Commission deems necessary or appropriate in the public
interest or for the protection of investors or consumers or for
the enforcement of the provisions of this title or the rules,
regulations, or orders thereunder.
[(b) Every affiliate of a registered holding company or of
any subsidiary company thereof, or of any public-utility
company engaged in interstate commerce or not so engaged, shall
make, keep, and preserve for such periods, such accounts, cost-
accounting procedures, correspondence, memoranda, papers,
books, and other records relating to any transaction of such
affiliate which is subject to any provision of this title or
any rule, regulation, or order thereunder, as the Commission
deems necessary or appropriate in the public interest or for
the protection of investors or consumers or for the enforcement
of the provisions of this title or the rules, regulations, or
orders thereunder.
[(c) Every mutual service company, and ever affiliate of a
mutual service company as to any transaction of such affiliate
which is subject to any provision of this title or any rule,
regulation, or order thereunder, shall make, keep, and preserve
for such periods, such accounts, cost-accounting procedures,
correspondence, memoranda, papers, books, and other records, as
the Commission deems necessary or appropriate in the public
interest or for the protection of investors or consumers or for
the enforcement of the provisions of this title or the rules,
regulations, or orders thereunder.
[(d) Every person whose principal business is the
performance of service, sales, or construction contracts for
public-utility or holding companies shall make, keep, and
preserve for such periods, such accounts, cost-accounting
procedures, correspondence, memoranda, papers, books, and other
records, relating to any transaction by such person which is
subject to any person which is subject to any provision of this
title or any rule, regulation, or order thereunder, as the
Commission deems necessary or appropriate in the public
interest or for the protection of investors or consumers or for
the enforcement of the provisions of this title or the rules
and regulations thereunder.
[(e) After the Commission has prescribed the form and
manner of making and keeping accounts, cost-accounting
procedures, correspondence, memoranda, papers, books, and other
records to be kept by any person hereunder, it shall be
unlawful for any such person to keep any accounts, cost-
accounting procedures, correspondence, memoranda, papers,
books, or other records other than those prescribed or such as
may be approved by the Commission, or to keep his or its
accounts, cost-accounting procedures, correspondence,
memoranda, papers, books, or other records in any manner other
than that prescribed or approved by the Commission.
[(f) All accounts, cost-accounting procedures,
correspondence, memoranda, papers, books, and other records
kept or required to be kept by persons subject to any provision
of this section shall be subject at any time and from time to
time to such reasonable periodic, special, and other
examinations by the Commission, or any member or representative
thereof, as the Commission may prescribe. The Commission, after
notice and opportunity for hearing, may prescribe the account
or accounts in which particular outlays, receipts, and other
transactions shall be entered, charged ,or credited and the
manner in which such entry, charge, or credit shall be made,
and may require an entry to be modified or supplemented so as
properly to show the cost of any asset or any other cost.
[(g) It shall be the duty of every registered holding
company and of every subsidiary company thereof and of every
affiliate of a company insofar as such affiliate is subject to
any provision of this title or any rule, regulation, or order
thereunder, to submit the accounts, cost-accounting procedures,
correspondence, memoranda, papers, books, and other records of
such holding company, subsidiary company, or affiliate, as the
case may be, to such examinations, in person or by duly
appointed attorney, by the holder of any security of such
holding company, subsidiary company, or affiliate, as the case
may be, as the Commission deems necessary or appropriate in the
public interest or for the protection of investors or
consumers.
[(h) It shall be the duty of every mutual service company,
and of affiliate of a mutual service company, and of every
person whose principal business is the performance of service,
sales, or construction contracts for public-utility or holding
companies, insofar as such affiliate or such person is subject
to any provision of this title or any rule, regulation, or
order thereunder, to submit the accounts, cost-accounting
procedures, correspondence, memoranda, papers, books, and other
records of such mutual service company, affiliate, or person to
such examinations, in person or by duly appointed attorney, by
member companies of such mutual service company and by public-
utility or holding companies for which such person performs
service, sales, or construction contracts as the Commission
deems necessary or appropriate in the public interest or for
the protection of investors or consumers.
[(i) The Commission, by such rules and regulations as it
deems necessary or appropriate in the public interest or for
the protection of investors or consumers may prescribe for
persons subject to the provisions of subsection (a), (b), (c),
or (d) of this section uniform methods for keeping accounts
required under any provision of this section, including, among
other things, the manner in which the cost of all assets,
whenever determinable, shall be shown, the methods of
classifying and segregating accounts, and the manner in which
cost-accounting procedures shall be maintained.
[LIABILITY FOR MISLEADING STATEMENTS
[Sec. 16. (a) Any person who shall make or cause to be made
any statement in any application, report, registration
statement, or document filed pursuant to any provision of this
title, or any rule, regulation, or order thereunder, which
statement was at the time and in the light of the circumstances
under which it was made false or misleading with respect to any
material fact shall be liable in the same manner, to the same
extent, and subject to the same limitations as provided in
section 18 of the Securities Exchange Act of 1934 with respect
to an application, report, or document filed pursuant to the
Securities Exchange Act of 1934.
[(b) The rights and remedies provided by this title, except
as provided in section 17(b), shall be in addition to any and
all other rights and remedies that may exist under the
Securities Act of 1933, as amended, or the Securities Exchange
Act of 1934, or otherwise at law or in equity; but no person
permitted to maintain a suit for damages under the provisions
of this title shall recover, through satisfaction of judgment
in one or more actions, a total amount in excess of his actual
damages on account of the act complained of.
[OFFICERS, DIRECTORS, AND OTHER AFFILIATES
[Sec. 17. (a) Every person who is an officer or director of
a registered holding company shall file with the Commission in
such form as the Commission shall prescribe (1) at the time of
the registration of such holding company, or within ten days
after such person becomes an officer or director, a statement
of the securities of such registered holding company or any
subsidiary company thereof of which he is, directly or
indirectly, the beneficial owner, and (2) within ten days after
the close of each calendar month thereafter, if there has been
any change in such ownership during such month, a statement of
such ownership as of the close of such calendar month and of
the changes in such ownership that have occurred during such
calendar month.
[(b) For the purpose of preventing the unfair use of
information which may have been obtained by any such officer or
director by reason of his relationship to such registered
holding company or any subsidiary company thereof, any profit
realized by any such officer or director from any purchase and
sale, or any sale and purchase, of any security of such
registered holding company or any subsidiary company thereof
within any period of less than six months, unless such security
was acquired in good faith in connection with a debt previously
contracted, shall inure to and be recoverable by the holding
company or subsidiary company in respect of the security of
which such profit was realized, irrespective of any intention
on the part of such officer or director in entering into such
transaction to hold the security purchased or not to repurchase
the security sold for a period of more than six months. Suit to
recover such profit may be instituted at law or in equity in
any court of competent jurisdiction by the company entitled
thereto or by the owner of any security of such company in the
name and in the behalf of such company if such company shall
fail or refuse to bring such suit within sixty days after
request or shall fail diligently to prosecute the same
thereafter; but no such suit shall be brought more than two
years after the date such profit was realized. This subsection
shall not cover any transaction where such person was not an
officer or director at the times of the purchase and sale, or
the sale and purchase, of the security involved, or any
transaction or transactions which the Commission by rules and
regulations may, as necessary or appropriate in the public
interest or for the protection of investors or consumers,
exempt as not comprehended within the purpose of this
subsection. Nothing in this subsection shall be construed to
give a remedy in the case of any transaction in respect of
which a remedy is given under subsection (b) of section 16 of
the Securities Exchange Act of 1934.
[(c) After one year from the date of the enactment of this
title, no registered holding company or any subsidiary company
thereof shall have, as an officer or director thereof, any
executive officer, director, partner, appointee, or
representative of any bank, trust company, investment banker,
or banking association or firm, or any executive officer,
director, partner, appointee, or representative of any
corporation a majority of whose stock, having the unrestricted
right to vote for the election of directors, is owned by any
bank, trust company, investment banker, or banking association
or firm, except in such cases as rules and regulations
prescribed by the Commission may permit as not adversely
affecting the public interest or the interest of investors or
consumers.
[INVESTIGATIONS; INJUNCTIONS, ENFORCEMENT OF TITLE, AND PROSECUTION OF
OFFENSES
[Sec. 18. (a) The Commission, in its discretion, may
investigate any facts, conditions, practices, or matters which
it may deem necessary or appropriate to determine whether any
person has violated or is about to violate any provision of
this title or any rule or regulation thereunder, or to aid in
the enforcement of the provisions of this title, in the
prescribing of rules and regulations thereunder, or in
obtaining information to serve as a basis for recommending
further legislation concerning the matters to which this title
relates. The Commission may require or permit any person to
file with it a statement in writing, under oath or otherwise as
it shall determine, as to any or all facts and circumstances
concerning a matter which may be the subject of investigation.
The Commission, in its discretion, may publish, or make
available to State commissions, information concerning any such
subject.
[(b) The Commission upon its own motion or at the request
of a State commission may investigate, or obtain any
information regarding the business, financial condition, or
practices of any registered holding company or subsidiary
company thereof or facts, conditions, practices, or matters
affecting the relations between any such company and any other
company or companies in the same holding-company system.
[(c) For the purpose of any investigation or any other
proceeding under this title, any member of the Commission, or
any officer thereof designated by it, is empowered to
administer oaths and affirmations, subpoena witnesses, compel
their attendance, take evidence, and require the production of
any books, papers, correspondence, memoranda, contracts,
agreements, or other records which the Commission deems
relevant or material to the inquiry. Such attendance of
witnesses and the production of any such records may be
required from any place in any State or in any Territory or
other place subject to the jurisdiction of the United States at
any designated place of hearing.
[(d) In case of contumacy by, or refusal to obey a subpoena
issued to, any person, the Commission may invoke the aid of any
court of the United States within the jurisdiction of which
such investigation or proceeding is carried on, or where such
person resides or carries on business, in requiring the
attendance and testimony of witnesses and the production of
books, papers, correspondence, memoranda, contracts,
agreements, and other records. And such court may issue an
order requiring such person to appear before the Commission or
member or officer designated by the Commission, there to
produce records, if so ordered, or to give testimony touching
the matter under investigation or in question; and any failure
to obey such order of the court may be punished by such court
as a contempt thereof. All process in any such case may be
served in the judicial district whereof such person is an
inhabitant or wherever he may be found. Any person who, without
just cause, shall fail or refuse to attend and testify or to
answer any lawful inquiry or to produce books, papers,
correspondence, memoranda, contracts, agreements, or other
records, if in his or its power so to do, in obedience to the
subpoena of the Commission, shall be guilty of a misdemeanor
and, upon conviction, shall be subject to a fine of not more
than $1,000 or to imprisonment for a term of not more than one
year, or both.
[(e) Whenever it shall appear to the Commission that any
person is engaged or about to engage in any acts or practices
which constitute or will constitute a violation of the
provisions of this title, or of any rule, regulation, or order
thereunder, it may in its discretion bring an action in the
proper district court of the United States or the United States
courts of any Territory or other place subject to the
jurisdiction of the United States, to enjoin such acts or
practices and to enforce compliance with this title or any
rule, regulation, or order thereunder, and upon a proper
showing a permanent or temporary injunction or degree or
restraining order shall be granted without bond. The Commission
may transmit such evidence as may be available concerning such
acts or practices to the Attorney General, who, in his
discretion, may institute the appropriate criminal proceedings
under this title.
[(f) Upon application of the Commission, the district
courts of the United States, and the United States courts of
any Territory or other place subject to the jurisdiction of the
United States shall have jurisdiction to issue writs of
mandamus commanding any person to comply with the provisions of
this title or any rule, regulation, or order of the Commission
thereunder.
[HEARINGS BY COMMISSION
[Sec. 19. Hearings may be public and may be held before the
Commission, any member or members thereof, or any officer or
officers of the Commission designated by it, and appropriate
records thereof shall be kept. In any proceeding before the
Commission, the Commission, in accordance with such rules and
regulations as it may prescribe, shall admit as a party any
interested State, State commission, State securities
commission, municipality, or other political subdivision of a
State, and may admit as a party any representative of
interested consumers or security holders, or any other person
whose participation in the proceedings may be in the public
interest or for the protection of investors or consumers.
[RULES, REGULATIONS, AND ORDERS
[Sec. 20. (a) The Commission shall have authority from time
to time to make, issue, amend, and rescind such rules and
regulations and such orders as it may deem necessary or
appropriate to carry out the provisions of this title,
including rules and regulations defining accounting, technical,
and trade terms used in this title. Among other things, the
Commission shall have authority, for the purpose of this title,
to prescribe the form or forms in which information required in
any statement, declaration, application, report, or other
document filed with the Commission shall be set forth, the
items or details to be shown in balance sheets, profit and loss
statements, and surplus accounts, the manner in which the cost
of all assets, whenever determinable, shall be shown in regard
to such statements, declarations, applications, reports, and
other documents filed with the Commission, or accounts required
to be kept by the rules, regulations, or orders of the
Commission, and the methods to be followed in the keeping of
accounts and cost-accounting procedures and the preparation of
reports, in the segregation and allocation of costs, in the
determination of liabilities, in the determination of
depreciation and depletion, in the differentiation of recurring
and nonrecurring income, in the differentiation of investment
and operating income, and in the keeping or preparation, where
the Commission deems it necessary or appropriate, of separate
or consolidated balance sheets or profit and loss statements
for any companies in the same holding-company system.
[(b) In the case of the accounts of any company whose
methods of accounting are prescribed under the provisions of
any law of the United States or of any State, the rules and
regulations or orders of the Commission in respect of accounts
shall not be inconsistent with the requirements imposed by such
law or any rule or regulation thereunder; nor shall anything in
this title relieve any public-utility company from the duty to
keep the accounts, books, records, or memoranda which may be
required to be kept by the law of any State in which it
operates or by the State commission of any such State. But this
provision shall not prevent the Commission from imposing such
additional requirements regarding reports or accounts as it may
deem necessary or appropriate in the public interest or for the
protection of investors or consumers.
[(c) The rules and regulations of the Commission shall be
effective upon publication in the manner which the Commission
shall prescribe. For the purpose of its rules, regulations, or
orders the Commission may classify persons and matters within
its jurisdiction and prescribe different requirements for
different classes of persons or matters. Orders of the
Commission under this title shall be issued only after
opportunity for hearing.
[(d) The Commission, by such rules and regulations or order
as it deems necessary or appropriate in the public interest or
for the protection of investors or consumers, may authorize the
filing of any information or documents required to be filed
with the Commission under this title, or under the Securities
Act of 1933, as amended, or under the Securities Exchange Act
of 1934, by incorporating by reference any information or
documents theretofore or concurrently filed with the Commission
under this title or either of such Acts. No provision of this
title imposing any liability shall apply to any act done or
omitted in good faith in conformity with any rule, regulation,
or order of the Commission, notwithstanding that such rule,
regulation, or order may, after such act or omission, be
amended or rescinded or be determined by judicial or other
authority to be invalid for any reason.
[EFFECT ON EXISTING LAW
[Sec. 21. Nothing in this title shall affect (1) the
jurisdiction of the Commission under the Securities Act of
1933, as amended, or the Securities Exchange Act of 1934 over
any person, security, or contract, or (2) the rights,
obligations, duties, or liabilities of any person under such
Acts; nor shall anything in this title affect the jurisdiction
of any other commission, board, agency, or officer of the
United States or of any State or political subdivision of any
State, over any person, security, or contract, insofar as such
jurisdiction does not conflict with any provision of this title
or any rule, regulation, or order thereunder.
[INFORMATION FILED WITH THE COMMISSION
[Sec. 22. (a) When in the judgment of the Commission the
disclosure of such information would be in the public interest
or the interest of investors or consumers, the information
contained in any statement, application, declaration, report,
or other document filed with the Commission shall be available
to the public, and copies thereof may be furnished to any
person at such reasonable charge and under such reasonable
limitations as the Commission may prescribe: Provided, however,
That nothing in this title shall be construed to require, or to
authorize the Commission to require, the revealing of trade
secrets or processes in any application, declaration, report,
or document filed with the Commission under this title.
[(b) Any person filing such application, declaration,
report, or document may make written objection to the public
disclosure of information contained therein, stating the
grounds for such objection, and the Commission is authorized to
hear objections in any such case where it finds it advisable.
[(c) It shall be unlawful for any member, officer, or
employee of the Commission to disclose to any person other than
a member, officer, or employee of the Commission, or to use for
personal benefit, any information contained in any application,
declaration, report, or document filed with the Commission
which is not made available to the public pursuant to this
section.
ANNUAL REPORTS OF COMMISSION
[Sec. 23. The Commission shall submit annually a report to
the Congress covering the work of the Commission for the
preceding year and including such information, data, and
recommendations for further legislation in connection with the
matters covered by this title as it may find advisable.
COURT REVIEW OF ORDERS
[Sec. 24. (a) Any person or party aggrieved by an order
issued by the Commission under this title may obtain a review
of such order in the court of appeals of the United States
within any circuit wherein such person resides or has his
principal place of business, or in the United States Court of
Appeals for the District of Columbia, by filing in such court,
within sixty days after the entry of such order, a written
petition praying that the order of the Commission be modified
or set aside in whole or in part. A copy of such petition shall
be forthwith transmitted by the clerk of the court to any
member of the Commission, or any officer thereof designated by
the Commission for that purpose, and thereupon the Commission
shall file in the court the record upon which the order
complained of was entered, as provided in section 2112 of title
28, United States Code. Upon the filing of such petition such
court shall have jurisdiction, which upon the filing of the
record shall be exclusive, to affirm, modify, or set aside such
order, in whole or in part. No objection to the order of the
Commission shall be considered by the court unless such
objection shall have been urged before the Commission or unless
there were reasonable grounds for failure so to do. The
findings of the Commissions as to the facts, if supported by
substantial evidence, shall be conclusive. If application is
made to the court for leave to adduce additional evidence, and
it is shown to the satisfaction of the court that such
additional evidence is material and that there were reasonable
grounds for failure to adduce such evidence in the proceeding
before the Commission, the court may order such additional
evidence to be taken before the Commission and to be adduced
upon the hearing in such manner and upon such terms and
conditions as to the court may seem proper. The Commission may
modify its findings as to the facts by reason of the additional
evidence so taken, and it shall file with the court such
modified or new findings, which, if supported by substantial
evidence, shall be conclusive, and its recommendation, if any,
for the modification or setting aside of the original order.
The judgment and decree of the court affirming, modifying, or
setting aside, in whole or in part, any such order of the
Commission shall be final, subject to review by the Supreme
Court of the United States upon certiorari or certification as
provided in section 1254 of title 28, United States Code.
[(b) The commencement of proceedings under subsection (a)
shall not, unless specifically ordered by the court, operate as
a stay of the Commission's order.
[JURISDICTION OF OFFENSES AND SUITS
[Sec. 25. The District Courts of the United States and the
United States courts of any Territory or other place subject to
the jurisdiction of the United States shall have jurisdiction
of violations of this title or the rules, regulations, or
orders thereunder, and, concurrently with State and Territorial
courts, of all suits in equity and actions at law brought to
enforce any liability or duty created by, or to enjoin any
violation of, this title or the rules, regulations, or orders
thereunder. Any criminal proceeding may be brought in the
district wherein any act or transaction constituting the
violation occurred. Any suit or action to enforce any liability
or duty created by, or to enjoin any violation of, this title
or rules, regulations, or orders thereunder, may be brought in
any such district or in the district wherein the defendant is
an inhabitant or transacts business, and process in such cases
may be served in any district of which the defendant is an
inhabitant or transacts business or wherever the defendant may
be found. Judgments and decrees so rendered shall be subject to
review as provided in sections 1254, 1291, 1292, and 1294 of
title 28, United States Code. No costs shall be assessed for or
against the Commission in any proceeding under this title
brought by or against the Commission in any court.
[VALIDITY OF CONTRACTS
[Sec. 26. (a) Any condition, stipulation, or provision
binding any person to waive compliance with any provision of
this title or with any rule, regulation, or order thereunder
shall be void.
[(b) Every contract made in violation of any provision of
this title or of any rule, regulation, or order thereunder, and
every contract heretofore or hereafter made, the performance of
which involves the violation of, or the continuance of any
relationship or practice in violation of, any provision of this
title, or any rule, regulation, or order thereunder, shall be
void (1) as regards the rights of any person who, in violation
of any such provision, rule, regulation, or order, shall have
made or engaged in the performance of any such contract, and
(2) as regards the rights of any person who, not being a party
to such contract, shall have acquired any right thereunder with
actual knowledge of the facts by reason of which the making or
performance of such contract was in violation of any such
provision, rule, regulation, or order.
[(c) Nothing in this title shall be construed (1) to affect
the validity of any loan or extension of credit (or any
extension or renewal thereof) made or of any lien created prior
or subsequent to the enactment of this title, unless at the
time of the making of such loan or extension of credit (or
extension or renewal thereof) or the creating of such lien, the
person making such loan or extension of credit (or extension or
renewal thereof) or acquiring such lien shall have actual
knowledge of facts by reason of which the making of such loan
or extension of credit (or extension or renewal thereof) or the
acquisition of such lien as a violation of the provisions of
this title or any rule or regulation thereunder, or (2) to
afford a defense to the collection of any debt or obligation or
the enforcement of any lien by any person who shall have
acquired such debt, obligation, or lien in good faith for value
and without actual knowledge of the violation of any provision
of this title or any rule or regulation thereunder affecting
the legality of such debt, obligation, or lien.
[LIABILITY OF CONTROLLING PERSONS; PREVENTING COMPLIANCE WITH TITLE
[Sec. 27. (a) It shall be unlawful for any person, directly
or indirectly, to cause to be done any act or thing through or
by means of any other person which it would be unlawful for
such person to do under the provisions of this title or any
rule, regulation, or order thereunder.
[(b) It shall be unlawful for any person without just cause
to hinder, delay, or obstruct the making, filing, or keeping of
any information, document, report, record, or account required
to be made, filed, or kept under any provision of this title or
any rule, regulation, or order thereunder.
[UNLAWFUL REPRESENTATIONS
[Sec. 28. It shall be unlawful for any person in issuing,
selling, offering for sale any security of a registered holding
company or subsidiary company thereof, to represent or imply in
any manner whatsoever that such security has been guaranteed,
sponsored, or recommended for investment by the United States
or any agency or officer thereof.
[PENALTIES
[Sec. 29. Any person who willfully violates any provision
in this title or any rule, regulation, or order thereunder
(other than an order of the Commission under subsection (b),
(d), (e), or (f) of section 11), or any person who willfully
makes any statement or entry in an application, report,
document, account, or record filed or kept or required to be
filed or kept under the provisions of this title or any rule,
regulation, or order thereunder, knowing such statement or
entry to be false or misleading in any material respect, or any
person who willfully destroys (except after such time as may be
prescribed under any rules or regulations under this title),
mutilates, alters, or by any means, or device falsifies any
account, correspondence, memorandum, book, paper, or other
record kept or required to be kept under the provisions of this
title or any rule, regulation, or order thereunder, shall upon
conviction be fined not more than $10,000 or imprisoned not
more than five years, or both, except that in the case of a
violation of a provision of subsection (a) or (b) of section 4
by a holding company which is not an individual, the fine
imposed upon such holding company shall be a fine not exceeding
$200,000; but no person shall be convicted under this section
for the violation of any rule, regulation, or order if he
proves that he had no knowledge of such rule, regulation, or
order.
[STUDY OF PUBLIC-UTILITY AND INVESTMENT COMPANIES
[Sec. 30. The Commission is authorized and directed to make
studies and investigations of public-utility companies, the
territories served or which can be served by public-utility
companies, and the manner in which the same are or can be
served, to determine the sizes, types, and locations of public-
utility companies which do or can operate most economically and
efficiently in the public interest, in the interest of
investors and consumers, and in furtherance of a wider and more
economical use of gas and electric energy; upon the basis of
such investigations and studies the Commission shall make
public from time to time its recommendations as to the type and
size of geographically and economically integrated public-
utility systems which, having regard for the nature and
character of the locality served, can best promote and
harmonize the interests of the public, the investor, and the
consumer.
[HIRING AND LEASING AUTHORITY OF THE COMMISSION
[Sec. 31. The provisions of section 4(b) of the Securities
Exchange Act of 1934 shall be applicable with respect to the
power of the Commission--
[(1) to appoint and fix the compensation of such
employees as may be necessary for carrying out its
functions under this title, and
[(2) to lease and allocate such real property as may
be necessary for carrying out its functions under this
title.
[SEC. 32. EXEMPT WHOLESALE GENERATORS.
[(a) Definitions.--For purposes of this section--
[(1) Exempt wholesale generator.--The term ``exempt
wholesale generator'' means any person determined by
the Federal Energy Regulatory Commission to be engaged
directly, or indirectly through one or more affiliates
as defined in section 2(a)(11)(B), and exclusively in
the business of owning or operating, or both owning and
operating, all or part of one or more eligible
facilities and selling electric energy at wholesale. No
person shall be deemed to be an exempt wholesale
generator under this section unless such person has
applied to the Federal Energy Regulatory Commission for
a determination under this paragraph. A person applying
in good faith for such a determination shall be deemed
an exempt wholesale generator under this section, with
all of the exemptions provided by this section, until
the Federal Energy Regulatory Commission makes such
determination. The Federal Energy Regulatory Commission
shall make such determination within 60 days of its
receipt of such application and shall notify the
Commission whenever a determination is made under this
paragraph that any person is an exempt wholesale
generator. Not later than 12 months after the date of
enactment of this section, the Federal Energy
Regulatory Commission shall promulgate rules
implementing the provisions of this paragraph.
Applications for determination filed after the
effective date of such rules shall be subject thereto.
[(2) Eligible facility.--The term ``eligible
facility'' means a facility, wherever located, which is
either--
[(A) used for the generation of electric
energy exclusively for sale at wholesale, or
[(B) used for the generation of electric
energy and leased to one or more public utility
companies; Provided, That any such lease shall
be treated as a sale of electric energy at
wholesale for purposes of sections 205 and 206
of the Federal Power Act.
Such term shall not include any facility for which consent is
required under subsection (c) if such consent has not been
obtained. Such term includes interconnecting transmission
facilities necessary to effect a sale of electric energy at
wholesale. For purposes of this paragraph, the term
``facility'' may include a portion of a facility subject to the
limitations of subsection (d) and shall include a facility the
construction of which has not been commenced or completed.
[(3) Sale of electric energy at wholesale.--The term
``sale of electric energy at wholesale'' shall have the
same meaning as provided in section 201(d) of the
Federal Power Act (16 U.S.C. 824(d)).
[(4) Retail rates and charges.--The term
``retail rates and charges'' means rates and
charges for the sale of electric energydirectly
to consumers.
[(b) Foreign Retail Sales.--Notwithstanding paragraphs (1)
and (2) of subsection (a), retail sales of electric energy
produced by a facility located in a foreign country shall not
prevent such facility from being an eligible facility, or
prevent a person owning or operating, or both owning and
operating, such facility from being an exempt wholesale
generator if none of the electric energy generated by such
facility is sold to consumers in the United States.
[(c) State Consent for Existing Rate-Based
Facilities.--If a rate or charge for, or in
connection with, the construction of a
facility, or for electric energy produced by a
facility (other than any portion of a rate or
charge which represents recovery of the cost of
a wholesale rate or charge) was in effect under
the laws of any State as of the date of
enactment of this section, in order for the
facility to be considered an eligible facility,
every State commission having jurisdiction over
any such rate or charge must make a specific
determination that allowing such facility to be
an eligible facility (1) will benefit
consumers, (2) is in the public interest, and
(3) does not violate State law; Provided, That
in the case of such a rate or charge which is a
rate or charge of an affiliate of a registered
holding company:
[(A) such determination with respect to the facility
in question shall be required from every State
commission having jurisdiction over the retail rates
and charges of the affiliates of such registered
holding company; and
[(B) the approval of the Commission under this Act
shall not be required for the transfer of the facility
to an exempt wholesale generator.
[(d) Hybrids.--(1) No exempt wholesale generator may own or
operate a portion of any facility if any other portion of the
facility is owned or operated by an electric utility company
that is an affiliate or associate company of such exempt
wholesale generator.
[(2) Eligible Facility.--Notwithstanding paragraph (1), an
exempt wholesale generator may own or operate a portion of a
facility identified in paragraph (1) if such portion has become
an eligible facility as a result of the operation of subsection
(c).
[(e) Exemption of EWGS.--An exempt wholesale generator
shall not be considered an electric utility company under
section 2(a)(3) of this Act and, whether or not a subsidiary
company, an affiliate, or an associate company of a holding
company, an exempt wholesale generator shall be exempt from all
provisions of this Act.
[(f) Ownership of EWGS by Exempt Holding Companies.--
Notwithstanding any provision of this Act, a holding company
that is exempt under section 3 of this Act shall be permitted,
without condition or limitation under this Act, to acquire and
maintain an interest in the business of one or more exempt
wholesale generators.
[(g) Ownership of EWGS by Registered Holding Companies.--
Notwithstanding any provision of this Act and the Commission's
jurisdiction as provided under subsection (h) of this section,
a registered holding company shall be permitted (without the
need to apply for, or receive, approval from the Commission,
and otherwise without condition under this Act) to acquire and
hold the securities, or an interest in the business, of one or
more exempt wholesale generators.
[(h) Financing and Other Relationships Between EWGS and
Registered Holding Companies.--The issuance of securities by a
registered holding company for purposes of financing the
acquisition of an exempt wholesale generator, the guarantee of
securities of an exempt wholesale generator by a registered
holding company, the entering into service, sales or
construction contracts, and the creation or maintenance of any
other relationship in addition to that described in subsection
(g) between an exempt wholesale generator and a registered
holding company, its affiliates and associate companies, shall
remain subject to the jurisdiction of the Commission under this
Act: Provided, That
[(1) section 11 of this Act shall not prohibit the
ownership of an interest in the business of one or more
exempt wholesale generators by a registered holding
company (regardless of where facilities owned or
operated by such exempt wholesale generators are
located), and such ownership by a registered holding
company shall be deemed consistent with the operation
of an integrated public utility system;
[(2) the ownership of an interest in the business of
one or more exempt wholesale generators by a registered
holding company (regardless of where facilities owned
or operated by such exempt wholesale generators are
located) shall be considered as reasonably incidental,
or economically necessary or appropriate, to the
operations of an integrated public utility system;
[(3) in determining whether to approve (A) the issue
or sale of a security by a registered holding company
for purposes of financing the acquisition of an exempt
wholesale generator, or (B) the guarantee of a security
of an exempt wholesale generator by a registered
holding company, the Commission shall not make a
finding that such security is not reasonably adapted to
the earning power of such company or to the security
structure of such company and other companies in the
same holding company system, or that the circumstances
are such as to constitute the making of such guarantee
an improper risk for such company, unless the
Commission first finds that the issue or sale of such
security, or the making of the guarantee, would have a
substantial adverse impact on the financial integrity
of the registered holding company system;
[(4) in determining whether to approve (A) the issue
or sale of a security by a registered holding company
for purposes other than the acquisition of an exempt
wholesale generator, or (B) other transactions by such
registered holding company or by its subsidiaries other
than with respect to exempt wholesale generators, the
Commission shall not consider the effect of the
capitalization or earnings of any subsidiary which is
an exempt wholesale generator upon the registered
holding company system, unless the approval of the
issue or sale or other transaction, together with the
effect of such capitalization and earnings, would have
a substantial adverse impact on the financial integrity
of the registered holding company system;
[(5) the Commission shall make its decision under
paragraph (3) to approve or disapprove the issue or
sale of a security or the guarantee of a security
within 120 days of the filing of a declaration
concerning such issue, sale or guarantee; and
[(6) the Commission shall promulgate regulations with
respect to the actions which would be considered, for
purposes of this subsection, to have a substantial
adverse impact on the financial integrity of the
registered holding company system; such regulations
shall ensure that the action has no adverse impact on
any utility subsidiary or its customers, or on the
ability of State commissions to protect such subsidiary
or customers, and shall take into account the amount
and type of capital invested in exempt wholesale
generators, the ratio of such capital to the total
capital invested in utility operations, the
availability of books and records, and the financial
and operating experience of the registered holding
company and the exempt wholesale generator; the
Commission shall promulgate such regulations within 6
months after the enactment of this section; after such
6-month period the Commission shall not approve any
actions under paragraph (3), (4) or (5) except in
accordance with such issued regulations.
[(i) Application of Act to Other Eligible Facilities.--In
the case of any person engaged directly and exclusively in the
business of owning or operating (or both owning and operating)
all or part of one or more eligible facilities, an advisory
letter issued by the Commission staff under this Act after the
date of enactment of this section, or an order issued by the
Commission under this Act after the date of enactment of this
section, shall not be required for the purpose, or have the
effect, of exempting such person from treatment as an electric
utility company under section 2(a)(3) or exempting such person
from any provision of this Act.
[(j) Ownership of Exempt Wholesale Generators and
Qualifying Facilities.--The ownership by a person of one or
more exempt wholesale generators shall not result in such
person being considered as being primarily engaged in the
generation or sale of electric power within the meaning of
sections 3(17)(C)(ii) and 3(18)(B)(ii) of the Federal Power Act
(16 U.S.C. 796(17)(C)(ii) and 796(18)(B)(ii)).
[(k) Protection Against Abusive Affiliate Transactions.--
[(1) Prohibition.--After the date of enactment of
this section, an electric utility company may not enter
into a contract to purchase electric energy at
wholesale from an exempt wholesale generator if the
exempt wholesale generator is an affiliate or associate
company of the electric utility company.
[(2) State authority to exempt from prohibition.--
Notwithstanding paragraph (1), an electric utility
company may enter into a contract to purchase electric
energy at wholesale from an exempt wholesale generator
that is an affiliate or associate company of the
electric utility company--
[(A) if every State commission having
jurisdiction over the retail rates of such
electric utility company makes each of the
following specific determinations in advance of
the electric utility company entering into such
contract:
[(i) A determination that such
commission has sufficient regulatory
authority, resources and access to
books and records of the electric
utility company and any relevant
associate, affiliate or subsidiary
company to exercise its duties under
this subparagraph.
[(ii) A determination that the
transaction--
[(I) will benefit consumers,
[(II) does not violate any
State law (including where
applicable, least cost
planning),
[(III) would not provide the
exempt wholesale generator any
unfair competitive advantage by
virtue of its affiliation or
association with the electric
utility company, and
[(IV) is in the public
interest; or
[(B) if such electric utility company is not
subject to State commission retail rate
regulation and the purchased electric energy:
[(i) would not be resold to any
affiliate or associate company, or
[(ii) the purchased electric energy
would be resold to an affiliate or
associate company and every State
commission having jurisdiction over the
retail rates of such affiliate or
associate company makes each of the
determinations provided under
subparagraph (A), including the
determination concerning a State
commission's duties.
[(l) Reciprocal Arrangements Prohibited.--Reciprocal
arrangements among companies that are not affiliates or
associate companies of each other that are entered into in
order to avoid the provisions of this section are prohibited.
[SEC. 33. [TREATMENT OF FOREIGN UTILITIES.
[(a) Exemptions for Foreign Utility Companies.--
[(1) In general.--A foreign utility company shall be
exempt from all of the provisions of this Act, except
as otherwise provided under this section, and shall
not, for any purpose under this Act, be deemed to be a
public utility company under section 2(a)(5),
notwithstanding that the foreign utility company may be
a subsidiary company, an affiliate, or an associate
company of a holding company or of a public utility
company.
[(2) State commission certification.--Section \1\
(a)(1) shall not apply or be effective unless every
State commission having jurisdiction over the retail
electric or gas rates of a public utility company that
is an associate company or an affiliate of a company
otherwise exempted under section (a)(1) (other than a
public utility company that is an associate company or
an affiliate of a registered holding company) has
certified to the Commission that it has the authority
and resources to protect ratepayers subject to its
jurisdiction and that it intends to exercise its
authority. Such certification, upon the filing of a
notice by such State commission, may be revised or
withdrawn by the State commission prospectively as to
any future acquisition. The requirement of State
certification shall be deemed satisfied if the relevant
State commission had, prior to the date of enactment of
this section, on the basis of prescribed conditions of
general applicability; determine that ratepayers of a
public utility company are adequately insulated from
the effects of diversification and the diversification
would not impair the ability of the State commission to
regulate effectively the operations of such company.\1\
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\1\ So in original. Probably should be ``subsection''.
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[(3) Definition.--For purposes of this section, the
term ``foreign utility company'' means any company
that--
[(A) owns or operates facilities that are not
located in any State and that are used for the
generation, transmission, or distribution of
electric energy for sale or the distribution at
retail of natural or manufactured gas for heat,
light, or power, if such company--
[(i) derives no part of its income,
directly or indirectly, from the
generation, transmission, or
distribution of electric energy for
sale or the distribution at retail of
natural or manufactured gas for heat,
light, or power, within the United
States; and
[(ii) neither the company nor any of
its subsidiary companies is a public
utility company operating in the United
States; and
[(B) provides notice to the Commission, in
such form as the Commission may prescribe, that
such company is a foreign utility company.
[(b) Ownership of Foreign Utility Companies By Exempt
Holding Companies.--Notwithstanding any provision of this Act
except as provided under this section, a holding company that
is exempt under section 3 of the Act shall be permitted without
condition or limitation under the Act to acquire and maintain
an interest in the business of one or more foreign utility
companies.
[(c) Registered Holding Companies.--
[(1) Ownership of foreign utility companies by
registered holding companies.--Notwithstanding any
provision of this Act except as otherwise provided
under this section, a registered holding company shall
be permitted as of the date of enactment of this
section (without the need to apply for, or receive
approval from the Commission) to acquire and hold the
securities or an interest in the business, of one or
more foreign utility companies. The Commission shall
promulgate rules or regulations regarding registered
holding companies' acquisition of interests in foreign
utility companies which shall provide for the
protection of the customers of a public utility company
which is an associate company of a foreign utility
company and the maintenance of the financial integrity
of the registered holding company system.
[(2) Issuance of securities.--The issuance of
securities by a registered holding company for purposes
of financing the acquisition of a foreign utility
company, the guarantee of securities of' a foreign
utility company by a registered holding company, the
entering into service, sales, or construction
contracts, and the creation or maintenance of any other
relationship between a foreign utility company and a
registered holding company, its affiliates and
associate companies, shall remain subject to the
jurisdiction of the Commission under this Act (unless
otherwise exempted under this Act, in the case of a
transaction with an affiliate or associate company
located outside of the United States). Any State
commission with jurisdiction over the retail rates of a
public utility company which is part of a registered
holding company system may make such recommendations to
the Commission regarding the registered holding
company's relationship to a foreign utility company,
and the Commission shall reasonably and fully consider
such State recommendation.
[(3) Construction.--Any interest in the business of 1
or more foreign utility companies, or 1 or more
companies organized exclusively to own, directly or
indirectly, the securities or other interest in a
foreign utility company, shall for all purposes of his
Act, be considered to be--
[(A) consistent with the operation of a
single integrated public utility system, within
the meaning of section 11; and
[(B) reasonably incidental, or economically
necessary or appropriate, to the operations of
an integrated public utility system, within the
meaning of section 11.
[(d) Effect on Existing Law; No State Preemption.--Nothing
in this section shall--
[(1) Preclude any person from qualifying for or
maintaining any exemption otherwise provided for under
this Act or the rules, regulations, or orders
promulgated or issued under this Act; or
[(2) be deemed or construed to limit the authority of
any State (including any State regulatory authority)
with respect to--
[(A) any public utility company or holding
company subject to such State's jurisdiction;
or
[(B) any transaction between any foreign
utility company (or any affiliate or associate
company thereof) and any public utility company
or holding company subject to such State's
jurisdiction.
[(e) Reporting Requirements.--
[(1) Filing of Reports.--A public utility company
that is an associate company of a foreign utility
company shall file with the Commission such reports
(with respect to such foreign utility company) as the
Commission may by rules, regulations, or order
prescribe as necessary or appropriate in the public
interest or for the protection of investors or
consumers.
[(2) Notice of Acquisitions.--Not later than 30 days
after the consummation of the acquisition of an
interest in a foreign utility company by an associate
company of a public utility company that is subject to
the jurisdiction of a State commission with respect to
its retail electric or gas rates or by such public
utility company, such associate company or such public
utility company, shall provide notice of such
acquisition to every State commission having
jurisdiction over the retail electric or gas rates of
such public utility company, in such form as may be
prescribed by the State commission.
[(f) Prohibition on Assumption of Liabilities.--
[(1) In general.--No public utility company that is
subject to the jurisdiction of a State commission with
respect to its retail electric or gas rates shall issue
any security for the purpose of financing the
acquisiitn, or for the purposes of financing the
ownership or operation, of a foreign utility company,
nor shall any such pubic utility company assume any
obligation or liability as guarantor, endorser, surety,
or otherwise in respect of any security of a foreign
utility company.
[(2) Exception for holding companies which are
predominantly public utility companies.--Subsection
(f)(1) shall not apply if:
[(A) The public utility company that is
subject to the jurisdiction of a State
commission with respect to its retail electric
or gas rates is a holding company and is not an
affiliate under section 2(a)(11)(B) of another
holding company or is not subject to regulation
as a holding company and has no affiliate as
defined in section 2(a)(11)(A) that is a pubic
utility company subject to the jurisdiction of
a State commission with respect to its retail
electric or gas rates; and
[(B) each State commission having
jurisdiction with respect to the retail
electric and gas rates of such public utility
company expressly permits such public utility
to engage in a transaction otherwise prohibited
under section\1\ (f)(1); and
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\1\So in original. Probably should be ``subsection''.
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[(C) the transaction (aggregated with all
other then outstanding transactions exempted
under this subsection) does not exceed 5 per
centum of the then-outstanding total
capitalization of the public utility.
[(g) Prohibition on Pledging or Encumbering Utility
Assets.--No public utility company that is subject to the
jurisdiction of State commission with respect to its retail
electric or gas rates shall pledge or encumber any utility
assets or utility assets of any subsidiary thereof for the
benefit of an associate foreign utility company.
[SEC. 34. EXEMPT TELECOMMUNICATIONS COMPANIES.
[(a) Definitions.--For purposes of this section--
[(1) Exempt telecommunications company.--The term
``exempt telecommunications company'' means any person
determined by the Federal Communications Commission to
be engaged directly or indirectly, wherever located,
through one or more affiliates (as defined in section
2(a)(11)(B)), and exclusively in the businesses of
providing
[(A) telecommunications services;
[(B) information services;
[(C) other services or products subject to
the jurisdiction of the Federal Communications
Commission; or
[(D) products or services that are related or
incidental to the provision of a product or
service described in subparagraph (A) (B), or
(C).
No person shall be deemed to be an exempt
telecommunications company under this section unless
such person has applied to the Federal Communications
Commission for a determination under this paragraph. A
person applying in good faith for such a determination
shall be deemed an exempt telecommunications company
under this section, with all of the exemptions provided
by this section, until the Federal Communications
Commission makes such determination. The Federal
Communications Commission shall make such determination
within 60 days of its receipt of any such application
filed after the enactment of this section and shall
notify the Commission whenever a determination is made
under this paragraph that any person is an exempt
telecommunications company. Not later than 12 months
after the date of enactment of this section, the
Federal Communications Commission shall promulgate
rules implementing the provisions of this paragraph
which shall be applicable to applications filed under
this paragraph after the effective date of such rules.
[(2) Other terms.--For purposes of this section, the
terms ``telecommunications services'' and ``information
services'' shall have the same meanings as provided in
the Communications Act of 1934.
[(b) State Consent for Sale of Existing Rate-Based
Facilities.--If a rate or charge for the sale of electric
energy or natural gas (other than any portion of a rate or
charge which represents recovery of the cost of a wholesale
rate or charge) for, or in connection with, assets of a public
utility company that is an associate company or affiliate of a
registered holding company was in effect under the laws of any
State as of December 19, 1995, the public utility company
owning such assets may not sell such assets to an exempt
telecommunications company that is an associate company or
affiliate unless State commissions having jurisdiction over
such public utility company approve such sale. Nothing in this
subsection shall preempt the otherwise applicable authority of
any State to approve or disapprove the sale of such assets. The
approval of the Commission under this Act shall not be required
for the sale of assets as provided in this subsection.
[(c) Ownership of ETCS by Exempt Holding Companies.--
Notwithstanding any provision of this Act, a holding company
that is exempt under section 3 of this Act shall be permitted,
without condition or limitation under this Act, to acquire and
maintain an interest in the business of one or more exempt
telecommunications companies.
[(d) Ownership of ETCS by Registered Holding Companies.--
Notwithstanding any provision of this Act, a registered holding
company shall be permitted (without the need to apply for, or
receive, approval from the Commission, and otherwise without
condition under this Act) to acquire and hold the securities,
or an interest in the business, of one or more exempt
telecommunications companies.
[(e) Financing and Other Relationships Between ETCS and
Registered Holding Companies.--The relationship between an
exempt telecommunications company and a registered holding
company, its affiliates and associate companies, shall remain
subject to the jurisdiction of the Commission under this Act:
Provided, That--
[(1) section 11 of this Act shall not prohibit the
ownership of an interest in the business of one or more
exempt telecommunications companies by a registered
holding company (regardless of activities engaged in or
where facilities owned or operated by such exempt
telecommunications companies are located), and such
ownership by a registered holding company shall be
deemed consistent with the operation of an integrated
public utility system;
[(2) the ownership of an interest in the business of
one or more exempt telecommunications companies by a
registered holding company (regardless of activities
engaged in or where facilities owned or operated by
such exempt telecommunications companies are located)
shall be considered as reasonably incidental, or
economically necessary or appropriate, to the
operations of an integrated public utility system;
[(3) the Commission shall have no jurisdiction under
this Act over, and there shall be no restriction or
approval required under this Act with respect to (A)
the issue or sale of a security by a registered holding
company for purposes of financing the acquisition of an
exempt telecommunications company, or (B) the guarantee
of a security of an exempt telecommunications company
by a registered holding company; and
[(4) except for costs that should be fairly and
equitably allocated among companies that are associate
companies of a registered holding company, the
Commission shall have no jurisdiction under this Act
over the sales, service, and construction contracts
between an exempt telecommunications company and a
registered holding company, its affiliates and
associate companies.
[(f) Reporting Obligations Concerning Investments and
Activities of Registered Public-Utility Holding Company
Systems.--
[(1) Obligations to report information.--Any
registered holding company or subsidiary thereof that
acquires or holds the securities, or an interest in the
business, of an exempt telecommunications company shall
file with the Commission such information as the
Commission, by rule, may prescribe concern
[(A) investments and activities by the
registered holding company, or any subsidiary
thereof, with respect to exempt
telecommunications companies, and
[(B) any activities of an exempt
telecommunications company within the holding
company system, that are reasonably likely to
have a material impact on the financial or
operational condition of the holding company
system.
[(2) Authority to require additional information.--
If, based on reports provided to the Commission
pursuant to paragraph (1) of this subsection or other
available information, the Commission reasonably
concludes that it has concerns regarding the financial
or operational condition of any registered holding
company or any subsidiary thereof (including an exempt
telecommunications company), the Commission may require
such registered holding company to make additional
reports, and provide additional information.
[(3) Authority to limit disclosure of information.--
Notwithstanding any other provision of law, the
Commission shall not be compelled to disclose any
information required to be reported under this
subsection. Nothing in this subsection shall authorize
the Commission to withhold the information from
Congress, or prevent the Commission from complying with
a request for information from any other Federal or
State department or agency requesting the information
for purposes within the scope of its jurisdiction. For
purposes of section 552 of title 5, United States Code,
this subsection shall be considered a statute described
in subsection (b)(3)(B) of such section 552.
[(g) Assumption of Liabilities.--Any public utility company
that is an associate company, or an affiliate, of a registered
holding company and that is subject to the jurisdiction of a
State commission with respect to its retail electric or gas
rates shall not issue any security for the purpose of financing
the acquisition, ownership, or operation of an exempt
telecommunications company. Any public utility company that is
an associate company, or an affiliate, of a registered holding
company and that is subject to the jurisdiction of a State
commission with respect to its retail electric or gas rates
shall not assume any obligation or liability as guarantor,
endorser, surety, or otherwise by the public utility company in
respect of an security of an exempt telecommunications company.
[(h) Pledging or Mortgaging of Assets.--Any public utility
company that is an associate company, or affiliate, of a
registered holding company and that is subject to the
jurisdiction of a State commission with respect to its retail
electric or gas rates shall not pledge, mortgage, or otherwise
use as collateral any assets of the public utility company or
assets of any subsidiary company thereof for be benefit of an
exempt telecommunications company.
[(i) Protection Against Abusive Affiliate Transactions---A
public utility company may enter into a contract to purchase
services or products described in subsection (a)(1) from an
exempt telecommunications company that is an affiliate or
associate company of the public utility company only if--
[(1) every State commission having jurisdiction over
the retail rates of such public utility company
approves such contract, or
[(2) such public utility company is not subject to
State commission retail rate regulation and the
purchased services or product--
[(A) would not be resold to any affiliate or
associate company; or
[(B) would be resold to an affiliate or
associate company and every State commission
having jurisdiction over the retail rates of
such affiliate or associate company makes the
determination required by subparagraph (A).
The requirements of this subsection shall not apply in any case
in which the State or the State commission concerned publishes
a notice that the State or State commission waives its
authority under this subsection.
[(j) Nonpreemption of Rate Authority.--Nothing in this Act
shall preclude the Federal Energy Regulatory Commission or a
State commission from exercising its jurisdiction under
otherwise applicable law to determine whether a public utility
company may recover in rates the costs of products or services
purchased from or sold to an associate company or affiliate
that is an exempt telecommunications company, regardless of
whether such costs are incurred through the direct or indirect
purchase or sale of products or services from such associate
company or affiliate.
[(k) Reciprocal Arrangements Prohibited.--Reciprocal
arrangements among companies that are not affiliates or
associate companies of each other that are entered into in
order to avoid the provisions of this section are prohibited.
[(l) Books and Records.--(1) Upon written order of a State
commission, a State commission may examine the books, accounts,
memoranda, contracts, and records of--
[(A) a public utility company subject to its
regulatory authority under State law;
[(B) any exempt telecommunications company selling
products or services to such public utility company or
to an associate company of such public utility company;
and
[(C) any associate company or affiliate of an exempt
telecommunications company which sells products or
services to a public utility company referred to in
subparagraph (A),
wherever located, if such examination is required for the
effective discharge of the State commission's regulatory
responsibilities affecting the provision of electric or gas
service in connection with the activities of such exempt
telecommunications company.
[(2) Where a State commission issues an order pursuant to
paragraph (1), the State commission shall not publicly disclose
trade secrets or sensitive commercial information.
[(3) Any United States district court located in the State
in which the State commission referred to in paragraph (1) is
located shall have jurisdiction to enforce compliance with this
subsection.
[(4) Nothing in this section shall--
[(A) preempt applicable State law concerning the
provision of records and other information; or
[(B) in any way limit rights to obtain records and
other information under Federal law, contracts, or
otherwise.
[(m) Independent Audit Authority for State Commissions.--
[(1) State may order audit.--Any State commission
with jurisdiction over a public utility company that--
[(A) is an associate company of a registered
holding company; and
[(B) transacts business, directly or
indirectly, with a subsidiary company, an
affiliate or an associate company that is an
exempt telecommunications company,
may order an independent audit to be performed, no more
frequently than on an annual basis, of all matters
deemed relevant by the selected auditor that reasonably
relate to retail rates: Provided, That such matters
relate, directly or indirectly, to transactions or
transfers between the public utility company subject to
its jurisdiction and such exempt telecommunications
company.
[(2) Selection of firm to conduct audit.--(A) If a
State commission orders an audit in accordance with
paragraph (1), the public utility company and the State
commission shall jointly select, within 60 days, a firm
to perform the audit. The firm selected to perform the
audit shall possess demonstrated qualifications
relating to--
[(i) competency, including adequate technical
training and professional proficiency in each
discipline necessary to carry out the audit;
and
[(ii) independence and objectivity, including
that the firm be free from personal or external
impairments to independence, and should assume
an independent position with the State
commission and auditee, making certain that the
audit is based upon an impartial consideration
of all pertinent facts and responsible
opinions.
(B) The public utility company and the exempt
telecommunications company shall cooperate fully with
all reasonable requests necessary to perform the audit
and the public utility company shall bear all costs of
having the audit performed.
[(3) Availability of auditor's report.--The auditor's
report shall be provided to the State commission not
later than 6 months after the selection of the auditor,
and provided to the public utility company not later
than 60 days thereafter.
[(n) Applicability of Telecommunications Regulation.--
Nothing in this section shall affect the authority of the
Federal Communications Commission under the Communications Act
of 1934, or the authority of State commissions under State laws
concerning the provision of telecommunications services, to
regulate the activities of an exempt telecommunications
company.
[SEPARABILITY OF PROVISIONS
[Sec. 35. If any provision of this title or the application
of such provision to any person or circumstances shall be held
invalid, the remainder of the title and the application of such
provision to persons or circumstances other than those as to
which it is held invalid shall not be affected thereby.
[SHORT TITLE
[Sec. 36. This title may be cited as the ``Public Utility
Holding Company Act of 1935''.]
----------
UNITED STATES HOUSING ACT OF 1937
Act of September 1, 1937, chapter 896, as amended (42 U.S.C. 1437 et
seq.)
Sec. 9. * * *
(d) * * *
(1) * * *
(1) capital expenditures to improve the
security and safety of residents; [and]
(J) homeownership activities, including
programs under section 1437z-4 of this
title[.];
(K) improvement of energy and water-use
efficiency by installing fixtures and fittings
that conform to the American Society of
Mechanical Engineers/American National
Standards Institute standards Al12.19.2-1998
and A112.18.1-2000, or any revision thereto,
applicable at the time of installation, and by
increasing energy efficiency and water
conservation by such other means as the
Secretary determines are appropriate; and
(L) integrated utility management and capital
planning to maximize energy conservation and
efficiency measures.
* * * * * * *
(e)* * *
(2)* * *
(C) Treatment of savings.--[The] (i) In
General.--The treatment of utility and waste
management costs under the formula shall
provide that a public housing agency shall
receive the full financial benefit from any
reduction in the cost of utilities or waste
management resulting from any contract with a
third party to undertake energy conservation
improvements in one or more of its public
housing projects.
(ii) Third party contracts.--Contracts
described in clause (i) may include contracts
for equipment conversions to less costly
utility sources, projects with resident-paid
utilities, and adjustments to frozen base year
consumption, including systems repaired to meet
applicable building and safety codes and
adjustments for occupancy rates increased by
rehabilitation.
(iii) Term of contract.--The total term of a
contract described in clause (i) shall not
exceed 20 years to allow longer payback periods
for retrofits, including windows, heating
system replacements, wall insulation, site-
based generations, advanced energy savings
technologies, including renewable energy
generation, and other such retrofits.
* * * * * * *
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NATURAL GAS ACT
Act of June 21, 1938, chapter 556, as amended (15 U.S.C. 717-717w)
* * * * * * *
GENERAL PENALTIES
Sec. 21. (a) Any person who willfully and knowingly does or
causes or suffers to be done any act, matter, or thing in this
Act prohibited or declared to be unlawful, or who willfully and
knowingly omits or fails to do any act, matter or thing in this
Act required to be done, or willfully and knowingly causes or
suffers such omission or failure, shall, upon conviction
thereof, be punished by a fine of not more than [$5,000]
$1,000,000 or by imprisonment for not more than [two years]
five years, or both.
(b) Any person who willfully and knowingly violates any
rule, regulation, restriction, condition, or order made or
imposed by the Commission under authority of this Act, shall,
in addition to any other penalties provided by law, be punished
upon conviction thereof by a fine of not exceeding [$500]
$50,000 for each and every day during which such offense
occurs.
* * * * * * *
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NATIONAL HOUSING ACT
* * * * * * *
Act of June 27, 1938, as amended (12 U.S.C. 1701 et seq.)
* * * * * * *
Sec. 203. * * *
(b) * * *
(2) * * *
(B)(iii) * * * As used herein, the term
``veteran'' means any person who served on
active duty in the armed forces of the United
States for a period of not less than ninety
days (or as certified by the Secretary of
Defense as having performed extra-hazardous
service), and who was discharged or released
therefrom under conditions other than
dishonorable, except that persons enlisting in
the armed forces after September 7, 1980, or
entering active duty after October 16, 1981,
shall have their eligibility determined in
accordance with section 3103A(d) of title 38,
United States Code.
Notwithstanding any other provision of this paragraph or
paragraph (10), the amount which may be insured under this
section may be increased by up to [20] 30 percent if such
increase is necessary to account for the increased cost of the
residence due to the installation of a solar energy system (as
defined in subparagraph (3) of the last paragraph of section
2(a) of this Act) therein.
* * * * * * *
Sec. 207. * * *
(c) * * *
(3) * * * No mortgage shall be accepted for insurance
under this section or section 210 unless the Secretary
finds that the property or project, with respect to
which the mortgage is executed, is economically sound.
Such property or project may include five or more
family units and may include such commercial and
community facilities as the Secretary deems adequate to
serve the occupants.
Notwithstanding any other provision of this paragraph, the
amount which may be insured under this section may be increased
by up to [20] 30 percent if such increase is necessary to
account for the increased cost of the project due to the
installation therein of a solar energy system (as defined in
subparagraph (3) of the last paragraph of section 2(a) of this
Act) or residential energy conservation measures (as defined in
section 210(11)(A) through (G) and (I) of Public Law 95-619) in
cases where the Secretary determines that such measures are in
addition to those required under the minimum property standards
and will be cost-effective over the life of the measure.
* * * * * * *
Sec. 213. * * *
(p) Notwithstanding any other provision of this section,
the project mortgage amounts which may be insured under this
section may be increased by up to [20 per centum] 30 percent if
such increase is necessary to account for the increased cost of
the project due to the installation therein of a solar energy
system (as defined in subparagraph (3) of the last paragraph of
section 2(a) of this Act) or residential energy conservation
measures (as defined in section 210(11)(A) through (G) and (1)
of Public Law 95-619) in cases where the Secretary determines
that such measures are in addition to those required under the
minimum property standards and will be cost-effective over the
life of the measure.
* * * * * * *
Sec. 220.
(d) * * *
(3) * * *
(B)(iii) * * * Provided further, That nothing
contained in this subparagraph shall preclude
the insurance of mortgages covering existing
multifamily dwellings to be rehabilitated or
reconstructed for the purposes set forth in
subsection (a) of this section: And provided
further, That the Secretary may further
increase any of the dollar amount limitations
which would otherwise apply for the purpose of
this clause by not to exceed [20 per centum] 30
percent if such increase is necessary to
account for the increased cost of the project
due to the installation therein of a solar
energy system (as defined in subparagraph (3)
of the last paragraph of section 2(a) of this
Act) or residential energy conservation
measures (as defined in section 210(11)(A)
through (G) and (I) of Public Law 95-619) in
cases where the Secretary determines that such
measures are in addition to those required
under the minimum property standards and will
be cost-effective over the life of the measure;
and
* * * * * * *
Sec. 221. * * *
(k) With respect to any project insured under subsection
(d)(3) or (d)(4), the Secretary may further increase the dollar
amount limitations which would otherwise apply for the purpose
of those subsections by up to [20 per centum] 30 percent if
such increase is necessary to account for the increased cost of
the project due to the installation therein of a solar energy
system (as defined in subparagraph (3) of the last paragraph of
section 2(a) of this Act) or residential energy conservation
measures (as defined in section 210(11)(A) through (G) and (I)
of Public Law 95-619) in cases where the Secretary determines
that such measures are in addition to those required under the
minimum property standards and will be cost-effective over the
life of the measure.
* * * * * * *
Sec. 231. * * *
(c)(2) (A) not to exceed, for such part of the property or
project as may be attributable to dwelling use (excluding
exterior land improvement as defined by the Secretary), $35,978
per family unit without a bedroom, $40,220 per family unit with
one bedroom, $48,029 per family unit with two bedrooms, $57,798
per family unit with three bedrooms, and $67,950 per family
unit with four or more bedrooms; except that as to projects to
consist of elevator-type structures the Secretary may, in his
discretion, increase the dollar amount limitations per family
unit to not to exceed $40,876 per family unit without a
bedroom, $46,859 per family unit with one bedroom, $56,979 per
family unit with two bedrooms, $73,710 per family unit with
three bedrooms, and $80,913 per family unit with four or more
bedrooms, as the case may be, to compensate for the higher
costs incident to the construction of elevator-type structures
of sound standards of construction and design; (B) the
Secretary may, by regulation, increase any of the dollar amount
limitations in subparagraph (A) (as such limitations may have
been adjusted in accordance with section 206A of this Act) by
not to exceed 110 percent in any geographical area where the
Secretary finds that cost levels so require and by not to
exceed 140 percent where the Secretary determines it necessary
on a project-by-project basis, but in no case may any such
increase exceed 90 percent where the Secretary determines that
a mortgage purchased or to be purchased by the Government
National Mortgage Association in implementing its special
assistance functions under section 305 of this Act (as such
section existed immediately before November 30, 1983) is
involved; (C) the Secretary may, by regulation, increase any of
the dollar limitations in subparagraph (A) (as such limitations
may have been adjusted in accordance with section 206A of this
Act) by not to exceed [20 per centum] 30 percent if such
increase is necessary to account for the increased cost of the
project due to the installation therein of a solar energy
system (as defined in subparagraph (3) of the last paragraph of
section 2(a) of this Act) or residential energy conservation
measures (as defined in section 210(11)(A) through (G) and (1)
of Public Law 95-619) in cases where the Secretary determines
that such measures are in addition to those required under the
minimum property standards and will be cost-effective over the
life of the measure;
* * * * * * *
Sec. 234. * * *
(j) The Secretary may further increase the dollar amount
limitations which would otherwise apply under subsection (e) of
this section by not to exceed [20 per centum] 30 percent if
such increase is necessary to account for the increased cost of
a project due to the installation therein of a solar energy
system (as defined in subparagraph (3) of the last paragraph of
section 2(A) of this Act) or residential energy conservation
measures (as defined in section 210(11)(A) through (G) and (1)
of Public Law 95-619) in cases where the Secretary determines
that such measures are in addition to those required under the
minimum property standards and will be cost-effective over the
life of the measure.
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OUTER CONTINENTAL SHELF LANDS ACT
Act of August 7, 1953, as amended (43 U.S.C. 1331 et seq.)
* * * * * * *
Sec. 8. [Leasing of] Leases, Easements, and Rights-of-Way
on the Outer Continental Shelf.--(a)(1) * * *
(3)(A) The Secretary may, in order to promote increased
production on the lease area, through direct, secondary, or
tertiary recovery means, reduce or eliminate any royalty or net
profit share set forth in the lease for such area.
(B) In the Western and Central Planning Areas of the Gulf
of Mexico and the portion of the Eastern Planning Area of the
Gulf of Mexico encompassing whole lease blocks lying west of 87
degrees, 30 minutes West longitude and in the Planning Areas
offshore Alaska, the Secretary may, in order to--
(i) promote development or increased production on
producing or non-producing leases; or
(ii) encourage production of marginal resources on
producing or non-producing leases; through primary,
secondary, or tertiary recovery means, reduce or
eliminate any royalty or net profit share set forth in
the lease(s). With the lessee's consent, the Secretary
may make other modifications to the royalty or net
profit share terms of the lease in order to achieve
these purposes.
* * * * * * *
(p) Easements or Rights-of-Way for Energy and Related
Purposes.--
(1) The Secretary may grant an easement or right-of-
way on the outer Continental Shelf for activities not
otherwise authorized in this Act, the Deepwater Port
Act of 1974 (33 U.S.C. 1501 et seq.), or the Ocean
Thermal Energy Conversion Act of 1980 (42 U.S. C. 9101
et seq.), or other applicable law when such
activities--
(A) support exploration, development, or
production of oil or natural gas, except that
such easements or rights-of-way shall not be
granted in areas where oil and gas preleasing,
leasing and related activities are prohibited
by a Congressional moratorium or a withdrawal
pursuant to section 12 of this Act;
(B) support transportation of oil or natural
gas;
(C) produce or support production,
transportation, or transmission of energy from
sources other than oil and gas; or
(D) use facilities currently or previously
used for activities authorized under this Act.
(2) The Secretary shall promulgate regulations to
ensure that activities authorized under this subsection
are conducted in a manner that provides for safety,
protection of the environment, conservation of the
natural resources of the outer Continental Shelf,
appropriate coordination with other Federal agencies,
and a fair return to the Federal government for any
easement or right-of-way granted under this subsection.
Such regulations shall establish procedures for--
(A) public notice and comment on proposals to
be permitted pursuant to this subsection;
(B) consultation and review by State and
local governments that may be impacted by
activities to be permitted pursuant to this
subsection;
(C) consideration of the coastal zone
management program being developed or
administered by an affected coastal State
pursuant to section 305 or section 306 of the
Coastal Zone Management Act of 1972 (16 U.S.C.
1454, 1455); and
(D) consultation with the Secretary of
Defense and other appropriate agencies prior to
the issuance of an easement or right-of-way
under this subsection concerning issues related
to national security and navigational
obstruction.
(3) The Secretary shall require the holder of an
easement or right-of-way granted under this subsection
to furnish a surety bond or other form of security, as
prescribed by the Secretary, and to comply with such
other requirements as the Secretary may deem necessary
to protect the interests of the United States.
(4) This subsection shall not apply to any area
within the exterior boundaries of any unit of the
National Park System, National Wildlife Refuge System,
or National Marine Sanctuary System, or any National
Monument.
(5) Nothing in this subsection shall be construed to
amend or repeal, expressly by implication, the
applicability of any other law, including but not
limited to, the Coastal Zone Management Act (16 U.S.C.
1455 et seq.) or the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.).
* * * * * * *
SEC. 32. COASTAL IMPACT ASSISTANCE FAIRNESS PROGRAM.
(a) Definitions.--When used in this section:
(1) The term ``coastal political subdivision `` means
a county, parish, or any equivalent subdivision of a
Producing Coastal State in all or part of which
subdivision lies within the coastal zone (as defined in
section 304(1) of the Coastal Zone Management Act (16
U.S.C. 1453(1))) and within a distance of 200 miles
from the geographic center of any leased tract.
(2) The term ``coastal population ``'means the
population of all political subdivisions, as determined
by the most recent official data of the Census Bureau,
contained in whole or in part within the designated
coastal boundary of a State as defined in a State's
coastal zone management program under the Coastal Zone
Management Act (16 U.S.C. 1451 et seq.).
(3) The term ``Coastal State'' has the same meaning
as provided by subsection 304(4) of the Coastal Zone
Management Act (16 U.S.C. 1453(4)).
(4) The term ``coastline'' has the same meaning as
the term ``coast line'' as defined in subsection 2(c)
of the Submerged Lands Act (43 U.S.C. 1301(c)).
(5) The term ``distance'' means the minimum great
circle distance, measured in statute miles.
(6) The term ``leased tract'' means a tract
maintained under section 6 or leased under section 8
for the purpose of drilling for, developing, and
producing oil and natural gas resources.
(7) The term ``Producing Coastal State'' means a
Coastal State with a coastal seaward boundary within
200 miles from the geographic center of a leased tract
other than a leased tract within any area of the Outer
Continental Shelf where a moratorium on new leasing was
in effect as of January 1, 2002, unless the lease was
issued prior to the establishment of the moratorium and
was in production on January 1, 2002.
(8) The term ``qualified Outer Continental Shelf
revenues'' means all amounts received by the United
States from each leased tract or portion of a leased
tract lying seaward of the zone defined and governed by
section 8(g) of this Act, or lying within such zone but
to which section 8(g) does not apply, the geographic
center of which lies within a distance of 200 miles
from any part of the coastline of any Producing Coastal
State, including bonus bids, rents, royalties
(including payments for royalties taken in kind and
sold), net profit share payments, and related late
payment interest. Such term shall only apply to leases
issued after January 1, 2003 and revenues from existing
leases that occurs after January 1, 2003. Such term
does not include any revenues from a leased tract or
portion of a leased tract that is included within any
area of the Outer Continental Shelf where a moratorium
on new leasing was in effect as of January 1, 2002,
unless the lease was issued prior to the establishment
of the moratorium and was in production on January 1,
2002.
(9) The term ``Secretary'' means the Secretary of
Interior.
(b) Authorization.--For fiscal years 2004 through 2009, an
amount equal to not more than 12.5 percent of qualified Outer
Continental Shelf revenues is authorized to be appropriated for
the purposes of this section.
(c) Impact Assistance Payments to States and Political
Subdivisions.--The Secretary shall make payments from the
amounts available under this section to Producing Coastal
States with an approved Coastal Impact Assistance Plan, and to
coastal political subdivisions as follows:
(1) Of the amounts appropriated, the allocation for
each Producing Coastal State shall be calculated based
on the ratio of qualified Outer Continental Shelf
revenues generated off the coastline of the Producing
Coastal State to the qualified Outer Continental Shelf
revenues generated off the coastlines of all Producing
Coastal States for each fiscal year. Where there is
more than one Producing Coastal State within 200 miles
of a leased tract, the amount of each Producing Coastal
State's allocation for such leased tract shall be
inversely proportional to the distance between the
nearest point on the coastline of such State and the
geographic center of each leased tract or portion of
the leased tract (to the nearest whole mile) that is
within 200 miles of that coastline, as determined by
the Secretary.
(2) Thirty-five percent of each Producing Coastal
State's allocable share as determined under paragraph
(1) shall be paid directly to the coastal political
subdivisions by the Secretary based on the following
formula:
(A) Twenty-five percent shall be allocated
based on the ratio of such coastal political
subdivision's coastal population to the coastal
population of all coastal political
subdivisions in the Producing Coastal State.
(B) Twenty-five percent shall be allocated
based on the ratio of such coastal political
subdivision's coastline miles to the coastline
miles of a coastal political subdivision in the
Producing Coastal State except that for those
coastal political subdivisions in the State of
Louisiana without a coastline, the coastline
for purposes of this element of the formula
shall be the average length of the coastline of
the remaining coastal subdivisions in the
state.
(C) Fifty percent shall be allocated based on
the relative distance of such coastal political
subdivision from any leased tract used to
calculate the Producing Coastal State's
allocation using ratios that are inversely
proportional to the distance between the point
in the coastal political subdivision closest to
the geographic center of each leased tract or
portion, as determined by the Secretary, except
that in the State of Alaska, the funds for this
element of the formula shall be divided equally
among the two closest coastal political
subdivisions. For purposes of the calculations
under this subparagraph, a leased tract or
portion of a leased tract shall be excluded if
the leased tract or portion is located in a
geographic area where a moratorium on new
leasing was in effect on January 1, 2002,
unless the lease was issued prior to the
establishment of the moratorium and was in
production on January 1, 2002.
(3) Any amount allocated to a Producing Coastal State
or coastal political subdivision but not disbursed
because of a failure to have an approved Coastal Impact
Assistance Plan under this section shall be allocated
equally by the Secretary among all other Producing
Coastal States in a manner consistent with this
subsection except that the Secretary shall hold in
escrow such amount until the final resolution of any
appeal regarding the disapproval of a plan submitted
under this section. The Secretary may waive the
provisions of this paragraph and hold a Producing
Coastal State's allocable share in escrow if the
Secretary determines that such State is making a good
faith effort to develop and submit, or update, a
Coastal Impact Assistance Plan.
(4) For purposes of this subsection, calculations of
payments for fiscal years 2004 through 2006 shall be
made using qualified Outer Continental Shelf revenues
received in fiscal year 2003, and calculations of
payments for fiscal years 2007 through 2009 shall be
made using qualified Outer Continental Shelf revenues
received in fiscal year 2006.
(d) Coastal Impact Assistance Plan.--
(1) The Governor of each Producing Coastal State
shall prepare, and submit to the Secretary, a Coastal
Impact Assistance Plan. The Governor shall solicit
local input and shall provide for public participation
in the development of the plan. The plan shall be
submitted to the Secretary by July 1, 2004. Amounts
received by Producing Coastal States and coastal
political subdivisions may be used only for the
purposes specified in the Producing Coastal State's
Coastal Impact Assistance Plan.
(2) The Secretary shall approve a plan under
paragraph (1) prior to disbursement of amounts under
this section. The Secretary shall approve the plan if
the Secretary determines that the plan is consistent
with the uses set forth in subsection (f) of this
section and if the plan contains--
(A) the name of the State agency that will
have the authority to represent and act for the
State in dealing with the Secretary for
purposes of this section;
(B) a program for the implementation of the
plan which describes how the amounts provided
under this section will be used;
(C) a contact for each political subdivision
and description of how coastal political
subdivisions will use amounts provided under
this section, including a certification by the
Governor that such uses are consistent with the
requirements of this section;
(D) certification by the Governor that ample
opportunity has been accorded for public
participation in the development and revision
of the plan; and
(E) measures for taking into account other
relevant Federal resources and programs.
(3) The Secretary shall approve or disapprove each
plan or amendment within 90 days of its submission.
(4) Any amendment to the plan shall be prepared in
accordance with the requirements of this subsection and
shall be submitted to the Secretary for approval or
disapproval.
(e) Authorized Uses.--Producing Coastal States and coastal
political subdivisions shall use amounts provided under this
section, including any such amounts deposited in a State or
coastal political subdivision administered trust fund dedicated
to uses consistent with this subsection, in compliance with
Federal and State law and only for one or more of the following
purposes--
(1) projects and activities for the conservation,
protection or restoration of coastal areas including
wetlands;
(2) mitigating damage to fish, wildlife or natural
resources;
(3) planning assistance and administrative costs of
complying with the provisions of this section;
(4) implementation of Federally approved marine,
coastal, or comprehensive conservation management
plans; and
(5) mitigating impacts of Outer Continental Shelf
activities through funding onshore infrastructure and
public service needs.
(f) Compliance With Authorized Uses.--If the Secretary
determines that any expenditure made by a Producing Coastal
State or coastal political subdivision is not consistent with
the uses authorized in subsection (e) of this section, the
Secretary shall not disburse any further amounts under this
section to that Producing Coastal State or coastal political
subdivision until the amounts used for the inconsistent
expenditure have been repaid or obligated for authorized uses.
* * * * * * *
----------
ATOMIC ENERGY ACT OF 1954
Act of August 1, 1946, chapter 724, as amended by the Act of August 30,
1954, chapter 1073, as amended (42 U.S.C. 2011 et seq.)
CHAPTER 14. GENERAL AUTHORITY
* * * * * * *
Sec. 170. Indemnification and Limitation of Liability.
(b) Amount and Type of Financial Protection for
Licensees.--(1) The amount of primary financial protection
required shall be the amount of liability insurance available
from private sources, except that the Commission may establish
a lesser amount on the basis of criteria set forth in writing,
which it may revise from time to time, taking into
consideration such factors as the following: (A) the cost and
terms of private insurance, (B) the type, size, and location of
the licensed activity and other factors pertaining to the
hazard, and (C) the nature and purpose of the licensed
activity: Provided, That for facilities designed for producing
substantial amounts of electricity and having a rated capacity
of 100,000 electrical kilowatts or more, the amount of primary
financial protection required shall be the maximum amount
available at reasonable cost and on reasonable terms from
private sources (excluding the amount of private liability
insurance available under the industry retrospective rating
plan required in this subsection). Such primary financial
protection may include private insurance, private contractual
indemnities, self-insurance, other proof of financial
responsibility, or a combination of such measures and shall be
subject to such terms and conditions as the Commission may, by
rule, regulation, or order, prescribe. The Commission shall
require licensees that are required to have and maintain
primary financial protection equal to the maximum amount of
liability insurance available from private sources to maintain,
in addition to such primary financial protection, private
liability insurance available under an industry retrospective
rating plan providing for premium charges deferred in whole or
major part until public liability from a nuclear incident
exceeds or appears likely to exceed the level of the primary
financial protection required of the licensee involved in the
nuclear incident: Provided, That such insurance is available
to, and required of, all of the licensees of such facilities
without regard to the manner in which they obtain other types
or amounts of such primary financial protection: And provided
further: That the maximum amount of the standard deferred
premium that may be charged a licensee following any nuclear
incident under such a plan shall not be more than [$63,000,000]
$94,000,000 (subject to adjustment for inflation under
subsection t.), but not more than [$10,000,000 in any 1 year]
$15,000,000 in any 1 year (subject to adjustment for inflation
under subsection t.), for each facility for which such licensee
is required to maintain the maximum amount of primary financial
protection: And provided further, That the amount which may be
charged a licensee following any nuclear incident shall not
exceed the licensee's pro rata share of the aggregate public
liability claims and costs (excluding legal costs subject to
subsection o. (1)(D), payment of which has not been authorized
under such subsection) arising out of the nuclear incident.
Payment of any State premium taxes which may be applicable to
any deferred premium provided for in this Act shall be the
responsibility of the licensee and shall not be included in the
retrospective premium established by the Commission.
* * * * * * *
(5)(A) For purposes of this section only, the Commission
shall consider a combination of facilities described in
subparagraph (B) to be a single facility having a rated
capacity of 100,000 electrical kilowatts or more.
(B) A combination of facilities referred to in subparagraph
(A) is 2 or more facilities located at a single site, each of
which has a rated capacity of not more than 1,300,000
electrical kilowatts.
(c). Indemnification of [Licenses] Licensees by Nuclear
Regulatory Commission.--The Commission shall, with respect to
[licenses issued between August 30, 1954, and December 31,
2003] licenses issued after August 30, 1954, for which it
requires financial protection of less than $560,000,000, agree
to indemnify and hold harmless the licensee and other persons
indemnified, as their interest may appear, from public
liability arising from nuclear incidents which is in excess of
the level of financial protection required of the licensee. The
aggregate indemnity for all persons indemnified in connection
with each nuclear incident shall not exceed $500,000,000,
excluding costs of investigating and settling claims and
defending suits for damage: Provided, however, That this amount
of indemnity shall be reduced by the amount that the financial
protection required shall exceed $60,000,000. Such a contract
of indemnification shall cover public liability arising out of
or in connection with the licensed activity. [With respect to
any production or utilization facility for which a construction
permit is issued between August 30, 1954, and December 31,
2003, the requirements of this subsection shall apply to any
license issued for such facility subsequent to December 31,
2003.]
(d) Indemnification of Contractors by Department of
Energy.--(1)(A) In addition to any other authority the
Secretary of Energy (in this section referred to as the
``Secretary'') may have, the Secretary shall[, until December
31, 2004,] enter into agreements of indemnification under this
subsection with any person who may conduct activities under a
contract with the Department of Energy that involve the risk of
public liability and that are not subject to financial
protection requirements under subsection b. or agreements of
indemnification under subsection c. or k.
* * * * * * *
[(2) In agreements of indemnification entered into under
paragraph (1), the Secretary may require the contractor to
provide and maintain financial protection of such a type and in
such amounts as the Secretary shall determine to be appropriate
to cover public liability arising out of or in connection with
the contractual activity, and shall indemnify the persons
indemnified against such claims above the amount of the
financial protection required, to the full extent of the
aggregate public liability of the persons indemnified for each
nuclear incident, including such legal costs of the contractor
as are approved by the Secretary.
[(3)(A) Notwithstanding paragraph (2), if the maximum
amount of financial protection required of the contractor,
shall at all times remain equal to or greater than the maximum
amount of financial protection required of licensees under
subsection b.
[(B) The amount of indemnity provided contractors under
this subsection shall not, at any time, be reduced in the event
that the maximum amount of financial protection required of
licensees is reduced.
[(C) All agreements of indemnification under which the
Department of Energy (or its predecessor agencies) may be
required to indemnify any person, shall be deemed to be
amended, on the date of the enactment of the Price-Anderson
Amendments Act of 1988, to reflect the amount of indemnity for
public liability and any applicable financial protection
required of the contractor under this subsection on such date.]
(2) In an agreement of indemnification entered into under
paragraph (1), the Secretary--
(A) may require the contractor to provide and
maintain financial protection of such a type and in
such amounts as the Secretary shall determine to be
appropriate to cover public liability arising out of or
in connection with the contractual activity; and
(B) shall indemnify the persons indemnified against
such liability above the amount of the financial
protection required, in the amount of $10,000,000,000
(subject to adjustment for inflation under subsection
t.), in the aggregate, for all persons indemnified in
connection with the contract and for each nuclear
incident, including such legal costs of the contractor
as are approved by the Secretary.
(3) All agreements of indemnification under which the
Department of Energy (or its predecessor agencies) may be
required to indemnify any person under this section shall be
deemed to be amended, on the date of enactment of the Price-
Anderson Amendments Act of 2003, to reflect the amount of
indemnity for public liability and any applicable financial
protection required of the contractor under this subsection.
* * * * * * *
(5) In the case of nuclear incidents occurring outside the
United States, the amount of the indemnity provided by the
Secretary under this subsection shall not exceed [$100,000,000]
$500,000,000.
* * * * * * *
(e) Limitation on Aggregate Public Liability.--(1) The
aggregate public liability for a single nuclear incident of
persons indemnified, including such legal costs as are
authorized to be paid under subsection o. (1)(D), shall not
exceed--
(A) in the case of facilities designed for producing
substantial amounts of electricity and having a rated
capacity of 100,000 electrical kilowatts or more, the
maximum amount of financial protection required of such
facilities under subsection b. (plus any surcharge
assessed under subsection o. (1)(E));
(B) in the case of contractors with whom the
Secretary has entered into an agreement of
indemnification under subsection d., [the maximum
amount of financial protection required under
subsection b. or] the amount of indemnity and financial
protection that may be required under [paragraph (3) of
subsection d., whichever amount is more] paragraph (2)
of subsection d.; and
(C) in the case of all licensees of the Commission
required to maintain financial protection under this
section--
(i) $500,000,000, together with the amount of
financial protection required of the licensee;
or
(ii) if the amount of financial protection
required of the licensee exceeds $60,000,000,
$560,000,000 or the amount of financial
protection required of the licensee, whichever
amount is more.
* * * * * * *
(4) With respect to any nuclear incident occurring outside
of the United States to which an agreement of indemnification
entered into under the provisions of subsection d. is
applicable, such aggregate public liability shall not exceed
the amount of [$100,000,000] $500,000,000, together with the
amount of financial protection required of the contractor.
* * * * * * *
(k) Exemption From Financial Protection Requirement for
Nonprofit Educational Institutions.--With respect to any
license issued pursuant to section 53, 63, 81, 104 a., or 104
c. for the conduct of educational activities to a person found
by the Commission to be a nonprofit educational institution,
the Commission shall exempt such licensee from the financial
protection requirement of subsection a. With respect to
[licenses issued between August 30, 1954, and August 1, 2002]
licenses issued after August 30, 1954, for which the Commission
grants such exemption:
(1) the Commission shall agree to indemnify and hold
harmless the licensee and other persons indemnified, as
their interests may appear, from public liability in
excess of $250,000 arising from nuclear incidents. The
aggregate indemnity for all persons indemnified in
connection with each nuclear incident shall not exceed
$500,000,000, including such legal costs of the
licensee as are approved by the Commission;
(2) such contracts of indemnification shall cover
public liability arising out of or in connection with
the licensed activity; and shall include damage to
property of persons indemnified, except property which
is located at the site of and used in connection with
the activity where the nuclear incident occurs; and
(3) such contracts of indemnification, when entered
into with a licensee having immunity from public
liability because it is a State agency, shall provide
also that the Commission shall make payments under the
contract on account of activities of the licensee in
the same manner and to the same extent as the
Commission would be required to do if the licensee were
not such a State agency.
Any licensee may waive an exemption to which it is entitled
under this subsection. [With respect to any production or
utilization facility for which a construction permit is issued
between August 30, 1954, and August 1, 2002, the requirements
of this subsection shall apply to any license issued for such
facility subsequent to August 1, 2002.]
* * * * * * *
(p) Reports to Congress.--The Commission and the Secretary
shall submit to the Congress by [August 1, 1998] August 1,
2013, detailed reports concerning the need for continuation or
modification of the provisions of this section, taking into
account the condition of the nuclear industry, availability of
private insurance, and the state of knowledge concerning
nuclear safety at that time, among other relevant factors, and
shall include recommendations as to the repeal or modification
of any of the provisions of this section.
* * * * * * *
(t) Inflation Adjustment.--(1) The Commission shall adjust
the amount of the maximum total and annual standard deferred
premium under subsection b. (1) not less than once during each
5-year period following [the date of the enactment of the
Price-Anderson Amendments Act of 1988] July 1, 2003, in
accordance with the aggregate percentage change in the Consumer
Price Index since--
(A) [such date of enactment] July 1, 2003, in the
case of the first adjustment under this subsection; or
(B) the previous adjustment under this subsection.
(2) The Secretary shall adjust the amount of
indemnification provided under an agreement of indemnification
under subsection d. not less than once during each 5-year
period following July 1, 2003, in accordance with the aggregate
percentage change in the Consumer Price Index since--
(A) that date, in the case of the first adjustment
under this paragraph; or
(B) the previous adjustment under this paragraph.
[(2)] (3) For purposes of this subsection, the term
``Consumer Price Index'' means the Consumer Price Index for all
urban consumers published by the Secretary of Labor.
* * * * * * *
Sec. 234A. Civil Monetary Penalties for Violations of
Department of Energy Safety Regulations.--(a) * * *
(b)(1) The Secretary shall have the power to compromise,
modify or remit, with or without conditions, such civil
penalties and to prescribe regulations as he may deem necessary
to implement this section.
(2) In determining the amount of any civil penalty under
this subsection, the Secretary shall take into account the
nature, circumstances, extent, and gravity of the violation or
violations and, with respect to the violator, ability to pay,
effect on ability to continue to do business, any history of
prior such violations, the degree of culpability, and such
other matters as justice may require. [In implementing this
section, the Secretary shall determine by rule whether
nonprofit educational institutions should receive automatic
remission of any penalty under this section.]
* * * * * * *
[(d) The provisions of this section shall not apply to:
[(1) The University of Chicago (and any
subcontractors or suppliers thereto) for activities
associated with Argonne National Laboratory;
[(2) The University of California (and any
subcontractors or suppliers thereto) for activities
associated with Los Alamos National Laboratory,
Lawrence Livermore National Laboratory, and Lawrence
Berkeley National Laboratory;
[(3) American Telephone and Telegraph Company and its
subsidiaries (and any subcontractors or suppliers
thereto) for activities associated with Sandia National
Laboratories;
[(4) Universities Research Association, Inc. (and any
subcontractors or suppliers thereto) for activities
associated with FERMI National Laboratory;
[(5) Princeton University (and any subcontractors or
suppliers thereto) for activities associated with
Princeton Plasma Physics Laboratory;
[(6) The Associated Universities, Inc. (and any
subcontractors or suppliers thereto) for activities
associated with the Brookhaven National Laboratory; and
[(7) Battelle Memorial Institute (and any
subcontractors or suppliers thereto) for activities
associated with Pacific Northwest Laboratory.]
(d)(1) Notwithstanding subsection (a), in the case of any
not-for-profit contractor, subcontractor, or supplier, the
total amount of civil penalties paid under subsection a. may
not exceed the total amount of fees paid within any one-year
period (as determined by the Secretary) under the contract
under which the violation occurs.
(2) For purposes of this section, the term ``not-for-
profit'' means that no part of the net earnings of the
contractor, subcontractor, or supplier inures to the benefit of
any natural person or for-profit artificial person.
----------
SOLID WASTE DISPOSAL ACT
Public Law 89-272, as amended (42 U.S.C. 6901 et seq.)
SHORT TITLE AND TABLE OF CONTENTS
* * * * * * *
Subtitle F--Federal Responsibilities
Sec. 6001. Application of Federal, State, and local law to Federal
facilities.
Sec. 6002. Federal Procurement.
Sec. 6003. Cooperation with Environmental Protection Agency.
Sec. 6004. Applicability of solid waste disposal guidelines to executive
agencies
Sec. 6005. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or concrete.
* * * * * * *
Subtitle F--Federal Responsibilities
* * * * * * *
SEC. 6005. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY
FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR
CONCRETE.
(a) Definitions.-- In this section:
(1) Agency head.--The term ``agency head'' means--
(A) the Secretary of Transportation; and
(B) the head of each other Federal agency
that on a regular basis procures, or provides
Federal funds to pay or assist in paying the
cost of procuring, material for cement or
concrete projects.
(2) Cement or concrete project.--The term ``cement or
concrete project'' means a project for the construction
or maintenance of a highway or other transportation
facility or a Federal, State, or local government
building or other public facility that--
(A) involves the procurement of cement or
concrete; and
(B) is carried out in whole or in part using
Federal funds.
(3) Recovered mineral component.--The term
``recovered mineral component'' means--
(A) ground granulated blast furnace slag;
(B) coal combustion fly ash; and
(C) any other waste material or byproduct
recovered or diverted from solid waste that the
Administrator, in consultation with an agency
head, determines should be treated as recovered
mineral component under this section for use in
cement or concrete projects paid for, in whole
or in part, by the agency head.
(b) Implementation of Requirements.--
(1) In general.--Not later than 1 year after the date
of enactment of this section, the Administrator and
each agency head shall take such actions as are
necessary to implement fully all procurement
requirements and incentives in effect as of the date of
enactment of this section (including guidelines under
section 6002) that provide for the use of cement and
concrete incorporating recovered mineral component in
cement or concrete projects.
(2) Priority.--In carrying out paragraph (1) an
agency head shall give priority to achieving greater
use of recovered mineral component in cement or
concrete projects for which recovered mineral
components historically have not been used or have been
used only minimally.
(3) Conformance.--The Administrator and each agency
head shall carry out this subsection in accordance with
section 6002.
(c) Full Implementation Study.--
(1) In general.--The Administrator, in cooperation
with the Secretary of Transportation and the Secretary
of Energy, shall conduct a study to determine the
extent to which current procurement requirements, when
fully implemented in accordance with subsection (b),
may realize energy savings and environmental benefits
attainable with substitution of recovered mineral
component in cement used in cement or concrete
projects.
(2) Matters to be addressed.--The study shall--
(A) quantify the extent to which recovered
mineral components are being substituted for
Portland cement, particularly as a result of
current procurement requirements, and the
energy savings and environmental benefits
associated with that substitution;
(B) identify all barriers in procurement
requirements to fuller realization of energy
savings and environmental benefits, including
barriers resulting from exceptions from current
law; and
(C)(i) identify potential mechanisms to
achieve greater substitution of recovered
mineral component in types of cement or
concrete projects for which recovered mineral
components historically have not been used or
have been used only minimally;
(ii) evaluate the feasibility of establishing
guidelines or standards for optimized
substitution rates of recovered mineral
component in those cement or concrete projects;
and
(iii) identify any potential environmental or
economic effects that may result from greater
substitution of recovered mineral component in
those cement or concrete projects.
(3) Report.--Not later than 30 months after the date
of enactment of this section, the Administrator shall
submit to the Committee on Appropriations and Committee
on Environment and Public Works of the Senate and the
Committee on Appropriations, Committee on Energy and
Commerce, and Committee on Transportation and
Infrastructure of the House of Representatives a report
on the study.
(d) Additional Procurement Requirements.--Unless the study
conducted under subsection (c) identifies any effects or other
problems described in subsection (c)(2)(C)(iii) that warrant
further review or delay, the Administrator and each agency head
shall, within 1 year of the release of the report in accordance
with subsection (c)(3), take additional actions authorized
under this section to establish procurement requirements and
incentives that provide for the use of cement and concrete with
increased substitution of recovered mineral component in the
construction and maintenance of cement or concrete projects, so
as to--
(1) realize more fully the energy savings and
environmental benefits associated with increased
substitution; and
(2) eliminate barriers identified under subsection
(c).
(e) Effect of Section.--Nothing in this section affects the
requirements of section 6002 (including the guidelines and
specifications for iplementing those requirements).
----------
GEOTHERMAL STEAM ACT OF 1970
Public Law 91-581, as amended (30 U.S.C. 1001 et seq.)
* * * * * * *
Sec. 4. [If lands to be leased under this chapter are
within any known geothermal resources area, they shall be
leased to the highest responsible qualified bidder by
competitive bidding under regulations formulated by the
Secretary. If the lands to be leased are not within any known
geothermal resources area, the qualified person first making
application for the lease shall be entitled to a lease of such
lands without competitive bidding. Notwithstanding the
foregoing, at any time within one hundred and eighty days
following December 24, 1970:
[(a) Conversion to geothermal lease with respect to all
lands which were on September 7, 1965, subject to valid leases
or permits issued under the Mineral Leasing Act of February 25,
1920, as amended (30 U.S.C. 181 et seq.), or under the Mineral
Leasing Act of Acquired Lands, as amended (30 U.S.C. 351, 358),
or to existing mining claims located on or prior to September
7, 1965, the lessees or permittees or claimants or their
successors in interest who are qualified to hold geothermal
leases shall have the right to convert such leases or permits
or claims to geothermal leases covering the same lands;
[(b) Consideration of first person in conflicting land
interests where there are conflicting claims, leases, or
permits therefor embracing the same land, the person who first
was issued a lease or permit, or who first recorded the mining
claim shall be entitled to first consideration;
[(c) Conversion to application for geothermal lease with
respect to all lands which were on September 7, 1965, the
subject of applications for leases or permits under the above
Acts, the applicants may convert their applications
applications for geothermal leases having priorities dating
from the time of filing of such applications under such Acts;
[(d) Acreage limitation no person shall be permitted to
convert mineral leases, permits, applications therefor, or
mining claims for more than 10,240 acres; and
[(e) Regulations; substantial expenditures for exploration,
development, or production of geothermal steam requisite for
conversion the conversion of leases, permits, and mining claims
and applications for leases and permits shall be accomplished
in accordance with regulations prescribed by the Secretary. No
right to conversion to a geothermal lease shall accrue to any
person under this section unless such person shows to the
reasonable satisfaction of the Secretary that substantial
expenditures for the exploration, development, or production of
geothermal steam have been made by the applicant who is seeking
conversion, on the lands for which a lease is sought or on
adjoining, adjacent, or nearby Federal or non-Federal lands.
[(f) Competitive geothermal lease; time for payment of
highest bid and first year rental with respect to lands within
any known geothermal resources area and which are subject to a
right to conversion to a geothermal lease, such lands shall be
leased by competitive bidding: Provided, That, the competitive
geothermal lease shall be issued to the person owning the right
to conversion to a geothermal lease if he makes payment of an
amount equal to the highest bona fide bid for the competitive
geothermal lease, plus the rental for the first year, within
thirty days after he receives written notice from the Secretary
of the amount of the highest bid.]
(a) Nominations.--The Secretary shall accept nominations at
any time from companies and individuals of lands to be leased
under this Act.
(b) Competitive Lease Sale Required.--The Secretary shall
hold a competitive lease sale at least once every 2 years for
lands in a State in which there are nominations pending under
subsection (a) where such lands are otherwise available for
leasing.
(c) Noncompetitive Leasing.--The Secretary shall make
available for a period of 2 years for noncompetitive leasing
any tract for which a competitive lease sale is held, but for
which the Secretary does not receive any bids in the
competitive lease sale.
* * * * * * *
Sec. 5 * * *
(c) If there is no well on the leased lands capable of
producing geothermal resources in commercial quantities, the
failure to pay rental on or before the anniversary date shall
terminate the lease by operation of law: Provided, however,
That whenever the Secretary discovers that the rental payment
due under a lease is paid timely but the amount of the payment
is deficient because of an error or other reason and the
deficiency is nominal, as determined by the Secretary pursuant
to regulations prescribed by him, he shall notify the lessee of
the deficiency and such lease shall not automatically tenninate
unless the lessee fails to pay the deficiency within the period
prescribed in the notice: Provided further, That, where any
lease has been terminated automatically by operation of law
under this section for failure to pay rental timely and it is
shown to the satisfaction of the Secretary of the Interior that
the failure to pay timely the lease rental was justifiable or
not due to a lack of reasonable diligence or was inadvertent,
he in his judgment may reinstate the lease if--
(1) a petition for reinstatement, together with the
required rental, is filed with the Secretary of the
Interior; and
(2) no valid lease has been issued affecting any of
the lands in the terminated lease prior to the filing
of the petition for reinstatement; and * * *
---------- --
--------
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
Public Law 93-383, as amended (42 U.S.C. 5301 et seq.)
* * * * * * *
Sec. 105.(a) * * *
(8) provision of public services, including but not
limited to those concerned with employment, crime
prevention, child care, health, drug abuse, education,
energy conservation or efficiency, welfare or
recreation needs, if such services have not been
provided by the unit of general local government
(through funds raised by such unit, or received by such
unit from the State in which it is located) during any
part of the twelve month period immediately preceding
the date of submission of the statement with respect to
which funds are to be made available under this title,
and which are to be used for such services, unless the
Secretary finds that the discontinuation of such
services was the result of events not within the
control of the unit of general local government, except
that not more than 15 per centum of the amount of any
assistance to a unit of general local government (or in
the case of nonentitled communities not more than 15
per centum statewide) under this title including
program income may be used for activities under this
paragraph unless such unit of general local government
used more than 15 percent of the assistance received
under this title for fiscal year 1982 or fiscal year
1983 for such activities (excluding any assistance
received pursuant to Public Law 98-8), in which case
such unit of general local government may use not more
than the percentage or amount of such assistance used
for such activities for such fiscal year, whichever
method of calculation yields the higher amount, except
that of any amount of assistance under this title
(including program income) in each of fiscal years 1993
through 2003 to the City of Los Angeles and County of
Los Angeles, each such unit of general government may
use not more than 25 percent in each such fiscal year
for activities under this paragraph, [and except that]
;except that of any amount of assistance under this
title (including program income) in each of fiscal
years 1999, 2000, and 2001, to the City of Miami, such
city may use not more than 25 percent in each fiscal
year for activities under this paragraph; and except
that each percentage limitation under this paragraph on
the amount of assistance provided under this title that
may be used for the provision of public services is
hereby increased by 10 percent, but such percentage
increase may be used only for the provision of public
services concerning energy conservation or efficiency.
* * * * * * *
---------- --
--------
ENERGY POLICY AND CONSERVATION ACT
Public Law 94-163, as amended (42 U.S.C. 6201 et seq.)
TABLE OF CONTENTS
Sec. 2. Statements of purposes.
Sec. 3. Definitions.
TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY
* * * * *
PART D--[EXPIRATION] NORTHEAST HOME HEATING OIL RESERVE
Sec. 181. [Expiration] Establishment.
Sec. 182. Authority.
Sec. 183. Conditions for release; plan.
Sec. 184. Northeast Home Heating Oil Reserve Account
Sec. 185. Exemptions.
TITLE II--STANDBY ENERGY AUTHORITIES
* * * * *
[PART C--ENERGY EMERGENCY PREPAREDNESS
Sec. 271. Congressional findings, policy, and purpose.
Sec. 272. Preparation for petroleum supply interruptions.
Sec. 273. Summer fill and fuel budgeting programs.
PART D--EXPIRATION
Sec. 281. Expiration]
PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS
Sec. 273. Summer fill and fuel budgeting programs.
TITLE III--IMPROVING ENERGY EFFICIENCY
PART B--ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS OTHER THAN
AUTOMOBILES
* * * * *
Sec. 324. Labeling.
Sec. 324A. Energy Star program.
Sec. 325 Energy conservation standards
TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY
* * * * * * *
PART B--STRATEGIC PETROLEUM RESERVE
* * * * * * *
[AUTHORIZATION OF APPROPRIATIONS
Sec. 166. There are authorized to be appropriated for
fiscal year 2000 such sums as may be necessary to implement
this part, to remain available only through March 31, 2000.]
AUTHORIZATION OF APPROPRIATIONS
Sec. 166. There are authorized to be appropriated to the
Secretary such sums as may be necessary to carry out this part
and part D, to remain available until expended.
* * * * * * *
CONDITIONS FOR RELEASE; PLAN
Sec. 183. * * *
(b) Definition.--For purposes of this section a
``dislocation in the heating oil market'' shall be deemed to
occur only when--
(1) The price differential between crude oil, as
reflected in an industry daily publication such as
``Platt's Oilgram Price Report'' or ``Oil Daily'' and
No. 2 heating oil, as reported in the Energy
Information Administration's retail price data for the
Northeast, increases [by more tan 60 percent over its 5
year rolling average for the months of mid-October
through March] by more than 60 percent over its 5-year
rolling average for the months of mid-October through
March (considered as a heating season average), and
continues for 7 consecutive days; and
(2) The price differential continues to increase
during the most recent week for which price information
is available.
* * * * * * *
[AUTHORIZATION OF APPROPRIATIONS
[Sec. 186. There are authorized to be appropriated for
fiscal year 2001, 2002, and 2003 such sums as may be necessary
to implement this part.
[PART E--EXPIRATION
[EXPIRATION
[Sec. 191. Except as otherwise provided in title I, all
authority under any provision of title I (other than a
provision of such title amending another law) and any rule,
regulation, or order issued pursuant to such authority, shall
expire at midnight, September 30, 2008, but such expiration
shall not affect any action or pending proceedings, civil or
criminal, not finally determined on such date, nor any action
or proceeding based upon any act committed prior to midnight,
September 30, 2008.]
* * * * * * *
TITLE II--STANDBY ENERGY AUTHORITIES
PART B--AUTHORITIES WITH RESPECT TO INTERNATIONAL ENERGY PROGRAM
* * * * * * *
DOMESTIC RENEWABLE ENERGY INDUSTRY AND RELATED SERVICE INDUSTRIES
Sec. 256. * * *
[(h) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for purposes of carrying
out the programs under subsections (d) and (e) $10,000,000, to
be divided equitably between the interagency working subgroups
based on program requirements, for each of the fiscals years
1993 and 1994, and such sums as may be necessary for fiscal
year 1995 to carry out the purposes of this subtitle. There are
authorized to be appropriated for fiscal year 1997 such sums as
may be necessary to carry out this part. There are authorized
to be appropriated for fiscal years 2000 through 2003, such
sums as maybe necessary.]
(g) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to implement
this part, to remain available until expended.
PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS
SEC. 273. SUMMER FILL AND FUEL BUDGETING PROGRAMS.
(a) * * *
[(e) Inapplicability of Expiring Provisions.--Section 281
does not apply to this section.
[PART D--EXPIRATION
[Sec. 281. Except as otherwise provided in title 11, all
authority under any provision of title II (other than a
provision of such title amending another law) and any rule,
regulation, or order issued pursuant to such authority, shall
expire at midnight, September 30, 2008, but such expiration
shall not affect any action or pending proceedings, civil or
criminal, not finally determined on such date, nor any action
or proceeding based upon any act committed prior to midnight,
September 30, 2008.]
* * * * * * *
TITLE III--IMPROVING ENERGY EFFICIENCY
* * * * * * *
Sec. 321. For the purposes of this part:
* * * * * * *
(30)(S) The term ``medium base compact fluorescent lamp''
means an integrally ballasted fluorescent lamp with a medium
screw base and a rated input voltage of 115 to 130 volts and
which is designed as a direct replacement for a general
services incandescent lamp[.] but does not include any lamps
specifically designed to be used for special purpose
applications, and also does not include any lamp not described
in subparagraph (D) that is excluded by the Secretary, by rule.
* * * * * * *
(32) The term ``battery charger'' means a device that
charges batteries for consumer products.
(33) The term ``commercial refrigerator, freezer and
refrigerator-freezer'' means a refrigerator, freezer or
refrigerator freezer that--
(A) is not a consumer product regulated under this
Act; and
(B) incorporates most components involved in the
vapor-compression cycle and the refrigerated
compartment in a single package.
(34) The term ``external power supply'' means an external
power supply circuit that is used to convert household electric
current into either DC current or lower-voltage AC current to
operate a consumer product.
(35) The term ``illuminated exit sign'' means a sign that--
(A) is designed to be permanently fixed in place to
identify an exit; and
(B) consists of an electrically powered integral
light source that illuminates the legend ``EXIT'' and
any directional indicators and provides contrast
between the legend, any directional indicators, and the
background.
(36)(A) Except as provided in subparagraph (B), the term
``low-voltage dry-type transformer'' means a transformer that--
(i) has an input voltage of 600 volts or less;
(ii) is air-cooled;
(iii) does not use oil as a coolant; and
(iv) is rated for operation at a frequency of 60
Hertz.
(B) The term ``low-voltage dry-type transformer'' does not
include
(i) transformers with multiple voltage taps, with the
highest voltage tap equaling at least 20 percent more
than the lowest voltage tap;
(ii) transformers, such as those commonly known as
drive transformers, rectifier transformers, auto-
transformers, Uninterruptible Power System
transformers, impedance transformers, harmonic
transformers, regulating transformers, sealed and
nonventilating transformers, machine tool transformers,
welding transformers, grounding transformers, or
testing transformers, that are designed to be used in a
special purpose application and are unlikely to be used
in general purpose applications; or
(iii) any transformer not listed in clause (ii) that
is excluded by the Secretary by rule because the
transformer is designed for a special application and
the application of standards to the transformer would
not result in significant energy savings.
(37)(A) Except as provided in subsection (B), the term
``distribution transformer'' means a transformer that--
(i) has an input voltage of 34.5 kilovolts or less;
(ii) has an output voltage of 600 volts or less; and
(iii) is rated for operation at a frequency of 60
Hertz.
(B) The term ``distribution transformer'' does not
include--
(i) transformers with multiple voltage taps, with the
highest voltage tap equaling at least 15 percent more
than the lowest voltage tap;
(ii) transformers, such as those commonly known as
drive transformers, rectifier transformers,
autotransformers, Uninterruptible Power System
transformers, impedance transformers, harmonic
transformers, regulating transformers, sealed and
nonventilating transformers, machine tool transformers,
welding transformers, grounding transformers, or
testing transformers, that are designed to be used in a
special purpose application, and are unlikely to be
used in general purpose applications; or
(iii) any transformer not listed in clause (ii) that
is excluded by the Secretary by rule because the
transformer is designed for a special application, is
unlikely to be used in general purpose applications,
and the application of standards to the transformer
would not result in significant energy savings.
(38) The term ``standby mode'' means the lowest amount of
electric power used by a household appliance when not
performing its active functions, as defined on an individual
product basis by the Secretary.
(39) The term ``torchiere `` means a portable electric lamp
with a reflector bowl that directs light upward so as to give
indirect illumination.
(40) The term ``transformer'' means a device consisting of
two or more coils of insulated wire that transfers alternating
current by electromagnetic induction from one coil to another
to change the original voltage or current value.
(41) The term ``unit heater'' means a self-contained fan-
type heater designed to be installed within the heated space,
except that such term does not include a warm air furnace.
(42) The term ``traffic signal module'' means a standard 8-
inch (200mm) or 12-inch (300mm) traffic signal indication,
consisting of a light source, a lens, and all other parts
necessary for operation, that communicates movement messages to
drivers through red, amber, and green colors.
* * * * * * *
Sec. 323.
(b) Amended and New Procedures.--
* * * * * * *
(9) Test procedures for illuminated exit signs shall be
based on the test method used under Version 2. 0 of the Energy
Star program of the Environmental Protection Agency for
illuminated exit signs.
(10) Test procedures for low voltage dry-type distribution
transformers shall be based on the `Standard Test Method for
Measuring the Energy Consumption of Distribution Transformers'
prescribed by the National Electrical Manufacturers Association
(NEMA TP 2-1998). The Secretary may review and revise this test
procedure.
(11) Test procedures for traffic signal modules shall be
based on the test method used under the Energy Star program of
the Environmental Protection Agency for traffic signal modules,
as in effect on the date of enactment of this paragraph.
(12) Test procedures for medium base compact fluorescent
lamps shall be based on the test methods used under the August
9, 2001 version of the Energy Star program of the Environmental
Protection Agency and Department of Energy for compact
fluorescent lamps. Covered products shall meet all test
requirements for regulated parameters in section 325(bb).
However, covered products may be marketed prior to completion
of lamp life and lumen maintenance at 40% of rated life testing
provided manufacturers document engineering predictions and
analysis that support expected attainment of lumen maintenance
at 40% rated life and lamp life time.
* * * * * * *
(f) Additional Consumer and Commercial Products.--The
Secretary shall within 24 months after the date of enactment of
this subsection prescribe testing requirements for suspended
ceiling fans, refrigerated bottled or canned beverage vending
machines, and commercial refrigerators, freezers and
refrigerator-freezers. Such testing requirements shall be based
on existing test procedures used in industry to the extent
practical and reasonable. In the case of 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.
* * * * * * *
Sec. 324. (a) In General.--
(2)(F) Not later than 3 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 labeling rules that would improve the effectiveness
of consumer product labels. Such rulemaking shall be
completed within 2 years after the date of enactment of
this subparagraph.
* * * * * * *
(5) The Secretary or the Commission, as appropriate,
may for covered products referred to in subsections (u)
through (aa) of section 325, prescribe, by rule,
pursuant to this section, labeling requirements for
such products after a test procedure has been set
pursuant to section 323. In the case of products to
which TP-1 standards under section 325(y) apply,
labeling requirements shall be based on the ``Standard
for the Labeling of Distribution Transformer
Efficiency'' prescribed by the National Electrical
Manufacturers Association (NEMA TP-3) as in effect upon
the date of enactment of this Act.
* * * * * * *
SEC. 324A. ENERGY STAR PROGRAM.
There is established at the Department of Energy and the
Environmental Protection Agency a voluntary program to identify
and promote energy-efficient products and buildings in order to
reduce energy consumption, improve energy security, and reduce
pollution through voluntary labeling of or other forms of
communication about 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, including special outreach to small
businesses;
(3) preserve the integrity of the Energy Star label;
(4) solicit the comments of interested parties in
establishing a new Energy Star product category,
specifications, or criteria, or in revising a product
category, and upon adoption of a new or revised product
category, specifications, or criteria, publish a notice
of any changes in product categories, specifications or
criteria along with an explanation of such changes,
and, where appropriate, responses to comments submitted
by interested parties; and
(5) unless waived or reduced by mutual agreement
between the Administrator, the Secretary, and the
affected parties, provide not less than 12 months lead
time prior to implementation of changes in product
categories, specifications, or criteria as may be
adopted pursuant to this section.
* * * * * * *
Sec. 325. * * *
(u) Standby Mode Electric Energy Consumption.--
(1) Initial rulemaking.--
(A) The Secretary shall, within 18 months
after the date of enactment of this subsection,
prescribe by notice and comment, definitions of
standby mode and test procedures for the
standby mode power use of battery chargers and
external power supplies. In establishing these
test procedures, the Secretary shall consider,
among other factors, existing test procedures
used for measuring energy consumption in
standby mode and assess the current and
projected future market for battery chargers
and external power supplies. This assessment
shall include estimates of the significance of
potential energy savings from technical
improvements to these products and suggested
product classes for standards. Prior to the end
of this time period, the Secretary shall hold a
scoping workshop to discuss and receive
comments on plans for developing energy
conservation standards for standby mode energy
use for these products.
(B) The Secretary shall, within 3 years after
the date of enactment of this subsection, issue
a final rule that determines whether energy
conservation standards shall be promulgated for
battery chargers and external power supplies or
classes thereof. For each product class, any
such standards shall be set at the lowest level
of standby energy use that--
(i) meets the criteria of subsections
(o), (p), (q), (r), (s) and (t); and
(ii) will result in significant
overall annual energy savings,
considering both standby mode and other
operating modes.
(2) Designation of additional covered products.--
(A) Not later than 180 days after the date of
enactment of this subsection, the Secretary
shall publish for public comment and public
hearing a notice to determine whether any non-
covered products should be designated as
covered products for the purpose of instituting
a rulemaking under this section to determine
whether an energy conservation standard
restricting standby mode energy consumption,
should be promulgated; except that any
restriction on standby mode energy consumption
shall be limited to major sources of such
consumption.
(B) In making the determinations pursuant to
subparagraph (A) of whether to designate new
covered products and institute rulemakings, the
Secretary shall, among other relevant factors
and in addition to the criteria in section
322(b), consider--
(i) standby mode power consumption
compared to overall product energy
consumption; and
(ii) the priority and energy savings
potential of standards which may be
promulgated under this subsection
compared to other required rulemakings
under this section and the available
resources of the Department to conduct
such rulemakings.
(C) Not later than 1 year after the date of
enactment of this subsection, the Secretary
shall issue a determination of any new covered
products for which he intends to institute
rulemakings on standby mode pursuant to this
section and he shall state the dates by which
he intends to initiate those rulemakings.
(3) Review of standby energy use in covered
products.--In determining pursuant to section 323
whether test procedures and energy conservation
standards pursuant to this section should be revised,
the Secretary shall consider for covered products which
are major sources of standby mode energy consumption
whether to incorporate standby mode into such test
procedures and energy conservation standards, taking
into account, among other relevant factors, the
criteria for non-covered products in subparagraph (B)
of paragraph (2) of this subsection.
(4) Rulemaking.--
(A) Any rulemaking instituted under this
subsection or for covered products under this
section which restricts standby mode power
consumption shall be subject to the criteria
and procedures for issuing energy conservation
standards set forth in this section and the
criteria set forth in subparagraph (B) of
paragraph (2) of this subsection.
(B) No standard can be proposed for new
covered products or covered products in a
standby mode unless the Secretary has
promulgated applicable test procedures for each
product pursuant to section 323.
(C) The provisions of section 327 shall apply
to new covered products which are subject to
the rulemakings for standby mode after a final
rule has been issued.
(5) Effective date.--Any standard promulgated under
this subsection shall be applicable to products
manufactured or imported 3 years after the date of
promulgation.
(6) Voluntary programs.--The Secretary and the
Administrator shall collaborate and develop programs,
including programs pursuant to section 324A (relating
to Energy Star Programs) and other voluntary industry
agreements or codes of conduct, which are designed to
reduce standby mode energy use.
(v) Suspended Ceiling Fans, Vending Machines, and
Commercial Refrigerators, Freezers and Refrigerator-Freezers.--
The Secretary shall within 36 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 suspended ceiling fans, refrigerated bottled or
canned beverage vending machines, and commercial refrigerators,
freezers and refrigerator-freezers. In establishing standards
under this subsection, the Secretary shall use the criteria and
procedures contained in subsections (l) and (m). Any standard
prescribed under this subsection shall apply to products
manufactured 3 years after the date of publication of a final
rule establishing such standard.
(w) Illuminated Exit Signs.--Illuminated exit signs
manufactured on or after January 1, 2005 shall meet the Version
2.0 Energy Star Program performance requirements for
illuminated exit signs prescribed by the Environmental
Protection Agency.
(x) Torchieres.--Torchieres manufactured on or after
January 1, 2005--
(1) shall consume not more than 190 watts of power;
and
(2) shall not be capable of operating with lamps that
total more than 190 watts.
(y) Distribution Transformers.--The efficiency of low
voltage dry-type transformers manufactured on or after January
1, 2005 shall be the Class I Efficiency Levels for distribution
transformers specified in Table 4-2 of the ``Guide for
Determining Energy Efficiency for Distribution Transformers''
published by the National Electrical Manufacturers Association
(NEMA TP-1-2002).
(z) Traffic Signal Modules.--Traffic signal modules
manufactured on or after January 1, 2006 shall meet the
performance requirements used under the Energy Star program of
the Environmental Protection Agency for traffic signals, as in
effect on the date of enactment of this paragraph, and shall be
installed with compatible, electrically-connected signal
control interface devices and conflict monitoring systems.
(aa) Unit Heaters.--Unit heaters manufactured on or after
the date that is three years after the date of enactment of the
Clean and Secure Energy Act shall be equipped with an
intermittent ignition device and shall have either power
venting or an automatic flue damper.
(bb) Medium Base Compact Fluorescent Lamps.--Bare lamp and
covered lamp (no reflector) medium base compact fluorescent
lamps manufactured on or after January 1, 2005 shall meet the
following requirements prescribed by the August 9, 2001 version
of the Energy Star Program Requirements for CFLs, Energy Star
Eligibility Criteria, Energy-Efficiency Specification issued by
the Environmental Protection Agency and Department of Energy:
minimum initial efficacy; lumen maintenance at 1000 hours;
lumen maintenance at 40% of rated life; rapid cycle stress
test; and lamp life. The Secretary may, by rule, establish
requirements for color quality (CRI); power factor; operating
frequency; and maximum allowable start time based on the
requirements prescribed by the August 9, 2001 version of the
Energy Star Program Requirements for CFLs. The Secretary may,
by rule, revise these requirements or establish other
requirements considering energy savings, cost effectiveness,
and consumer satisfaction.
(cc) Effective Date.--The provisions of section 327 shall
apply--
(1) to products for which standards are to be set
pursuant to subsection (v) of this section on the date
on which a final rule is issued by the Department of
Energy, except that any state or local standards
prescribed or enacted for any such product prior to the
date on which such final rule is issued shall not be
preempted until the standard set pursuant to subsection
(v) for that product takes effect; and
(2) to products for which standards are set in
subsections (w) through (bb) of this section on the
date of enactment of the Clean and Secure Energy Act,
except that any state or local standards prescribed or
enacted prior to the date of enactment of the Clean and
Secure Energy Act shall not be preempted until the
standards set in subsections (w) through (bb) take
effect.
* * * * * * *
Sec. 337 * * *
(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, carry out
a program to educate homeowners and small business owners
concerning the energy savings resulting from properly conducted
maintenance of air conditioning, heating, and ventilating
systems. The Secretary shall carry out the program in a cost-
shared manner in cooperation with the Administrator of the
Environmental Protection Agency and such other entities as the
Secretary considers appropriate, including industry trade
associations, industry members, and energy efficiency
organizations.
(d) Small Business Education and Assistance.--The
Administrator of the Small Business Administration, in
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, shall develop and
coordinate a Government-wide program, building on the existing
Energy Star for Small Business Program, to assist small
business to become more energy efficient, understand the cost
savings obtainable through efficiencies, and identify financing
options for energy efficiency upgrades. The Secretary and the
Administrator shall make the program information available
directly to small businesses and through other Federal
agencies, including the Federal Emergency Management Program,
and the Department of Agriculture.
* * * * * * *
PART J--ENCOURAGING THE USE OF ALTERNATIVE FUELS
SEC. 400AA. ALTERNATIVE FUEL USE BY LIGHT DUTY FEDERAL VEHICLES.
(a) Department of Energy Program.--(1) * * *
(3)(A) * * *
[(E) Dual fueled vehicles acquired pursuant to this section
shall be operated on alternative fuels unless the Secretary
determines that operation on such alternative fuels is not
feasible.]
(E)(i) Dual fueled vehicles acquired pursuant to this
section shall be operated on alternative fuels unless the
Secretary determines that an agency qualifies for a waiver of
such requirement for vehicles operated by the agency in a
particular geographic area where--
``(I) the alternative fuel otherwise required to be
used in the vehicle is not reasonably available to
retail purchasers of the fuel, as certified to the
Secretary by the head of the agency; or
``(II) the cost of the alternative fuel otherwise
required to be used in the vehicle is unreasonably more
expensive compared to gasoline, as certified to the
Secretary by the head of the agency.
``(ii) The Secretary shall monitor compliance with this
subparagraph by all such fleets and shall report annually to
the Congress on the extent to which the requirements of this
subparagraph are being achieved. The report shall include
information on annual reductions achieved from the use of
petroleum-based fuels and the problems, if any, encountered in
acquiring alternative fuels.
----------
ENERGY CONSERVATION AND PRODUCTION ACT
Public Law 94-385, as amended (42 U.S.C. 6801 et seq.)
SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.
(a)(1) * * *
(2) The standards established under paragraph (1) shall--
(A) contain energy saving and renewable energy
specifications that meet or exce ed the energy saving
and renewable energy specifications of [CABO Model
Energy Code, 1992] the 2000 International Energy
Conservation Code (in the case of residential
buildings) or ASHRAE Standard 90.1-1989 (in the case of
commercial buildings);
(3) Revised federal building energy efficiency performance
standards.--
(A) In general.--Not later than 1 year after the date
of enactment of this paragraph, the Secretary of Energy
shall establish, by rule, revised Federal building
energy efficiency performance standards that require
that, if cost effective, for new Federal buildings--
(i) such buildings be designed so as to
achieve energy consumption levels at least 30
percent below those of the most recent version
of the International Energy Conservation Code,
as appropriate; and
(ii) sustainable design principles are
applied to the siting, design, and construction
of all new and replacement buildings.
(B) Additional revisions.--Not later than 1 year after
the date of approval of amendments to ASHRAE Standard
90.1 or the 2000 International Energy Conservation
Code, the Secretary of Energy shall determine, based on
the cost-effectiveness of the requirements under the
amendments, whether the revised standards established
under this paragraph should be updated to reflect the
amendments.
(C) Statement on Compliance of New Buildings.--In the
budget request of the Federal agency for each fiscal
year and each report submitted by the Federal agency
under section 548(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8258(a)), the head
of each Federal agency shall include--
(i) a list of all new Federal buildings
owned, operated, or controlled by the Federal
agency; and
(ii) a statement concerning whether the
Federal buildings meet or exceed the revised
standards established under this paragraph.
* * * * * * *
----------
ALASKA NATURAL GAS TRANSPORTATION ACT OF 1976
Public Law 94-586, as amended (15 U.S.C. 719 et seq.)
* * * * * * *
JUDICIAL REVIEW
Sec. 10. * * *
(c)(1) A claim under subsection (b) shall be barred unless
a complaint is filed prior to the expiration of such time
limits in the United States Court of Appeals for the District
of Columbia acting as a Special Court. Such court shall have
exclusive jurisdiction to determine such proceeding in
accordance with the procedures hereinafter provided, and no
other court of the United States, of any State, territory, or
possession of the United States, or of the District of
Columbia, shall have jurisdiction of any such claim in any
proceeding instituted prior to or on or after the date of
enactment of this Act.
(2) The United States Court of Appeals for the District of
Columbia Circuit shall set any action brought under this
section for expedited consideration, taking into account the
national interest described in section 2.
* * * * * * *
----------
DEPARTMENT OF ENERGY ORGANIZATION ACT
Public Law 95-91, as amended (42 U.S.C. 7101 et seq.)
TABLE OF CONTENTS
* * * * * * *
TITLE II--ESTABLISHMENT OF THE DEPARTMENT
Sec. 201. Establishment.
Sec. 202. Principal officers.
Sec. 203. Assistant Secretaries.
Sec. 204. Federal Energy Regulatory Commission.
Sec. 205. Energy Information Administration.
Sec. 206. Economic Regulatory Administration.
Sec. 207. Comptroller General functions.
Sec. 208. [Repealed].
[Section 209] Sec. 209. Office of Science.
Sec. 210. Leasing Liaison Committee.
Sec. 211. Office of Minority Economic Impact.
[Sec. 212. Repealed P.L. 106-65, Sec. 3294(d)(1), Oct. 5, 1999, 113
Stat. 970]
[213] Sec. 213. Establishment of policy for National Nuclear Security
Administration.
[214.] Sec. 214. Establishment of security, counterintelligence, and
intelligence policies.
[215.] Sec. 215. Office of Counterintelligence.
[216.] Sec. 216. Office of Intelligence.
Sec. 217. Office of Indian Energy Policy and Programs.
Sec. 218. Comprehensive Indian Energy Activities.
218. Office of Electric Transmission and Distribution.
* * * * * * *
TITLE II--ESTABLISHMENT OF THE DEPARTMENT
* * * * * * *
PRINCIPAL OFFICERS
Sec. 202. (a) There shall be in the Department a Deputy
Secretary, who shall be appointed by the President, by and with
the advice and consent of the Senate, and who shall be
compensated at the rate provided for level II of the Executive
Schedule under section 5313 of title 5. The Deputy Secretary
shall act for and exercise the functions of the Secretary
during the absence or disability of the Secretary or in the
event the office of Secretary becomes vacant. The Secretary
shall designate the order in which the Under Secretary and
other officials shall act for and perform the functions of the
Secretary during the absence or disability of both the
Secretary and Deputy Secretary or in the event of vacancies in
both of those offices.
[(b) There shall be in the Department an Under Secretary
and a General Counsel, who shall be appointed by the President,
by and with the advice and consent of the Senate, and who shall
perform such functions and duties as the Secretary shall
prescribe. The Under Secretary shall bear primary
responsibility for energy conservation. The Under Secretary
shall be compensated at the rate provided for level III of the
Executive Schedule under section 5314 of title 5, and the
General Counsel shall be compensated at the rate provided for
level IV of the Executive Schedule under section 5315 of title
5, United States Code.] (b)(1) There shall be in the Department
an Under Secretary for Energy and Science, who shall be
appointed by the President, by and with the advice and consent
of the Senate. The Under Secretary shall be compensated at the
rate provided for at level III of the Executive Schedule under
section 5314 of title 5, United States Code.
(2) The Under Secretary for Energy and Science shall be
appointed from among persons who--
(A) have extensive background in scientific or
engineering fields; and
(B) are well qualified to manage the civilian
research and development programs of the Department of
Energy.
(3) The Under Secretary for Energy and Science shall--
(A) serve as the Science and Technology Advisor to
the Secretary;
(B) monitor the Department's research and development
programs in order to advise the Secretary with respect
to any undesirable duplication or gaps in such
programs;
(C) advise the Secretary with respect to the well-
being and management of the multipurpose laboratories
under the jurisdiction of the Department;
(D) advise the Secretary with respect to education
and training activities required for effective short-
and long-term basic and applied research activities of
the Department;
(E) advise the Secretary with respect to grants and
other forms of financial assistance required for
effective short- and long-term basic and applied
research activities of the Department; and
(F) exercise authority and responsibility over
Assistant Secretaries carrying out energy research and
development and energy technology functions under
sections 203 and 209, as well as other elements of the
Department assigned by the Secretary.
(c)(1) There shall be in the Department an Under Secretary
for Nuclear Security, who shall be appointed by the President,
by and with the advice and consent of the Senate. The Under
Secretary shall be compensated at the rate provided for at
level III of the Executive Schedule under section 5314 of title
5.
(2) The Under Secretary for Nuclear Security shall be
appointed from among persons who--
(A) have extensive background in national security,
organizational management, and appropriate technical
fields; and
(B) are well qualified to manage the nuclear weapons,
nonproliferation, and materials disposition programs of
the National Nuclear Security Administration in a
manner that advances and protects the national security
of the United States.
(3) The Under Secretary for Nuclear Security shall serve as
the Administrator for Nuclear Security under section 2402 of
title 50. In carrying out the functions of the Administrator,
the Under Secretary shall be subject to the authority,
direction, and control of the Secretary. Such authority,
direction, and control may be delegated only to the Deputy
Secretary of Energy, without redelegation.
(d) There shall be in the Department an Under Secretary,
who shall be appointed by the President, by and with the advice
and consent of the Senate, and who shall perform such functions
and duties as the Secretary shall prescribe, consistent with
this section. The Under Secretary shall be compensated at the
rate provided for level III of the Executive Schedule under
section 5314 of title 5, United States Code.
(e) There shall be in the Department a General Counsel, who
shall be appointed by the President, by and with the advice and
consent of the Senate, and who shall perform such functions and
duties as the Secretary shall prescribe. The General Counsel
shall be compensated at the rate provided for level IV of the
Executive Schedule under section 5315 of title 5, United States
Code.
* * * * * * *
ASSISTANT SECRETARIES
Sec. 203 (a) [There shall be in the Department six
Assistant Secretaries] Except as provided in section 209, there
shall be in the Department seven Assistant Secretaries, each of
whom shall be appointed by the President, by and with the
advice and consent of the Senate; who shall be compensated at
the rate provided for at level IV of the Executive Schedule
under section 5315 of title 5; and who shall perform, in
accordance with applicable law, such of the functions
transferred or delegated to, or vested in, the Secretary as he
shall prescribe in accordance with the provisions of this
chapter. The functions which the Secretary shall assign to the
Assistant Secretaries include, but are not limited to, the
following:
* * * * * * *
[OFFICE OF SCIENCE
[Sec. 209. (a) There shall be within the Department an
Office of Science to be headed by a Director, who shall be
appointed by the President, by and with the advice and consent
of the Senate, and who shall be compensated at the rate
provided for level IV of the Executive Schedule under section
5315 of title 5, United States Code.
[(b) It shall be the duty and responsibility of the
Director--
[(1) to advise the Secretary with respect to the
physical research program transferred to the Department
from the Energy Research and Development
Administration;
[(2) to monitor the Department's energy research and
development programs in order to advise the Secretary
with respect to any undesirable duplication or gaps in
such programs;
[(3) to advise the Secretary with respect to the
well-being and management of the multipurpose
laboratories under the jurisdiction of the Department,
excluding laboratories that constitute part of the
nuclear weapons complex;
[(4) to advise the Secretary with respect to
education and training activities required for
effective short- and long-term basic and applied
research activities of the Department;
[(5) to advise the Secretary with respect to grants
and other forms of financial assistance required for
effective short- and long-term basic and applied
research activities of the Department; and
[(6) to carry out such additional duties assigned to
the Office by the Secretary relating to basic and
applied research, including but not limited to
supervision or support of research activities carried
out by any of the Assistant Secretaries designated by
section 203 of this Act, as the Secretary considers
advantageous.]
OFFICE OF SCIENCE
Sec. 209. (a) There shall be within the Department an
Office of Science, to be headed by an Assistant Secretary for
Science, who shall be appointed by the President, by and with
the advice and consent of the Senate, and who shall be
compensated at the rate provided for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
(b) The Assistant Secretary for Science shall be in
addition to the Assistant Secretaries provided for under
section 203 of this Act.
(c) It shall be the duty and responsibility of the
Assistant Secretary for Science to carry out the fundamental
science and engineering research functions of the Department,
including the responsibility for policy and management of such
research, as well as other functions vested in the Secretary
which he may assign to the Assistant Secretary.
* * * * * * *
OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS
Sec. 217. (a) Establishment.--There is established within
the Department an Office of Indian Energy Policy and Programs
(referred to in this section as the ``Office''. The Office
shall be headed by a Director, who shall be appointed by the
Secretary and compensated at a rate equal to that of level IV
of the Executive Schedule under section 5315 of title 5, United
States Code.
(b) Duties of Director.--The Director shall in accordance
with Federal policies promoting Indian self-determination and
the purposes of this Act, provide, direct, foster, coordinate,
and implement energy planning, education, management,
conservation, and delivery programs of the Department that
(1) promote Indian tribal energy development,
efficiency, and use;
(2) reduce or stabilize energy costs;
(3) enhance and strengthen Indian tribal energy and
economic infrastructure relating to natural resource
development and electrification; and
(4) electrify Indian tribal land and the homes of
tribal members.
COMPREHENSIVE INDIAN ENERGY ACTIVITIES
Sec. 218. (a) Indian Energy Education Planning and
Management Assistance.--
(1) The Director shall establish programs within the
Office of Indian Energy Policy and Programs to assist
Indian tribes in meeting energy education, research and
development, planning, and management needs.
(2) In carrying out this section, the Director may
provide grants, on a competitive basis, to an Indian
tribe or tribal consortium for use in carrying out
(A) energy, energy efficiency, and energy
conservation programs;
(B) studies and other activities supporting
tribal acquisition of energy supplies,
services, and facilities;
(C) planning, construction, development,
operation, maintenance, and improvement of
tribal electrical generation, transmission, and
distribution facilities located on Indian land;
and
(D) development, construction, and interconnection of
electric power transmission facilities located on
Indian land with other electric transmission
facilities.
(3)(A) The Director may develop, in consultation with
Indian tribes, a formula for providing grants under
this section.
(B) In providing a grant under this subsection, the
Director shall give priority to an application received
from an Indian tribe with inadequate electric service
(as determined by the Director).
(4) The Secretary may promulgate such regulations as
the Secretary determines are necessary to carry out
this subsection.
(5) There is authorized to be appropriated to carry
out this section $20,000,000 for each of fiscal years
2004 through 2011.
(b) Loan Guarantee Program.--
(1) Subject to paragraph (3), the Secretary may
provide loan guarantees (as defined in section 502 of
the Federal Credit Reform Act of 1990 (2 U.S. C. 661
a)) for not more than 90 percent of the unpaid
principal and interest due on any loan made to any
Indian tribe for energy development.
(2) A loan guaranteed under this subsection shall be
made by--
(A) a financial institution subject to
examination by the Secretary; or
(B) an Indian tribe, from funds of the Indian
tribe.
(3) The aggregate outstanding amount guaranteed by
the Secretary at any time under this subsection shall
not exceed $2,000,000,000.
(4) The Secretary may promulgate such regulations as
the Secretary determines are necessary to carry out
this subsection.
(5) There are authorized to be appropriated such sums
as are necessary to carry out this subsection, to
remain available until expended.
(6) Not later than 1 year from the date of enactment
of this section, the Secretary shall report to the
Congress on the financing requirements of Indian tribes
for energy development on Indian land.
(c) Indian Energy Preference.--
(1) In purchasing electricity or any other energy
product or byproduct, a Federal agency or department
may give preference to an energy and resource
production enterprise, partnership, consortium,
corporation, or other type of business organization the
majority of the interest in which is owned and
controlled by 1 or more Indian tribes.
(2) In carrying out this subsection, a Federal agency
or department shall not--
(A) pay more than the prevailing market price
for an energy product or byproduct; and
(B) obtain less than prevailing market terms
and conditions.
OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.
Sec. 218. (a) There is established within the Department an
Office of Electric Transmission and Distribution. This Office
shall beheaded by a Director, who shall be appointed by the
Secretary. The Director shall be compensated at the annual rate
prescribed for level IV of the Executive Schedule under section
5315 of title 5, United States Code.
(b) The Director shall--
(1) coordinate and develop a comprehensive, multi
year strategy to improve the Nation's electricity
transmission and distribution;
(2) ensure that the recommendations of the
Secretary's National Transmission Grid Study are
implemented;
(3) carry out the research, development, and
demonstration functions;
(4) grant authorizations for electricity import and
export;
(5) perform other electricity transmission and
distribution-related functions assigned by the
Secretary; and
(6) develop programs for workforce training in power
and transmission engineering.
* * * * * * *
CONTRACTS
Sec. 646.
* * * * * * *
(f) To the extent provided in advance in appropriations
Acts, the Secretary may retain and use money rentals received
by the Secretary directly from a lease entered into under
subsection (c) of this section in any amount the Secretary
considers necessary to cover the administrative expenses of the
lease, the maintenance and repair of the leased property, or
environmental restoration activities at the facility where the
leased property is located. Amounts retained under this
subsection shall be retained in a separate fund established in
the Treasury for such purpose. The Secretary shall annually
submit to the Congress a report on amounts retained and amounts
used under this subsection.
(g)(1) In addition to other authorities granted to the
Secretary under law, the Secretary may enter into other
transactions on such terms as the Secretary may deem
appropriate in furtherance of research, development, or
demonstration functions vested in the Secretary. Such other
transactions shall not be subject to the provisions of section
9 of the Federal Nonnuclear Energy Research and Development Act
of 1974 (42 US.C. 5908).
(2)(A) The Secretary shall ensure that--
(i) to the maximum extent the Secretary determines
practicable, no transaction entered into under
paragraph (1) provides for research, development, or
demonstration that duplicates research, development, or
demonstration being conducted under existing projects
carried out by the Department; and
(ii) To the extent the Secretary determines
practicable, the funds provided by the Government under
a transaction authorized by paragraph (1) do not exceed
the total amount provided by other parties to the
transaction.
(iii) To the extent the Secretary determines
practicable, competitive, merit-based selection
procedures shall be used when entering into
transactions under paragraph (1).
(B) A transaction authorized by paragraph (1) may be used
for a research, development, or demonstration project only if
the Secretary determines the use of a standard contract, grant,
or cooperative agreement for the project is not feasible or
appropriate.
(3)(A) The Secretary shall protect from disclosure,
including disclosure under section 552 of title 5, United
States Code, for up to 5 years after the date the information
is received by the Secretary
(i) a proposal, proposal abstract, and supporting
documents submitted to the Department in a competitive
or noncompetitive process having the potential for
resulting in an award to the party submitting the
information entering into a transaction under paragraph
(1); and
(ii) a business plan and technical information
relating to a transaction authorized by paragraph (1)
submitted to the Department as confidential business
information.
(B) The Secretary may protect from disclosure, for up to 5
years after the information was developed, any information
developed pursuant to a transaction under paragraph (1) which
developed information is of a character that it would be
protected from disclosure under section 552(b)(4) of title 5,
United States Code, if obtained from a person other than a
Federal agency.
(4) Not later than 90 days after the date of enactment of
this section, the Secretary shall prescribe guidelines for
using other transactions authorized by the amendment under
subsection (a). Such guidelines shall be published in the
Federal Register for public comment under rulemaking procedures
of the Department.
(5) The authority of the Secretary under this subsection
may be delegated only to an officer of the Department who is
appointed by the President by and with the advice and consent
of the Senate and may not be delegated to any other person.
----------
PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978
Public Law 95-617, as amended (16 U.S.C. 2601 et seq.)
* * * * * * *
SEC. 111. CONSIDERATION AND DETERMINATION RESPECTING CERTAIN RATEMAKING
STANDARDS.
* * * * * * *
(d) Establishment.--The following Federal standards are
hereby established:
* * * * * * *
(11) Net Metering.--
(A) Each electric utility shall make
available upon request net metering service to
any electric consumer that the electric utility
serves.
(B) For purposes of implementing this
paragraph, any reference contained in this
section to the date of enactment of the Public
Utility Regulatory Policies Act of 1978 shall
be deemed to be a reference to the date of
enactment of this paragraph.
(C) Notwithstanding subsections (b) and (c)
of section 112, each State regulatory authority
shall consider and make a determination
concerning whether it is appropriate to
implement the standard set out in subparagraph
(A) not later than 1 year after the date of
enactment of this paragraph.
(12) Time-Based Metering and Communications.--
(A) Each electric utility shall offer each of
its customer classes, and provide individual
customers upon customer request, a time-based
rate schedule under which the rate charged by
the electric utility varies during different
time periods and reflects the variance in the
costs of generating and purchasing electricity
at the wholesale level. The time-based rate
schedule shall enable the electric consumer to
manage energy use and cost through advanced
metering and communications technology.
(B) The types of time-based rate schedules
that may be offered under the schedule referred
to in subparagraph (A) include, among others--
(i) time-of-use pricing whereby
electricity prices are set for a
specific time period on an advance or
forward basis, typically not changing
more often than twice a year. Prices
paid for energy consumed during these
periods shall be pre-established and
known to consumers in advance of such
consumption, allowing them to vary
their demand and usage in response to
such prices and manage their energy
costs by shifting usage to a lower cost
period or reducing their consumption
overall;
(ii) critical peak pricing whereby
time-of-use prices are in effect except
for certain peak days, when prices may
reflect the costs of generating and
purchasing electricity at the wholesale
level and when consumers may receive
additional discounts for reducing peak
period energy consumption; and
(iii) real-time pricing whereby
electricity prices are set for a
specific time period on an advanced or
forward basis and may change as often
as hourly.
(C) Each electric utility subject to
subparagraph (A) shall provide each customer
requesting a time-based rate with a time-based
meter capable of enabling the utility and
customer to offer and receive such rate,
respectively.
(D) For purposes of implementing this
paragraph, any reference contained in this
section to the date of enactment of the Public
Utility Regulatory Policies Act of 1978 shall
be deemed to be a reference to the date of
enactment of this paragraph.
(E) In a State that permits third party
marketers to sell electric energy to retail
electric consumers, such consumers shall be
entitled to receive that same time-based
metering and communications device and service
as a retail electric consumer of the electric
utility.
(F) Notwithstanding subsections (b) and (c)
of section 112, each State regulatory authority
shall, not later than twelve (12) months after
enactment of this paragraph conduct an
investigation in accordance with section 115(i)
and issue a decision whether it is appropriate
to implement the standards set out in
subparagraphs (A) and (C).
* * * * * * *
SEC. 113. ADOPTION OF CERTAIN STANDARDS.
(a) * * *
(b) Establishment.--The following Federal standards are
hereby established:
* * * * * * *
(6) Each electric utility shall provide distributed
generation, combined heat and power, and district
heating and cooling systems competitive access to the
local distribution grid and competitive pricing of
service, and shall use simplified standard contracts
for the interconnection of generating facilities that
have a power production capacity of 250 kilowatts or
less.
(7) No electric utility may refuse to interconnect a
generating facility with the distribution facilities of
the electric utility if the owner or operator of the
generating facility complies with technical standards
adopted by the State regulatory authority and agrees to
pay the costs established by such State regulatory
authority.
(8) Each electric utility shall develop a plan to
minimize dependence on one fuel source and to ensure
that the electric energy it sells to consumers is
generated using a diverse range of fuels and
technologies, including renewable technologies.
(9) Each electric utility shall develop and implement
a ten-year plan to increase the efficiency of its
fossil fuel generation.
(c) * * *
(d) Special Rule.--For purposes of implementing paragraphs
(6), (7), (8), and (9) of subsection (b), any reference
contained in this section to the date of enactment of the
Public Utility Regulatory Policies Act of 1978 shall be deemed
to be a reference to the date of enactment of this subsection.
* * * * * * *
SEC. 115. SPECIAL RULES FOR STANDARDS.
* * * * * * *
(i) Net Metering.--In undertaking the consideration and
making the determination under section 111 with respect to the
standard concerning net metering established by section III
(d)(13), the term net metering service shall mean a service
provided in accordance with the following standards:
(1) An electric utility--
(A) shall charge the owner or operator of an
on-site generating facility rates and charges
that are identical to those that would be
charged other electric consumers of the
electric utility in the same rate class; and
(B) shall not charge the owner or operator of
an on-site generating facility any additional
standby, capacity, interconnection, or other
rate or charge.
(2) An electric utility that sells electric energy to
the owner or operator of an on-site generating facility
shall measure the quantity of electric energy produced
by the on-site facility and the quantity of electric
energy consumed by the owner or operator of an on-site
generating facility during a billing period in
accordance with reasonable metering practices.
(3) If the quantity of electric energy sold by the
electric utility to an on-site generating facility
exceeds the quantity of electric energy supplied by the
on-site generating facility to the electric utility
during the billing period, the electric utility may
bill the owner or operator for the net quantity of
electric energy sold, in accordance with reasonable
metering practices.
(4) If the quantity of electric energy supplied by
the on-site generating facility to the electric utility
exceeds the quantity of electric energy sold by the
electric utility to the on-site generating facility
during the billing period--
(A) the electric utility may bill the owner
or operator of the on-site generating facility
for the appropriate charges for the billing
period in accordance with paragraph (2); and
(B) the owner or operator of the on-site
generating facility shall be credited for the
excess kilowatt-hours generated during the
billing period, with the kilowatt-hour credit
appearing on the bill for the following billing
period--
(5) An eligible on-site generating facility and net
metering system used by an electric consumer shall meet
all applicable safety, performance, reliability, and
interconnection standards established by the National
Electrical Code, the Institute of Electrical and
Electronics Engineers, and Underwriters Laboratories.
(6) The Commission, after consultation with State
regulatory authorities and unregulated electric
utilities and after notice and opportunity for comment,
may adopt, by rule, additional control and testing
requirements for on-site generating facilities and net
metering systems that the Commission determines are
necessary to protect public safety and system
reliability.
(7) For purposes of this subsection--
(A) The term ``eligible on-site generating
facility'' means a facility on the site of a
residential electric consumer with a maximum
generating capacity of 10 kilowatts or less
that is fueled by solar energy, wind energy, or
fuel cells; or a facility on the site of a
commercial electric consumer with a maximum
generating capacity of 500 kilowatts or less
that is fueled solely by a renewable energy
resource, landfill gas, or a high-efficiency
system.
(B) The term ``renewable energy resource''
means solar, wind, biomass, or geothermal
energy.
(C) The term ``high-efficiency system ``
means fuel cells or combined heat and power.
(D) The term ``net metering service'' means
service to an electric consumer under which
electric energy generated by that electric
consumer from an eligible on-site generating
facility and delivered to the local
distribution facilities may be used to offset
electric energy provided by the electric
utility to the electric consumer during the
applicable billing period.
(k) Time-Based Metering and Communications.--Each State
regulatory authority shall conduct an investigation and issue a
decision whether or not it is appropriate for electric
utilities to provide and install time-based meters and
communications devices for each of their customers which enable
such customers to participate in time-based pricing rate
schedules and other demand response programs.
* * * * * * *
SEC. 132. RESPONSIBILITIES OF THE SECRETARY OF ENERGY.
(a) Authority.--The Secretary may periodically notify the
State regulatory authorities, and electric utilities identified
pursuant to section 102(c)--
(1) load management techniques and the results of
studies and experiments concerning load management
techniques;
(2) developments and innovations in electric utility
rate making throughout the United States, including the
results of studies and experiments in rate structuring
and rate reform;
(3) methods for determining cost of service; [and]
(4) any other data or information which the Secretary
determines would assist such authorities and utilities
in carrying out the provisions of this title[.] ; and
(5) technologies, techniques and rate-making methods
related to advanced metering and communications and the
use of these technologies, techniques and methods in
demand response programs.
* * * * * * *
[(c) Appropriations.--There are authorized to be
appropriated to carry out the purposes of subsection (b) not to
exceed $1,000,000 for each of the fiscal years 1979 and 1980.]
(c) Technical Assistance for Certain Responsibilities.--The
Secretary may provide such technical assistance as determined
appropriate to assist State regulatory authorities and electric
utilities in carrying out their responsibilities under section
111(d)(11) and paragraphs (6), (7), (8), and (9) of section
113(b).
(d) Demand Response.--The Secretary shall be responsible
for--
(1) educating consumers on the availability,
advantages and benefits of advanced metering and
communications technologies, including the funding of
demonstration or pilot projects;
(2) working with States, utilities, other energy
providers and advanced metering and communications
experts to identify and address barriers to the
adoption of demand response programs; and
(3) not later than 180 days after the date of
enactment of the Energy Policy Act of 2003, providing
the Congress with a report that identifies and
quantifies the national benefits of demand response and
makes a recommendation on achieving specific levels of
such benefits by January 1, 2005.
* * * * * * *
SEC. 210. COGENERATION AND SMALL, POWER PRODUCTION.
* * * * * * *
(m) Termination of Mandatory Purchase and Sale
Requirements.--
(1) Obligation to purchase.--After the date of
enactment of this subsection, no electric utility shall
be required to enter into a new contract or obligation
to purchase electric energy from a qualifying
cogeneration facility or a qualifying small power
production facility under this section if the
Commission finds that the qualifying cogeneration
facility or qualifying small power production facility
has access to an independently administered, auction-
based day ahead and real time wholesale market for the
sale of electric energy.
(2) Obligation to sell.--After the date of enactment
of this subsection, no electric utility shall be
required to enter into a new contract or obligation to
sell electric energy to a qualifying cogeneration
facility or a qualifying small power production
facility under this section if competing retail
electric suppliers are able to provide electric energy
to the qualifying cogeneration facility or qualifying
small power production facility.
(3) No effect on existing rights and remedies.--
Nothing in this subsection affects the rights or
remedies of any party under any contract or obligation
in effect on the date of enactment of this subsection,
to purchase electric energy or capacity from or to sell
electric energy or capacity to a facility under this
Act (including the right to recover costs of purchasing
electric energy or capacity).
(4) Recovery of costs.--
(A) Regulation.--The Commission shall
promulgate such regulations as are necessary to
ensure that an electric utility that purchases
electric energy or capacity from a qualifying
cogeneration facility or qualifying small power
production facility in accordance with any
legally enforceable obligation entered into or
imposed under this section before the date of
enactment of this subsection recovers all
prudently incurred costs associated with the
purchase.
(B) Enforcement.--A regulation under
subparagraph (A) shall be enforceable in
accordance with the provisions of law
applicable to enforcement of regulations under
the Federal Power Act (16 U. S. C. 791a et
seq.).
* * * * * * *
----------
NATIONAL ENERGY CONSERVATION POLICY ACT
Public Law 95-619 as amended (42 U.S.C. 8201 et seq.)
TITLE I--GENERAL PROVISIONS
SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.
* * * * * * *
PART 3--FEDERAL ENERGY MANAGEMENT
* * * * * * *
Sec. 551 Definitions.
Sec. 552. Federal procurement of energy efficient products
Sec. 553. Energy and water savings measures in congressional buildings.
* * * * * * *
SEC. 251. ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED HOUSING.
(a) * * *
(b) Grants.--(1) The Secretary of Housing and Urban
Development is authorized to make grants to finance energy
conserving improvements (as defined in subparagraph (2) of the
last paragraph of section 2(A) of the National Housing Act) to
projects which are [financed with loans] assisted under section
202 of the Housing Act of 1959, which are eligible multifamily
housing projects (as such term is defined in section 512 of the
Multi-family Assisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437f note)) and are subject to mortgage
restructuring and rental assistance sufficiency plans under
such Act, or which are subject to mortgages insured under
section 221(d)(3) or section 236 of the National Housing Act.
Such improvements may also include the installation of energy
and water conserving fixtures and fittings that conform to the
American Society of Mechanical Engineers/American National
Standards Institute standards A112.19.2-1998 and A112.18.1-
2000, or any revision thereto, applicable at the time of
installation. The Secretary shall make assistance available
under this subsection on a priority basis to those projects
which are in financial difficulty as a result of high energy
costs.
* * * * * * *
SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.
(a) Energy Performance Requirements for Federal
Buildings.--(1) Subject to paragraph (2), 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.] the Federal buildings of the agency (including each
industrial or laboratory facility) so that the energy
consumption per gross square foot of the Federal buildings of
the agency in fiscal years 2004 through 2013 is reduced, as
compared with the energy consumption per gross square foot of
the Federal buildings of the agency in fiscal year 2000, by the
percentage specified in the following table:
Fiscal Year Percentage reduction
2004...................................................... 2
2005...................................................... 4
2006...................................................... 6
2007...................................................... 8
2008...................................................... 10
2009...................................................... 12
2010...................................................... 14
2011...................................................... 16
2012...................................................... 18
20.013......................................................
* * * * * * *
(3) Not later than December 31, 2011, the Secretary shall
review the results of the implementation of the energy
performance requirement established under paragraph (1) and
submit to Congress recommendations concerning energy
performance requirements for fiscal years 2014 through 2022.
* * * * * * *
(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.]
(A) An agency may exclude, from the energy
performance requirement for a fiscal year established
under subsection (a) and the energy management
requirement established under subsection (b), any
Federal building or collection of Federal buildings, if
the head of the agency finds that--
(i) compliance with those requirements would
be impracticable;
(ii) the agency has completed and submitted
all federally required energy management
reports;
(iii) the agency has achieved compliance with
the energy efficiency requirements of this Act,
the Energy Policy Act of 1992, Executive
Orders, and other Federal law; and
(iv) the agency has implemented all
practicable, life-cycle cost-effective projects
with respect to the Federal building or
collection of Federal buildings to be excluded.
(B) A finding of impracticability under subparagraph
(A)(i) shall be based on--
(i) the energy intensiveness of activities
carried out in the Federal building or
collection of Federal buildings; or
(ii) the fact that the Federal building or
collection of Federal buildings is used in the
performance of a national security function.
(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] standards
for exclusion set forth in paragraph (1), and may within 90
days after receipt of the findings, reverse [a finding of
impracticability] the exclusion. In the case of any such
reversal, the agency shall comply with the energy consumption
requirements for the building concerned.
(3) Not later than 180 days after the date of enactment of
this paragraph, the Secretary shall issue guidelines that
establish criteria for exclusions under paragraph (1).
* * * * * * *
(e) Metering of Energy Use.--
(1) Deadline.--By October 1, 2010, in accordance with
guidelines established by the Secretary under paragraph
(2), all Federal buildings shall, for the purposes of
efficient use of energy and reduction in the cost of
electricity used in such buildings, be metered or
submetered. Each agency shall use, to the maximum
extent practicable, advanced meters or advanced
metering devices that provide data at least daily and
that measure at least hourly consumption of electricity
in the Federal buildings of the agency. Such data shall
be incorporated into existing Federal energy tracking
systems and made available to Federal facility energy
managers.
(2) Guidelines.--
(A) In general.--Not later than 180 days
after the date of enactment of this subsection,
the Secretary, in consultation with the
Department of Defense, the General Services
Administration, representatives from the
metering industry, utility industry, energy
services industry, energy efficiency industry,
national laboratories, universities, and
Federal facility energy managers, shall
establish guidelines for agencies to carry out
paragraph (1).
(B) Requirements for guidelines.--The
guidelines shall--
(i) take into consideration--
(I) the cost of metering and
submetering and the reduced
cost of operation and
maintenance expected to result
from metering and submetering;
(II) the extent to which
metering and submetering are
expected to result in increased
potential for energy
management, increased potential
for energy savings and energy
efficiency improvement, and
cost and energy savings due to
utility contract aggregation;
and
(III) the measurement and
verification protocols of the
Department of Energy;
(ii) include recommendations
concerning the amount of funds and the
number of trained personnel necessary
to gather and use the metering
information to track and reduce energy
use;
(iii) establish priorities for types
and locations of buildings to be
metered and submetered based on cost
effectiveness and a schedule of one or
more dates, not later than 1 year after
the date of issuance of the guidelines,
on which the requirements specified in
paragraph (1) shall take effect; and
(iv) establish exclusions from the
requirements specified in paragraph (1)
based on the de minimis quantity of
energy use of a Federal building,
industrial process, or structure.
(3) Plan.--No later than 6 months after the date
guidelines are established under paragraph (2), in a
report submitted by the agency under section 548(a),
each agency shall submit to the Secretary a plan
describing how the agency will implement the
requirements of paragraph (1), including--
(A) how the agency will designate personnel
primarily responsible for achieving the
requirements; and
(B) demonstration by the agency, complete
with documentation, of any finding that
advanced meters or advanced metering devices,
as defined in paragraph (1), are not
practicable.
* * * * * * *
SEC. 546. INCENTIVES FOR AGENCIES.
* * * * * * *
(c) Utility Incentive Programs.--
[(l) Agencies are authorized and encouraged to
participate in programs to increase energy efficiency
and for water conservation or the management of
electricity demand conducted by gas, water, or electric
utilities and generally available to customers of such
utilities.]
(1) Agencies are authorized and encouraged to
participate in programs, including utility energy
services contracts, conducted by gas, water and
electric utilities and generally available to customers
of such utilities, for the purposes of increased energy
efficiency, water conservation or the management of
electricity demand.
* * * * * * *
(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] facilities, equipment and
vehicles utilized by such agency.
* * * * * * *
(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. Except as
otherwise provided by law, such funds may be used only for
energy efficiency of unconventional and renewable energy
resources projects.
* * * * * * *
SEC. 548. REPORTS.
(a) * * *
(b) Reports to the President and 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 President and Congress--
* * * * * * *
SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL.
* * * * * * *
(d) Report.--As soon as practicable after the completion of
the project carried out under this section, the Secretary shall
transmit a report of the findings and conclusions of the
project to the Committee on Energy and Natural Resources and
the Committee on Governmental Affairs of the Senate, the
Committee on Energy and Commerce, the Committee on Government
Operations, and the Committee on Public Works and
Transportation of the House of Representatives, and the
agencies who own the buildings involved in such project. Such
report shall include an analysis of the probability of each
agency achieving [the 20 percent reduction goal established
under section 543(a) of the National Energy Conservation Policy
Act (42 U.S.C. 8253(a))] each of the energy reduction goals
established under section 543(a).
* * * * * * *
SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Definitions.--In this section:
(1) The term ``Energy Star product'' means a product
that is rated for energy efficiency under an Energy
Star program.
(2) The term ``Energy Star program'' means the
program established by section 324A of the Energy
Policy and Conservation Act.
(3) The term ``executive agency'' has the meaning
given the term in section 4 of the Office of Federal
Procurement Policy Act (41 U.S.C. 403).
(4) The term ``FEMP designated product'' means a
product that is designated under the Federal Energy
Management Program of the Department of Energy as being
among the highest 25 percent of equivalent products for
energy efficiency.
(b) Procurement of Energy Efficient Products.--
(1) Requirement.--To meet the requirements of an
executive agency for an energy consuming product, the
head of the executive agency shall, except as provided
in paragraph (2), procure an Energy Star product or a
FEMP designated product.
(2) Exceptions.--The head of an executive agency is
not required to procure an Energy Star product or FEMP
designated product under paragraph (1) if the head of
the executive agency finds in writing that--
(A) an Energy Star product or FEMP designated
product is not cost-effective over the life of
the product taking energy cost savings into
account; or
(B) no Energy Star product or FEMP designated
product is reasonably available that meets the
functional requirements of the executive
agency.
(3) Procurement planning.--The head of an executive
agency shall incorporate into the specifications for
all procurements involving energy consuming products
and systems, including guide specifications, project
specifications, and construction, renovation, and
services contracts that include provision of energy
consuming products and systems, and into the factors
for the evaluation of offers received for the
procurement, criteria for energy efficiency that are
consistent with the criteria used for rating Energy
Star products and for rating FEMP designated products.
(c) Listing of Energy Efficient Products in Federal
Catalogs.--Energy Star products and FEMP designated products
shall be clearly identified and prominently displayed in any
inventory or listing of products by the General Services
Administration or the Defense Logistics Agency. The General
Services Administration or the Defense Logistics Agency shall
supply only Energy Star products or FEMP designated products
for all product categories covered by the Energy Star program
or the Federal Energy Management Program, except in cases where
the agency ordering a product specifies in writing that no
Energy Star product or FEMP designated product is available to
meet the buyer's functional requirements, or that no Energy
Star product or FEMP designated product is cost-effective for
the intended application over the life of the product, taking
energy cost savings into account.
(d) Designation of Electric Motors.--In the case of
electric motors of 1 to 500 horsepower, agencies shall select
only premium efficient motors that meet a standard designated
by the Secretary. The Secretary shall designate such a standard
within 120 days after the date of the enactment of this
section, after considering the recommendations of associated
electric motor manufacturers and energy efficiency groups.
(e) Regulations.--Not later than 180 days after the date of
the enactment of this section, the Secretary shall issue
guidelines to carry out this section.
SEC. 553. CONGRESSIONAL BUILDING EFFICIENCY.
(a) In General.--The Architect of the Capitol--
(1) shall develop, update, and implement a cost-e
ective energy conservation and management plan
(referred to in this section as the ``plan'') for all
facilities administered by the Congress (referred to in
this section as ``congressional buildings'') to meet
the energy performance requirements for Federal
buildings established under section 543(a)(1); and
(2) shall submit the plan to Congress, not later than
180 days after the date of enactment of this section.
(b) Plan Requirements.--The plan shall include--
(1) a description of the life-cycle cost analysis
used to determine the cost effectiveness of proposed
energy efficiency projects;
(2) a schedule of energy surveys to ensure complete
surveys of all congressional buildings every 5 years to
determine the cost and payback period of energy and
water conservation measures;
(3) a strategy for installation of life-cycle cost-
effective energy and water conservation measures;
(4) the results of a study of the costs and benefits
of installation of submetering in congressional
buildings; and
(5) information packages and ``how-to'' guides for
each Member and employing authority of Congress that
detail simple, cost-effective methods to save energy
and taxpayer dollars in the workplace.
(c) Annual Report.--The Architect shall submit to Congress
annually a report on congressional energy management and
conservation programs required under this section that
describes in detail--
(1) energy expenditures and savings estimates for
each facility;
(2) energy management and conservation projects; and
(3) future priorities to ensure compliance with this
section.
* * * * * * *
SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.
(a) * * *
(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
life-cycle 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.
* * * * * * *
[(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.]
(2) The term ``energy savings `` means--
(A) 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 co-generation or heat
recovery, excluding any co-generation 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; or
(B) 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 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).]
(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, and, where
appropriate, operation, 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.
Such contracts 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).]
(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, more
efficient treatment of wastewater or stormwater,
improvements in operation or maintenance efficiencies,
retrofit activities, or other related activities, not
at a Federal hydroelectric facility. '
----------
DEPARTMENT OF ENERGY SCIENCE EDUCATION ENHANCEMENT ACT
Part E of Title XXXI of Public Law 101-510, as amended (42 U.S.C. 7381-
7381e)
* * * * * * *
SEC. 3164. SCIENCE EDUCATION PROGRAMS
(a) Programs.--The Secretary is authorized to establish
programs to enhance the quality of mathematics, science, and
engineering education. Any such programs shall be operated at
or through the support of Department research and development
facilities, shall use the scientific resources of the
Department, and shall be consistent with the overall Federal
plan for education and human resources in science and
technology developed by the Federal Coordinating Council for
Science, Engineering, and Technology.
(b) Relationship to Other Department Activities.--The
programs described in subsection (a) shall supplement and be
coordinated with current activities of the Department, but
shall not supplant them.
(c) Programs for Students From Under-Represented Groups.--
In carrying out a program under subsection (a), the Secretary
shall give priority to activities that are designed to
encourage students from under-represented groups to pursue
scientific and technical careers.
SEC. 3165. LABORATORY COOPERATIVE SCIENCE CENTERS AND OTHER AUTHORIZED
EDUCATION ACTIVITIES
* * * * * * *
(13) Establish a prefreshman enrichment program in which
middle-school students attend summer workshops on mathematics,
science, and engineering conducted by universities on their
campuses.
(14) Support competitive events for students, under
supervision of teachers, designed to encourage student interest
and knowledge in science and mathematics.
* * * * * * *
SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES, HISPANIC-SERVING INSTITUTIONS, AND
TRIBAL COLLEGES.
(a) Definitions.--In this section:
(1) Hispanic-serving institution.--The term
``Hispanic-serving institution'' has the meaning given
that term in section 502(a) of the Higher Education Act
of 1965 (20 U.S.C 1101a(a)).
(2) Historically black college or university.-- The
term ``historically Black college or university'' has
the meaning given the term ``part B institution'' in
section 322 of the Higher Education Act of 1965 (20
U.S.C. 1061).
(3) National laboratory.--The term `National
Laboratory' has the meaning given that term in section
903(5) of the Energy Policy Act of 2003.
(4) Science facility.--The term `science facility'
has the meaning given the term `single purpose research
facility' in section 903(8) of the Energy Policy Act of
2003.
(5) Tribal college.--The term `tribal college' has
the meaning given the term `tribally controlled college
or university' in section 2(a) of the Tribally
Controlled College or University Assistance Act of 1978
(25 U.S. C. 1801 (a)).
(b) Education Partnership.--The Secretary shall direct the
Director of each National Laboratory, and may direct the head
of any science facility, to increase the participation of
historically Black colleges or universities, Hispanic-serving
institutions, or tribal colleges in activities that increase
the capacity of the historically Black colleges or
universities, Hispanic-serving institutions, or tribal colleges
to train personnel in science or engineering.
(c) Activities.--An activity under subsection (b) may
include--
(1) collaborative research;
(2) equipment transfer;
(3) training activities conducted at a National
Laboratory or science facility; and
(4) mentoring activities conducted at a National
Laboratory or science facility.
(d) Report.--Not later than 2 years after the date of
enactment of this section, the Secretary shall submit to the
Congress a report on the activities carried out under this
section.
SEC. [3167.] 3168. DEFINITIONS.
In this part:
(1) The term ``Secretary'' means the Secretary of
Energy.
(2) The term ``Department'' means the Department of
Energy.
(3) The term ``Department research and development
facilities'' means all Department of Energy single-
purpose and multipurpose National Laboratories and
research and development facilities and programs, and
any other facility or program operated by a contractor
funded from the Office of Energy Research of the
Department of Energy.
(4) The term ``local educational agency'' has the
meaning given that term by section 1471(12) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 2891(12)).
SEC. [3168.] 3169. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary
for carrying out university research support and other science,
mathematics, and engineering education programs authorized by
this subchapter and administered by the Office of Science of
the Department of Energy, $40,000,000 for fiscal year 1991; and
$40,000,000 for each of fiscal years 2004 through 2008.
---------- --
--------
SPARK M. MATSUNAGA HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION
ACT OF 1990
Public Law 101-566, as amended (42 U.S.C. 12401 et seq.)
* * * * * * *
[SEC. 102. FINDING, PURPOSES, AND DEFINITION.
[(a) Finding.--Congress finds that it is in the national
interest to accelerate efforts to develop a domestic capability
to economically produce hydrogen in quantities that will make a
significant contribution toward reducing the Nation's
dependence on conventional fuels.
[(b) Purposes.--The purposes of this Act are--
[(1) to direct the Secretary of Energy to conduct a
research, development, and demonstration program
leading to the production, storage, transport, and use
of hydrogen for industrial, residential,
transportation, and utility applications;
[(2) to direct the Secretary to develop a technology
assessment and information transfer program among the
Federal agencies and aerospace, transportation, energy,
and other entities; and
[(3) to develop renewable energy resources as a
primary source of energy for the production of
hydrogen.
[(c) Definition.--As used in this Act, the term:
[(1) ``critical technology'' (or ``critical technical
issue'') means a technology (or issue) that, in the
opinion of the Secretary, requires understanding and
development in order to take the next needed step in
the development of hydrogen as an economic fuel or
storage medium;
[(2) ``Department'' means the Department of Energy;
and
[(3) ``Secretary'' means the Secretary of Energy.
[SEC. 103. COMPREHENSIVE MANAGEMENT PLAN.
[(a) Plan.--The Secretary shall prepare a comprehensive 5-
year program management plan for research and development
activities, which shall be conducted over a period of no less
than 5 years and shall be consistent with the provisions of
sections 104 and 105. In the preparation of such plan, the
Secretary shall consult with the Administrator of the National
Aeronautics and Space Administration, the Secretary of
Transportation, the Hydrogen Technical Advisory Panel
established under section 108, and the heads of such other
Federal agencies and such public and private organizations as
he deems appropriate. The plan shall be structured to identify
and address areas of research critical to the realization of a
domestic hydrogen production capability within the shortest
time practicable.
[(b) Contents of Plan.--Within 180 days after the date of
the enactment of this Act, the Secretary shall transmit the
comprehensive program management plan to the Committee on
Science, Space, and Technology of the House of Representatives
and the Committee on Energy and Natural Resources of the
Senate. Subsequent plans shall be incorporated in the
management plan under this section. The plan shall include--
[(1) a prioritization of research areas critical to
the economic use of hydrogen as a fuel and energy
storage medium;
[(2) the program elements, management structure, and
activities, including program responsibilities of
individual agencies and individual institutional
elements;
[(3) the program strategies including technical
milestones to be achieved toward specific goals during
each fiscal year for all major activities and projects;
[(4) the estimated costs of individual program items,
including current as well as proposed funding levels
for each of the 5 years of the plan for each of the
participating agencies;
[(5) a description of the methodology of coordination
and technology transfer; and
[(6) the proposed participation by industry and
academia in the planning and implementation of the
program.
[(c) Demonstration Plan.--The Secretary shall, in
consultation with the Secretary of Transportation, the
Administrator of the National Aeronautics and Space
Administration, and the Hydrogen Technical Advisory Panel
established under section 108, also prepare a comprehensive
large-scale hydrogen demonstration plan with respect to
demonstrations carried out pursuant to section 105. Subsequent
plans shall be incorporated in the management plan under this
section. Such plan shall include--
[(1) a description of the necessary research and
development activities that must be completed before
initiation of a large-scale hydrogen production and
storage demonstration program;
[(2) an assessment of the appropriateness of a large-
scale demonstration immediately upon completion of the
necessary research and development activities;
[(3) an implementation schedule with associated
budget and program management resource requirements;
and
[(4) a description of the role of the private sector
in carrying out the demonstration program.
[I[SEC. 104. RESEARCH AND DEVELOPMENT.
[(a) Program.--The Secretary shall conduct a research and
development program, consistent with the comprehensive 5-year
program management plan under section 103, to ensure the
development of a domestic hydrogen fuel production capability
within the shortest time practicable consistent with market
conditions.
[(b) Research.--(1) Particular attention shall be given to
developing an understanding and resolution of all critical
technical issues preventing the introduction of hydrogen into
the marketplace.
[(2) The Secretary shall initiate research or accelerate
existing research in critical technical issues that will
contribute to the development of more economic hydrogen
production and use, including, but not limited to, critical
technical issues with respect to production, liquefaction,
transmission, distribution, storage, and use (including use of
hydrogen in surface transportation).
[(c) Renewable Energy Priority.--The Secretary shall give
priority to those production techniques that use renewable
energy resources as their primary source of energy for hydrogen
production.
[(d) New Technologies.--The Secretary shall, for the
purpose of performing his responsibilities pursuant to this
Act, solicit proposals for and evaluate any reasonable new or
improved technology that could lead or contribute to the
development of economic hydrogen production storage and
utilization.
[(e) Information.--The Secretary shall conduct evaluations,
arrange for tests and demonstrations, and disseminate to
developers information, data, and materials necessary to
support efforts undertaken pursuant to this section, consistent
with section 106.
[SEC. 105. DEMONSTRATIONS.
[(a) Requirement.--The Secretary shall conduct
demonstrations of critical technologies, preferably in self-
contained locations, so that technical and non-technical
parameters can be evaluated to best determine commercial
applicability of the technology.
[(b) Small-Scale Demonstrations.--Concurrently with
activities conducted pursuant to section 104, the Secretary
shall conduct small-scale demonstrations of hydrogen technology
at self-contained sites.
[SEC. 106. TECHNOLOGY TRANSFER PROGRAM.
[(a) Program.--The Secretary shall conduct a program
designed to accelerate wider application of hydrogen
production, storage, utilization, and other technologies
available in near term as a result of aerospace experience as
well as other research progress by transferring critical
technologies to the private sector. The Secretary shall direct
the program with the advice and assistance of the Hydrogen
Technical Advisory Panel established under section 108. The
objective in seeking this advice is to increase participation
of private industry in the demonstration of near commercial
applications through cooperative research and development
arrangements, joint ventures or other appropriate arrangements
involving the private sector.
[(b) Information.--The Secretary, in carrying out the
program authorized by subsection (a), shall--
[(1) Undertake an inventory and assessment of
hydrogen technologies and their commercial capability
to economically produce, store, or utilize hydrogen in
aerospace, transportation, electric utilities,
petrochemical, chemical, merchant hydrogen, and other
industrial sectors; and
[(2) develop a National Aeronautics Space
Administration, Department of Energy, and industry
information exchange program to improve technology
transfer for--
[(A) application of aerospace experience by
industry;
[(B) application of research progress by
industry and aerospace;
[(C) application of commercial capability of
industry by aerospace; and
[(D) expression of industrial needs to
research organizations.
The information exchange program may consist of
workshops, publications, conferences, and a data base
for the use by the public and private sectors.
[SEC. 107. COORDINATION AND CONSULTATION.
[(a) Secretary's Responsibility.--The Secretary shall have
overall management responsibility for carrying out programs
under this Act. In carrying out such programs, the Secretary,
consistent with such overall management responsibility--
[(1) shall use the expertise of the National
Aeronautics and Space Administration and the Department
of Transportation; and
[(2) may use the expertise of any other Federal
agency in accordance with subsection (b) in carrying
out any activities under this title, to the extent that
the Secretary determines that any such agency has
capabilities which would allow such agency to
contribute to the purpose of this Act.
[(b) Assistance--The Secretary may, in accordance with
subsection (a), obtain the assistance of any department,
agency, or instrumentality of the Executive branch of the
Federal Government upon written request, on a reimbursable
basis or otherwise and with the consent of such department,
agency, or instrumentality. Each such request shall identify
the assistance the Secretary deems necessary to carry out any
duty under this Act.
[(c) Consultation.--The Secretary shall consult with the
Administrator of the National Aeronautics and Space
Administration, the Administrator of the Environmental
Protection Agency, the Secretary of Transportation, and the
Hydrogen Technical Advisory Panel established under section 108
in carrying out his authorities pursuant to this Act.
[SEC. 108. TECHNICAL PANEL.
[(a) Establishment.--There is hereby established the
Hydrogen Technical Advisory Panel (the ``technical panel''), to
advise the Secretary on the programs under this Act.
[(b) Membership.--The technical panel shall be appointed by
the Secretary and shall be comprised of such representatives
from domestic industry, universities, professional societies,
Government laboratories, financial, environmental, and other
organizations as the Secretary deems appropriate based on his
assessment of the technical and other qualifications of such
representatives. Appointments to the technical panel shall be
made within 90 days after the enactment of this Act. The
technical panel shall have a chairman, who shall be elected by
the members from among their number.
[(c) Cooperation.--The heads of the departments, agencies,
and instrumentalities of the Executive branch of the Federal
Government shall cooperate with the technical panel in carrying
out the requirements of this section and shall furnish to the
technical panel such information as the technical panel deems
necessary to carry out this section.
[(d) Review.--The technical panel shall review and make any
necessary recommendations to the Secretary on the following
items--
[(1) the implementation and conduct of programs under
this Act;
[(2) the economic, technological, and environmental
consequences of the deployment of hydrogen production
and use systems; and
[(3) comments on and recommendations for improvements
in the comprehensive 5-year program management plan
required under section 103.
[(e) Support.--The Secretary shall provide such staff,
funds and other support as may be necessary to enable the
technical panel to carry out the functions described in this
section.
[SEC. 109. AUTHORIZATION OF APPROPRIATIONS.
[There is hereby authorized to be appropriated to carry out
the purposes of this Act (in addition to any amounts made
available for such purposes to other Acts)--
[(1) $3,000,000 for the fiscal year 1992;
[(2) $7,000,000 for the fiscal year 1993; and
[(3) $10,000,000 for the fiscal year 1994.]
SEC 102. DEFINITIONS.
In this Act--
(a) the term ``advisory committee'' means the Hydrogen and
Fuel Cell Technical Advisory Committee established under
section 107.
(b) the term ``Department'' means the Department of Energy.
(c) the term `fuel cell'' means a device that directly
converts the chemical energy of a fuel into electricity by an
electrochemical process.
(d) the term ``infrastructure'' means the equipment,
systems, or facilities used to produce, distribute, deliver, or
store hydrogen.
(e) the term ``Secretary'' means the Secretary of Energy.
SEC. 103. HYDROGEN RESEARCH AND DEVELOPMENT.
(a) In General.--The Secretary shall conduct a research and
development program on technologies related to the production,
distribution, storage, and use of hydrogen energy, fuel cells,
and related infrastructure.
(b) Goal.--The goal of such program shall be to enable the
safe, economic, and environmentally sound use of hydrogen
energy, fuel cells, and related infrastructure for
transportation, commercial, industrial, residential, and
electric power generation applications.
(c) Focus.--In carrying out activities under this section,
the Secretary shall focus on critical technical issues
including, but not limited to--
(1) the production of hydrogen from diverse energy
sources, with emphasis on cost-effective production
from renewable energy sources;
(2) the delivery of hydrogen, including safe delivery
in fueling stations and use of existing hydrogen
pipelines;
(3) the storage of hydrogen, including storage of
hydrogen in surface transportation;
(4) fuel cell technologies for transportation,
stationary and portable applications, with emphasis on
cost-reduction of fuel cell stacks; and
(5) the use of hydrogen energy and fuel cells,
including use in--
(A) isolated villages, islands, and areas in
which other energy sources are not available or
are very expensive; and
(B) foreign markets, particularly where an
energy infrastructure is not well developed.
(d) Codes and Standards.--The Secretary shall facilitate
the development of domestic and international codes and
standards and seek to resolve other critical regulatory and
technical barriers preventing the introduction of hydrogen
energy and fuel cells into the marketplace.
(e) Solicitation.--The Secretary shall carry out the
research and development activities authorized under this
section through solicitation of proposals, and evaluation using
competitive merit review.
(f) Cost Sharing.--The Secretary shall require a commitment
from non-Federal sources of at least 20 percent of the cost of
proposed research and development projects. The Secretary may
reduce or eliminate the cost sharing requirement--
(1) if the Secretary determines that the research and
development is of a basic or fundamental nature, or
(2) for technical analyses, outreach activities, and
educational programs that the Secretary does not expect
to result in a marketable product.
SEC. 104. DEMONSTRATION PROGRAMS.
(a) Requirement.--In conjunction with activities conducted
under section 103, the Secretary shall conduct demonstrations
of hydrogen energy and fuel cell technologies in order to
evaluate the commercial potential of such technologies.
(b) Solicitation.--The Secretary shall carry out the
demonstrations authorized under this section through
solicitation of proposals, and evaluation using competitive
merit review.
(c) Cost Sharing.--The Secretary shall require a commitment
from non-Federal sources of at least 50 percent of the costs
directly relating to a demonstration project under this
section. The Secretary may reduce such non-Federal requirement
if the Secretary determines that the reduction is appropriate
considering the technological risks involved in the project.
SEC. 105. TECHNOLOGY TRANSFER.
The Secretary shall conduct programs to--
(a) transfer critical hydrogen energy and fuel cell
technologies to the private sector in order to promote wider
understanding of such technologies and wider use of research
progress under this Act;
(b) to accelerate wider application of hydrogen energy and
fuel cell technologies in foreign countries in order to
increase the global market for the technologies and foster
global development without harmful environmental effects;
(c) foster the exchange of generic, nonproprietary
information and technology developed pursuant to this Act,
among industry, academia, and the Federal agencies; and
(d) inventory and assess the technical and commercial
viability of technologies related to production, distribution,
storage, and use of hydrogen energy and fuel cells.
SEC. 106. COORDINATION AND CONSULTATION.
The Secretary shall have overall management responsibility
for carrying out programs under this Act. In carrying out such
programs, the Secretary--
(a) shall establish a central point for the coordination of
all hydrogen energy and fuel cell research, development, and
demonstration activities of the Department;
(b) in carrying out the Secretary's authorities pursuant to
this Act, shall consult with other Federal agencies as
appropriate, and may obtain the assistance of any Federal
agency, on a reimbursable basis or otherwise and with the
consent of such agency;
(c) shall attempt to ensure that activities under this Act
do not unnecessarily duplicate any available research and
development results or displace or compete with privately
funded hydrogen and fuel cell energy activities.
SEC. 107. ADVISORY COMMITTEE.
(a) Establishment.--There is hereby established the
Hydrogen and Fuel Cell Technical Advisory Committee, to advise
the Secretary on the programs under this Act.
(b) Membership.--The advisory committee shall be comprised
of not fewer than 12 nor more than 25 members appointed by the
Secretary based on their technical and other qualifications
from domestic industry, automakers, universities, professional
societies, Federal laboratories, financial institutions, and
environmental and other organizations as the Secretary deems
appropriate. The advisory committee shall have a chairperson,
who shall be elected by the members from among their number.
(c) Terms.--Members of the advisory committee shall be
appointed for terms of 3 years, with each term to begin not
later than 3 months after the date of enactment of Clean and
Secure Energy Act, except that one-third of the members first
appointed shall serve for 1 year, and one-third of the members
first appointed shall serve for 2 years, as designated by the
Secretary at the time of appointment.
(d) Review.--The advisory committee shall review and make
any necessary recommendations to the Secretary on--
(1) implementation and conduct of programs under this
Act;
(2) economic, technological, and environmental
consequences of the deployment of technologies related
to production, distribution, storage, and use of
hydrogen energy, and fuel cells;
(3) means for resolving barriers to implementing
hydrogen and fuel cell technologies; and
(4) the coordination plan and any updates thereto
prepared by the Secretary pursuant to section 108.
(e) Response.--The Secretary shall consider any
recommendations made by the advisory committee, and shall
provide a response to the advisory committee within 30 days
after receipt of such recommendations. Such response shall
either describe the implementation of the advisory committee's
recommendations or provide an explanation of the reasons that
any such recommendations will not be implemented.
(f) Support.--The Secretary shall provide such staff, funds
and other support as may be necessary to enable the advisory
committee to carry out its functions. In carrying out
activities pursuant to this section, the advisory committee may
also obtain the assistance of any Federal agency, on a
reimbursable basis or otherwise and with the consent of such
agency.
SEC. 108. COORDINATION PLAN.
(a) Plan.--The Secretary, in consultation with other
Federal agencies, shall prepare and maintain on an ongoing
basis a comprehensive plan for activities under this Act.
(b) Development.--In developing such plan, the Secretary
shall--
(1) consider the guidance of the National Hydrogen
Energy Roadmap published by the Department in November
2002 and any updates thereto;
(2) consult with the advisory committee;
(3) consult with interested parties from domestic
industry, automakers, universities, professional
societies, Federal laboratories, financial
institutions, and environmental and other organizations
as the Secretary deems appropriate.
(c) Contents.--At a minimum, the plan shall provide--
(1) an assessment of the effectiveness of the
programs authorized under this Act, including a summary
of recommendations of the advisory committee for
improvements in such programs;
(2) a description of proposed research, development,
and demonstration activities planned by the Department
for the next five years;
(3) a description of the role Federal laboratories,
institutions of higher education, small businesses, and
other private sector firms are expected to play in such
programs;
(4) cost and performance milestones that will be used
to evaluate the programs for the next five years; and
(5) any significant technical, regulatory, and other
hurdles that stand in the way of achieving such cost
and performance milestones, and how the programs will
address those hurdles; and
(6) to the extent practicable, an analysis of
Federal, State, local, and private sector hydrogen
research, development, and demonstration activities to
identify areas for increased intergovernmental and
private public sector collaboration.
(d) Report.--Not later than January 1, 2005, and biennially
thereafter, the Secretary shall transmit to Congress the
comprehensive plan developed for the programs authorized under
this Act, or any updates thereto.''
SEC. 109. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out the
purposes of this Act--
(1) such sums as may be necessary for fiscal years
1992 through 2003;
(2) $105,000,000 for fiscal year 2004;
(3) $150,000,000 for fiscal year 2005;
(4) $175,000,000 for fiscal year 2006;
(5) $200,000,000 for fiscal year 2007; and
(6) $225,000,000 for fiscal year 2008
----------
CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT
Public Law 101-625, as amended (42 U.S.C. 12701 et seq.)
Sec. 109.(a) * * *
(1) The Secretary of Housing and Urban Development
and the Secretary of Agriculture shall, not later than
[1 year after the date of the enactment of the Energy
Policy Act of 1992] September 30, 2003 jointly
establish, by rule, energy efficiency standards for--
(A) new construction of public and assisted
housing and single family and multifamily
residential housing (other than manufactured
homes) subject to mortgages insured under the
National Housing Act (12 U.S.C. 1701 et seq.);
[and]
(B) new construction of single family housing
(other than manufactured homes) subject to
mortgages insured, guaranteed, or made by the
Secretary of Agriculture under title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.)[.]
; and
(C) rehabilitation and new construction of
public and assisted housing funded by HOPE VI
revitalization grants under section 24 of the
United States Housing Act of 1937 (42
U.S.C.1437v), where such standards are
determined to be cost effective by the
Secretary of Housing and Urban Development.
(2) Contents.--Such standards shall meet or exceed
the requirements of the [Council of American Building
Officials Model Energy Code, 1992 (hereafter in this
section referred to as ``CABO Model Energy Code,
1992''), or, in the case of multifamily high rises, the
requirements of the American Society of Heating,
Refrigerating, and AirConditioning Engineers Standard
90.1-1989 (hereafter in this section referred to as
``ASHRAE Standard 90.1-1989'')] 2000 International
Energy Conservation Code and shall be cost-effective
with respect to construction and operating costs on a
life-cycle cost basis. In developing such standards,
the Secretaries shall consult with an advisory task
force composed of homebuilders, national, State, and
local housing agencies (including public housing
agencies), energy agencies, building code organizations
and agencies, energy efficiency organizations, utility
organizations, low-income housing organizations, and
other parties designated by the Secretaries.
(b) Model Energy Code.--If the Secretaries have not, within
[1 year after the date of the enactment of the Energy Policy
Act of 1992] September 30, 2003 established energy efficiency
standards under subsection (a) of this section, all new
construction of housing specified in such subsection shall meet
the requirements of [CABO Model Energy Code, 1992, or, in the
case of multifamily high rises, the requirements of ASHRAE
Standard 90.1-1989] the 2000 International Energy Conservation
Code.
(c) Revisions of [Model Energy Code]International
Energy Conservation Code.-- If the
requirements of [CABO Model Energy Code, 1992, or, in the case
of multifamily high rises, ASHRAE Standard 90.1-1989] the 2000
International Energy Conservation Code, are revised at any
time, the Secretaries shall, not later than 1 year after such
revision, amend the standards established under subsection (a)
of this section to meet or exceed the requirements of such
revised code or standard unless the Secretaries determine that
compliance with such revised code or standard would not result
in a significant increase in energy efficiency or would not be
technologically feasible or economically justified.
----------
HIGH-PERFORMANCE COMPUTING ACT OF 1991
Public Law 102-194, as amended (15 U.S.C. 5501 et seq.)
* * * * * * *
SEC. 4. DEFINITIONS.
As used in this Act, the term--
* * * * * * *
(3) ``high-performance computing'' [means] and
``networking and information technology'' mean advanced
computing, communications, and information
technologies, including scientific workstations,
supercomputer systems [(including vector supercomputers
and large scale parallel systems)], high-capacity and
high-speed networks, special purpose and experimental
systems, and applications and systems software;
(4) ``Internet'' means the international computer
network of both Federal and non-Federal interoperable
[packet switched] data networks;
* * * * * * *
SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.
(a) General Responsibilities.--As part of the [Program
described in subchapter I of this chapter, the Secretary of
Energy shall--
[(1) perform research and development on, and systems
evaluations of, highperformance computing and
communications systems;
[(2) conduct computational research with emphasis on
energy applications;
[(3) support basic research, education, and human
resources in computational science; and
[(4) provide for networking infrastructure support
for energy-related mission activities.] Networking and
Information Technology Research and Development
Program, the Secretary of Energy shall conduct basic
and applied research in networking and information
technology, with emphasis on supporting fundamental
research in the physical sciences and engineering, and
energy applications; providing supercomputer access and
advanced communication capabilities and facilities to
scientific researchers; and developing tools for
distributed scientific collaboration.
(b) Collaborative Consortia.--In accordance with the
[Program] Networking and Information Technology Research and
Development Program, the Secretary of Energy shall establish
High-Performance Computing Research and Development
Collaborative Consortia by soliciting and selecting proposals.
Each Collaborative Consortium shall--
* * * * * * *
(e) Authorization of Appropriations.--[(1) There are
authorized to be appropriated to the Secretary of Energy for
the purposes of the Program $93,000,000 for fiscal year 1992;
$110,000,000 for fiscal year 1993; $138,000,000 for fiscal year
1994: $157,000,000 for fiscal year 1995; and $169,000,000 for
fiscal year 1996.
[(2) There are authorized to be appropriated to the
Secretary of Energy for fiscal years 1992, 1993, 1994, 1995,
and 1996, such funds as may be necessary to carry out the
activities that are not part of the Program but are authorized
by this section.] There are authorized to be appropriated to
the Secretary of Energy to carry out the Networking and
Information Technology Research and Development Program such
sums as may be necessary for fiscal years 2004 through 2008.
* * * * * * *
---------- --
ENERGY POLICY ACT OF 1992
Public Law 102-486, as amended (42 U.S.C. 13211 et seq.)
* * * * * * *
TABLE OF CONTENTS
* * * * * * *
TITLE III--ALTERNATIVE FUELS--GENERAL
* * * * * * *
Sec. 311. United States Postal Service.
Sec. 312. Fuel Use Credits.
* * * * * * *
TITLE III--ALTERNATIVE FUELS--GENERAL
SEC. 301. DEFINITIONS.
For the purposes of this title, title IV, and title V
(unless otherwise specified)--
(1) * * *
(2) The term ``alternative fuel'' means methanol,
denatured ethanol, and other alcohols; mixtures
containing 85 percent or more (or such other
percentage, but not less than 70 percent, as determined
by the Secretary, by rule, to provide for requirements
relating to cold start, safety, or vehicle functions)
by volume of methanol, denatured ethanol, and other
alcohols with gasoline or other fuels; natural gas,
including liquid fuels domestically produced from
natural gas; liquefied petroleum gas; mixtures
containing 50 percent or more by volume of lease
condensate or fuels extracted from lease condensate;
hydrogen; coal-derived liquid fuels; fuels (other than
alcohol) derived from biological materials; electricity
(including electricity from solar energy); and any
other fuel the Secretary determines, by rule, is
substantially not petroleum and would yield substantial
energy security benefits and substantial environmental
benefits;
(3) The term ``alternative fueled vehicle'' means a
dedicated vehicle [or a dual fueled vehicle], a dual
fueled vehicle, or a neighborhood electric vehicle;
* * * * * * *
(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,
mixtures containing 50 percent or more by volume of
lease condensate or fuels extracted from lease
condensate, 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 `neighborhood electric vehicle' means a
motor vehicle--
(A) which meets the definition of a low-speed
vehicle, as such term is defined in part 571 of
title 49, Code of Federal Regulations;
(B) which meets the definition of a zero-
emission vehicle, as such term is defined in
section 86.1702-99 of title 40, Code of Federal
Regulations;
(C) which meets the requirements of Federal
Motor Vehicle Safety Standard No. 500; and
(D) which has a top speed of not greater than
25 miles per hour.
(16) the term ``lease condensate'' means a mixture,
primarily of pentanes and heavier hydrocarbons, which
is recovered as a liquid from natural gas in lease
separation facilities.
* * * * * * *
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) 25 percent in fiscal year 1996;
(B) 33 percent in fiscal year 1997;
(C) 50 percent in fiscal year 1998; and
(D) 75 percent in fiscal year 1999 and thereafter,
shall be alternative fueled vehicles.
(2) The Secretary, in consultation with the Administrator
of General Services where appropriate, may permit a Federal
fleet to acquire a smaller percentage than is required in
paragraph (1), so long as the aggregate percentage acquired by
all Federal fleets is at least equal to the required
percentage.
(3) For purposes of this subsection, the term ``Federal
fleet'' means 20 or more light duty motor vehicles, located in
a metropolitan statistical area or consolidated metropolitan
statistical area, as established by the Bureau of the Census,
with a 1980 population of more than 250,000, that are centrally
fueled or capable of being centrally fueled and are owned,
operated, leased, or otherwise controlled by or assigned to any
Federal executive department, military department, Government
corporation, independent establishment, or executive agency,
the United States Postal Service, the Congress, the courts of
the United States, or the Executive Office of the President.
Such term does not include--
(A) motor vehicles held for lease or rental to the
general public;
(B) motor vehicles used for motor vehicle
manufacturer product evaluations or tests;
(C) law enforcement vehicles;
(D) emergency vehicles;
(E) motor vehicles acquired and used for military
purposes that the Secretary of Defense has certified to
the Secretary must be exempt for national security
reasons; or
(F) nonroad vehicles, including farm and construction
vehicles.
(4) HYDROGEN VEHICLES.--
(A) Of the number of vehicles acquired under
paragraph (1)(D) by a Federal feet of 100 or more
vehicles, not less than--
(i) 5 percent in fiscal years 2006 and 2007;
(ii) 10 percent in fiscal years 2008 and
2009;
(iii) 15 percent in fiscal years 2010 and
2011; and
(iv) 20 percent in fiscal years 2012 and
thereafter, shall be hydrogen-powered vehicles
that meet standards for performance,
reliability, cost, and maintenance established
by the Secretary.
(B) The Secretary may establish a lesser percentage,
or waive the requirement under subparagraph (A) for any
fiscal year entirely, if hydrogen-powered vehicles
meeting the standards set by the Secretary pursuant to
subparagraph (A) are not available at a purchase price
that is less than 150 percent of the purchase price of
other comparable alternative fueled vehicles.
(C) The Secretary may by rule, delay the
implementation of the requirements under subparagraph
(A) in the event that the Secretary determines that
hydrogen-powered vehicles are not commercially or
economically available, or that fuel for such vehicles
is not commercially or economically available.
(D) The Secretary, in consultation with the
Administrator of General Services, may for reasons of
refueling infrastructure use and cost optimization,
elect to allocate the acquisitions necessary to achieve
the requirements in subparagraph (A) to certain Federal
fleets in lieu of requiring each Federal fleet to
achieve the requirements in subparagraph (A).
(c) Allocation of Incremental Costs.--The General Services
Administration and any other Federal agency that procures motor
vehicles for distribution to other Federal agencies [may] shall
allocate the incremental cost of alternative fuel vehicles over
the cost of comparable gasoline vehicles across the entire
fleet of motor vehicles distributed by such agency.
* * * * * * *
SEC. 304. REFUELING.
(a) In General.--Federal agencies shall, to the maximum
extent practicable, arrange for the fueling of alternative
fueled vehicles acquired under section 13212 of this title at
commercial fueling facilities that offer alternative fuels for
sale to the public. [If publicly]
(b) Commercial Arrangements.--
(1) In general.--If publically available fueling facilities
are not convenient or accessible to the location of Federal
alternative fueled vehicles purchased under section 13212 of
this title, Federal agencies are authorized to enter into
commercial arrangements for the purposes of fueling Federal
alternative fueled vehicles, including, as appropriate,
purchase, lease, contract, construction, or other arrangements
in which the Federal Government is a participant.
(2) Mandatory arrangements.--
(A) In general.--In a case in which publicly
available fueling facilities are not convenient
or accessible to the locations of 2 or more
Federal bleets for which hydrogen-powered
vehicles are required to be purchased under
section 303(b)(4), the Federal agency for which
the Federal fleets are maintained (or the
Federal agencies for which the Federal fleets
are maintained, acting jointly under a
memorandum of agreement providing for cost
sharing) shall enter into a commercial
arrangement as provided in paragraph (1).
(B) Sunset.--Subparagraph (A) ceases to be
effective at the end offiscal year 2013.
[(b)] (c) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary for carrying out
this section such sums as maybe necessary for fiscal years 1993
through 1998, to remain available until expended.
* * * * * * *
SECTION 312. [BIODIESEL] FUEL USE CREDITS.
[(a) Allocation of Credits.--
[(1) In general.--The Secretary shall allocate one
credit under this section to a fleet or covered person
for each qualifying volume of the biodiesel component
of fuel containing at least 20 percent biodiesel by
volume purchased after the date of the enactment of
this section for use by the fleet or covered person in
vehicles owned or operated by the fleet or covered
person that weigh more than 8,500 pounds gross vehicle
weight rating.
[(2) Exceptions.--No credits shall be allocated under
paragraph (1) for a purchase of biodiesel--
[(A) for use in alternative fueled vehicles;
or
[(B) that is required by Federal or State
law.
[(3) Authority to modify percentage.--The Secretary
may, by rule, lower the 20 percent biodiesel volume
requirement in paragraph (1) for reasons related to
cold start, safety, or vehicle function considerations.
[(4) Documentation.--A fleet or covered person
seeking a credit under this section shall provide
written documentation to the Secretary supporting the
allocation of a credit to such fleet or covered person
under paragraph (1).
[(b) Use of Credits.--
[(1) In general.--At the request of a fleet or
covered person allocated a credit under subsection (a),
the Secretary shall, for the year in which the purchase
of a qualifying volume is made, treat that purchase as
the acquisition of one alternative fueled vehicle the
fleet or covered person is required to acquire under
this title, title IV, or title V.
[(2) Limitation.--Credits allocated under subsection
(a) may not be used to satisfy more than 50 percent of
the alternative fueled vehicle requirements of a fleet
or covered person under this title, title IV, and title
V. This paragraph shall not apply to a fleet or covered
person that is a biodiesel alternative fuel provider
described in section 501(a)(2)(A).
[(c) Credit Not a Section 508 Credit.--A credit under this
section shall not be considered a credit under section 508.
[(d) Issuance of Rule.--The Secretary shall, before January
1, 1999, issue a rule establishing procedures for the
implementation of this section.
[(e) Collection of Data.--The Secretary shall collect such
data as are required to make a determination described in
subsection (f)(2)(B).
[(f) Definitions.--For purposes of this section--
[(1) the term ``biodiesel'' means a diesel fuel
substitute produced from nonpetroleum renewable
resources that meets the registration requirements for
fuels and fuel additives established by the
Environmental Protection Agency under section 211 of
the Clean Air Act; and
[(2) the term ``qualifying volume'' means--
[(A) 450 gallons; or
[(B) if the Secretary determines by rule that
the average annual alternative fuel use in
light duty vehicles by fleets and covered
persons exceeds 450 gallons or gallon
equivalents, the amount of such average annual
alternative fuel use.]
(a) Allocation.--
[(1) The Secretary shall allocate one credit under
this section to a fleet or covered person for each
qualifying volume of alternative fuel or biodiesel
purchased for use in an on-road motor vehicle operated
by the fleet that weighs more than 8,500 pounds gross
vehicle weight rating.
[(2) No credits shall be allocated under this section
for purchase of an alternative fuel or biodiesel that
is required by Federal or State law.
[(3) A fleet or covered person seeking a credit under
this section shall provide written documentation to the
Secretary supporting the allocation of a credit to such
fleet or covered person under this section.
(b) Use.--At the request of a fleet or covered person
allocated a credit under subsection (a), the Secretary shall,
for the year in which the purchase of a qualifying volume is
made, treat that purchase as the acquisition of one alternative
fueled vehicle the feet or covered person is required to
acquire under this title, title IV, or title V.
(c) Treatment.--A credit provided to a fleet or covered
person under this section shall be considered a credit under
section 508.
(d) Issuance of Rule.--Not later than 6 months after the
date of enactment of this section, the Secretary shall issue a
rule establishing procedures for the implementation of this
section.
(e) Definitions.--For the purposes of this section--
(1) the term ``biodiesel'' means a diesel fuel
substitute produced from nonpetroleum renewable
resources that meets the registration requirements for
fuels and fuel additives established by the
Environmental Protection Agency under section 211 of
the Clean Air Act; and
(2) the term ``qualifying volume'' means--
(A) in the case of biodiesel, when used as a
component of fuel containing at least 20
percent biodiesel by volume, 450 gallons, or if
the Secretary determines by rule that the
average annual alternative fuel use in light
duty vehicles by fleets and covered persons
exceeds 450 gallons or gallon equivalents, the
amount of such average annual alternative fuel
use; or
(B) in the case of an alternative fuel, the
amount of such fuel determined by the Secretary
to have an equivalent energy content to the
amount of biodiesel defined as a qualifying
volume pursuant to subparagraph (A).
* * * * * * *
TITLE V--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE FUELS,
AND ALTERNATIVE FUELED PRIVATE VEHICLES
* * * * * * *
SEC. 507. FLEET REQUIREMENT PROGRAM.
* * * * * * *
(p) Credits for New Qualified Hybrid Motor Vehicles.--
(1) Definitions.--In this subsection:
``(A) 2000 model year city fuel efficiency.--
The term ``2000 model year city fuel
efficiency'', with respect to a motor vehicle,
means fuel efficiency determined in accordance
with the following tables:
(i) In the case of a passenger
automobile:
The 2000 model year city
If vehicle inertia weight class is: fuel efficiency is:
1,500 or 1,750 lbs........................................ 43.7 mpg
2,000 lbs................................................. 38.3 mpg
2,250 lbs................................................. 34.1 mpg
2,500 lbs................................................. 30.7 mpg
2,750 lbs................................................. 27.9 mpg
3,000 lbs................................................. 25.6 mpg
3,500 lbs 22.0 mpg........................................
4,000 lbs................................................. 19.3 mpg
4,500 lbs................................................. 17.2 mpg
5,000 lbs................................................. 15.5 mpg
5,500 lbs................................................. 14.1 mpg
6,000 lbs................................................. 12.9 mpg
6,500 lbs................................................. 11.9 mpg
7,000 to 8,500 lbs........................................ 11.1 mpg.
(ii) In the case of a light truck:
The 2000 model year city
If vehicle inertia weight class is: fuel efficiency is:
1,500 or 1,750 lbs........................................ 37.6 mpg
2,000 lbs................................................. 33.7 mpg
2,250 lbs................................................. 30.6 mpg
2,500 lbs................................................. 28.0 mpg
2,750 lbs................................................. 25.9 mpg
3,000 lbs................................................. 24.1 mpg
3,500 lbs................................................. 21.3 mpg
4,000 lbs................................................. 19.0 mpg
4,500 lbs................................................. 17.3 mpg
5,000 lbs................................................. 15.8 mpg
5,500 lbs................................................. 14.6 mpg
6,000 lbs................................................. 13.6 mpg
6,500 lbs................................................. 12.8 mpg
7,000 to 8,500 lbs........................................ 12.0 mpg.
(B) Administrator.--The term `Administrator'
means the Administrator of the Environmental
Protection Agency.
(C) Energy storage device.--The term `energy
storage device' means an onboard rechargeable
energy storage system or similar storage
device.
(D) Fuel efficiency.--The term `fuel
efficiency' means the percentage increased fuel
efficiency specified in table 1 in paragraph
(2)(C) over the average 2000 model year city
fuel efficiency of vehicles in the same weight
class.
(E) Maximum available Power.--The term
`maximum available power', with respect to a
new qualified hybrid motor vehicle that is a
passenger vehicle or light truck, means the
quotient obtained by dividing--
(i) the maximum power available from
the electrical storage device of the
new qualified hybrid motor vehicle,
during a standard 10-second pulse power
or equivalent test; by
(ii) the sum of--
(I) the maximum power
described in clause (i); and
(II) the net power of the
internal combustion or heat
engine, as determined in
accordance with standards
established by the Society of
Automobile Engineers.
(F) Motor vehicle.--The term `motor vehicle'
has the meaning given the term in section 216
of the Clean Air Act (42 U.S.C. 7550).
(G) New qualified hybrid motor vehicle.--The
term ``new qualified hybrid motor vehicle''
means a motor vehicle that
(i) draws propulsion energy from both--
(I) an internal combustion
engine (or heat engine that
uses combustible fuel); and
(II) an energy storage
device;
(ii) in the case of a passenger
automobile or light truck--
(I) in the case of a 2001 or
later model vehicle, receives a
certificate of conformity under
the Clean Air Act (42 U.S.C.
7401 et seq.) and produces
emissions at a level that is at
or below the standard
established by a qualifying
California standard described
in section 243(e)(2) of the
Clean Air Act (42 U.S.C.
7583(e)(2)) for that make and
model year; and
(II) in the case of a 2004 or
later model vehicle, is
certified by the Administrator
as producing emissions at a
level that is at or below the
level established for Bin 5
vehicles in the Tier 2
regulations promulgated by the
Administrator under section
202(i) of the Clean Air Act (42
U.S.C. 7521(1))for that make
and model year vehicle; and
(iii) employs a vehicle braking
system that recovers waste energy to
charge an energy storage device.
(H) Vehicle inertia weight class.--The term
``vehicle inertia weight class'' has the
meaning given the term in regulations
promulgated by the Administrator for purposes
of the administration of title II of the Clean
Air Act (42 U.S.C. 7521 et seq.).
(2) Allocation.--
(A) In general.--The Secretary shall allocate
a partial credit to a fleet or covered person
under this title if the fleet or person
acquires a new qualified hybrid motor vehicle
that is eligible to receive a credit under each
of the tables in subparagraph (C).
(B) Amount.--The amount of a partial credit
allocated under subparagraph (A) for a vehicle
described in that subparagraph shall be equal
to the sum of--
(i) the partial credits determined
under table 1 in subparagraph (C); and
(ii) the partial credits determined
under table 2 in subparagraph (C).
(C) Tables.--The tables referred to in
subparagraphs (A) and (B) are as follows:
Table 1
Partial credit for increased fuel efficiency: Amount of credit:
At least 125% but less than 150% of 2000 model year city
fuel efficiency......................................... 0.14
At least 150% but less than 175% of 2000 model year city
fuel efficiency......................................... 0.21
At least 175% but less than 200% of 2000 model year city
fuel efficiency......................................... 0.28
At least 200% but less than 225% of 2000 model year city
fuel efficiency......................................... 0.35
At least 225% but less than 250% of 2000 model year city
fuel efficiency......................................... 0.50.
Table 2
Partial credit for ``Maximum Available Power'': Amount of credit:
At least 5% but less than 10%............................. 0.125
At least 10% but less than 20%............................ 0.250
At least 20% but less than 30%............................ 0.375
At least 30% or more...................................... 0.500.
(D) Use of credits.--At the request of a
fleet or covered person allocated a credit
under this subsection, the Secretary shall, for
the year in which the acquisition of the
qualified hybrid motor vehicle is made, treat
that credit as the acquisition of alternative
fueled vehicle that the fleet or covered person
is required to acquire under this title.
(3) Regulations.--The Secretary shall promulgate
regulations under which any Federal feet that acquires
a new qualified hybrid motor vehicle will receive
partial credits determined under the tables contained
in paragraph (2)(C) for purposes of meeting the
requirements of section 303.
(q) Credit for Substantial Contribution Towards Use of
Dedicated Vehicles in Noncovered Fleets.--
(1) Definitions.--In this subsection:
(A) Dedicated vehicle.--The term ``dedicated
vehicle'' includes--
(i) a light, medium, or heavy duty
vehicle; and
(ii) a neighborhood electric vehicle.
(B) Medium or heavy duty vehicle.--
The term ``medium or heavy duty
vehicle'' includes a vehicle that--
(i) operates solely on alternative
fuel; and
(ii)(I) in the case of a medium duty
vehicle, has a gross vehicle weight
rating of more than 8,500 pounds but
not more than 14,000 pounds; or
(II) in the case of a heavy duty
vehicle, has a gross vehicle weight
rating of more than 14,000 pounds.
(C) Substantial contribution.--The term
``substantial contribution'' (equal to 1 full
credit) means not less than $15,000 in cash or
in kind services, as determined by the
Secretary.
(2) Issuance of credits.--The Secretary shall issue a
credit to a fleet or covered person under this title if
the fleet or person makes a substantial contribution
toward the acquisition and use of dedicated vehicles by
a person that owns, operates, leases, or otherwise
controls a fleet that is not covered by this title.
(3) Multiple credits for medium and heavy duty
dedicated vehicles.--The Secretary shall issue 2 full
credits to a fleet or covered person under this title
if the fleet or person acquires a medium or heavy duty
dedicated vehicle.
(4) Use of credits.--At the request of a fleet or
covered person allocated a credit under this
subsection, the Secretary shall, for the year in which
the acquisition of the dedicated vehicle is made, treat
that credit as the acquisition of 1 alternative fueled
vehicle that the fleet or covered person is required to
acquire under this title.
(5) Limitation.--Per vehicle credits acquired under
this subsection shall not exceed the per vehicle
credits allowed under this section to a fleet for
qualifying vehicles in each of the weight categories
(light, medium, or heavy duty).
(r) Credit for Substantial Investment in Alternative Fuel
Infrastructure.--
(1) Definitions.--In this section, the term
``qualifying infrastructure'' means--
(A) equipment required to refuel or recharge
alternative fueled vehicles;
(B) facilities or equipment required to
maintain, repair, or operate alternative fueled
vehicles;
(C) training programs, educational materials,
or other activities necessary to provide
information regarding the operation,
maintenance, or benefits associated with
alternative fueled vehicles; and
(D) such other activities the Secretary
considers to constitute an appropriate
expenditure in support of the operation,
maintenance, or further widespread adoption of
or utilization of alternative fueled vehicles.
(2) Issuance of credits.--The Secretary shall issue a
credit to a fleet or covered person under this title
for investment in qualifying infrastructure if the
qualifying infrastructure is open to the general public
during regular business hours.
(3) Amount.--For the purposes of credits under this
subsection--
(A) 1 credit shall be equal to a minimum
investment of $25, 000 in cash or in kind
services, as determined by the Secretary; and
(B) except in the case of a Federal or State
fleet, no part of the investment may be
provided by Federal or State funds.
(4) Use of credits.--At the request of a fleet or
covered person allocated a credit under this
subsection, the Secretary shall, for the year in which
the investment is made, treat that credit as the
acquisition of 1 alternative fueled vehicle that the
fleet or covered person is required to acquire under
this title.
* * * * * * *
SEC. 508. CREDITS.
* * * * * * *
(e) Credit for Purchase of Medium and Heavy Duty Dedicated
Vehicles.--
(1) Definitions.--In this subsection:
(A) The term ``medium duty dedicated
vehicle'' means a dedicated vehicle that has a
gross vehicle weight rating of more than 8,500
pounds but not more than 14,000 pounds.
(B) The term ``heavy duty dedicated vehicle''
means a dedicated vehicle that has a gross
vehicle weight rating of more than 14,000
pounds.
(2) Credits for medium duty vehicles.--The Secretary
shall issue 2 full credits to a fleet or covered person
under this title, if the fleet or covered person
acquires a medium duty dedicated vehicle.
(3) Credits for heavy duty vehicles.--The Secretary
shall issue 3 full credits to a fleet or covered person
under this title, if the fleet or covered person
acquires a heavy duty dedicated vehicle.
(4) Use of credits.--At the request of a fleet or
covered person allocated a credit under this
subsection, the Secretary shall, for the year in which
the acquisition of the dedicated vehicle is made, treat
that credit as the acquisition of 1 alternative fueled
vehicle that the fleet or covered person is required to
acquire under this title.
(f) Credit for Investment in Alternative Fuel
Infrastructure.--
(1) Definitions.--In this subsection, the term
``qualifying infrastructure'' means--
(A) equipment required to refuel or recharge
alternative fueled vehicles;
(B) facilities or equipment required to
maintain, repair, or operate alternative fueled
vehicles;
(C) such other activities the Secretary
considers to constitute an appropriate
expenditure in support of the operation,
maintenance, or further widespread adoption of
or utilization of alternative fueled vehicles.
(2) Issuance of credits.--The Secretary shall issue a
credit to a fleet or covered person under this title
for investment in qualifying infrastructure if the
qualifying infrastructure is open to the general public
during regular business hours.
(3) Amount.--For the purposes of credits under this
subsection--
(A) 1 credit shall be equal to a minimum
investment of $25,000 in cash or equivalent
expenditure, as determined by the Secretary;
and
(B) except in the case of a Federal or State
fleet, no part of the investment may be
provided by Federal or State funds.
(4) Use of credits.--At the request of a fleet or
covered person allocated a credit under this
subsection, the Secretary shall, for the year in which
the investment is made, treat that credit as the
acquisition of 1 alternative fueled vehicle that the
fleet or covered person is required to acquire under
this title.
* * * * * * *
SEC. 515. ALTERNATIVE COMPLIANCE.
(a) Application for Waiver.--Any covered person subject to
the requirements of section 501 and any State subject to the
requirement of section 507(o) may petition the Secretary for a
waiver of the applicable requirements of section 501 or 507(o).
(b) Grant of Waiver.--The Secretary may grant a waiver of
the requirements of section 501 or 507(o) upon a showing that
the fleet owned, operated, leased, or otherwise controlled by
the State or covered person --
(1) will achieve a reduction in its annual
consumption of petroleum fuels equal to the reduction
in consumption of petroleum that would result from
compliance with section 501 or 507(o); and
(2) is in compliance with all applicable vehicle
emission standards established by the Administrator
under the Clean Air Act.
(c) Revocation of Waiver.--The Secretary shall revoke any
waiver granted under this section if the State or covered
person fails to comply with the requirements of subsection (b).
* * * * * * *
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) of this section. 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.]. If there are
insufficient appropriations to make full payment for electric
production from all qualified renewable energy facilities in
any given year, the Secretary shall assign 60 percent of
appropriated funds for that year to facilities that use solar,
wind, geothermal, or closed loop (dedicated energy crops)
biomass technologies to generate electricity, and assign the
remaining 40 percent to other projects. The Secretary may,
after transmitting to Congress an explanation of the reasons
therefor, alter the percentage requirements of the preceding
sentence.
(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] a not-for-profit electric cooperative, a public
utility described in section 115 of the Internal Revenue Code
of 1986, 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 of
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) the burning of municipal solid waste shall not be
treated as using biomass energy; and
(2) geothermal energy shall not include energy
produced from a dry steam geothermal reservoir which
has--
(A) no mobile liquid in its natural state;
(B) steam quality of 95 percent water; and
(C) an enthalpy for the total produced fluid
greater than or equal to 1200 Btu/lb (British
thermal units per pound).
(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 date of enactment of this section] after October 1,
2003, and 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 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)
of this section. For any facility, the amount of such
payment shall be 1.5 cents per kilowatt hour, adjusted
as provided in paragraph (2).
(2) Adjustments.--The amount of the payment made to
any person under this subsection as provided in
paragraph (1) shall be adjusted for inflation for each
fiscal year beginning after calendar year 1993 in the
same manner as provided in the provisions of section
29(d)(2)(B) of title 26, except that in applying such
provisions the calendar year 1993 shall be substituted
for calendar year 1979.
(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
date of 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 such sums as may be necessary to carry out the
purposes of this section.]
(g) Authorization of Appropriations.--
(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated such sums as may be
necessary to carry out this section for fiscal years
2003 through 2023.
(2) Availability of Funds.--funds made available
under paragraph (1) shall remain available until
expended.
* * * * * * *
TITLE XXVI--INDIAN ENERGY RESOURCES
[SEC. 2601. DEFINITIONS.
[For purposes of this title--
[(1) the term ``Indian tribe'' means any Indian
tribe, band, nation, or other organized group or
community, including any Alaska Native village or
regional or village corporation as defined in or
established pursuant to the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.), which is
recognized as eligible for the special programs and
services provided by the United States to Indians
because of their status as Indians; and
[(2) the term ``Indian reservation'' includes Indian
reservations; public domain Indian allotments; former
Indian reservations in Oklahoma; land held by
incorporated Native groups, regional corporations, and
village corporations under the provisions of the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et seq.);
and dependent Indian communities within the borders of
the United States whether within the original or
subsequently acquired territory. thereof, and whether
within or without the limits of a State.
[SEC. 2602. TRIBAL CONSULTATION.
[In implementing the provisions of this Act, the Secretary
of Energy shall involve and consult with Indian tribes to the
maximum extent possible and where appropriate and shall do so
in a manner that is consistent with the Federal trust and the
Government-to-Government relationships between Indian tribes
and the Federal Government.
[SEC. 2603. PROMOTING ENERGY RESOURCE DEVELOPMENT AND ENERGY VERTICAL
INTEGRATION ON INDIAN RESERVATIONS.
[(a) Demonstration Programs.--The Secretary of Energy, in
consultation with the Secretary of the Interior, shall
establish and implement a demonstration program to assist
Indian tribes in pursuing energy self-sufficiency and to
promote the development of a vertically integrated energy
industry on Indian reservations, in order to increase
development of the substantial energy resources located on such
Indian reservations. Such program shall include, but not be
limited to, the following components:
[(1) The Secretary shall provide development grants
to Indian tribes or to joint ventures which are 51
percent or more controlled by an Indian tribe to assist
Indian tribes in obtaining the managerial and technical
capability needed to develop the energy resources on
Indian reservations. Such grants shall include
provisions for management training for tribal or
village members, improving the technical capacity of
the Indian tribe, and the reduction of tribal
unemployment. Each grant shall be for a period of 3
years.
[(2) The Secretary shall provide grants, not to
exceed 50 percent of the project costs, for vertical
integration projects. For purposes of this paragraph,
the term ``vertical integration project'' means a
project that promotes the vertical integration of the
energy resources on an Indian reservation, so that the
energy resources are used or processed on such Indian
reservation. Such term includes, but is not limited to,
projects involving solar and wind energy, oil
refineries, the generation and transmission of
electricity, hydroelectricity, cogeneration, natural
gas distribution, and clean, innovative uses of coal.
[(3) The Secretary shall provide technical assistance
(and such other assistance as is appropriate) to -
Indian tribes for energy resource development and to
promote the vertical integration of energy resources on
Indian reservations.
[(b) Low Interest Loans.--
[(1) In general.--The Secretary shall establish a
program for making low interest loans to Indian tribes.
Such loans shall be used exclusively by Indian tribes
in the promotion of energy resource development and
vertical integration on Indian reservations.
[(2) Terms.--The Secretary shall establish reasonable
terms for loans made under this section which are to be
used to carry out the purposes of this section.
[(c) Authorization of Appropriations.--There are authorized
to be appropriated--
[(1) $10,000,000 for each of the fiscal years 1994,
1995, 1996, and 1997 to carry out the purposes of
subsection (a)(1);
[(2) $10,000,000 for each of the fiscal years 1994,
1995, 1996, and 1997 to carry out the purposes of
subsection (a)(2); and
[(3) $10,000,000 for each of the fiscal years 1994,
1995, 1996, and 1997 to carry out the purposes of
subsection (b).
[SEC. 2604. INDIAN ENERGY RESOURCE REGULATION.
[(a) Grants.--The Secretary of the Interior is authorized
to make annual grants to Indian tribes for the purpose of
assisting Indian tribes in the development, administration,
implementation, and enforcement of tribal laws and regulations
governing the development of energy resources on Indian
reservations.
[(b) Purpose.--The purposes for which funds provided under
a grant awarded under subsection (a) may be used include, but
are not limited to--
[(1) the training and education of employees
responsible for enforcing or monitoring compliance with
Federal and tribal laws and regulations;
[(2) the development of tribal inventories of energy
resources;
[(3) the development of tribal laws and regulations;
[(4) the development of tribal legal and governmental
infras ructure to regulate environmental quality
pursuant to Federal and tribal laws; and
[(5) the enforcement and monitoring of Federal and
tribal laws and regulations.
[(c) Other Assistance.--The Secretary of the Interior and
the Secretary of Energy shall cooperate with and provide
assistance to Indian tribes for the purpose of assisting Indian
tribes in the development, administration, and enforcement of
tribal programs. Such cooperation and assistance shall include
the following:
[(1) Technical assistance and training, including the
provi sion of necessary circulars and training
materials.
[(2) Assistance in the preparation and maintenance of
a continuing inventory of information on tribal energy
resources and tribal operations. In providing
assistance under this para graph, Federal departments
and agencies shall make available to Indian tribes all
relevant data concerning tribal energy resource
development consistent with applicable laws regarding
disclosure of proprietary and confidential information.
[(d) Authorization of Appropriations.--There are authorized
to be appropriated $10,000,000 for each of the fiscal years
1994, 1995, 1996, and 1997 to carry out the purposes of this
section.
SEC. 2605. INDIAN ENERGY RESOURCE COMMISSION.
[(a) Establishment.--There is hereby established the Indian
Energy Resource Commission (hereafter in this section referred
Ito as the ``Commission'').
(b) Membership.--The Commission shall consist of--
[(1) 8 members appointed by the Secretary of the
Interior from recommendations submitted by Indian
tribes with developable energy resources, at least four
of whom shall be elected tribal leaders;
[(2) 3 members appointed by the Secretary of the
Interior from recommendations:submitted by the
Governors of States that have Indian reservations with
developable energy resources;
[(3) 2 members appointed by the Secretary of the
Interior from among individuals in the private sector
with expertise in tribal and State taxation of energy
resources;
[(4) 2 members appointed by the Secretary of the
Interior from individuals with expertise in oil and gas
royalty management administration, including auditing
and accounting;
[(5) 2 members appointed by the Secretary of the
Interior from individuals in the private sector with
expertise in energy development;
[(6) 1 member appointed by the Secretary of the
Interior from recommendations submitted by National
environmental organizations;
[(7) the Secretary of the Interior, or his designee;
and
[(8) the Secretary of Energy, or his designee.
[(c) Appointments.--Members of the Commission shall be
appointed not later than 60 days after the date of the
enactment of this title.
[(d) Vacancies.--A vacancy in the Commission shall be
filled in the same manner as the original appointment was made.
A vacancy in the Commission shall not affect the powers of the
Commission.
[(e) Chairperson.--The members of the Commission shall
elect a Chairperson from among the members of the Commission.
[(f) Quorum.--Eleven members of the Commission shall
constitute a quorum, but a lesser number may hold hearings.
[(g) Organizational Meeting.--The Commission shall hold an
organizational meeting to establish the rules and procedures of
the Commission not later than 30 days after the members are
first appointed to the Commission.
[(h) Compensation.--Each member of the Commission who is
not an officer or employee of the United States shall be
compensated at a rate established by the Commission, not to
exceed the rate of basic pay payable for level IV of the
Executive Schedule under section 5315 of title.5, United States
Code, for each day (including travel time) during which such
member is engaged in the actual performance of duties as a
member of the Commission. Each member of the Commission who is
an officer or employee of the United States shall receive no
additional compensation.
[(i) Travel.--While away from their homes or regular places
of business in the performance of duties for the Commission,
all members of the Commission shall be allowed travel expenses,
including per diem in lieu of subsistence, at a rate
established by the Commission not to exceed the rates
authorized for employees under sections 5702 and 5703 of title
5, United States Code.
[(j) Commission Staff.--
[(1) Executive director.--The Commission shall
appoint an Executive Director who shall be compensated
at a rate established by the Commission not to exceed
the rate of basic pay payable for level V of the
Executive Schedule under section 5316 of title 5,
United States Code.
[(2) Additional personnel.--With the approval of the
Commission, the Executive Director may appoint and fix
the compensation of such additional personnel as the
Executive Director considers necessary to carry out the
duties of the Commission. Such appointments shall be
made in accordance with the provisions of title 5,
United States Code, governing appointments in the
competitive service, but at rates not to exceed the
rate of basic pay payable for level 15 of the General
Schedule.
[(3) Experts and consultants.--Subject to such rules
as may be issued by the Commission, the Chairperson may
procure temporary and intermittent services of experts
and consultants to the same extent as is authorized by
section 3109 of title 5, United States Code, but at
rates not to exceed $200 a day for individuals.
[(4) Personnel detail authorized.--Upon the request
of the Chairperson, the head of any Federal agency is
authorized to detail, on a reimbursable basis, any of
the personnel of such agency to the Commission to
assist the Commission in carrying out its duties under
this title. Such detail shall be without interruption
or loss of civil service status or privilege.
[(k) Duties of the Commission.--The Commission shall--
[(1) Develop proposals to address the dual taxation
by Indian tribes and States of the extraction of
mineral resources on Indian reservations;
[(2) make recommendations to improve the management,
administration, accounting and auditing of royalties
associated with the production of oil and gas on Indian
reservations;
[(3) develop alternatives for the collection and
distribution of royalties associated with production of
oil and gas on Indian reservations;
[(4) develop proposals on incentives to foster the
development of energy resources on Indian reservations;
[(5) identify barriers or obstacles to the
development of energy resources on Indian reservations,
and make recommendations designed to foster the
development of energy resources on Indian reservations
and promote economic development;
[(6) develop proposals for the promotion of vertical
integration of the development of energy resources on
Indian reservations; and
[(7) develop proposals on taxation incentives to
foster the development of energy resources on Indian
reservations including, but not limited to, investment
tax credits and enterprise zone credits.
[(l) Powers of the Commission.--The powers of the
Commission shall include the following:
[(1) For the purpose of carrying out its duties under
this section, the Commission may hold hearings, take
testimony, and receive evidence at such times and
places as the Commission considers appropriate. The
Commission may administer oaths or affirmations to
witnesses appearing before the Commission.
[(2) Any member or employee of the Commission may, if
authorized by the Commission, take any action which the
Commission is authorized to take by this section.
[(3) The Commission may secure directly from any
Federal agency such information as may be necessary to
enable the Commission to carry out its duties under
this section.
[(m) Commission Report.--
[(1) In general.--The Commission shall, within 12
months after funds are made available to carry out this
section, prepare and transmit to the President, the
Committee on Interior and Insular Affairs of the House
of Representatives, the Select Committee on Indian
Affairs: of the Senate, and the Committee on Energy and
Natural Resources of the Senate, a report containing
the recommendations and proposals specified in
subsection (k).
[(2) Review and comment.--Prior to submission of the
report required under this section, the Chairman shall
circulate a draft of the report to Indian tribes and
States that have Indian reservations with developable
energy resources and other interested tribes and States
for review and comment.
[(n) Authorization of Appropriations.--There are authorized
to be appropriated to the Commission $1,000,000 to carry out
this section. Such sum shall remain available, without fiscal
year limitation, until expended.
[(o) Termination.--The Commission shall terminate 30 days
after submitting the final report required by subsection (m).
[SEC. 2606. TRIBAL GOVERNMENT ENERGY ASSISTANCE PROGRAM.
[(a) Financial Assistance.--The Secretary may grant
financial assistance to Indian tribal governments, or private
sector persons working in cooperation with Indian tribal
governments, to carry out projects to evaluate the feasibility
of, develop options for, and encourage the adoption of energy
efficiency and renewable energy projects on Indian
reservations. Such grants may include the costs of technical
assistance in resource assessment, feasibility analysis,
technology transfer, and the resolution of other technical,
financial, or management issues identified by the applicants
for such grants.
[(b) Conditions.--Any applicant for financial assistance
under this section must evidence coordination and cooperation
with, and support from, local educational institutions and the
affected local energy institutions.
[(c) Considerations.--In determining the amount of
financial assistance to be provided for a proposed project, the
Secretary shall consider--
[(1) the extent of involvement of local educational
institutions and local energy institutions;
[(2) the ease and costs of operation and maintenance
of any project contemplated as a part of the project;
[(3) whether the measure will contribute
significantly to the development, or the quality of the
environment, of the affected Indian reservations; and
[(4) any other factors which the Secretary may
determine to be relevant to a particular project.
[(d) Cost-Share.--With the exception of grants awarded for
the purpose of feasibility studies, the Secretary shall require
at least 20 percent of the costs of any project under this
section to be provided from non-Federal sources, unless the
grant recipient is a for-profit private sector institution, in
which case the Secretary shall require at least 50 percent of
the costs of any project to be provided from non-Federal
sources.
[(e) Authorization of Appropriations.--There are authorized
to appropriated such sums as are necessary for the development
and implementation of the program established by this section.]
TITLE XXVI INDIAN ENERGY
SEC. 2601. DEFINITIONS.
For purposes of this title:
(1) The term ``Director'' means the Director of the
Office of Indian Energy Policy and Programs.
(2) The term ``Indian land'' means
(A) any land located within the boundaries of
an Indian reservation, pueblo, or rancheria;
(B) any land not located within the
boundaries of an Indian reservation, pueblo, or
rancheria, the title to which is held--
(i) in trust by the United States for
the benefit of an Indian tribe;
(ii) by an Indian tribe, subject to
restriction by the United States
against alienation; or
(iii) by a dependent Indian
community; and
(C) land conveyed to a Native Corporation
under the Alaska Native Claims Settlement Act
(43 U.S.C. 1601 et seq.).
(3) The term ``Indian reservation'' includes--
(A) an Indian reservation in existence in any
State or States as of the date of enactment of
this paragraph;
(B) a public domain Indian allotment;
(C) a former reservation in the State of
Oklahoma;
(D) a parcel of land owned by a Native
Corporation under the Alaska Native Claims
Settlement Act (43 U.S.C. 1601 et seq.); and
(E) a dependent Indian community located
within the borders of the United States,
regardless of whether the community is
located--
(i) on original or acquired territory
of the community; or
(ii) within or outside the boundaries
of any particular State.
(4) The term ``Indian tribe'' has the meaning given
the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
(5) The term ``Native Corporation'' has the meaning
given the term in section 3 of the Alaska Native Claims
Settlement Act (43 U.S. C. 1602).
(6) The term ``organization'' means a partnership,
joint venture, limited liability company, or other
unincorporated association or entity that is
established to develop Indian energy resources.
(7) The term ``Program'' means the Indian energy
resource development program established under section
2602(a).
(8) The term ``Secretary'' means the Secretary of the
Interior.
(9) The term ``tribal consortium'' means an
organization that consists of 2 or more entities, at
least 1 of which is an Indian tribe.
(10) The term ``tribal land'' means any land or
interests in land owned by any Indian tribe, band,
nation, pueblo, community, rancheria, colony or other
group, title to which is held in trust by the United
States or which is subject to a restriction against
alienation imposed by the United States.
(11) The term ``vertical integration of energy
resources'' means any project or activity that promotes
the location and operation of a facility (including any
pipeline, gathering system, transportation system or
facility, or electric transmission facility), on or
near Indian land to process, refine, generate
electricity from, or otherwise develop energy resources
on, Indian land.
SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.
(a) In General.--To assist Indian tribes in the development
of energy resources and further the goal of Indian self-
determination, the Secretary shall establish and implement an
Indian energy resource development program to assist Indian
tribes and tribal consortia in achieving the purposes of this
title.
(b) Grants and Loans.--In carrying out the Program, the
Secretary shall--
(1) provide development grants to Indian tribes and
tribal consortia for use in developing or obtaining the
managerial and technical capacity needed to develop
energy resources on Indian land;
(2) provide grants to Indian tribes and tribal
consortia for use in carrying out projects to promote
the vertical integration of energy resources, and to
process, use, or develop those energy resources, on
Indian land; and
(3) provide low-interest loans to Indian tribes and
tribal consortia for use in the promotion of energy
resource development and vertical integration or energy
resources on Indian land.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as are
necessary for each of fiscal years 2004 through 2014.
SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.
(a) Grants.--The Secretary may provide to Indian tribes and
tribal consortia, on an annual basis, grants for use in
developing, administering, implementing, and enforcing tribal
laws (including regulations) governing the development and
management of energy resources on Indian land.
(b) Use of Funds.--Funds from a grant provided under this
section may be used by an Indian tribe or tribal consortium
for--
(1) the development of a tribal energy resource
inventory or tribal energy resource on Indian land;
(2) the development of a feasibility study or other
report necessary to the development of energy resources
on Indian land;
(3) the development and enforcement of tribal laws
and the development of technical infrastructure to
protect the environment under applicable law; or
(4) the training of employees that--
(A) are engaged in the development of energy
resources on Indian land; or
(B) are responsible for protecting the
environment.
(c) Other Assistance.--To the maximum extent practicable,
the Secretary and the Secretary of Energy shall make available
to Indian tribes and tribal consortia scientific and technical
data for use in the development and management of energy
resources on Indian land.
SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY INVOLVING
ENERGY DEVELOPMENT OR TRANSMISSION.
(a) Leases and Agreements.--Subject to the provisions of
this section--
(1) an Indian tribe may, at its discretion, enter
into a lease or business agreement for the purpose of
energy development, including a lease or business
agreement for--
(A) exploration for, extraction of,
processing of, or other development of energy
resources on tribal land; and
(B) construction or operation of an electric
generation, transmission, or distribution
facility located on tribal land; or a facility
to process or refine energy resources developed
on tribal land; and
(2) a lease or business agreement described in
paragraph (1) shall not require the approval of the
Secretary under section 2103 of the Revised Statutes
(25 U.S.C. 81) or any other provision of law, if--
(A) the lease or business agreement is
executed in accordance with a tribal energy
resource agreement approved by the Secretary
under subsection (e);
(B) the term of the lease or business
agreement does not exceed--
(i) 30 years; or
(ii) in the case of a lease for the
production of oil and gas resources, 10
years and as long thereafter as oil or
gas is produced in paying quantities;
and
(C) the Indian tribe has entered into a
tribal energy resource agreement with the
Secretary, as described in subsection (e),
relating to the development of energy resources
on tribal land (including an annual trust asset
evaluation of the activities of the Indian
tribe conducted in accordance with the
agreement).
(b) Rights-of-Way for Pipelines or Electric Transmission or
Distribution Lines.--An Indian tribe may grant a right-of-way
over tribal land for a pipeline or an electric transmission or
distribution line without specific approval by the Secretary
if--
(1) the right-of-way is executed in accordance with a
tribal energy resource agreement approved by the
Secretary under subsection (e);
(2) the term of the right-of-way does not exceed 30
years;
(3) the pipeline or electric transmission or
distribution line serves--
(A) an electric generation, transmission, or
distribution facility located on tribal land;
or
(B) a facility located on tribal land that
processes or refines energy resources developed
on tribal land; and
(4) the Indian tribe has entered into a tribal energy
resource agreement with the Secretary, as described in
subsection (e), relating to the development of energy
resources on tribal land (including an annual trust
asset evaluation of the activities of the Indian tribe
conducted in accordance with the agreement.
(c) Renewals.--A lease or business agreement entered into
or a right-of-way granted by an Indian tribe under this section
may be renewed at the discretion of the Indian tribe in
accordance with this section.
(d) Validity.--No lease, business agreement, or right-of-
way under this section shall be valid unless the lease,
business agreement, or right-of-way is authorized in accordance
with tribal energy resource agreements approved by the
Secretary under subsection (e).
(e) Tribal Energy Resource Agreements.--
(1) On promulgation of regulations under paragraph
(9), an Indian tribe may submit to the Secretary for
approval a tribal energy resource agreement governing
leases, business agreements, and rights-of-way under
this section.
(2)(A) Not later than 180 days after the date on
which the Secretary receives a tribal energy resource
agreement submitted by an Indian tribe under paragraph
(1) (or such later date as may be agreed to by the
Secretary and the Indian tribe), the Secretary shall
approve or disapprove the tribal energy resource
agreement.
(B) The Secretary shall approve a tribal energy
resource agreement submitted under paragraph (1) if--
(i) the Secretary determines that the Indian
tribe has demonstrated that the Indian tribe
has sufficient capacity to regulate the
development of energy resources of the Indian
tribe; and
(ii) the tribal energy resource agreement
includes provisions that, with respect to a
lease, business agreement, or right-of-way
under this section--
(I) ensure the acquisition of
necessary information from the
applicant for the lease, business
agreement, or right-of-way;
(II) address the term of the lease or
business agreement or the term of
conveyance of the right-of-way;
(III) address amendments and
renewals;
(IV) address consideration for the
lease, business agreement, or right-of-
way;
(V) address technical or other
relevant requirements;
(VI) establish requirements for
environmental review in accordance with
subparagraph (C);
(VII) ensure compliance with all
applicable environmental laws;
(VIII) identify final approval
authority;
(IX) provide for public notification
of final approvals;
(X) establish a process for
consultation with any affected States
concerning potential off-reservation
impacts associated with the lease,
business agreement, or right-of-way;
and
(XI) describe the remedies for breach
of the lease, agreement, or right-of-
way.
(C) Tribal energy resource agreements submitted under
paragraph (1) shall establish, and include provisions
to ensure compliance with, an environmental review
process that, with respect to a lease, business
agreement, or right-of-way under this section, provides
for--
(i) the identification and evaluation of all
significant environmental impacts (as compared
with a no-action alternative), including
effects on cultural resources;
(ii) the identification of proposed
mitigation;
(iii) a process for ensuring that the public
is informed of and has an opportunity to
comment on any proposed lease, business
agreement, or right-of-way before tribal
approval of the lease, business agreement, or
right-of-way (or any amendment to or renewal of
the lease, business agreement, or right-of-
way); and
(iv) sufficient administrative support and
technical capability to carry out the
environmental review process.
(D) A tribal energy resource agreement negotiated
between the Secretary and an Indian tribe in accordance
with this subsection shall include--
(i) provisions requiring the Secretary to
conduct an annual trust asset evaluation to
monitor the performance of the activities of
the Indian tribe associated with the
development of energy resources on tribal land
by the Indian tribe; and
(ii) in the case of a finding by the
Secretary of imminent jeopardy to a physical
trust asset, provisions authorizing the
Secretary to reassume responsibility for
activities associated with the development of
energy resources on tribal land.
(3) The Secretary shall provide notice and
opportunity for public comment on tribal energy
resource agreements submitted under paragraph (1).
(4) If the Secretary disapproves a tribal energy
resource agreement submitted by an Indian tribe under
paragraph (1), the Secretary shall--
(A) notify the Indian tribe in writing of the
basis for the disapproval;
(B) identify what changes or other actions
are required to address the concerns of the
Secretary; and
(C) provide the Indian tribe with an
opportunity to revise and resubmit the tribal
energy resource agreement.
(5) If an Indian tribe executes a lease or business
agreement or grants a right-of-way in accordance with a
tribal energy resource agreement approved under this
subsection, the Indian tribe shall, in accordance with
the process and requirements set forth in the
Secretary's regulations adopted pursuant to subsection
(e)(9), provide to the Secretary--
(A) a copy of the lease, business agreement,
or right-of-way document (including all
amendments to and renewals of the document);
and
(B) in the case of a tribal energy resource
agreement or a lease, business agreement, or
right-of-way that permits payment to be made
directly to the Indian tribe, documentation of
those payments sufficient to enable the
Secretary to discharge the trust responsibility
of the United States as appropriate under
applicable law.
(6) The Secretary shall continue to have a trust
obligation to ensure that the rights of an Indian tribe
are protected in the event of a violation of the terms
of any lease, business agreement or right-of-way by any
other party to the lease, business agreement, or right-
of-way.
(7)(A) The United States shall not be liable for any
loss or injury sustained by any party (including an
Indian tribe or any member of an Indian tribe) to a
lease, business agreement, or right-of-way executed in
accordance with tribal energy resource agreements
approved under this subsection.
(B) On approval of a tribal energy resource agreement
of an Indian tribe under paragraph (1), the Indian
tribe shall be stopped from asserting a claim against
the United States on the ground that Secretary should
not have approved the Tribal energy resource agreement.
(8)(A) In this paragraph, the term `interested party'
means any person or entity the interests of which have
sustained or will sustain a significant adverse impact
as a result of the failure of an Indian tribe to comply
with a tribal energy resource agreement of the Indian
tribe approved by the Secretary under paragraph (2).
(B) After exhaustion of tribal remedies, and in
accordance with the process and requirements set forth
in regulations adopted by the Secretary pursuant to
subsection (e)(9), an interested party may submit to
the Secretary a petition to review compliance of an
Indian tribe with a tribal energy resource agreement of
the Indian tribe approved under this subsection.
(C) If the Secretary determines that an Indian tribe
is not in compliance with a tribal energy resource
agreement approved under this subsection, the Secretary
shall take such action as is necessary to compel
compliance, including--
(i) suspending a lease, business agreement,
or right-of-way under this section until an
Indian tribe is in compliance with the approved
tribal energy resource agreement; and
(ii) rescinding approval of the tribal energy
resource agreement and reassuming the
responsibility for approval of any future
leases, business agreements, or rights-of-way
associated with an energy pipeline or
distribution line described in subsections (a)
and (b).
(D) If the Secretary seeks to compel compliance of an
Indian tribe with an approved tribal energy resource
agreement under subparagraph (C)(ii), the Secretary
shall--
(i) make a written determination that
describes the manner in which the tribal energy
resource agreement has been violated;
(ii) provide the Indian tribe with a written
notice of the violation together with the
written determination; and
(iii) before taking any action described in
subparagraph (C)(ii) or seeking any other
remedy, provide the Indian tribe with a hearing
and a reasonable opportunity to attain
compliance with the tribal energy resource
agreement.
(E)(i) An Indian tribe described in subparagraph (D)
shall retain all rights to appeal as provided in
regulations promulgated by the Secretary.
(ii) The decision of the Secretary with respect to an
appeal described in clause (i), after any agency appeal
provided for by regulation, shall constitute a final
agency action.
(9) Not later than 180 days after the date of
enactment of the Indian Tribal Energy Development and
Self-Determination Act of 2003, the Secretary shall
promulgate regulations that implement the provisions of
this subsection, including--
(A) criteria to be used in determining the
capacity of an Indian tribe described in
paragraph (2)(B)(i), including the experience
of the Indian tribe in managing natural
resources and financial and administrative
resources available for use by the Indian tribe
in implementing the approved tribal energy
resource agreement of the Indian tribe; and
(B) a process and requirements in accordance
with which an Indian tribe may--
(i) voluntarily rescind an approved
tribal energy resource agreement
approved by the Secretary under this
subsection; and
(ii) return to the Secretary the
responsibility to approve any future
leases, business agreements, and
rights-of-way described in this
subsection.
(f) No Effect on Other Law.--Nothing in this section
affects the application of--
(1) any Federal environmental law;
(2) the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1201 et seq.); or
(3) except as otherwise provided in this title, the
Indian Mineral Development Act of 1982 (25 US. C. 2101
et seq.).
SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.
(a) Definitions.--In this section:
(1) The term ``Administrator'' means the
Administrator of the Bonneville Power Administration
and the Administrator of the Western Area Power
Administration.
(2) The term ``power marketing administration ``
means--
(A) the Bonneville Power Administration;
(B) the Western Area Power Administration;
and
(C) any other power administration the power
allocation of which is used by or for the
benefit of an Indian tribe located in the
service area of the administration.
(b) Encouragement of Indian Tribal Energy Development.--
Each Administrator shall encourage Indian tribal energy
development by taking such actions as are appropriate,
including administration of programs of the Bonneville Power
Administration and the Western Area Power Administration, in
accordance with this section.
(c) Action by the Administrator.--In carrying out this
section, and in accordance with existing law--
(1) each Administrator shall consider the unique
relationship that exists between the United States and
Indian tribes.
(2) power allocations from the Western Area Power
Administration to Indian tribes may be used to meet
firming and reserve needs of Indian-owned energy
projects on Indian land;
(3) the Administrator of the Western Area Power
Administration may purchase power from Indian tribes to
meet the firming and reserve requirements of the
Western Area Power Administration; and
(4) each Administrator shall not pay more than the
prevailing market price for an energy product nor
obtain less than prevailing market terms and
conditions.
(d) Assistance for Transmission System Use.--
(1) An Administrator may provide technical assistance
to Indian tribes seeking to use the high-voltage
transmission system for delivery of electric power.
(2) The costs of technical assistance provided under
paragraph (1) shall be funded by the Secretary of
Energy using nonreimbursable funds appropriated for
that purpose, or by the applicable Indian tribes.
(e) Power Allocation Study.--Not later than 2 years after
the date of enactment of the Indian Tribal Energy Development
and Self-Determination Act of 2003, the Secretary of Energy
shall submit to the Congress a report that--
(1) describes the use by Indian tribes of Federal
power allocations of the Western Area Power
Administration (or power sold by the Southwestern Power
Administration) and the Bonneville Power Administration
to or for the benefit of Indian tribes in service areas
of those administrations; and
(2) identifies--
(A) the quantity of power allocated to Indian
tribes by the Western Area Power
Administration;
(B) the quantity of power sold to Indian
tribes by other power marketing
administrations; and
(C) barriers that impede tribal access to and
use of Federal power, including an assessment
of opportunities to remove those barriers and
improve the ability of power marketing
administrations to facilitate the use of
Federal power by Indian tribes.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $750,000, which
shall remain available until expended and shall not be
reimbursable.
SEC 2606. INDIAN MINERAL DEVELOPMENT REVIEW.
(a) In General.--The Secretary shall conduct a review of
all activities being conducted under the Indian Mineral
Development Act of 1982 (25 U.S.C. 2101 et seq.) as of that
date.
(b) Report.--Not later than 1 year after the date of
enactment of the Indian Tribal Energy Development and Self-
Determination Act of 2003, the Secretary shall submit to the
Congress a report that includes--
(1) the results of the review;
(2) recommendations to ensure that Indian tribes have
the opportunity to develop Indian energy resources; and
(3) an analysis of the barriers to the development of
energy resources on Indian land (including legal,
fiscal, market, and other barriers), along with
recommendations for the removal of those barriers.
SEC 2607. WIND AND HYDROPOWER FEASIBILITY STUDY.
(a) Study.--The Secretary, in coordination with the
Secretary of the Army and the Secretary of the Interior, shall
conduct a study of the cost and feasibility of developing a
demonstration project that would use wind energy generated by
Indian tribes and hydropower generated by the Army Corps of
Engineers on the Missouri River to supply f rming power to the
Western Area Power Administration.
(b) Scope of Study.--The study shall--
(1) determine the feasibility of the blending of wind
energy and hydropower generated from the Missouri River
dams operated by the Army Corps of Engineers;
(2) review historical purchase requirements and
projected purchase requirements for firming and the
patterns of availability and use of firming energy;
(3) assess the wind energy resource potential on
tribal land and projected cost savings through a blend
of wind and hydropower over a 30-year period;
(4) determine seasonal capacity needs and associated
transmission upgrades for integration of tribal wind
generation; and
(5) include an independent tribal engineer as a study
team member.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary and Secretary of the Army
shall submit to Congress a report that describes the results of
the study, including--
(1) an analysis of the potential energy cost or
benefits to the customers of the Western Area Power
Administration through the blend of wind and
hydropower;
(2) an evaluation of whether a combined wind and
hydropower system can reduce reservoir fluctuation,
enhance efficient and reliable energy production, and
provide Missouri River management flexibility;
(3) recommendations for a demonstration project that
could be carried out by the Western Area Power
Administration in partnership with an Indian tribal
government or tribal consortium to demonstrate the
feasibility and potential of using wind energy produced
on Indian land to supply firming energy to the Western
Area Power Administration or any other Federal power
marketing agency; and
(4) an identification of--
(A) the economic and environmental costs or
benefits to be realized through such a Federal-
tribal partnership; and
(B) the manner in which such a partnership
could contribute to the energy security of the
United States.
(d) Funding.--
(1) There is authorized to be appropriated to carry
out this section $500,000, to remain available until
expended.
(2) Costs incurred by the Secretary in carrying out
this section shall be nonreimbursable.
* * * * * * *
----------
HUD DEMONSTRATION ACT OF 1993
Public Law 103-120, as amended (42 U.S.C. 9816 note)
* * * * * * *
SEC. 4. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE
HOUSING
(a) * * *
(b) Form of Assistance.--Assistance under this section may
be used for--
(1) training, education, support, and advice to
enhance the technical and administrative capabilities
of community development corporations and community
housing development organizations, including
capabilities regarding the provision of energy
efficient, affordable housing and residential energy
conservation measures;
(2) loans, grants, or predevelopment assistance to
community development corporations and community
housing development organizations to carry out
community development and affordable housing activities
that benefit low-income families, including such
activities relating to the provision of energy
efficient, affordable housing and residential energy
conservation measures that benefit low-income families.
* * * * * * *
----------
NORTH AMERICAN FREE TRADE AGREEMENT IMPLEMENTATION ACT
Part 2 of subtitle D of title V of Public Law 103-182 (22 U.S.C. 290m-
290m-3)
* * * * * * *
SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.
Consistent with the focus of the Bank's Charter on
environmental infrastructure projects, the Board members
representing the United States should use their voice and vote
to encourage the Bank to finance projects related to clean and
efficient energy, including energy conservation, that prevent,
control, or reduce environmental pollutants or contaminants.
* * * * * * *
----------
USEC PRIVATIZATION ACT
Subchapter A of chapter 1 of title III of Public Law 104-134, as
amended (42 U.S.C. 2297h)
* * * * * * *
SEC. 3112. URANIUM TRANSFERS AND SALES.
* * * * * * *
[(d) Inventory Sales.--(1) In addition to the transfers
authorized under subsections (c) and (e), the Secretary may,
from time to time, sell natural and low-enriched uranium
(including low-enriched uranium derived from highly enriched
uranium) from the Department of Energy's stockpile.
[(2) Except as provided in subsections (b), (c), and (e),
no sale or transfer of natural or low-enriched uranium shall be
made unless
[(A) the President determines that the material is
not necessary for national security needs,
[(B) the Secretary determines that the sale of the
material will not have an adverse material impact on
the domestic uranium mining, conversion, or enrichment
industry, taking into account the sales of uranium
under the Russian HEU Agreement and the Suspension
Agreement, and
[(C) the price paid to the Secretary will not be less
than the fair market value of the material.
[(e) Government Transfers.--Notwithstanding subsection
(d)(2), the Secretary may transfer or sell enriched uranium--
[(1) to a Federal agency if the material is
transferred for the use of the receiving agency without
any resale or transfer to another entity and the
material does not meet commercial specifications;
[(2) to any person for national security purposes, as
determined by the Secretary; or L(3) to any State or
local agency or nonprofit, charitable, or educational
institution for use other than the generation of
electricity for commercial use.]
(d)(1)(A) The aggregate annual deliveries of uranium in any
form (including natural uranium concentrates, natural uranium
hexa
fluoride, enriched uranium, and depleted uranium) sold or
transferred for commercial nuclear power end uses by the United
States Government shall not exceed 3,000,000 pounds
U3O8 equivalent per year through calendar year 2009.
Such aggregate annual deliveries shall not exceed 5,000,000
pounds U3O8 equivalent per year in calendar years
2010 and 2011. Such aggregate annual deliveries shall not
exceed 7,000,000 pounds U3O8 equivalent in calendar
year 2012. Such aggregate annual deliveries shall not exceed
10,000,000 pounds U3O8 equivalent per year in
calendar year 2013 and each year thereafter. Any sales or
transfers by the United States Government to commercial end
users shall be limited to long-term contracts of no less than 3
years duration.
(B) The recovery and extraction of the uranium component
from contaminated uranium bearing materials from United States
Government sites by commercial entities shall be the preferred
method of making uranium available under this subsection. The
uranium component contained in such contaminated materials
shall be counted against the annual maximum deliveries set
forth in this section, provided that uranium is sold to end
users.
(C) Sales or transfers of uranium by the United States
Government for the following purposes are exempt from the
provisions of this subsection--
(i) sales or transfers provided for under existing
law for use by the Tennessee Valley Authority in
relation to the Department of Energy's high-enriched
uranium or tritium programs;
(ii) sales or transfers to the Department of Energy
research reactor sales program;
(iii) the transfer of up to 3,293 metric tons of
uranium to the United States Enrichment Corporation to
replace uranium that the Secretary transferred, prior
to privatization of the United States Enrichment
Corporation in July 1998, to the Corporation on or
about June 30, 1993, April 20, 1998, and May 18, 1998,
and that does not meet commercial specifications;
(iv) the sale or transfer of any uranium for
emergency purposes in the event of a disruption in
supply to end users in the United States;
(v) the sale or transfer of any uranium in
fulfillment of the United States Government's
obligations to provide security of supply with respect
to implementation of the Russian HEU Agreement; and
(vi) the sale or transfer of any enriched uranium for
use in an advanced commercial nuclear power plant in
the United States with nonstandard fuel requirements.
(D) The Secretary may transfer or sell enriched uranium to
any person for national security purposes, as determined by the
Secretary.
(2) Except as provided in subsections (b) and (c), and in
paragraph (1)(B) and (C) of this subsection, no sale or
transfer of uranium in any form shall be made by the United
States Government unless--
(A) the President determines that the material is not
necessary for national security needs;
(B) the price paid to the Secretary will not be less
than the fair market value of the material, as
determined at the time that such material is contracted
for sale;
(C) prior to any sale or transfer, the Secretary
solicits the written views of the Department of State
and the National Security Council with regard to
whether such sale or transfer would have any adverse
effect on national security interests of the United
States, including interests related to the
implementation of the Russian HEU Agreement; and
(D) neither the Department of State nor the
National Security Council objects to such sale
or transfer.
The Secretary shall endeavor to determine whether a sale or
transfer is permitted under this paragraph within 30 days. The
Secretary's determinations pursuant to this paragraph shall be
made available to interested members of the public prior to
authorizing any such sale or transfer.
(3) Within 1 year after the date of enactment of this
subsection and annually thereafter the Secretary shall
undertake an assessment for the purpose of reviewing available
excess Government uranium inventories, and determining,
consistent with the procedures and limitations established in
this subsection, the level of inventory to be sold or
transferred to end users.
(4) Within 5 years after the date of enactment of this
subsection and biennially thereafter the Secretary shall report
to the Congress on the implementation of this subsection. The
report shall include a discussion of all sales or transfers
made by the United States Government, the impact of such sales
or transfers on the domestic uranium industry, the spot market
uranium price, and the national security interests of the
United States, and any steps taken to remediate any adverse
impacts of such sales or transfers.
(5) For purposes of this subsection, the term ``United
States Government'' does not include the Tennessee Valley
Authority.
---------- --
--------
NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996
Public Law 104-330, as amended (25 U.S.C. 4101 et seq.)
* * * * * * *
SEC. 202. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.
Affordable housing activities under this title are
activities, in accordance with the requirements of this title,
to develop or to support affordable housing for rental or
homeownership, or to provide housing services with respect to
affordable housing, through the following activities:
(1) * * *
(2) Development.--The acquisition, new construction,
reconstruction, or moderate or substantial rehabilitation of
affordable housing, which may include real property
acquisition, site improvement, development of utilities and
utility services, conversion, demolition, financing,
administration and planning, improvement to achieve greater
energy efficiency, and other related activities.
* * * * * * *
----------
LEGISLATIVE BRANCH APPROPRIATIONS ACT, 1999
Public Law 105-275 (2 U.S.C. 1815)
* * * * * * *
[Sec. 310. Energy conservation and management
The Architect of the Capitol--
(1) shall develop and implement a cost-effective
energy conservation strategy for all facilities
currently administered by Congress to achieve a net
reduction of 20 percent in energy consumption on the
congressional campus compared to fiscal year 1991
consumption levels on a Btu-per-gross-square-foot basis
not later than 7 years after October 21, 1998;
(2) shall submit to Congress no later than 10 months
after October 21, 1998, a comprehensive energy
conservation and management plan which includes life
cycle costs methods to determine the cost-effectiveness
of proposed energy efficiency projects;
(3) shall submit to the Committee on Appropriations
in the Senate and the House of Representatives a
request for the amount of appropriations necessary to
carry out this section;
(4) shall present to Congress annually a report on
congressional energy management and conservation
programs which details energy expenditures for each
facility, energy management and conservation projects,
and future priorities to ensure compliance with the
requirements of this section;
(5) shall perform energy surveys of all congressional
buildings and update such surveys as needed;
(6) shall use such surveys to determine the cost and
payback period of energy and water conservation
measures likely to achieve the required energy
consumption levels;
(7) shall install energy and water conservation
measures that will achieve the requirements through
previously determined life cycle cost methods and
procedures;
(8) may contract with nongovernmental entities and
employ private sector capital to finance energy
conservation projects and achieve energy consumption
targets;
(9) may develop innovative contracting methods that
will attract private sector funding for the
installation of energy-efficient and renewable energy
technology to meet the requirements of this section;
(10) may participate in the Department of Energy's
Financing Renewable Energy and Efficiency (FREE
Savings) contracts program for Federal Government
facilities; and
(11) shall produce information packages and ``how-
to'' guides for each Member and employing authority of
the Congress that detail simple, cost-effective methods
to save energy and taxpayer dollars.]
* * * * * * *
ENERGY ACT OF 2000
Public Law 106-469 (42 U.S.C. 6217)
* * * * * * *
SEC. 604. SCIENTIFIC INVENTORY OF OIL AND GAS RESERVES.
[(a) In General.--The Secretary of the Interior, in
consultation with the Secretaries of Agriculture and Energy,
shall conduct an inventory of all onshore Federal lands. The
inventory shall identify--
[(1) the United States Geological Survey reserve
estimates of the oil and gas resources underlying these
lands; and
[(2) the extent and nature of any restrictions or
impediments to the development of such resources.
[(b) Regular Update.--Once completed, the USGS reserve
estimates and the surface availability data as provided in
subsection (a)(2) shall be regularly updated and made publicly
available.
[(c) Inventory.--The inventory shall be provided to the
Committee on Resources of the House of Representatives and to
the Committee on Energy and Natural Resources of the Senate
within 2 years after the date of the enactment of this section.
[(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to implement
this section.]
(a) In General.--The Secretary of the Interior, in
consultation with the Secretaries of Agriculture and Energy,
shall conduct an inventory of all onshore Federal lands and
take measures necessary to update and revise this inventory.
The inventory shall identify for all federal lands--
(1) the United States Geological Survey estimates of
the oil and gas resources underlying these lands;
(2) the extent and nature of any restrictions or
impediments to the exploration, production and
transportation of such resources, including--
(A) existing land withdrawals and the
underlying purpose for each withdrawal;
(B) restrictions or impediments affecting
timeliness of granting leases;
(C) post-lease restrictions or impediments
such as conditions of approval, applications
for permits to drill, applicable environmental
permits;
(D) permits or restrictions associated with
transporting the resources; and
(E) identification of the authority for each
restriction or impediment together with the
impact on additional processing or review time
and potential remedies; and
(3) the estimates of oil and gas resources not
available for exploration and production by virtue of
the restrictions identified above.
(b) Reports.--The Secretary shall provide a progress report
to the Congress by October 1, 2006 and shall complete the
inventory by October 1, 2010.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to implement
this section.
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TITLE 5, UNITED STATES CODE
Sec. 5314. Positions at Level III.
* * * * * * *
Chairman, Consumer Product Safety Commission.
[Under Secretaries of Energy (2)] Under Secretaries of Energy (3).
Chairman, Commodity Futures Trading Commission.
* * * * *
Sec. 5315. Positions at Level IV.
* * * * *
Director, Bureau of Prisons, Department of Justice.
[Assistant Secretaries of Energy (6)] Assistant Secretaries of
Energy (8).
General Counsel of the Department of Energy.
Administrator, Economic Regulatory Administration, Department of
Energy. Administrator, Energy Information Administration,
Department of Energy. Inspector General, Department of
Energy.
Director, Office of Indian Energy Policy and Programs, Department of
Energy.
Director, Office of Electric Transmission and Distribution,
Department of Energy.
[Director, Office of Science, Department of Energy.]
Assistant Secretary of Labor for Mine Safety and Health.
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TITLE 23, UNITED STATE CODE
* * * * * * *
HIGHWAYS
* * * * * * *
CHAPTER 1. FEDERAL-AID HIGHWAYS
* * * * * * *
Subchapter I. General Provisions
* * * * * * *
Sec. 127. Vehicle weight limitations--Interstate System
(a) * * * and are applicable to State highways other than
the Interstate System, shall be applicable in lieu of the
requirements of this subsection. In order to promote reduction
of fuel use and emissions due to engine idling, the maximum
gross vehicle weight limit and the axle weight limit for any
motor vehicle equipped with an idling reduction technology
certified by the U.S. Department of Energy will be increased by
an amount necessary to compensate for the additional weight of
the idling reduction system, provided that the weight increase
shall be no greater than 400 pounds.
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TITLE 49, UNITED TATES 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) * * *
(b) Passenger Automobiles.--Except as provided in this
section, the average fuel economy standard for passenger
automobiles manufactured by a manufacturer in a model year
after model year 1984 shall be 27.5 miles a gallon or other
such number as the Secretary prescribes under subsection (c).
* * * * * * *
[(f) Considerations on Decisions on Maximum Feasible
Average Fuel Economy.--When deciding maximum feasible average
fuel economy under this section, the Secretary of
Transportation shall consider technological feasibility,
economic practicability, the effect of other motor vehicle
standards of the Government on fuel economy, and the need of
the United States to conserve energy.]
(f) Considerations.--When deciding maximum feasible average
fuel economy under this section, the Secretary of
Transportation shall consider the following matters:
(1) technological feasibility;
(2) economic practicability;
(3) the effect of other motor vehicle standards of
the Government on fuel economy;
(4) the need of the United States to conserve energy;
(5) the effects of fuel economy standards on motor
vehicle and passenger safety; and
(6) the effects of compliance with average fuel
economy standards on levels of employment in the United
States.
* * * * * * *
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] 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--
* * * * * * *
(d) Gaseous Fuel Dual Fueled Automobiles.--For any model of
gaseous fuel dual fueled automobile manufactured by a
manufacturer in model years [1993-2004] 1993-2003, the
Administrator shall measure the fuel economy for that model by
dividing 1.0 by the sum of--
* * * * * * *
(f) Extending Application of Subsections (B) and (D).--Not
later than December 31, [2001] 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] 2008 and explain the basis on which the
extension is granted; or
(2) * * *
(g) Study and Report.--Not later than [September 30, 2000]
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. * * *
* * * * * * *
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.]
(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 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.''.
* * * * * * *